You need a Ph. D. in economics and an encyclopaedia on hand to follow the top Indian economists commenting on English news channels about the impact of the Indian Budget on the common man. They freely use the latest jargon of economics and abbreviations of Indian projects (a quick sampler: AADHAR, TAGUP, GST, CRAR, RIDF, NABARD, MGNREGA, RKVY and NFSB)as if you grew up with them. Most of their discussion ranges around the changes in government expenditure and income, the state of the fiscal deficit, the concerns for subsidies, the pace of economic reforms, and so on and on. Of course, all this is meant to inform the TV viewer about how this budget will affect his personal finances, savings, taxes and inflation.Inflation? Oh yes, food prices have gone up by over 17 per cent. What’s the government doing about it in the budget? Many new schemes and s ppi reclaim ubsidies announcing for farmers and infrastructure. Don’t worry, they will bring down the prices when they are implemented.Fuel prices? Have shot up after the Middle East uprisings to new heights. Has the government cut down its tax on fuels considering the international oil prices have topped $100 a barrel? No way.Income Tax? Ah yes, the Income Tax exemption has gone up from Rs 160,000 to Rs 180,000 a year. Now you become a senior’ tax payer when you reach 60 years instead of 65 years earlier and your tax exemption will be Rs 250,000. A new category of very senior’ taxpayers, over 80 years, gets tax exemption for half a million rupees. All these tax reliefs come into effect on your next year’s income.What’s gone up and down in prices? Up – Branded garments, air travel, air conditioned hospitalisation, Down – paper, chemicals, yarns, TVs, mobiles.
5 Good Reasons A Company Should Factor
One of the most noted benefits of Factoring is the ability for a company to quickly raise cash when they can’t get a traditional loan, or when they are experiencing rapid growth and need to purchase materials, pay vendors and cover operating expenses.However, this is not the only advantage. There are a significant number of reasons why companies should consider invoice factoring. We will examine five of them below.1. Factoring is an extremely fast way for companies to raise money: A factoring deal can be done in only a few days. A company can have cash in hand in a very short amount of time. This can be extremely beneficial for a company that is desperate for cash or that is looking to quickly expand their operations.It can take a good amount of time, applying for a loan and then getting word back on whether or not a bank is willing to provide a company with th Mis Sold PPI e money needed. A business may not have that amount of time. The livelihood of their business may depend on getting money fast.2. Factoring shortens the collections process: Businesses sometimes have to wait weeks or even months before they are paid for services rendered. During this time, they might be cash poor and may not have the funds available to grow their businesses or even pay for current operational expenses.3. Factoring allows companies to bring in money without taking on new debt: Debt can be an effective tool to build and sustain a business. However, it can also be risky, especially for new businesses. Factoring allows companies to receive badly needed money without resorting to taking out an expensive loan.4. Factoring can be a great option for companies having trouble qualifying for a bank loan: Getting a business loan has always been challenging.
Income tax and HRA
House Rent Allowance (HRA) is an allowance given by an employer to an employee. The sole purpose of which is to meet the cost of renting a home. Here, we hope to clear the concepts of HRA and how the income tax exemption on HRA is calculated.You can claim HRA if you fulfil the following three conditions:1. HRA allowance should be a part of your salary package.2. You are staying in a rented accommodation and paying rent for it.3. The rent exceeds 10 per cent of your salary (basic + DA).Tax treatment of HRA is a bit complicated and there are three figures that need to be computed: * Actual HRA received * Amount by which rent paid exceeds 1/10th of salary (basic + DA) * 50% of the salary (basic + DA) if located in Metros like Mumbai, Delhi, Kolkata or Chenn ppi judicial review ai and 40% of salary if located elsewhere.The lowest of the above three amounts is allowed as a deduction from the HRA received and the rest is considered taxable. Let?s try and understand this through the following example:Ram lived in Mumbai and paid a rent of Rs 10,000 p.m. His basic salary was Rs 25,000 and daily allowance Rs 3,000 p.m. He received an HRA from his employer of Rs 8,000 p.m. The 3 figures that need to compute his HRA tax liability are:1. Actual HRA received = Rs 8,0002. Amount by which rent paid exceeds 1/10th of salary = Rs 10,000 ? (10% of Rs 25,000+ Rs 3,000) = Rs 7,2003. 50% of his salary (Rs 25,000 + Rs 3,000) = Rs 14,000The lowest among the 3 figures (Rs 7,200) will be allowed as a deduction and the rest (Rs. 800) will be taxable.