Finance

If you have ever defaulted on taxes, then you might be familiar with tax liens issued by the IRS. In simple words, tax liens are legal claims issued against you or your business if you have failed to pay your taxes.

Overview of Tax Liens

If you have been issued with a tax lien, it is always better to take advice from credible IRS tax settlement companies usa firms before taking the necessary actions. Tax settlement lawyers are well-versed in tax laws and might offer you the best resolution for getting rid of your tax liens.

Tax liens are issued by the IRS if you owe a huge amount of tax to the government. The IRS will record the document on the government server wherein will be considered a public record. If your property is under tax lien, then even if you sell the property soon, the sales proceeds will go to IRS until the tax lien is paid off.

Now, there is a certain procedure that needs to be followed by the IRS, before they can issue a tax lien to you:

• The IRS will analyze your tax returns and conduct tax audits
• If you owe a huge tax, a notice will be sent to your residential address within 60 days of the assessment
• A timeframe of 10 days is given to pay off the taxes
• Failure to do so, your tax lien will be made public for creditors to investigate

Removal of Tax Liens

Tax liens can also be removed by the IRS if you have paid the taxes within 10 days or if they have filed it in error. In rare cases, IRS can remove the tax liens if your property has doubled over the years, or if your lawyer has filed for a right of subordination.

Conclusion

Tax liens are not to be taken lightly. When it comes to tax liens, it is better to avoid such hassles by paying your taxes on time.

Getting the greatest auto insurance will help you drive without concern. Having confidence in the future is crucial, and taking precautions will be very advantageous. Even though we can’t predict the future, we should still be able to live in the now and feel secure enough to enjoy it.

One of the wisest moves you’ll ever make is to buy vehicle insurance. When things don’t go exactly as planned, this cautious attitude will help. Customers can choose from a choice of automobile insurance options in India by doing a car insurance check online. It’s critical to understand what insurance you require, such as using an SR-22 insurance provider if you’re a high-risk driver. The exponential increase in the number of car owners is one of the causes of this.

Let’s first talk about the many advantages that automobile insurance offers:

• Will offer emergency funds in the event of an accident.
• Protection from loss and damage brought on by disasters like landslides, earthquakes, and floods.
• If your vehicle is harmed by man-made calamities, your four-wheeler insurance is the ideal fallback. Additionally, financial assistance will be given in the event that your car is stolen.
• You won’t need to worry if you have auto insurance if a fire damages your vehicle.
• It is vitally important to protect yourself from third-party legal liability. Third parties may sue you if they sustain accidental damages as a result of your conduct. However, your auto insurance will shield you from these responsibilities, enabling you to make significant financial savings.
• Your other passengers’ safety is just as crucial as your own. Consequently, your car insurance is made to protect both you and your loved ones. This suggests that you do not need to purchase additional security for your family and friends.
• Your family will receive financial compensation if you pass away due to an accident.
• Savings are possible during bajaj allianz car insurance renewal in the form of a no-claim incentive. This is typically awarded for keeping a spotless driving record.

How can online car insurance coverage be compared?

• Services and Company Reputation – It is vital that you choose a reputable and ethical supplier for your car insurance, such as Bajaj Allianz General Insurance. Determine whether your insurance is offering comprehensive services that are adequate for both your short-term and long-term needs is also crucial. Ensure that your insurer provides 24-hour support. This can be verified by doing a car insurance check online.

• Types of Policy – There are two types of auto insurance: third-party insurance, which is required by law, and comprehensive insurance. Make sure the auto insurance policies are the same type before comparing them online. If not, you can find yourself contrasting apples and oranges.

• IDV – To determine the Insured Declared Value, or IDV, of your car, various providers will employ various techniques. The policies followed by the insurance provider mostly decide this. Do not forget that your vehicle’s decreasing worth will be taken into account. *

• Unclaimed Bonus – A no-claim bonus, or NCB, is a savings provided by your insurer at the time of renewal, as the name suggests. Drivers with a spotless driving record who have made no claims in the past year are eligible for this award. Your car insurance rate will be significantly reduced as a result for the upcoming year. *

• Price – This should be one of many aspects you consider when choosing your new car insurance coverage; it shouldn’t be the only one. If you’re paying a large premium, for instance, make sure the services are extensive. To get the best offers, use the vehicle insurance comparison tool. *

Visit the Bajaj Allianz General Insurance website right away to purchase third-party auto insurance online!

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Taking out a personal loan is a big decision. Whether you are using the money to pay off pending bills or to finance a long-awaited vacation, it is essential to understand what your Equated Monthly Instalments (EMIs) will be like over time. Today, many lenders offer an online tool that can provide you with such guidance and it is called a personal loan EMI calculator.

With this online tool, you can quickly calculate your monthly instalments according to customised loan amount, duration, and interest rate so that you know exactly what to expect when deciding on different repayment strategies. This way, you can avoid potential pitfalls such as making late payments or incurring penalty charges due to missed payments, all the while ensuring that you achieve your financial goals on time.

Here are three ways how a personal loan EMI calculator helps you plan and take control of your finances better.

1. Calculate your monthly repayments and total loan amount

With just three basic inputs – your loan amount, interest rate, and loan tenure, an EMI calculator can help you quickly calculate the amount that needs to be paid each month to completely pay off the loan within the designated period. This way, you can create a realistic plan to manage other expenses in such a way that your loan is paid off on time.

By using an EMI calculator, you can also identify potential risks associated with your planned strategy and make changes accordingly before taking on additional debt responsibilities.

2. Compare different lenders to find flexible EMIs and tenure

By entering different loan amounts and interest rates into the calculator, you can find out which lender provides the lowest interest rate or offers more flexible repayment options. This gives you an opportunity to get the best deal possible on your personal loan while also ensuring that it meets all your financial requirements.

Moreover, it helps you to save money on interest over time and makes it easier to budget for future expenses without being constrained by the high personal loan interest rates of other lenders.

3. Get insights into your finances

An online personal loan EMI calculator also provides insights into your current financial situation by providing detailed information about various aspects such as total costs, the remaining balance after every payment cycle, total interest due over the repayment period, etc., in the personal loan amortisation table. This information can be used as reference points while taking decisions related to borrowing more funds, opting for early closure options, etc.

Closing thoughts

With the help of an EMI calculator, you can click on the personal loan apply button more confidently. This valuable tool takes all the guesswork out and helps you schedule monthly payments, determine the total interest payable, estimate repayment periods, compare different lenders, track your progress throughout the repayment process, and get a detailed breakdown of the loan cost all within minutes. This way, you can repay your loan faster without overburdening your current finances.

Just ensure that you enter the correct variables to get accurate results so that you can stick to a budget and advance towards your financial objectives with confidence.

The relationship between you and your wife can become a more complex one in your marital life if you do not be careful, especially when it comes to finances. The marriage is the result of two independent people deciding to come together. Each person contributes the entirety of who they are to this new creature, including both their positive and negative traits.

Each partner hopes that the good will prevail over the bad and that any bad that does exist can be addressed and defeated more successfully by working together. Simply said, keeping debt a secret from your future spouse is a very bad idea. To make your marital life beautiful, one important thing which you must follow is being transparent. If you hide your debts and current financial condition from your future spouse, you may face many problems after marriage. This can even lead to divorce sometimes.

Discuss with your partner about your current credit cards, your debt, how are you planning to clear it after marriage, and other plans. Whether you are planning to get married or are already married, ensure that you take the decisions related to your finances together. Figure out how both of you are planning to clear the debt. For guidance on how to manage your finances and tax filings, you could contact a tax relief professional. Choose an experienced and licensed tax professional always, if you want the best guidance on managing your finances.

Once both spouses agree about every aspect of money, including how to handle debt, they must “quantify” their goals. Partners must formally agree upon strategies and goals that are expressed in monetary terms. In general, couples who choose to manage their finances like a business are happier. And to do that, you need to create a budget, monitor your income and expenses, pay your bills on time, and frequently balance your checking account.

Maintain the same bank account for your savings and plan everything. Prepare a plan to manage your finances well, and ensure that you stick to it. What many people do is, prepare a plan, but fail to follow it, which is why they often face financial problems.

The act of allocating a portion of your monthly income to an investment scheme. This action is taken with the aim of acquiring wealth. But, just investing is not enough. An investment in mutual funds can be divided into two. The types of mutual fund investments are active investments and passive investments. While both types of investments are known for following a common benchmark, they differ in one specific way. The active investing strategy generally aims to outperform the benchmark it is tracking. On the other hand, passive investing instead of outperforming a benchmark aims to replicate its performance. Some of the prominent examples of passive investing are exchange-traded funds and index funds.

Exchange-traded funds:

An example of the passive investment strategy, exchange-traded funds (ETF) can be defined as shared investment funds that both track and replicate an index. Then, the said allocates funds to different asset classes such as equity, gold, and debt. Generally, exchange-traded funds follow the performance of a particular index, commodity, sector, or any other asset. But they differ from mutual funds in one way. The said way is that ETFs can be both bought and sold in an exchange just like the way stocks are traded.

What are the benefits associated with signing up for ETFs?

1. They are known for offering trading flexibility:

Amongst the major benefits of ETFs is that they are known for providing you with trading flexibility. By signing up for these funds, it is possible to take different actions such as intraday trading during market hours. Intraday trading or day trading can be defined as the act of purchasing and selling stocks on the same trading day. Thanks to the flexibility offered by ETFs you can make better use of trading opportunities that arise in a day.

1. Funds can be easily diversified in ETFs:

ETFs also provide investors with exposure to various asset classes such as equities, bonds, and gold. Each of these asset classes is known for behaving differently and is known for having little to no co-relation when it comes to performance. Furthermore, diversifying investments might help in cushioning the negative performance of a single asset class.

1. These funds are known for being highly liquid:

Another reason to sign up for an exchange-traded fund is that it does not come with a lock-in period. As there is no lock-in period, it is possible for you to enjoy the benefit of liquidity. The factor of liquidity ensures that you have the freedom to redeem your investments whenever you want.

Index funds:

These funds are a variant of mutual fund schemes where a portfolio is built to match or track the components of a financial market index. These funds are known for coming with features like low operating expenses and low portfolio turnover. These funds track their benchmark index regardless of the state of the markets.

What are the benefits associated with signing up for index funds?

1. These funds are affordable:

These funds do not require a team of research analysts. Analysts can be defined as the professionals that can help fund managers to pick the right stocks. This results in the low managing cost of an index fund.

1. It is easy to manage these funds:

Another reason why you should consider signing up for index funds is that they can be managed easily. That’s because the portfolio manager doesn’t need to worry about how the index stocks are performing in the market. In these funds, all that a fund manager needs to do is periodically rebalance the portfolio.

How do ETFs and index funds differ from each other?

While it is true that ETFs are very flexible, index funds simplify many trading decisions that you are required and expected to make. Hence, signing up for index funds might be a prudent choice.

The proverb states, “A penny saved is a penny earned.” One strategy to reduce taxes and boost your income is through tax preparation. Deductions are allowed by the income tax legislation for various investments, savings, and expenses made by the taxpayer during a specific financial year. We’ll talk about a few ways you can reduce your tax liability.

Health Insurance

By purchasing health insurance, you’ll be able to use section 80D of the tax code to deduct up to Rs 25,000 from your yearly premium payments. If the policyholder or spouse is over 60, the deduction can be doubled to Rs 50,000.

Home Allowance

Employees in India are permitted to receive a House Rent Allowance (HRA), which is taken from their pay. Since HRA can be deducted, persons can reduce their tax obligations. Individuals must show proof that their total annual rent exceeds Rs, such as the house owner’s PAN card, a lease agreement, etc. Additionally, individuals are only permitted to claim the lowest of the following HRA amounts provided by their employer:

• The employer provided the HRA.
• 50% of the base wage plus DA (if the employee is in Mumbai, Chennai, Delhi, or Kolkata). 40% of the base wage plus DA (if the employee is in other cities).
• Ten percent of the basic salary is less than the actual house rent plus DA. 

Education Loan

People can avoid paying taxes by choosing an education loan for further education for themselves, their children, their spouse, etc. People may deduct the amount they paid for paying the loan interest under Section 80E of the Income Tax Act. The total number of deductions they may take is unrestricted. Individual taxpayers are the only ones who may deduct expenses under Section 80E.

Invest In Shares And Mutual Funds

People can reduce their taxable income by investing in shares and mutual funds. Citizens who earn less than Rs. 12 lakhs yearly are entitled to an additional deduction under Section 80CCG of the Income Tax Act if they invest money in the shares of certain corporations and certain designated mutual funds. Under the Rajiv Gandhi Equity Savings Scheme, deductions are permitted.

Donations

Indian citizens can reduce tax liability by claiming deductions for gifts they make to charitable organisations, social causes, or the National Relief Fund. They may claim these deductions in accordance with Section 80G of the Income Tax Act. The Ministry of Finance maintains a list of organisations that taxpayers may support, and whether tax deductions are permitted or not depends on the reason for the donation. For gifts that were given in kind, no tax deductions are allowed. If you donate with cash, you can deduct up to Rs. 10,000 from your taxes; if you donate with checks, you can deduct any amount beyond Rs. 10,000.

Leave Travel Allowance

Taxpayers are eligible for tax-free LTA if they get LTA from their employers. People have a four-year window in which to make two claims. They must travel anyplace in India during their leave to be eligible to get it.

These are a few standard methods people use to reduce their tax obligations. Taxpayers may save significant money if they carefully arrange their income, investments, expenses, and taxes. It is cautioned against using illegal methods to reduce taxes. For instance, if someone tries to avoid paying taxes, that money is regarded as unaccounted for or “black money,” which can cause many issues if discovered.

Bottom Line

How to lower the taxable income is an easy and beneficial question. You can invest your funds with the help of these payments and investments while also saving tax on the payments and contributions you made. In either case, you can gradually save more tax and build up a corpus that you can use to achieve financial stability.

A personal loan offers access to quick cash. You can use the proceeds for any personal reason, may it be a medical exigency or vacation abroad. The best thing about opting for a personal loan is it does not require any security or collateral. As a personal loan is unsecured in nature, the processing time is low. However, lenders consider it as risky than secured credit options. This translates to a relatively higher personal loan interest rate. Thus, it is necessary to review different personal loan options, especially the offered interest rate, before zeroing on any lender.

Check out ways to lower your personal loan interest rate

For an existing personal loan borrower

• Choose personal loan balance transfer option

Personal loan balance transfer is a process where you can transfer your outstanding balance of your existing personal loan to another lender. This option is often selected to opt for a lender offering a lower personal loan rate to reduce the overall loan burden.

For example, assume you clicked on the personal loan apply button for a loan of Rs 20 lakh, two years ago at 15 percent per annum for six years with an EMI equaling Rs 42,290. Presently, your outstanding amount for personal loan is Rs 14.96 lakh with the remaining tenure of 4 years. Now, suppose if you take up personal loan balance transfer at 11 percent p.a. for the rest of the tenure i.e., 4 years, your personal loan EMI would fall to Rs 38,665.

You can compute this easily using a personal loan EMI calculator, available online. Upon adding details like loan amount, repayment tenure, personal loan interest rate on the calculator, you can get the results instantly in the form of loan EMI, overall interest payable and overall payment (interest + principal). Note that as personal loan transfer is considered a new loan application, the new balance transfer lender may levy processing charges, administrative fees etc. when processing the loan. Thus, you must consider factoring in the associated costs before availing the personal loan transfer facility. Go for this facility only if your savings on interest considerably outweigh your cost on the balance transfer facility.

For a new applicant

• Build a good credit score

Your lender checks your credit score to understand your credibility. Lenders usually consider a credit score of 750 and above to be good for approving your loan application at lower personal loan processing fees and interest rate. In case your score is not good, you can fix this. However, you cannot fix this overnight.

Begin by reviewing your credit score, to see if there is any error in your report and get it corrected instantly. Ensure to maintain a CUR (credit utilization ratio) of 30 percent or less on your credit cards. Ensure to pay your EMIs by the due date to keep your score on the higher end. If you are a co-signer or guarantor of a loan, ensure to monitor it for any missed payments. In case of a missed payment, your score will also be impacted.

Make sure to always follow these steps for a good credit score. Having a poor score may either make you an ineligible candidate for loan or allow approval for loan at a higher personal loan interest rate.

Ending note

A personal loan is unsecured in nature; thus, its interest rate tends to be more than secured loans. In case you are looking to place an application for a personal loan or have already an ongoing personal loan but at a higher interest rate, ensure to follow the above-mentioned solutions. While a decrease of 1%-2% rate looks small, this still converts to a significant savings over the long term.

When adding a certain element to your financial portfolio, it is vital to look at the various benefits it offers. Some instruments may offer high gains but may prove to be unlucrative due to the high taxation they incur. Some may have lower returns but may bring in substantial tax benefits. A life insurance policy offers not just an insurance cover for life but also the opportunity to avail several tax deductions and exemptions, making it an enviable addition to any portfolio. Life insurance tax benefits are many and can be broadly divided into Section 80C deductions and Section 10 (10D) deductions. Let’s take a look.

What is life insurance and how do tax benefits work on it? 

Life insurance policies are a way of securing the financial future of your family and safeguarding them against life’s uncertainties. If an unfortunate and untimely event leads to your demise, your family may be bereft of financial support. Buying life insurance and paying regular premiums can ensure that your loved ones have a financial backup in such a scenario. If you want to understand how much premium you will have to pay for a particular policy, then you can use the life insurance premium calculator.

Tax benefits on life insurance can work in two ways – deductions and exemptions. While the former means a deduction in your tax liability, the latter means that a particular income amount is not taxed.

Tax deductions and exemptions on life insurance 

• Deduction on life cover premium

When doing your taxes, you can deduct up to Rs 1.5 lakhs from your overall tax liability if you are paying the premiums of your life insurance policy. According to Section 80C of the Income Tax Act, 1961, a policyholder can claim tax deductions of up to Rs 1.5 lakhs against the premium of their life plan.

• Deduction on critical illness rider 

When you buy life insurance, you can also opt for several riders to increase your financial protection. One such rider is the critical illness rider that provides a lump sum pay-out if the insured person suffers a diagnosis of the covered illness. Another benefit of this rider is that it offers the policyholder tax benefits. According to Section 80D of the ITA, the premium paid towards the critical illness insurance add-on is eligible for a tax deduction as well.

A life insurance premium calculator can also help you understand how much more premium you will be paying when you opt for a rider.

• Tax exemption on pay-outs 

The amount that your nominee/s receive/s from the life insurance policy on your passing away is exempted from taxation under Section 10 (10D). Furthermore, some life plans may have a maturity aspect to them wherein the policyholder receives pay-outs if they survive the maturity of the policy. This maturity benefit pay-out, too, is exempted from taxation as per Section 10 (10D). Not only that, if you choose to surrender the policy, the surrender value pay-out, too, is tax-exempted.

Important points to remember about life insurance tax benefits 

• The benefits mentioned above are only applicable if the policy is bought from an insurer that is registered with the IRDAI.

• For policies bought before 1st April 2012, the annual premium of the policy should not exceed 20% of the sum assured to be eligible for Section 80C tax deductions. Policies bought after the given date shall not be eligible for the deduction if the premium goes over 10% of the sum assured amount.

• Section 10 (10D) exemptions are also only eligible if:
• The premium for a life insurance policy bought before 1st April 2012 does not exceed 20% of the sum assured
• The premium for a life insurance policy bought after 1st April 2012 does not exceed 10% of the sum assured

• In the case of deductions, the term ‘sum assured’ refers only to the minimum life cover and does not include bonuses or anything of that kind. In the case of tax exemptions, though, the maturity amount, bonuses, and so on, are also considered.

• Certain benefits may be reversed if the policyholder nullifies the policy only a few years after buying it and accruing these tax benefits.

• These exemptions are valid only for people who have opted for the old tax regime. These tax benefits are not applicable for individuals who are paying tax under the new tax regime.

There are many reasons to buy life insurance, and the list of tax benefits is just one of them. Remember, tax benefits are subject to amendment in tax laws and are dependent on several terms and conditions.

For over a decade, mutual funds have offered benefits like diversification, portfolio management, and convenience to retail investors who lack the required time or means to trade their investment portfolio profitably. Lately, a new sort of mutual fund has been introduced, offering almost the same benefits as conventional open-ended funds with much higher liquidity. Such funds are known as ETFs (exchange traded funds). They trade on the public exchanges and can even be purchased and sold during the market hours, like stocks.

The rise in popularity of such funds, however, has even created several misinformation regarding ETFs. Listed here is a short brief about ETFs and a few common misconceptions surrounding them.

What are ETFs?

ETFs, invest in a basket of stocks that mirror the performance of the underlying index on holding the securities in the same proportion. They are traded throughout the day at a price that differs depending upon demand and supply. The crucial point to consider is that a retail investor requires having a Demat account to sell or purchase ETFs.

What is the minimum limit of investment in an ETF?

Equity ETF: You can buy as low as just 1 unit, at per unit cost. Equity ETF has zero minimum investment limit.

Bond ETF: In bond ETF, the minimum investment can be Rs 1,000, and then in multiples of Rs 1,000.

Gold ETF: In gold ETF, the minimum investment is 1 unit.

Why should you purchase an ETF?

Investors may consider investing in ETF to avail the listed benefits:

Diversification: As ETF can track a basket of securities, investing in it provides the benefit of diversification.

Ease of trade: You can easily sell and purchase an ETF anytime during the trading session throughout the day.

Ease of transaction: As ETF is traded like stocks, the investor can place various order types.

Transparency: Maximum ETFs are indexed in nature, so their constituents are well known.

Cost efficient: ETFs have lower expenses than other investment types.

Debunking common ETF misconceptions

No. 1 myth: ETF just provide broad market exposure

Reality: While few ETFs offer a broad market exposure on tracking the broad market index like Nifty or Sensex, the ETF vertical has evolved greatly to include a broader choice of ETF. It includes pinpointed products targeting sectors (banking), narrower market indices like the midcap, assets (liquid or gold), certain rules or factors like value or low volatility.

No. 2 myth: ETFs do not pay any dividends

Reality: When the constituent stock of an ETF declares a dividend, the announced dividend is added to the ETF’s NAV, which in turn is included in the investor’s wealth.

No. 3 myth: ETFs comes with no liquidity

Reality: Illiquid ETFs were the basic concern in early 2000, at the time when ETFs were introduced. However, with market expansion and the involvement of a higher number of investors in the ETF vertical, liquidity is not a concern anymore.  Note that ETFs derive liquidity from the underlying assets. In an extreme scenario, in the situation of liquidity problems, a retail investor can approach an ETF issuer to redeem the units.

To finally conclude, ETF is one of the simplest routes to get equity market exposure. Novice or first-time investors must select a broad-based ETF to begin their journey with investments. However, the evolved investors mostly prefer investing in smart beta ETFs. Note that smart beta ETF is a fund that uses a mix of passive and active investing. It follows an approach, which is rule based for choosing investments that can be included in your fund portfolio. A smart beta usually chooses its securities depending on numerous factors like volatility expectations, the company’s dividend growth, market capitalization, and overall earnings.