What are the major benefits and limitations of PPF Accounts?

The fixed deposits have been the primary choices of the majority of people in India. For those, it could be one of the best modes of investment with assured returns because the rate of interest is also higher than other types of deposits.

Let us discuss other significant benefits and limitations of PPF Accounts in brief.

Advantages of PPF Accounts:

The major advantage of depositing money in a PPF account is that whatever interest you will earn in between, is a tax-free return.
The rate of interest in case of PPF investment is comparatively higher than the traditional fixed deposits (FD).
You are eligible to avail a tax rebate up to 1,50,000/- as per 80C of Income Tax Act.
You can start investing with a minimum amount as 500/- and a maximum of 1,50,000/- per financial year.
You can deposit said amount in monthly instalments (12 months) by cheque, cash, bank transfer.
A partial withdrawal is allowed but after 7 to 15 years of maturity period.
The PPF account can be opened in post offices, the recognised banks in India whether it is public or private sector banks.
Thus Investing in public provident funds offer several benefits when it is compared to other types of deposits like saving deposits, fixed deposits, recurring deposits or Flexi deposits.

Disadvantages of PPF Accounts:

The PPF accounts have a lock-in period of 15 years which can be extended in 5 years blocks, meaning you cannot withdraw the funds before 15 years.
The first financial year in which you have opened the PPF account will not be considered, meaning the maturity period would be fully 15 years besides the first year.
Only one PPF account per person is allowed, however, you can transfer your account anytime in any organisation.
The premature withdrawal is not allowed till the 3rd year from the date of opening, however, you can get a loan against the balance amount after a 3 to 6 years time period.
The monthly interest rate shall be applicable only if you deposit money into your PPF account from 1st to 5th of every month, otherwise, you would not earn any interest for that month.

Eligibility:

Any individual who is resident of India is eligible to open a PPF account in the post offices or any popular banks, but an NRI can’t open a PPF account in India.

Nevertheless, if you have already opened a PPF account before having NRI status, you can still operate it up to 15 years but it can’t be further extended.

The PPF account of minors can also be opened but it shall be operated by their parents.

How to open a PPF Account?

The process of opening a PPF account is very simple. You can either approach the post offices and commercial banks or can apply online.

You need to carry proof of identity, address and passport size photo and then fill the application form (Form A). The minors PPF account can also be opened under parents supervision.

If you hold an account in ICICI bank or HDFC bank, you can directly request for opening a PPF account through the internet banking portal.

Wrapping Up:

The PPF investments have always been preferred mode of investment for salaried as well as working professionals. The returns are not only guaranteed by the government but at the same time, it provides monthly compounding rate interest as well.

4 Common Tax Saving Mistakes You Might Make?

Every person has one thing in my mind while paying the taxes is to save it. We have made a to-do list that you can check at the last minute and avoid errors while filing a tax. Some people are also not aware that they can save their tax while investing in investments. Most of the people are below 6.5 lakhs they can save a lot of money rather than paying as tax. We at Imperial Finsol gives advice

· Where to invest?

· What to invest?

· How to invest?

· How your taxes can be saved?

1. Purchasing an irrelevant insurance policy.

Saving is an important part of tax investment. If we are talking about insurance policy people generally purchase it from their relatives or anyone closer to them. When a financial planner asks them about the investment they show their insurance policy. But actually, Insurance policy is their expense, it is not an investment that can be benefitted in the long term.

2. Waiting till the Last will always be benefitted

With tax-saving instruments such as ELSS mutual funds, you don’t really need to wait till the last. We can make investments anytime. Through Imperial Finsol you can always keep a watch on your investment through their app. If we do investment at the last moment there will a lot of headaches at the end. It is always beneficial if we do the investment at the beginning of the Financial year, It saves a lot of time and patience. Even if you are opting for FD & PPF it is also necessary to start it at the beginning of the Financial year.

3. Lack of knowledge of lock-in periods and their relationship with Inflation

Many new tax-saving investors often fixate on “stability” and “safety”, after comfort. The lock-in period is justified away. But with most options having a lock-in period of at least 5 years and 15 years in the case of PPF, you are at risk of underestimating the impact of inflation and what your money will amount to at the end of the tenure. You need to ask yourself – are you making the most of your hard-earned money?

With tax saving mutual funds, your money is most likely to stay well ahead of inflation, even if inflation goes up. At a historical rate of 7 percent, inflation is likely to make things cost double what they do now, in a decade. This means that lock-in of 15 years will also have significant consequences inflation wise. Many investors forget this fact.

Your tax-saving money can be a significant part of your long term wealth corpus if you invest right. A lakh a year invested is no laughing matter when you are looking at the growth rates the equity market is capable of generating (about 12 percent going forward is the expectation). ELSS tax saving funds are the primary tax-saving tool that can exploit this fact. You are potentially looking at a Rs 24 lakh corpus in 10 years by just investing Rs 8,000 a month in tax saving funds.

PNB Housing Finance Q2 results: Net profit dips 15% to Rs 312 crore

PNB Housing Finance NSE 2.25 % reported a 15 percent dip in net profit on lower business volume and deterioration in asset quality while the company is still in limbo about raising growth capital.

Net profit for the mortgage lender stood at Rs 312 crore in the September quarter against Rs 367 crore in the year-ago period. Pre provision operating Profit remained stable at Rs 575 crore compared to Rs 578 crore over the same period.

The company’s net interest margin stood at 3.5 percent as compared to 3.2 percent a year back.

Its loan disbursements nearly halved at Rs 2,444 crore in the second quarter compared with Rs 4,969 crore in the year-ago period. Its asset under management (AUM) shrunk to Rs 81,221 crore from Rs 89,471 crore.

The company said its loan disbursements during the quarter witnessed gradual pick up, primarily in the retail segment, and has reached 86 percent of pre-Covid-19 levels. Retail loans contribute 82 percent of the AUM.

Its gross NPA stood at 2.59 percent of loan assets while net NPA stood at 1.46 percent against 0.65 percent a year back.

The board of PNB Housing Finance has already approved to raise Rs 1800 crore through rights issue or preferential issue to augment its capital base. The decision will be subject to requisite approvals including those from shareholders through a general body meeting or postal ballots, the company said in the exchange filing. Its shares had climbed over 10% as investors anticipated the fundraise. Its promoter Punjab National Bank NSE 0.56 % is awaiting the regulator’s approval to pump in up to Rs 600 crore in the company, which has been looking to mobilize capital for over three quarters now.

ACE Digital Platform

“Demand for Housing Loan to improve,” said Hardayal Prasad, MD, CEO of the company. PNB Housing Finance is set to launch the housing finance industry’s first digital platform for loans offering. With the launch of its ACE digital platform, the company intends to leverage the technology to offer a convenient and contactless loan process for its customers.

The new digital platform automates the end-to-end loan process, including data collection and verification as well as lead generation and management through various digital channels.

Using this new platform, the customers can upload documents online leading to a backward integration of the verification process such as PAN, Aadhaar, digital signatures, and video-based KYC and geo-tagging. The information is then integrated into the company’s underwriting platform for further processing of the loan application.

For FY21, the company has set a target of 9-10% of new loans through its ACE digital platform as the pandemic will also motivate prospective customers to use this new digital channel for the loans they need. NSE india limited Shares

What to Take to Your Party Make-Up Consultations

With the approaching holiday season it’s time to party! Why not take opportunity of this fact by offering party makeup consultations. You would be making your clients feel special and you’ll be earning some extra income.

In addition if you’re in direct sales party makeup consultations provide you with another opportunity to demonstrate and sell products. Why not use your skills to make people look good or even teach others how to make themselves look good.

The first thing you need to think about is what you actually need to take with you to hold a successful party makeup consultation. You’ll need the following:

· A Makeup Kit

· Disposal brushes*, cotton pads, cotton buds

· Products for sale

· Mirrors

· Hand Cleaner

· Face Cloths and Towels

· Hair Bands and Clips

· Makeup Remover and Skin Care Products

· Table Cloth

· Beauty Apron

· Beauty Coat

· Business Cards

· Small Notepads and pens

*It is better to use disposable items instead of sharing brushes. It gives a sense to the guests that you are very professional and mindful of health and safety. If you do use non disposable brushes during the consultation do not use them on different faces without cleaning them with a proper brush cleaner in between.

With Party season coming up you might want to create gift sets. For example if your clients are going to a party you might want to put a lipstick, blusher, highlighter, powder and mascara for example together in a pretty bag that they can purchase and take with them to the party for touch-ups. Just make sure that you use those items in your consultation to demonstrate how to use them.

You can also take some small notepads and pens for the guests to make notes on what they discover and they might want to jot down any make-up tips you give them or jot down any colours or any products that they used at the consultation. One further item to remember if you’re running a beauty business is to take some business cards to hand out as well.

If you regularly hold party makeup consultations I suggest creating a checklist that you can look at to ensure you don’t forget anything. There’s nothing worse than being at a client’s home and realizing that you’ve left something critical behind.

What’s stopping you? Why not use your skills and creativity to earn extra money this holiday season and at the same time make other people look good and feel special in their party gear too.

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