Financial Advisory

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme exclusively designed for the well-being of the girl child, offering lucrative interest rates and tax benefits under Section 80C of the Income Tax Act. Before investing, parents can use the Sukanya Samriddhi Yojana Calculator to analyze the accrued benefits of the scheme and make informed financial decisions. A SSY account can be opened by a parent for a girl child below 10 years of age, with a minimum deposit of INR 250 and a maximum of INR 1.5 lakh annually. The scheme matures after 21 years from opening or when the child turns 18 and marries. The Sukanya Samriddhi Yojana calculator simplifies the task of estimating maturity payouts, monthly deposits, and interest rates. For instance, if a parent invests INR 50,000 annually at an assumed rate of 7.6%, the calculator projects that over a period of 15 years, the total maturity amount would exceed INR 15.26 lakhs, including compounded interest of INR 7.76 lakhs. Su...

To check PF (Provident Fund) balance in India, individuals need to provide specific details to access their account information seamlessly. EPF (Employees’ Provident Fund) is a savings scheme under the EPF Act, 1952, aimed at building a financial cushion for employees. Knowing how to check PF balance ensures transparency in financial planning. The primary details required include your Universal Account Number (UAN) , a mandatory identification number provided by the Employees’ Provident Fund Organisation (EPFO). This 12-digit UAN acts as a unique code tied to your PF account. Additionally, individuals must link their UAN with Aadhaar , PAN , and a registered mobile number . These integrations ensure a secure login process and enable subscribers to check PF balance online. You can check PF balance online via the EPFO portal or the Umang app. Logging onto the EPFO portal requires UAN credentials, while SMS and missed call services demand registration. For SMS-based inquiries, you need t...

  The EPF calculator is a robust financial tool designed to estimate the contributions made towards an Employee Provident Fund. It offers clarity on the accumulation of savings during the employment tenure. The EPF calculator primarily considers both employee and employer contributions in determining the total corpus generated. The Breakdown of EPF Contributions Under the Indian EPF scheme, an employee contributes 12% of their basic salary plus dearness allowance (DA) towards their EPF account. The employer also contributes an equivalent percentage, but not all of this goes directly into the Provident Fund corpus. Out of the employer's 12% contribution, 8.33% is allocated toward the Employee Pension Scheme (EPS), subject to a salary cap of ₹15,000 per month. The remaining employer contribution (approximately 3.67%) is added to the EPF corpus alongside the employee's payable 12%. Practical Example of EPF Calculation For example, if an employee earns ₹20,000 as a basic salary: Em...

Gratuity is a monetary benefit provided by employers to employees as a token of appreciation for their service. It is regulated under the Payment of Gratuity Act, 1972 in India. The gratuity calculator is a tool used to quickly estimate the gratuity amount an employee is eligible for after completing at least five years of continuous service. Maximum Limit of Gratuity The maximum limit for calculating gratuity depends on the terms set by the Gratuity Act . As per the guidelines, the maximum gratuity amount payable under the Act is capped at ₹20,00,000. However, for government employees, the maximum limit may vary depending on their internal employment policies. Employees in private sectors with longer tenures and higher salaries often receive gratuity amounts aligning with this ceiling. Gratuity Calculation Formula Gratuity calculation is based on a simple formula: Gratuity = (15 × Last Drawn Salary × Years of Service) ÷ 26 Where the last drawn salary includes basic pay and dearness...

  Understanding Non- Cumulative Fixed Deposits Fixed deposits ( FDs) are a popular and relatively secure investment choice for many Indians. Among the different types, non- cumulative fixed deposits provide interest payouts at regular intervals— monthly, quarterly, semi- annually, or annually— unlike cumulative FDs, where the interest is reinvested and compounded over the term of the FD. While these interest payouts are attractive for individuals seeking consistent income, the returns on non- cumulative FDs can be significantly impacted by inflation. Impact of Inflation on FD Returns To understand the impact of inflation, consider that the purchasing power of money declines as inflation rises. Let us assume you invest ₹ 10,00,000 in a non- cumulative FD at an interest rate of 6% per annum with monthly payouts. The annual interest earned would be ₹ 60,000, distributed as ₹ 5,000 per month. However, if the inflation rate is at 6%, the real returns from this investment become negli...

Tax Deducted at Source ( TDS) is a vital component of the Indian Income Tax framework. If you are eligible for a TDS refund, you can track its status conveniently through the Income Tax Portal. The process ensures you stay informed about your refund credit timeline and understand the progress under the “ TDS claim status” functionality available online. Steps to Track TDS Refund Status To begin tracking your refund, log in to the Income Tax India e- Filing Portal using your registered user ID and password. Navigate to the ‘ My Account’ section and select ‘ Refund/ Demand Status.’ Here, you can view vital details, such as the refund issuance date, type of refund, payment method, and status. Ensure you review discrepancies, as mismatches between the TDS deducted by banks on Fixed Deposit ( FD) Plans or employers and the actual credit can delay refunds. Example of TDS Refund Calculation Suppose you invested ₹ 5,00,000 in FD plans and earned interest income of ₹ 40,000, with ₹ 4,000 TD...

Form 60 is a declaration form submitted by individuals who do not possess a Permanent Account Number (PAN) and are engaging in specific financial transactions, as mandated under the Income Tax Act, 1961. The form becomes necessary when the transaction crosses certain monetary thresholds, and the individual’s PAN is unavailable. Transactions Requiring Form 60 Submission 1. Purchases Exceeding Specified Limits For purchasing immovable property worth ₹10 lakh or more, Form 60 must be submitted during the transaction. 2. Banking Transactions Deposits exceeding ₹50,000 in a single day in bank accounts (savings or current) or recurring deposits in excess of ₹5 lakh in a financial year require Form 60 submission. 3. Vehicle Purchases If the value of a motor vehicle, excluding two-wheelers, exceeds ₹10 lakh, Form 60 is mandatory if the purchaser does not have a PAN. 4. Loans and Credit Card Applications Submissions for loans exceeding ₹2 lakh or applying for a credit card often require Form 6...