Loan Expense – Stratiawire http://stratiawire.com/ Just another WordPress site Fri, 16 Jul 2021 08:56:17 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 http://stratiawire.com/wp-content/uploads/2021/07/icon-1-150x150.png Loan Expense – Stratiawire http://stratiawire.com/ 32 32 ETF loan demand ‘skyrockets’ as inflation concerns escalate http://stratiawire.com/etf-loan-demand-skyrockets-as-inflation-concerns-escalate/ http://stratiawire.com/etf-loan-demand-skyrockets-as-inflation-concerns-escalate/#respond Fri, 16 Jul 2021 04:00:57 +0000 http://stratiawire.com/etf-loan-demand-skyrockets-as-inflation-concerns-escalate/ Interested in ETFs? Visit our ETF Hub for investor insights and insights, market updates and analysis, and easy-to-use tools to help you select the right ETFs. Demand for exchange-traded funds investing in senior loans has exploded this year as investors seek respite from rising inflation. A net $ 7.3 billion has been pumped into the […]]]>

Interested in ETFs?

Visit our ETF Hub for investor insights and insights, market updates and analysis, and easy-to-use tools to help you select the right ETFs.

Demand for exchange-traded funds investing in senior loans has exploded this year as investors seek respite from rising inflation.

A net $ 7.3 billion has been pumped into the sector so far this year, according to CFRA Research, nearly doubling its asset base to $ 16 billion.

The trend is linked to rising inflation and interest rate expectations in the United States and elsewhere, leading investors to favor floating rate loans over fixed rate bonds.

“It’s a long-term model,” said Ben Johnson, director of global ETF research at Morningstar. “It’s almost a barometer of investor expectations about the future direction of interest rates. When people are concerned about the possibility of increases, we see inflows. “

“The demand for senior loan ETFs exploded in 2021 as investors became more comfortable investing in fixed income ETFs,” added Todd Rosenbluth, head of ETF and investment research. mutual funds at CFRA. “They are less sensitive to interest rates than traditional credit.

Senior Loan ETFs invest in speculative grade securities, just like high yield funds, which have experienced cash outflows lately but offer higher returns to investors short of yield. However, funds hold securities that are higher in capital structure and exhibit lower volatility.

Although senior loan ETFs made up just 0.6% of global fixed income assets at the start of the year, they accounted for 6.5% of net inflows in 2021, according to figures from CFRA and ETFGI, a firm of advice.

The figures mark a sudden turnaround in fortunes. Bill Ahmuty, head of the bond group at State Street Global Advisors, said senior loan mutual funds and ETFs experienced net outflows of around $ 65 billion between late 2018 and late 2020.

“In August / September of last year, people’s views on rates started to change. We have started to see long term rates go up. That’s when we pivoted and started to see a comeback in the asset class, ”he said.

“They are looking to reduce the duration of their portfolio in order to migrate to variable rate products.”

Net inflows into senior loan mutual funds and ETFs have reached $ 20 billion so far this year, Ahmuty said, with ETFs accounting for a disproportionate share, a fact he attributed to strong performance. of the fund’s structure during the volatility spike triggered by Covid last year.

The SPDR Blackstone Senior Loan ETF (SRLN), the second largest ETF in its category, has seen its assets triple to $ 6.5 billion since the start of the year. Pension funds, wealth advisers, insurance companies and even loan managers have joined in, using the fund to gain quick exposure to the asset class.

According to SPDR, loans have historically experienced volatility of 5.8% per annum, compared to 7.7% for high yield bonds. Average yields are generally a bit lower for senior loans, at 3.7% versus 4.2% for high yield bonds.

However, they tend to invest in less liquid securities and charge higher fees. The $ 6.7 billion Invesco Senior Loan (BKLN) ETF, the largest fund in the industry, had an expense ratio of 0.67% and Blackstone’s SRLN of 0.7%.

A large portion of Senior Loan ETFs are actively managed, including SRLN, First Trust Senior Loan ETF (FTSL), and Franklin Liberty Senior Loan ETF (FLBL). Some 57 percent of senior loan ETF assets are active, Rosenbluth said, an unusually high figure given that 90 percent of the broad fixed-income ETF market and 96 percent of all assets ETFs are passively managed.

Loan illiquidity “lends itself better to discretionary management than indexation,” adding “it’s not that difficult for active managers to outperform the benchmark,” Johnson said .

Rosenbluth said active funds have higher exposure to lower quality triple C and single B credits than passive ETFs, helping them outperform by around 1.5 to 2 percentage points so far this year.

“Active managers take more credit risk in the senior lending space. Active managers do their own analysis of credit and default risk, ”he said.

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How can SIP help parents save for their child’s college education? – Forbes Advisor INDIA http://stratiawire.com/how-can-sip-help-parents-save-for-their-childs-college-education-forbes-advisor-india/ http://stratiawire.com/how-can-sip-help-parents-save-for-their-childs-college-education-forbes-advisor-india/#respond Fri, 09 Jul 2021 16:30:49 +0000 http://stratiawire.com/how-can-sip-help-parents-save-for-their-childs-college-education-forbes-advisor-india/ Planning for your child’s future education begins with intention and a thorough understanding of the funding solutions available. Here’s why you should plan for your child’s education early and the avenues available to fund that long-term goal. Why should you save for your child’s education? Over the past 30 years, the cost of education has […]]]>

Planning for your child’s future education begins with intention and a thorough understanding of the funding solutions available. Here’s why you should plan for your child’s education early and the avenues available to fund that long-term goal.

Why should you save for your child’s education?

Over the past 30 years, the cost of education has increased exponentially in India. In the early 1990s, a middle-class Indian family living in a metropolitan city had to pay between 400 and 500 INR per month for their child’s primary education. Fast forward to 2021, this amount can range from 4,000 to 15,000 INR per month.

A report from the National Sample Survey Office (NSSO) said the annual cost of education in 2014 increased 2.75 times over 2008, while per capita income increased only 2.49 times. .

The report tells us that the cost of education outweighed the earning capacity of the average individual. This trend was also visible in villages where the cost of primary education increased from INR 826 to INR 2811 during the same period.

These statistics are also true for post-secondary and higher education institutions in India which have experienced a 10-12% annual increase in tuition fees over the past decade. An engineering degree, for example, can cost up to 4 lakhs per year at some universities.

With the decentralization of schools, the demand for top teachers and the adoption of new technologies in the classroom, educational institutions can justify these fee increases.

As a parent, it is important to know that if your child wants to continue their education at a reputable international university which costs INR 1 cr today, that amount will increase much more over the next 15 years.

An additional but often overlooked expense that Indian parents incur when sending their child abroad for their studies is the exchange rate. If we are considering paying your child’s tuition fees abroad from an exchange rate perspective, rupee owners will be at a disadvantage.

Over the past 15 years, India’s current account balance, relative interest rates and inflation rates have caused the rupee to weaken. Why is this so important? The depreciated value of the rupee can cost parents more over the overall education of their children in the long run.

What Should a Parent Do Amidst Rising Costs?

At first, it may seem daunting to find a solution to meet the financial expenses of your child’s education. No parent wants their child’s dreams to fade. With good planning, they wouldn’t have to.

Start early: Parents should choose a financial strategy dedicated to their child and instill in them the habit of saving for their higher education from an early age. Every parent’s situation is different, so there is no “perfect” or “magic” age to start with. The ideal age to start is when your child is an infant or has not yet been born. The sooner you start, the better.

Be disciplined: Equally important is that a parent be disciplined when making regular contributions to their child’s education fund. With the right weather, the right savings, and some discipline, the costs will seem a lot less scary.

Where should a parent start saving?

For long-term investments relating to higher education, systematic investment plans (SIPs) in mutual funds would be the ideal choice. A SIP is a recurring monthly investment in a mutual fund that is automatically debited from your bank account. SIPs help investors gain exposure to the stock markets while reducing risk because they invest monthly.

One of the benefits of investing in the mutual fund markets is compounding – a process in which your interest is reinvested to generate additional earnings. If you start investing when your child is young, 10 to 15 years can help you generate significant returns.

A SIP of 15,000 INR per month for 15 years can help you save 1 crore INR, as detailed in the table below:

This amount increases as you increase your monthly contribution. This is entirely possible because your income, whether it is from a salary or from a business, is likely to increase as you, as a parent, advance in your career.

Are mutual funds safe?

Mutual funds are transparent products. Information sheets will be provided to you when disclosures are made to help you assess the product offering. A mutual fund fact sheet is your guide in valuing a fund.

The information on the sheet will include the fund objective, name of the fund manager, date of inception, benchmark and corpus size. It will also highlight the fund’s strategy, its sector diversification and its most weighted positions.

In addition, they will also mention the past performance of the company and the key indicators to measure risk. This will give you an idea in terms of performance expectations as well as the risk profile of the fund.

Mutual funds are relatively inexpensive financial products with low management fees ranging from 0.5% to 1.25% and are managed by trained financial professionals who aim to generate above-market returns. . They will also give you regular updates and you can get out of your investment if the fund does not keep its promises.

To gain exposure to mutual funds, investors can use cutting-edge technology platforms that give them advice on how to choose the funds best suited to their goals and risk appetite. Investors who are more financially literate can invest directly in mutual funds.

What if I cannot save the required amount?

You may not always be able to hit the mark with a mutual fund plan. In cases where you find that there is a deviation from the amount you are trying to save, you may need a back-up plan.

For example, you could save for a university that costs INR 1.01 cr, but by the time your child is ready for college, they might want to attend a university that costs INR 1.21 cr. How do you make up for a gap of INR 20 lakh? In this scenario, you can use an education loan.

Following the development of a child’s dreams is not always easy. They can change their minds and go from being a teacher, an astronaut or a scientist to that of a physiologist. As parents, it’s important to level up and track your financial investments to make sure your child achieves their aspirations.

Just like your child’s opportunities, your financial plan should be diversified. As a financial strategy, you should try to cover most of the education costs with your equity (equity – accumulated through SIP) and bring in the filler amount through loans.

Let’s see what a student loan is, its advantages and why to benefit from it?

Study loans

A student loan is a type of loan used to help pay for college education. It covers tuition, living expenses, and other incidental expenses such as books.

There are three key aspects to consider when analyzing a student loan –

  1. Interest rate: Like other loans, student loans come with interest rates that vary depending on the lender. When evaluating a student loan, analyze the amount of interest you owe to make sure it matches your annual income so that you can repay the loan easily.

    You have to be careful if the interest rates are too high. In the event of default, the bank will be forced to liquidate your assets and recover the capital you borrowed.

  2. Collateral: A collateral is an item of value used to secure a loan, such as a property. It is important to understand the amount of collateral that will be required to take out a student loan for your child. The amount of collateral also differs among banks, and some loans may not even require collateral if the amount is below a certain limit.
  3. Margin: The margin is the money paid by the applicant out of his own pocket for his education expenses. In most cases, lenders do not provide full financing with the student loan. This is especially true for students going abroad.

Instead, you will need to contribute a certain amount of money (usually a fixed percentage) to the total expenses. If the loan margin is 15%, the lender will cover 85% of the total education expenses while the loan recipient will be responsible for the remaining 15%.

Eligibility Criteria for Student Loans in India

Banks and other non-bank financial corporations (NBFCs) will usually check the following criteria before approving your child’s education loan:

  • Age: Your child must be between 18 and 35 years old.
  • Academics: Your child should have a good academic record.
  • University acceptance: Your child must have received an admission / offer letter from a recognized university.

Tax implications of student loans

Although student loans carry interest, the amount of interest your child will have to pay may be deductible from their total taxable income. Under Section 80E of the Income Tax Act of India, this benefit can be claimed for a period of up to 8 years from the year the interest payment started.

As parents, it becomes extremely important to have a plan detailing your child’s interim higher education expenses. Instead of funneling extra money for short-term daily expenses, you can start by planning the path ahead and setting some of the parameters like education level, place of graduation, and deadlines. .

Some financial experts suggest that the safest way to make a fair estimate of the cost of education would be to assume the highest expenses. Either way, remember that the earlier you start, the better.

Plan for your child’s day after, today.


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Homeless woman struggles to find a safe haven for 4 girls | widow fights with four girls http://stratiawire.com/homeless-woman-struggles-to-find-a-safe-haven-for-4-girls-widow-fights-with-four-girls/ http://stratiawire.com/homeless-woman-struggles-to-find-a-safe-haven-for-4-girls-widow-fights-with-four-girls/#respond Tue, 06 Jul 2021 04:32:00 +0000 http://stratiawire.com/homeless-woman-struggles-to-find-a-safe-haven-for-4-girls-widow-fights-with-four-girls/ Thiruvananthapuram: “I don’t know where to go with my four children and how to make a living. I just want to provide safe shelter and a good education for my children, ”Sheeba said in tears. Sheeba’s life was turned upside down after her husband, who was a rickshaw driver, succumbed to COVID-19. After her death, […]]]>

Thiruvananthapuram: “I don’t know where to go with my four children and how to make a living. I just want to provide safe shelter and a good education for my children, ”Sheeba said in tears.

Sheeba’s life was turned upside down after her husband, who was a rickshaw driver, succumbed to COVID-19. After her death, Sheeba became powerless to make ends meet.

This homeless and unemployed mother has no idea how to take care of her four daughters. The four girls are studying in grades 10, 8, 6 and 3 at Vazhuthacaud Cotton Hill School.

“They received two cell phones to attend the online classes. But there is no money to buy books and a pen, ”Sheeba said.

Previously, Sheeba used to go looking for cleaning lady jobs. But at the moment, she is not looking for a job due to health issues.

Sheeba’s husband Dattu died of COVID-19 in December. He bought his autorickshaw after taking out a loan. Thus, the repayment of the loan is also interrupted. Dattu did not take out auto insurance for the rickshaw. Sheeba cannot therefore authorize any driver to take the rental vehicle.

“I cannot help my children with their studies. The lessons are very difficult and they need help. In the current situation, I can’t afford the tuition fees, ”Sheeba said.

Sheeba and her children currently live with her brother’s family in a rented house in Kattakada. His brother Dileep is a painter. Dileep also has two daughters who are students.

Meanwhile, the Cotton Hill LP School Authority has pledged monthly aid of Rs 5,000 to help the family.

The school authority is also considering building a house for the poor family if someone sponsors land.


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5 tips for overcoming financial anxiety 30% o … http://stratiawire.com/5-tips-for-overcoming-financial-anxiety-30-o/ http://stratiawire.com/5-tips-for-overcoming-financial-anxiety-30-o/#respond Mon, 05 Jul 2021 23:12:42 +0000 http://stratiawire.com/5-tips-for-overcoming-financial-anxiety-30-o/ Over the past year, many have seen their financial situation change. With that in mind, Shawbrook Bank conducted a study that revealed British concerns and concerns about personal loans, secured loans and understanding “financial jargon”. According to the report, 59% of Britons agree that the language used in personal loan applications and documents is difficult […]]]>

Over the past year, many have seen their financial situation change. With that in mind, Shawbrook Bank conducted a study that revealed British concerns and concerns about personal loans, secured loans and understanding “financial jargon”.

According to the report, 59% of Britons agree that the language used in personal loan applications and documents is difficult to understand. More than one in two Britons said it would prevent them from applying for a personal loan.

Initial assumptions about acceptance of particular groups also caused financial anxiety. The report found that one in three Britons don’t know whether self-employed people can be approved for a mortgage.

There are a number of ways to better prepare for your finances. Sally Conway of Shawbrook Bank provides five helpful tips that may help overcome and prevent financial anxiety.

1. Make a budget and stick to it

Budgeting is necessary to fund long-term efforts. Knowing the cash flow and the total amount spent is important when you plan to invest in a property or take out a loan.

All expenses should be included, yes even take out, to make sure every transaction is accounted for. When this is done, it is easy to see if more money is coming out than it is going in. If so, it would be best to try and cut unnecessary expenses.

Budgeting can seem daunting at first, but if it’s realistic it can be done. Keeping track of all expenses makes it easy to find where to cut back.

By budgeting properly, more Britons will feel in control of their finances and on their way to financing their dream property.

2. Learn about everything related to finance

Anxiety usually arises because of fear of the unknown. By learning about mortgages, personal loans, and secured loans, the application process will be much easier.

According to the study, one in three people were unsure of their credit rating. If they had found out their credit score before, they would have been better informed about the amount a lender would lend.

The study also showed that 34% said they would search for terminology they were unsure of on Google. If more people were to research what these unfamiliar terms mean, maybe it could reduce their anxiety as they would be more familiar.

Learning about financial products and money management makes people better prepared and more confident.

3. Ask for help or talk to your friends and family

The study showed that only 6% said they would not ask anyone for help, indicating that the majority did. Talking to friends and family can help. Maybe there are family or friends who have taken out a loan or taken out a mortgage before. Maybe they’re new to it too. The only way to find out is to ask.

If you prefer to keep financial data confidential, this is also available. There are independent organizations that are there to help you if financial advice or help is needed.

4. Start building an emergency fund or buffer

One thing everyone has learned from Covid-19 is that the future cannot be predicted. Building an emergency fund or buffer can help prepare if something unexpected happens. Three months’ worth of income is generally recommended.

5. Shop around and do your research

There are many financial products to choose from, so it is important to consider all of the options before committing to one. It is essential to research first what each financial product has to offer before signing the dotted line.

Financial anxiety, which some Britons experience in these uncertain times, can be overcome by implementing these five tips. Homeownership is a goal for many people, but by researching, creating an emergency fund, getting advice, learning about finances and budgeting, it can be done.

Every day, financial habits can be changed to put many people in a better position to buy property. Whether the plans are around the corner or in a few years, you better be prepared.


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Pursuing higher education now easier in Bengal http://stratiawire.com/pursuing-higher-education-now-easier-in-bengal/ http://stratiawire.com/pursuing-higher-education-now-easier-in-bengal/#respond Mon, 05 Jul 2021 19:08:07 +0000 http://stratiawire.com/pursuing-higher-education-now-easier-in-bengal/ Calcutta: There are only three steps left for any resident of Bengal, Class X and above up to age 40, to fulfill their dream of pursuing higher education with the launch of the student credit card program by the Mamata government Banerjee. He has become the Bengal model across India for increasing the Gross Enrollment […]]]>

Calcutta: There are only three steps left for any resident of Bengal, Class X and above up to age 40, to fulfill their dream of pursuing higher education with the launch of the student credit card program by the Mamata government Banerjee. He has become the Bengal model across India for increasing the Gross Enrollment Rate (GER) in higher education.

The unique program – for the first time in the country – facilitates a soft loan without collateral collateral up to Rs 10 lakhs with the Mamata Banerjee government as guarantor allowing students to pursue higher education without any financial constraint.

Bengal students will reap the benefits of the benevolent program under the supervision of the government’s higher education department when the recent All India Survey on Higher Education (AISHE) 2019-20 report found that TBS in higher education in India is only 27.1 percent for 2019-2020, which saw a slight increase of just 0.8 percent from the previous fiscal year. It stood at 26.3% in 2018-2019.

Followed by a detailed study and necessary research work, the program was launched, expanding the possibilities for students to undertake secondary, tertiary, undergraduate and postgraduate studies, including a professional degree, degree courses and doctoral or postdoctoral research or other similar courses. in any school, madrasah, college, university, IIT, IIM, IIEST, ISI, NLU, AIIMS, NIT, XLRI, BITS, SPA, NID, IISc, IIFT and ICFAI Business School and other affiliated institutes within and outside the country.

With Chief Minister Mamata Banerjee always encouraging more state IAS and IPS, students who study in various coaching institutions to take different competitions such as engineering, medicine, law, l ‘IAS, IPS, WBCS, UPSC, PSC, SSC, etc. ease of opting for the soft loan at only 4 percent per annum simple interest from the state cooperative bank and its affiliated central cooperative banks and central cooperative district banks and public or private sector banks. Even a one percent interest concession will be granted if the interest is fully served during the study period.

As the Chief Minister said that the tuition fee would not be enough to help a student pursue higher education as he has to bear heavy accommodation expenses if he moves to another part of the country or abroad , the credit card would also allow them to meet the accommodation expenses (either in the institute’s foyer, or as a paying guest living outside the home). It can also be used to purchase books, computer, laptop, tablet and to cover all other expenses necessary for the completion of the course such as study trips, project work, thesis, etc. . The student can incur expenses up to 30% of the total loan amount. sanctioned for non-institutional expenses and up to 20 percent for living expenses during the course of the course. The student simply needs to be a resident of Bengal for at least 10 years.

Keeping the promise she made before the election to roll out the same program, the Chief Minister launched the program on June 30 and said, “It is not just about fulfilling our promise. But it is a big step forward in securing the future of our students. community. The Student Credit Card Program is launched to make students’ dream come true and no longer any parent in Bengal has to repent of failing to organize money to help their neighborhoods higher education. I am proud to say that no one in the state anymore has to sell their land, their houses or any other property for their children’s higher education. Financial constraints will no longer form a barrier between the dream and the reality of our students to become doctor, engineer, professor, teacher, IAS and IPS “.

A state government official involved in the project said the process of obtaining the loan was kept very simple. A separate portal – https://wbscc.wb.gov.in/ – has been launched. It is enough to enter the portal and follow only two steps – “Register” and “Apply” – to reach the third step which is “sanctioned loan”. A separate “green color” button has been provided at the top of the portal for “student registration”. One will be directed to a new page by a single click on the same one where the applicant should enter basic details including name, date of birth, gender, Aadhaar number or Class X registration number as well as current study program and contact information. departments. The applicant will receive an “Applicant ID” and a password which should be used to apply for the loan by clicking on the “Student Login” button available on the same portal. The online application will be sent to the Department of Higher Education which will forward it after examination to the bank to issue the credit card after the necessary verifications. A student can benefit from the loan at any time during their studies. One will get a repayment period of 15 years for the same.

Most importantly, there will be life coverage on behalf of the student up to the sanctioned loan amount.

Even one can dial a dedicated toll free number 1-800-102-8014 or write to support-wbscc@bangla.gov.in for any assistance in this regard.

Banks will not impose unnecessary restrictions or conditions on securing collateral, nor will they insist on the same tangible or intangible form other than the joint obligation of parents or legal guardians as the government of the State to enter into an agreement with the banks This concerns.

Overwhelmed by the introduction of such a program, a class XII student Ankhi Bandyopadhyay said, “It seems that the dark cloud above my dream of becoming a doctor has been removed. I want to become self-sufficient to continue. my graduate studies. I am also confident that I will be successful in my business and repay the loan once I realize my dreams of becoming a doctor. ”

The program becomes crucial when the gross enrollment at the tertiary level has increased from 13.24 lakhs to 21.61 lakhs over the past 10 years with a huge expansion led by the Government of Bengal in schools and higher education institutions. Gross enrollment at upper secondary level increased from 11.8 lakhs to 16.6 lakhs after passing class X. Each year, around 12 lakhs and 9.5 lakhs students respectively qualify for class X and class exams. class XII in the state to pursue higher education.

In his message in this regard, State Education Minister Bratya Basu said that the priority of the Government of Bengal is to provide quality education to students in our State. The CM dreams of restoring the glory of Bengal, as we lead our country in the fields of arts and culture, science and technology, commerce and industries and our students must be trained in the advanced fields of education to make the dream come true. “I believe that this historically important step in the introduction of student credit cards will speed up the development process in Bengal,” he said.


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Know these rules before filing an ITR if you have suffered salary cuts or withdrawn PF http://stratiawire.com/know-these-rules-before-filing-an-itr-if-you-have-suffered-salary-cuts-or-withdrawn-pf/ http://stratiawire.com/know-these-rules-before-filing-an-itr-if-you-have-suffered-salary-cuts-or-withdrawn-pf/#respond Mon, 05 Jul 2021 15:03:04 +0000 http://stratiawire.com/know-these-rules-before-filing-an-itr-if-you-have-suffered-salary-cuts-or-withdrawn-pf/ The tax liability may be higher in the event of deferral of salary: Due to covid-19, many people have faced wage delays, aside from pay cuts and job losses. Therefore, in case of salary deferral, you need to make sure that you have paid the correct amount of tax on your salary income. Generally, employees […]]]>

The tax liability may be higher in the event of deferral of salary: Due to covid-19, many people have faced wage delays, aside from pay cuts and job losses. Therefore, in case of salary deferral, you need to make sure that you have paid the correct amount of tax on your salary income.

Generally, employees don’t care about the tax deduction because the employer does it for them. However, there is an anomaly in the tax law that may cause you to pay less taxes or reduce your employer’s deductions. This may result in a notice or penalty from the tax department. So, let’s start by understanding the tax law around the taxability of wages.

“According to the income tax law, wage income becomes taxable on the basis due or received, whichever comes first, while the employer is required to deduct the TDS (tax withheld at source) at the time of payment. payment, ”said Tarun Kumar, a Delhi-accountant on duty.

So, suppose the employer postponed the March salary and paid the same in April, i.e. the following fiscal year, the tax on it became due in March. As employees are also subject to withholding tax, you are expected to pay tax on it despite the fact that the employer will deduct TDS when paying wages.

“When the employer has not withheld tax on part of the salary, its payment having been deferred, the employee is required to pay withholding tax or self-assessment tax on this part. because the salary is taxable on a due basis. Failure to do so will result in the levy of interest and penalties, ”Kumar said. TDS deducted by the employer over the following financial year for the deferred part can be claimed as reimbursement.

Other than that, if there is a drop in pay, you have to make sure that the same is reflected on every element of the payslip and you get a revised contract. As in the event of a mismatch between the amount of tax deducted or the amount of tax due, this can be presented as proof to the tax service. “In the event of a revision of the CLC (reduction or increase), the same should also be reflected in the payslip. All elements of the salary such as base salary and allowances should be revised accordingly, ”Kumar said.

Display of exempt income: Last year, when many people were facing a financial crisis, they took money out of their provident accounts. The government authorized the withdrawal of non-refundable advances by employees from their provident fund accounts. In addition, even a second advance with regard to such a withdrawal from the EPF was authorized.

In accordance with these withdrawals, the EPF member could benefit from a non-refundable advance of three months on base salary and cost allowances or up to 75% of the amount credited to the member, whichever is less. being withheld. These withdrawals are tax free. However, the taxpayer is required to show them in the ITRs. “The” FAQ on the EPF advance to fight the Covid-19 pandemic “published by the EPFO ​​specifically exempted such an advance / withdrawal by providing that” income tax is not applicable on no advance used under the EPF scheme ”. As a result, the amount of this withdrawal can be declared “exempt income” in the RTI, ”said Suresh Surana, founder of RSM India.

Apart from this, a person can make a withdrawal from provident funds under certain conditions, which will have tax implications depending on the length of employment of the person. You must report these cash flows in the ITR in the appropriate manner.

Allowances are fully taxable: Many employers paid a lump sum or reimbursed the employee for spending money on furniture because of working conditions from home. Any such payment by the employer to the employee is fully taxable.

“Few employers have deducted TDS on such payments. But these indemnities or reimbursements are fully taxable. Therefore, in the event that an employee has received such compensation or has been reimbursed for invoices, he must ensure that this is reflected in Form 16; otherwise, he / she should pay taxes on the same, ”said Shailesh Kumar, partner, Nangia & Co. LLP.

View financial assistance received for covid-19 in ITR: In accordance with the newly announced government relief measure, any financial assistance received by an employee for covid treatment from the employer or any other person will be exempt from tax for fiscal year 21 and subsequent years. . This exempt income is generally indicated in the “exempt income” section of the RTI. However, final guidelines are awaited on the same subject.

So if you are filing or planning to file RTI for FY 21, be sure to avoid such mistakes.

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When to opt for the possibility of prepaying your mortgage? http://stratiawire.com/when-to-opt-for-the-possibility-of-prepaying-your-mortgage/ http://stratiawire.com/when-to-opt-for-the-possibility-of-prepaying-your-mortgage/#respond Mon, 05 Jul 2021 13:08:20 +0000 http://stratiawire.com/when-to-opt-for-the-possibility-of-prepaying-your-mortgage/ When the stock markets are doing well, interest rates are low, and you have excess money, you may wonder whether you should invest or prepay a home loan that you may have benefited from. . According to industry estimates, the average mortgage repayment term is around eight years, which means that most borrowers prepay these […]]]>

When the stock markets are doing well, interest rates are low, and you have excess money, you may wonder whether you should invest or prepay a home loan that you may have benefited from. .

According to industry estimates, the average mortgage repayment term is around eight years, which means that most borrowers prepay these loans.

It’s not surprising. When buying a home, the equivalent monthly payment (EMI) is an important part of the borrower’s payments. Most people stretch when buying a property.

However, a few years later, after increases and job changes, the EMI as a percentage of overall income declines. Most borrowers then begin to prepay their home loans with excess cash.

To decide whether to prepay your home loan, you will need to assess your current situation and determine whether it makes sense for you to prepay or continue with the loan. Since there is no simple answer to the question and expert opinions differ, you will need to answer this call at your own discretion.

If you look strictly at the numbers, there’s a rule of thumb that suggests that if you can earn better after-tax returns than the current interest rate on your home loan, don’t prepay. Instead, use that money to invest.

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For example, mortgage loans from banks could currently be at a rate of 7-7.5%. Most planners expect after-tax returns of 9-10% for long-term stocks. As a rule of thumb, starting a long-term systematic investment plan (SIP) turns out to be a better option because the returns on investment are about two percentage points higher than the mortgage interest rate.

“No one can predict the performance of the stock market. Current stock valuations may be stretched, and over the next several years, returns may remain modest. In such a case, the borrower may think it was a better option to prepay than to invest in stocks, ”said Arnav Pandya, founder of Moneyeduschool, an Ahmedabad-based financial education initiative.

Therefore, don’t just rely on the rule of thumb.

Before you decide to prepay your home loan, make sure your basics are covered. You should have an emergency fund that covers 6 to 12 months of expenses. In addition, there should be adequate life and health insurance coverage.

“The individual must also check whether he is saving enough to reach his goals. If individuals are behind in their goals, it is best to increase monthly investments first, ”Pandya said.

A better strategy is to use the profits from your investments to prepay your home loan rather than a bonus or extra money you’ve saved on your income. “The individual can use part of the profits to prepay the mortgage instead of using the capital. Whether individuals use 10% or 50% of the profits is entirely up to them. The idea is not to use capital, ”explains Kartik Jhaveri, director of Transcend Consultants.

Some experts believe that an individual should not pay up front if the tax benefits available on a home loan represent a significant portion of income and have time to retire. A person stands up Tax benefit of 1.5 lakh on the main part of the mortgage and up to 2 lakh on the interest part.

“If the tax savings are a big part of income, it’s best not to pay up front. The extra money available each year will provide liquidity, ”said Malhar Majumder, Kolkata-based distributor and mutual fund partner, Positive Vibes.

He added: “It would make sense to only prepay when retirement is approaching and the person wants to pay off all the debts.”

Also, before making a decision, assess if you have significant expenses a few months later.

According to financial planners, people often prepay their loans with additional cash and then take out a loan or swipe a credit card to meet a hefty expense a few months later.

First assess your situation, then decide whether you should prepay or invest the excess cash.

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To buy a car ? Don’t neglect these 7 expenses http://stratiawire.com/to-buy-a-car-dont-neglect-these-7-expenses/ http://stratiawire.com/to-buy-a-car-dont-neglect-these-7-expenses/#respond Mon, 05 Jul 2021 13:00:09 +0000 http://stratiawire.com/to-buy-a-car-dont-neglect-these-7-expenses/ From insurance to warranties to finance charges, there are many hidden costs when it comes to buying a car that are not reflected in the sticker price. If you’re shopping for a car, the best way to budget and narrow down your options is to consider the total cost of owning a car. Before closing […]]]>

From insurance to warranties to finance charges, there are many hidden costs when it comes to buying a car that are not reflected in the sticker price. If you’re shopping for a car, the best way to budget and narrow down your options is to consider the total cost of owning a car.

Before closing the deal on your next vehicle, make sure you get the big picture, including these often overlooked expenses.

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1. Auto insurance

Auto insurance is one of the biggest monthly expenses associated with owning a car. While the cost of insurance depends in part on your profile and driving history, it also largely depends on the make and model of your car. Luxury cars and sports cars, for example, are among the most expensive to insure. On the other hand, reliable family vehicles and cars with lots of safety features tend to be more affordable to insure.

That is why it is important to shop around and get auto insurance quotes for any vehicle you are considering. Knowing the difference between insurance costs can help you narrow down your choices if you are choosing between several different vehicles. The best cheap car insurance will come with a low monthly premium, and insurance companies will often give you a big discount for an upfront payment of six months or a year.

2. Routine maintenance

Car maintenance can cost nearly $ 800 a year on average, according to AAA, making it one of the biggest costs for owning a car. This number can also vary widely depending on the type of car you buy and its age.

Of course, newer cars will require less maintenance, but it can cost more than maintaining older used cars. But the make of the car – and even the model and year – can be just as important when it comes to estimating maintenance costs. Be sure to research the required maintenance for any car you look at, and pay attention to the cost of routine maintenance items – such as oil changes and filter changes – as well as common mechanical or electrical issues with it. your make and model of the car.

3. Guarantees

All new cars come with a manufacturer’s warranty, and some used cars may still have time on their manufacturer’s warranty if they are only a year or two old. If you are looking for a used car that is out of warranty, you will need to consider whether it is worth buying an extended warranty or a dealer warranty.

While these warranties can save you money if you need a major repair, they can also add several thousand dollars to the cost of the car. That being said, you can often negotiate with a dealer to significantly reduce the price of a warranty. If you decide you want a warranty, be sure to research all of your options and factor them into the purchase price of the car.

4. Gas

Gasoline is another big expense that can vary widely depending on the type of car you get. Even on cars of similar sizes, you may find that there is a substantial difference in gas mileage.

This is a cost that you will pay on a regular basis, so be sure to factor in your car’s fuel economy. Opting for a car with even slightly better gas mileage can save you a lot of money in the long run, especially if you use it for daily commuting or for long road trips.

5. Resale value

Many car buyers do not consider the resale value of a car at all. However, depreciation is the # 1 cost of owning a car – on average, your car loses $ 313 in value each month, according to AAA.

You can make it a point to look for cars that hold their value particularly well. This may not be important if you intend to keep your car for a long time, but if you think you could sell or trade it in the next few years, resale value should be a priority. Some brands of cars that tend to have high resale value include:

6. License, registration and taxes

This is a lower cost than some of the ones mentioned above, but it’s still important to factor this into your car purchase budget. Your license plate fees will be the same regardless of what car you buy, but some states calculate your license fee based on the value, age, or weight of your car.

Taxes vary from state to state, but in most cases the taxes you pay largely depend on the sale price or value of your vehicle. If you buy a car in one of the few states without sales tax, you won’t have to add it to the list.

7. Financial costs

Unless you’re paying for your car in cash, you’ll need to factor finance charges – or interest – into the overall cost of your monthly payments. Fortunately, if you have good credit, you should be able to qualify for a car loan at a fairly low interest rate. For example, if you qualify for a $ 15,000 car loan with an interest rate of 3.5% and pay it off in five years, you will end up spending $ 1,373 in interest over five years.

Be sure to shop around for pre-approval to get the lowest possible interest rate. You can also take your pre-approval letters to the dealership and ask if they offer financing that can beat all the rates offered by your local bank or credit union.

When you compare your favorite cars, adding estimates for these often overlooked costs will help you choose the best vehicle for you.


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Paytm will provide mini-loans of up to 1000 to postpaid users for monthly expenses http://stratiawire.com/paytm-will-provide-mini-loans-of-up-to-1000-to-postpaid-users-for-monthly-expenses/ http://stratiawire.com/paytm-will-provide-mini-loans-of-up-to-1000-to-postpaid-users-for-monthly-expenses/#respond Mon, 05 Jul 2021 10:54:06 +0000 http://stratiawire.com/paytm-will-provide-mini-loans-of-up-to-1000-to-postpaid-users-for-monthly-expenses/ Are you a Paytm user? If so, you will read amazing news regarding cashback and credit on your monthly expenses. On Monday, Paytm is announcing a special statement regarding upcoming credit for its users who use Paytm for their spending. It recently launched an offer for Postpaid Mini, an extension of its Buy Now, Pay […]]]>



Are you a Paytm user? If so, you will read amazing news regarding cashback and credit on your monthly expenses. On Monday, Paytm is announcing a special statement regarding upcoming credit for its users who use Paytm for their spending. It recently launched an offer for Postpaid Mini, an extension of its Buy Now, Pay Later service. Now let’s move on to all the necessary points regarding the news.

The current offer Buy Now, Pay Later gives all customers an incredible cash flow and necessary expense management benefit during this pandemic. This service was launched in partnership with Aditya Birla Finance Ltd.

In this plan, the company is ready to offer loans ranging from Rs 250 to Rs 1000 in addition to Paytm Postpaid instant credit of up to Rs 60,000. This can help Paytm users to solve the monthly expense problem. . This will include mobile top-up, DTH top-ups, gas cylinder reservations, electricity and water bills, shopping at the Paytm mall and more.

Users will have 30 days to repay the loan amount and it will be at 0% interest. Even there is no charge on the loan amount. This decision may attract more users for Paytm and the greater upgrade of their services.

You can use this Paytm Postpaid credit at any Paytm merchant across the country. Paytm Postpaid is currently accepted by over millions of merchants across the country. Users can use it for any expense including Kirana stores and drugstores etc. Paytm Postpaid is available in over 550 cities in India.

The company has taken this decision to resolve the liquidity of funds between the different Paytm users and wants to give a little support to their monthly needs which cannot be ignored. Users can pay this amount after the period mentioned above. They can pay the amount through their bank account or by debit or credit card.


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New home sales hit 12-month low http://stratiawire.com/new-home-sales-hit-12-month-low/ http://stratiawire.com/new-home-sales-hit-12-month-low/#respond Sun, 04 Jul 2021 15:32:09 +0000 http://stratiawire.com/new-home-sales-hit-12-month-low/ There have been a very limited number of existing homes available for purchase in today’s real estate market, so some buyers have turned to newly built homes as a more viable, albeit potentially expensive, alternative. But new-build sales haven’t really taken off. New home sales – those that apply to newly built homes – fell […]]]>

There have been a very limited number of existing homes available for purchase in today’s real estate market, so some buyers have turned to newly built homes as a more viable, albeit potentially expensive, alternative. But new-build sales haven’t really taken off.

New home sales – those that apply to newly built homes – fell in May, hitting a 12-month low. Specifically, this drop was measured at 5.9% from April’s figures, according to data from the US Census Bureau and the Department of Housing and Urban Development.

One interesting thing is that new home sales fell in May despite the inventory of available homes dropping from 315,000 to 330,000 nationwide. But much of the reason for the drop could come down to cost.

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It is getting harder and harder to buy a newly built house

In the first quarter of 2021, new homes accounted for 26% of total home sales. Yet many buyers today may have no choice but to miss out on new construction due to one major factor: cost.

Since last year, there has been a massive shortage of lumber and other commonly used building materials, causing a demand crisis. As such, prices are pushed up to the point where buyers today can expect to spend around $ 36,000 more for a typical new build, on average.

Can you afford a newly built house?

When buying an existing home, you can often get away with less than 20% at closing (although this translates into private mortgage insurance if you take out a conventional home loan). But often mortgage lenders require a 20% down payment on new construction, which means you’ll have to shell out more money up front. Add to that the fact that newly built homes tend to cost more than existing homes – and cost more these days – and you might find that buying one isn’t financially feasible in the short term.

That said, one of the benefits of buying a new build is that your maintenance and repair costs may be lower for at least the first few years you’re in your home. This is because newly built homes usually come with a builder’s warranty, which covers you for manufacturing defects. This warranty will last at least a year, but you may be able to find a manufacturer who will offer a longer one.

In addition, household appliances generally come with longer warranties. So if you are buying an existing home you may need to replace your water heater within a year, but if you are buying a new build you may be protected against this expense for a good five years.

Ultimately, you’ll need to calculate a few numbers to see if the new build fits your budget. Obviously, many buyers stay away from new construction because of the costs involved. But if you can buy a newly built home, you might find that it’s worth buying one, especially if you can’t find an existing home for sale that matches your tastes and requirements.


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