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Personal Finance
#personalfinance #financialliteracy #wealthmanagement
Tax Saving Investment Options for Tax-Free Income in 2022-2023
Investors are always looking for options that generate tax-free income. The good news is that there are plenty of tax free investments in India for investors.
Listed below are tax free investments that meet a variety of needs and financial goals:
Sr No. Best Tax Free Investments Maximum Annual Investment Tax Benefits
1. Life Insurance
Rs. 1,50,000 (Rs 1.5 lakhs) Under Section 80C and Section 10(D)
2. PPF (Public Provident Fund)
Rs. 1,50,000 (Rs 1.5 lakhs) Under Section 80C and Section 10(D)
3. NPS (New Pension Scheme)
Rs. 1,50,000 (Rs 1.5 lakhs) Under Section 80CCD
4. Pension
Rs. 1,50,000 (Rs 1.5 lakhs) Under Section 80CCC
5. Life Insurance
Rs. 1,50,000 (Rs 1.5 lakhs) Under Section 80C
6. SCSS (Senior Citizens Saving Schemes)
Single Holding - Rs. 9 Lakhs
Joint Holding - Rs. 15 Lakhs Under Section 80C
Step towards financial freedom
#personalfinance #investments
Before you make a purchase ask yourself this:
"if nobody could see that I bought this, would I still want it?"
You'll quickly realize how much money you can save on bad spending.
#shopping
#personalfinance #financial #credit #stock #business
Credit is the new cash- What should you use?
Today you have the power to
buy a brand-new car or a well-furnished new house even if you cannot pay off
the entire amount upfront. Thanks to the credit system, gone are those days
when you should have pockets full of cash to fulfill your wishes. Credit is the
magic wand to grant your wishes. Credit is the new cash that may buy you almost
anything.
Choose Your Credit Option
Credit here means a system of purchasing products or services without paying the price upfront. You may make the payment in installments or pay in full at a future date. Interest is the fee charged for availing of this facility.
Choose
the credit option that best suits you depending upon your income, financial
obligations, and urgency. The new credit products or services are customized to
ensure your purchase to settlement process is fast, just a click away. Besides
the offers, reward points and discounts offered by credit issuers are like a
cherry on the cake.
Credit Card
You
may opt for a credit card to make the most of the credit limits sanctioned.
Different banks offer credit cards with competing offers, credit limits, and
discounts.
Benefits
of using credit cards:
•
Utilize higher
credit limit granted for purchases anywhere and anytime.
•
Interest-free period
up to 55 days depending upon credit card’s payment due date.
•
You get discounts,
offers, and cashback
•
Collect reward
points on your transactions and redeem them in exchange for products or
services.
• Free airport lounge access or spa treatment.
•
Disciplined paying
behavior is rewarded with improved credit scores.
The
number of credit cardholders increased from 29 million in March 2017 to 62
million in March 2021 in India post demonetization.
Buy Now Pay Later (BNPL)
Buy
Now Pay Later is what it sounds like, where you may buy anything now but have
the flexibility to make a repayment later. It allows you to purchase any product
or service from e-commerce giants like Flipkart and Amazon to a fintech-like
policy bazaar without paying a single penny upfront.
Benefits
of BNPL:
•
The credit limit
granted is relatively lower than credit cards
•
Lesser formalities
as compared to other credit systems.
•
Lesser interest-free
days are offered, ranging from 15 to a maximum of 45 days.
• Lower late payment interest charges.
•
Increase your credit
score if dues are paid on time.
BNPL
has already captured 3% of the market share in the online e-commerce payments
segment, and the number could go up to 9% by 2024. As per estimates, India’s
BNPL market will rocket to $45-50 billion by 2026 from $3-3.5 billion in 2021.
Estimated Monthly Instalments (EMI’s)
EMIs
are a form of credit granted by banks or financial institutions to help spread
the total cost burden over a specified period. When you want to buy a car or a
new house, you agree to convert your loan burden into monthly EMI. You may
possess the asset and start using it from day one.
Benefits
of EMI’s:
•
You may get a loan
amount as high as five times your annual salary. However, the loan amount
sanctioned depends upon your credit score, financials, and income.
•
You may possess the
asset you purchased immediately, so a dream of a new car or new house does not
need a waiting period.
•
Total interest
expense depends upon the tenure of the loan. The lower the tenure, the lower
the total interest expense to be paid.
• You may get tax exemptions when you purchase certain assets like a new house.
•
If you pay your dues
on time, your credit score may improve.
The
credit EMI segment will grow at a CAGR of 21% to become worth INR 205 billion
in 2026–27 from INR 84 billion in 2020–21 in India.
Conclusion:
Choosing
between cash or credit can be tricky, yet in today’s time, credit options
offered are so user-friendly that cash transactions have taken a backseat.
Besides, consuming any product or service without paying upfront makes credit
options a popular choice amongst people. So, what is your favorite credit
option?
The changing landscape of India’s credit industry
www.pwc.in
Step towards financial freedom
#personalfinance #investments
Useful quick rules in Personal Finance
Some basic rules in Personal Finance
1. 50-30-20 ratio
As a rule of thumb, you should allocate your budget as follows: 50% - "needs," 30% - "wants," and 20% - Investments.
2. 1-week spending rule
The
7-Day Rule is a method for avoiding impulsive purchasing. In this, you
allow yourself a seven-day "cooling-off time" before making purchases.
After 7 Days you can decide whether you still want that item or
not and purchase accordingly.
3. Rule of 72
Do you want
to double your money and want to know when your money will double? The
simple formula is to divide 72 by the current rate of return to find the
time it needs to double your money. By doing so you can predict when
your money will double. For example, if your current mutual fund return
is 12%, then it will take 6 years (72/12) to double your money. You can
use 72 divided by the number of years to get the rate of returns
required from a financial instrument to double your investment.
4. 3X emergency fund rule
The 3x emergency fund rule is that one should always have three times of their monthly income set aside for emergencies. It will be helpful in case of emergencies, such as job loss, sudden travel or medical emergency, etc.
5. 100 Minus age rule
Know what you own, and know why you own it.
#investments #savings #stockmarket
Best Ways To Save Your Taxes In India In 2022!
Visit: https://www.taxhelpdesk.in/income-tax-blogs/best-ways-to-save-taxes-in-2022
Best Ways To Save Your Taxes In 2022!
www.taxhelpdesk.in