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सफर और मंजिल |
Taxolawgy With Priyanka Tiwari
"Knowledge is Power as Long as it is Shared". Here I'am to share the maximum I can with everyone, right from my experiences, interests, fictions, professional skills, to facts I have explored with time. Will be sharing Income Tax, Company Law, Goods & Service Tax (GST) and Commercial Tax blogs. Learn techniques to do Smart work & stand out of the crowd. Mesmerise your mind & soul with lovely stories. The goal is to inculcate the urge of learning & growth.
Sunday, July 28, 2024
सफर और मंजिल
Sunday, March 10, 2024
Benefits of Credit Cards
This article will provide you a crisp idea, "why you should have a credit card". A credit card, typically issued by a financial institution like a bank, is a plastic card enabling the cardholder to borrow funds for purchases or services. It serves as a widely used and convenient payment method, extending a line of credit to the user. When utilizing a credit card for a transaction, one essentially borrows money from the card issuer and is obligated to repay the borrowed amount within a specified period, usually on a monthly basis.
Key characteristics of credit cards encompass:
Credit Limit: The maximum amount that can be borrowed using the credit card, determined by the card issuer based on factors like creditworthiness, income, and financial considerations. You can also modify, increase or decrease your limit any time within the permissible limit provided by the service provider.
Interest Rates: If the full balance is not paid by the due date, the remaining amount accrues interest. Credit cards often feature variable interest rates, which may be relatively high compared to other credit forms. One major point here is that the in case of non-payment the interest charged is immensely high and charged on per day basis.
Grace Period: Many credit cards provide a grace period, typically spanning from 21 to 25 days after the billing cycle ends, during which the borrowed amount can be repaid without incurring interest charges.
Fees: Various fees, including annual fees, late payment fees, and cash advance fees, may be associated with credit cards. Awareness of these fees and card terms is crucial. Read the charges schedule attached with the card carefully.
Rewards and Benefits: Some credit cards offer rewards programs, cashback, or perks such as travel rewards, discounts, or redeemable points for merchandise and services. You can book flights, travel tickets, hotels. With redeemable points you can also shop or convert them in cash (in specific facilitator case like HDFC).
Security Features: Credit cards commonly include security features like fraud protection, zero-liability policies, and the ability to dispute unauthorized transactions.
It is imperative for cardholders to use credit cards responsibly, managing expenditures within their means, and ensuring timely bill payments to avoid accumulating debt and facing high-interest charges.
Advantages of Credit cards
Advantages of Credit Card Bifurcation |
Credit cards provide several advantages when used responsibly, including:
Convenience: Offering a hassle-free way to make purchases without the need for large amounts of cash, credit cards are widely accepted globally, facilitating online shopping and travel.
Building Credit History: Responsible credit card use, such as timely payments, contributes positively to one's credit history, essential for favorable terms on loans and mortgages.
Building Credit score: Use of credit card helps you to build your credit score and enhance your Credit rating, CIBIL score. Which helps to get better future finances at economic rates. To understand better go my specific blog Taxolawgy With Priyanka Tiwari: Credit Score
Emergency Fund: Serving as a financial safety net during unforeseen expenses, credit cards offer quick access to funds in times of need.
Rewards and Perks: Many credit cards feature rewards programs, providing benefits like cashback, travel rewards, and various perks, enhancing the overall cardholder experience.
Security Features: With fraud protection, zero-liability policies, and dispute mechanisms, credit cards offer security layers for transactions.
Grace Period: The grace period allows interest-free use of the credit card if the balance is paid in full each month.
Building Financial Discipline: Managing a credit card entails budgeting, timely payments, and understanding credit terms, fostering responsible financial habits.
Travel Benefits: Certain credit cards offer travel-related advantages, including insurance, rental car coverage, and airport lounge access, enhancing the travel experience. People mostly enjoy the lounge access at airports the most.
How to improve your CIBIL or Credit score : Taxolawgy With Priyanka Tiwari: How to improve your CIBIL or Credit score
Sunday, July 30, 2023
Books of Accounts to be kept by business and professional – Section 44 AA
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Books of Accounts to be kept by business and professional – Section 44 AA
Many of the businesses and professionals are always in ambiguity that which books & records to be kept as per Income Tax Act 1961. Today we will decode this complete Section 44AA of the Income Tax Act 1961. Section 44AA of the Income Tax Act 1961 is for Maintenance of accounts by certain persons carrying on profession or business.
Before going ahead, we must understand certain professional. Certain Profession here include person into :
1. Legal
2. Medical
3. Engineering
4. Architectural profession
5. Profession of accountancy
6. Technical consultancy
7. Interior decoration
8. Authorised representative
9. Film artist includes:
I. actor
II. cameraman
III. director, including an assistant director
IV. music director, including an assistant music director
V. art director, including an assistant art director
VI. dance director, including an assistant dance director
VII. editor
VIII. singer
IX. lyricist
X. story writer
XI. screen-play writer
XII. dialogue writer
XIII. dress designer
Certain professional not required to maintain any books
The total gross receipt in case of new setup in current year does not exceed one lakh fifty thousand and in old set up, the gross receipt should not exceed one lakh fifty thousand in any of the three previous years.
Need to maintain booked of accounts under Business & Profession:
A. For individual & HUF :
I. If the income exceeds Two lakh fifty thousand or total sales, turnover or gross receipt exceeds twenty five lakh rupees.
II. Newly set up business, income exceeds Two lakh fifty thousand or total sales, turnover or gross receipt exceeds twenty five lakh rupees.
B. For others :
I. If the income exceeds One lakh twenty thousand or total sales, turnover or gross receipt exceeds ten lakh rupees.
II. Newly set up business, income exceeds One lakh twenty thousand or total sales, turnover or gross receipt exceeds ten lakh rupees.
(Rest other conditions are common for all)
C. If the assessee has claimed income under section 44AE, 44BB or 44BBB and he claim his income below the limit define under the section.
D. If the assessee follows section 44AE & his to total income exceeds invoice chargeable to tax.
The books of accounts which specific professional need to maintain :
1. Cash book
2. Journal
3. Ledger
4. Carbon copies of Bill
Medical professional need to maintain additional records :
(1) Daily cash register as per Form no. 3C
Sunday, April 16, 2023
Decoding Salary from Salary Slip : Understanding the Components & Terms of of Employment Agreement
Basic Salary
Take Home Salary
Allowances/Add on Salary
Reimbursements
Retirement Benefits
Gratuity
CTC
TDS (Tax Deduction at Source)
Professional Tax Deduction
Provident Fund Provident
Tax Planning
Do Refer the below for benefits :
Taxolawgy With Priyanka Tiwari: How to Safe Tax over Arrears or Advance of Salary Received
Taxolawgy With Priyanka Tiwari: How to Get Form 16 Yourself in 3 Mins
Taxolawgy With Priyanka Tiwari: How to Check Income Tax Refund Status
Saturday, January 14, 2023
डॉक्टर डायन
Disclaimer :
This is a work of fiction. Names, characters, businesses, places, events and incidents are either the products of the author’s imagination or used in a fictitious manner. Any resemblance to actual persons, living or dead, or actual events or any other literary material, called by any other name, is purely coincidental. The story is purely for entertainment purpose and the author has no intention to hurt the sentiments & emotions of any individual or public at large.
Sunday, January 23, 2022
How to improve your CIBIL or Credit score
How
to improve your CIBIL or Credit score
Business
and personal needs drive a person to reach out for a loan. But getting loan is
not an easy task as it seems. You need to have a good credit rating for getting
a loan apart from your financial stability. The biggest fact about this lending
industry, which I have learned in all these years of my experience. Is that loan
is not provided to the needy, it is provided to the greedy. One who has the
capability to repay it. Apart from your financial papers, net worth
calculation, income proof, CMA and income source, the think which plays a
crucial role in the sanction and approval of your loan is your “CREDIT SCORE”.
You
must have seen or evident many occasions where you come across the testing of
your Credit Score like, “Get your Credit Score” or “Test your Credit Score”.
Many of you must have got your loan application rejected or declined due to poor
credit score. Now the biggest question which is right now popping in your mind
is, “what is the Credit Score”, “Why is it so important for loan approval” and
“how to improve it” etc.
Credit
Score or CIBIL
Credit
Score is the rating provided by a credit bureau which denoted your credit
worthiness and potential to repay the loan or debt. It provides the estimate to
the bank or financial institution about your capability to repay their loans.
It’s a three digit score. It ranges from 300 to 900. The higher your score is,
the better your rating and chances to get the loan sanctioned. In India mostly
credit score is been addressed as CIBIL or CIBIL Score which is not official
correct but due to daily practices it’s apparently considered correct. In India
there are four concerns or in correct words, bureaus authorized by RBI (Reserve
Bank of India) to provide credit score. Credit Information Bureau (India)
Limited [CIBIL] is one of the most preferred credit bureau that is the reason
why credit score in India is referred as CIBIL Score or CIBIL.
Credit
score is only for individuals or persons. For others like company, firm,
business entity and even including individuals the credit analysis is called as
credit rating.
Anybody can check their credit score from various websites available.
Importance
& Benefits of Credit Score
A
good Credit Score provides many privileges and benefits to an individual. Every
finance seeker desires to have a high Credit Score. A credit score above
700-750 is considered good score. The importance and benefits of high credit
score are :-
1. Easy
loan sanction – the people with good credit score gets the loan sanctioned
easily. The loan sanction process starts with the checking of credit score. A
person with good credit score has the higher chances of getting the loan
application approved and loan sanctioned. A bad credit scope gets the loan
application rejected right at the face.
2. Get
low interest rates – the person with good credit rating may get competitively
low interest rate as the banks and financial institutions try to capture the
prospective client. A person with good credit rating has a high negotiating
power to negotiate and lower their interest charging rates.
3. Charges
waiver or decrease – the person with good credit rating may get financial
charges and other charges waiver or decrease which results in financial cost
saving in complete life cycle of loan. Even such category of persons may also
negotiate with the bank or financial institution to waive their charges.
4. Lower
processing Fee – the person with good credit rating may lower or decrease the
processing fee over their loan after negotiation.
5. Higher
and more rewards – In case of credit card, the person with better credit rating
gets more rewards likes cashback, discount, coupons etc.
Credit
Rating Issuers
In
India, credit rating is provided by four Bureaus authorised by RBI (Reserve
Bank of India). We will not go in detail about these
1. Credit Information Bureau (India)
Limited (CIBIL)
2. Equifax
3. Experian
4. CRIF High Mark
How
to improve Credit Rating
This is the most crucial part to discuss. With the help of this knowledge anybody can improve their credit rating. The following will help to improve your credit rating:-
1. Use credit card regularly – If you have credit card use it regularly. If credit card is not used properly then the credit rating is affected as it shows low financial needs and utilisation.
Here is a trick to show your credit card limit usage. If you are not using credit card for shopping or other lucrative purchases, pay your routine bills by your credit cards and get its usage reflection in records.
2. Pay you loans and credits before due date – Pay your loans and credit cards dues a little before their due dates. It reflects the healthy money flow. And holding the payment till the last date degrades your credit track record.
3. Don’t check score frequently – Mostly it is recommended to check your credit score frequently but I have seen in the past that individuals with poor credit score use to frequently check there credit score and it resulted in further decreasing their credit score. So if your credit rating is low don’t check it very frequently. First build a little sound investment record and then check at least after 6-8 months. For better results try to file a good income tax return in the mean while time (between this 6-8 months gap).
4. Diversify your investment portfolio – As now a day’s your investments accounts are linked with Aadhar, your investment details are available at a common pool for access to authorised authorities like credit bureaus. People with diversify investment portfolio have better credit scores always. So just won’t keep your investments in fixed deposits or saving accounts but diversify. Purchase shares, securities, bonds, mutual funds other than just solid assets like real estate.
5. Regular Income Tax Return filing – Income Tax Return is the source of financial record for every authority like Income Tax and credit rating bureaus. The financial records are traced by these bureaus from the income tax returns filed by you. People with no income tax return filing record mostly have poor credit rating.
6. Longevity of Credit life – People with sound and long credit life record like running term loans in the past and timely payments, have better credit score. Take your credit usage and repayment seriously. And if you are not getting long term loan funds then try to get short term small credits for your various usages which will start building your credit usage track record.
7. Avoid defaults – Bank and financial institutions stay away from defaulters. Yes it is obvious that no one knowingly does any default but many times our ill-planned financial cycle or calendar invites payment default. Always run with cover transaction to ensure fund availability for loan payment on due date.
8. Get a credit card – Yes it is correct. Your credit card can help you to get a good credit score. So if you won’t have a credit card get one soon. As it is evident that people with credit card and its good track record have good credit worthiness.
9. Balanced Credit Mix – It is important to even diversify and maintain your credit portfolio. Have a balanced loan structure which reflect an appropriate usage and finance cost maintenance (interest and charges). Use long term funds for long term usage and short term for short term usage. Use specialized fund for specific purpose, like home loan for housing finance etc. All this builds a good credit score.
Do’s
and Don’ts
In
case of building an attractive Credit score. You should :-
Do’s
- Have
a credit card.
- File
income tax return regularly.
- Diversify
your Investment and loan (Credit) profile.
- Keep
Loan defaults at bay.
- Check
your credit score atleast once in every Six Month.
Don’ts
- Avoid
late payment of loan installments.
- In
case of default, negotiate with your lender to have an out of court settlement
& avoid to be listed in defaulters list.
- Don’ts
associate yourself in joint loans with financially unsound individuals and
entities.
- Avoid
providing guarantee for financially unsound individuals and entities.
- Avoid getting to many loans.
Here is my best try to provide you the information about credit score and ways to improve it from my experience and knowledge. Friends I‘am putting my strongest efforts to provide you all the details in simplest language, please show your support and follow my blog. Do share with your friends and family to spread the knowledge.
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The above blog is purely for educational and guidance purpose. It's just the reflection of the author's personal experience and judgment. The author has just provided the general information & understanding and its not at all an alternative of any legal advice or practitioner. The content stated in the blog should be used by the reader at his own discretion and sole responsibility. The content of the blog can be only used for any other document, write-up, article, blog and any written or printed material whether on paper or digitally in any form, with the prior permission of the author.
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