Saving money is your way out of uncertainties in life. Tax planning can help you with expanded choices and give the desired peace of mind. It is no new news that in a financial year, you can take investment for IT deduction as per the 80C or 80CCC of Tax Act. Because of this, many young money thrifts are interested in investing but are still backed off with the potential risks involved. Taking this into account, this article further explores the claims of the investment for IT deductions. We are going to look at the attractive investment schemes and regulations that can spur your interest.

Before we begin, let us take a sneak peek into the fundamentals of income tax. Every individual with a fixed income is obliged to pay income tax to the government of India. Even though it is an unavoidable tax liability, there are still ways to unveil deductions on the prevailing tax money. We generally call these ‘tax-saving instruments”, and you can take advantage of this for selected investment options and expenses.

#### How to make use of sections 80C and 80CCC? 
    
Most of the parameters of investments for IT deductions are mentioned in the Online Income Tax Act – under section 80C. To save under this provision, you can invest Rs 1.5 lakhs to cut your taxable payments. Along with this, to optimize your deduction, invest in NPS as per 80CCD (1b) to claim Rs 50,000. Hence a total of Rs1,50,000 can be reduced from your tax liability by increasing the frequency of your investment hobby. Additionally, you can also get medical Insurance to get a deduction of Rs 1,00,000 under 80D. Deduction (a maximum of Rs 50,000) can be also availed on Home Loan interest under 80 EE.

**Now take a look at the following investment for IT deductions to get exemption;**

**ELSS (Equity Linked Saving Scheme) –** This comes under mutual funds and is distinguished by its deduction of 1.5 lakhs. The interest rate of this scheme will come between 15%-18% and the lock-in period is 3 continuous years. But what you need to consider is its returns. This investment for IT deduction does not offer fixed returns, as it differs according to market trends. However, according to this scheme, you can opt for a dividend (10% taxable) or a growth option (more return). You can also diversify your investment by applying for multiple ELSS which will help you increase your liquidity.

**Fixed deposits –** FDs serve as security deposits and have guaranteed return options. However, the tenure of FDs is 5 years hence, premature withdrawals are not possible. Fixed deposits provide tax-free income and are ideal for individuals who are looking for long-term benefits. You can claim up to 1.5 lakhs on FD and even earn more than savings.

**Life Insurance –** Even though it is an attractive way to save money, we do not recommend getting life insurance just for the sake of tax benefits. In insurance coverage, the premium you paid and the following maturity payments are tax-free. In addition to that fund, the endowment is also free of tax under section 80C and 10(10D). If you are an unmarried individual or a single earner couple aged between the late 20s and early 30s, then you can get a term income insurance cover with 15 to 20 times of your yearly salary to get tax exemptions. 

**Senior Citizen Scheme -** All adults above 60 years are eligible for the application of this scheme. You can pay a one-time minimum money deposit of Rs 1,000 and invest a maximum amount of Rs1.5 lakh for joint holdings and Rs9 lakhs for single holdings. The average maturity period is 5 years, and get Rs1.5 lakhs as tax deductions. Furthermore, under this scheme, you can make premature withdrawals - a key reason for its hype.

**Public Provident Fund (PPF) –** This is an interesting scheme facilitated by the government to enhance your retirement funds if you wish to make investments for IT deductions. PPF is one of the most secured investment funds and enjoys EEE benefits that are exempt, exempt and exempt. Hence it is also ideal for single individuals between their 20s and 30s. Hence, the money you give, the interest acquired, and the maturity that comes after are all deductible income. In spite of this, the risk factor is stable, and the tenure is 15 years. You can claim Rs 1.5 lakhs under this scheme and can range the maturity date to extra 5 years.

**National Saving Schemes -** NSC is identical to FD and is provided by the government of India. It can be initiated with any post office and is regarded as a fixed income tax saving instrument. The maximum limit is 1.5lakhs under the IT act. The maturity of NSC is 5 years and is a completely transparent financial paradigm.

**National Pension Scheme –** NPS is the all-time favourite choice of investors to get heavy tax exemption. Under this, your contribution is eligible to make an Rs1.5 lakhs tax exemption, and an extra Rs 50,000 can be claimed under 80CCD Act. The tenure is your retirement date. If 10% of your income is automatically taxed, then the money will be free of tax. You can start to save from your late 20s to amplify the amount.

#### Other investment options for IT deductions  
#### 

**Medical insurance–** This will help senior individuals to save up to Rs1 lakh under 80D. You can also take cancer cover under this. On the contrary, if you can only Rs 50,000 for self-spouse and children.

**Interest paid on home loans –** A maximum of 2 lakhs can be claimed on interest paid on home loans. Section 80EE gives you a deduction of 50,000 on loans above the threshold of Section 24.

**Home loan –** Taking a home loan can also help you condense your tax liability, and you can claim up to Rs 1.5 Lakhs of the home loan under Section 80C.

**Charity funds –** If you have paid charity to any renowned institutions, you can claim it under the 80G provision.

**Interest paid on education loan –** if you have taken an education loan and paid interest, then you are eligible for deductions under Section 80E

#### Optimize your investment for IT deductions with Gotaxfile!

There is nothing more satisfying than taking investment for IT deductions. It can save you a lump sum and help you achieve your dreams without expanding your current financial framework. Instead of pushing it to later, try to do it early to find such exemptions and tax-saving income. To know your best options, you can contact Gotaxfile professionals who have sound knowledge in taking advantage of investments of IT deductions. We will help you get tax exemptions and augment your chance to make tax-free income. Get in touch to know more!   




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This resources is article type where author writes his own personal opinons

Article

This article explores the claims of the investment for IT deductions. We are going to look at the attractive investment schemes and regulations that can spur your interest.


Investments That Can Be Claimed for IT Deductions

Nidhi means treasure. In India, a Nidhi company represents the central government's initiative that was started to augment the savings of its members. It is regulated by Section 406 of the Indian Companies Act of 2013, the Companies Rules of 2014 and the Chapter XXVI of the Companies Rules 2014. The main feature of the Nidhi framework is that only its shareholders can benefit from it. Thus, it collects deposits and provides loans for the mutual benefit of its members.

There are numerous organisations that are attached to a Nidhi Company. Collectively, we can call them Benefit Funds, Mutual Benefit Funds, Nidhi, Permanent Funds or Mutual Benefit Companies. It is an establishment with at least seven members, and among these three will act as the director of the company. Because of its thrifting feature, it accumulated immense popularity in South India. Along with this, it centres around individual benefits, so it is subjected to certain tax exemptions. In this blog article, we shall take a deep dive into the key features and pivotal things you need to know about Nidhi Company.

#### Features of Nidhi Company

Nidhi belongs to a category of an NBFC (Non-Banking Finance Corporation). Even though it does not come directly under RBI, the reserve bank does intervene in its activities by issuing directives about deposits and financial handlings. The main features of such a type of company are mentioned as follows:

* In a Nidhi Company, the aids are curbed to a specific group of people.
* All fundings back you with standardised rates that help its members to utilise the money for construction activities or restoration of buildings. However, it is not as attractive as the loans from banks.
* Nidhi Companies possess certain advantages despite the regulations under Company Act.
* Stringent rules of a Central Committee restrict the usage of the word Nidhi around any ventures unless DCA recognises it. It is to prevent the illegal formation of groups imitating the government initiative. Consequently, incorporation of the word can lead to penal actions.
* A Nidhi company cannot lease money, hire, purchase finance, insurance, or procure securities of an external company.
* It will not acquire deposits or engage in any lending activity with an external company or an individual. 
* It does not have the authority to issue preference shares or any other debt instruments. 
* It cannot engage in any microfinance or vehicle funding activities.
* The maximum interest rate on a savings deposit should not transcend the 2% of the rate provided by Nationalized Banks. 
* The company is empowered to acquire Fixed deposits, savings and RD. It can also optimise its profit with an interest of 12.5%. 
* The maximum threshold of NBFCs is not pertinent to Nidhi companies. 
* All the activities are regulated at a district level for the initial 3 years of incorporation. After that, it is free to have 3 offices within the district. If you need to expand the spatial boundaries, you need approval from the "Regulator Director". 
* One needs to submit securities for the purpose of issuing loans. It can be any tangible property like gold, land, FD, government securities or life insurance certificate. 
* It is obligatory to assure compliance with the annual filings, tax returns and audits. 
* You can start a company with an initial savings of Rs. 25,000. 

#### Conditions for Nidhi Incorporation 

1. Nidhi should be formed as a 'public company'.
2. The minimum threshold of equity share of the company is INR 5 lakhs. 
3. According to the terms and conditions, preference shares will get revoked on incorporation. Additionally, once the company is recognised, it cannot issue any more preference shares. 
4. The word "Limited" will be attached to the last part of its name. Hence it will be called "Nidhi Limited". 

#### Clauses to meet after Nidhi Incorporation 
#### 

1. Within one year, Nidhi should have at least 200 members.
2. The average funds hold of the company should be 10 lakhs or more
3. Unencumbered term deposits of a minimum of 10% of the prevailing deposits. 
4. The ratio of the average retained capital to deposits should be more than 1:20. 

#### Documents needed

Before starting the registration process, let's take a look at the documents that are necessary to complete Nidhi incorporation. 

**For this, you need;**
    

1. MOA – Memorandum of Association
2. AOA – Article of Association
3. DIN of directors
4. Property documents / rent agreement / lease agreement
5. NOC of owner/landlord
6. PAN of members
7. Address proof of members
8. Identity proof

#### Steps involved in Nidhi registration process

1. The company's directors can submit the application for DIN via E-From post to receive a digital signature certificate. 
2. Once you have acquired DIN, you can attach a name for the company under Nidhi. It should have the word "Nidhi" in it and need to be within the provision prescribed by the MCA. However, you do not need name approval from the DSC in accordance with the change in the rule of 2018. 
3. To verify your company, you can submit the documentation with E-Form to the authorities. 

Once you complete the required verification, you will receive a certificate within 15-25 days, approving the Nidhi company. The certificate also comes with your Corporate Identity Number. 

#### Nidhi registration fees

Online payment options are available for Nidhi registration, and the fee involves multiple sections. Hence, the fee changes depending on your authorised capital. Furthermore, an additional fee of Rs. 500 per director is necessary for completing the DIN registration. At the time of name approval, you will pay Rs. 1000 and you also need to pay for the state stamp duty.
 
#### Benefits of Nidhi Company

As this is a central government initiative, Nidhi company offers several benefits to its members. Unlike other banks, the company's liability is less as there is no risk of losing properties of directors in case of losses. Additionally, when compared to other NGO financial settings, Nidhi stands unique with credible solutions and a resilient structure. One of the crucial functions of the company is to amplify the savings of its members. Hence, the Nidhi platform offers an effective way of generating income and thrifting money. Moreover, access to public funds and the cheaper loan rate make it an attractive option for stakeholders. As the regulatory controls of RBI are limited, it facilitates customised loan services which are far more convenient than other lending services. Moreover, it proves as a safe and secure way of handling money. The closed network only allows stakeholders to benefit from this initiative.

#### Register a Nidhi Company with top-class support from Gotaxfile!
 
To conclude, we can confidently say that Nidhi is one of the best financial networks to receive loans easily and without hassles. This mutual benefit scheme will support local communities and encourage the savings of its members. However, complying with tax and registration can be arduous for a newcomer. This is where Gotaxfile can lend a hand! We can assist you with all the fundamentals of Nidhi incorporation and help you comply with the tax regulations. Contact us for faster incorporation and file your tax returns!  









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In this blog, we shall take a deep dive into the key features and pivotal things you need to know about Nidhi Company.

Nidhi Company - An Insight

Investing is a smart way to maximize your earnings. According to CEIC data, in 2021, investments accounted for 21.8% of Indian GDP. Due to its long-term benefits and the potential to provide a steady stream of income, many consider it as an attractive option for young investors. You can invest in any industry but, the golden rule is always the same – analyze performance before investing. 

That being said, there are multiple ways of investing money. This includes both secured strategies and unconventional strategies. You may be someone who likes to take risks or someone who always plays on safe ground. Whichever category you fall into, it is crucial to expand your knowledge and try out new things in the stock market. To lend a hand, this article will help you understand the important lessons to learn in stock investment. 

#### What kind of investor are you? 
    
Many aspire to become the next Druckenmiller or Warren Buffet. But this involves a history of hard work and mental flexibility. Any good investors need to master 4 basic grounds – independent thinking, unparallel competitiveness, tireless inquisitiveness, and self-awareness. Before you start your brokerage account, you also need to understand what kind of investment tactics you may employ. Are you an active participant who consistently gets your hand dirty, or are you someone who does it and forgets it? Depending upon this, you can employ a variety of methods to reach your desired goal. Key investors make their decisions based on the change waves in macroeconomics and market conditions. They are fearless to take risks and welcome losses with an open heart.

#### Online brokers

Brokers are the people who represent clients on the stock exchange floor. All stockbrokers in India are accustomed to the regulations set by the SEBI or Securities and Exchange Floor of India. If you are new to brokers, then take a look at the following functions of online brokers;

* Brokers order trade executions for their clients 
* Brokers offer trading platforms to execute your order easily 
* You can get financial advisory services before you initiate actions 
* If you own large brokerage funds, then you can margin financing 

#### Full-service brokers

Brokers can be divided into two categories – full-service or discount. Full-service brokers facilitate full-time brokerage facilities and fiscal consultancy about retirement savings, healthcare and all other spendings. As they generally deal with conventional brokerage, you can approach them if you are planning to invest in large amounts. Because of this, they charge more than discount brokers, which may be a percentage of your assets. In India, it varies between brokers; however, usually, they charge between 0.3% and 0.5%. They also support you with educational materials and provide market data and figures. 

#### Discount brokers

Discount brokers are getting popular because of their tech-savvy attitude towards and efficient consultant services. They will introduce you to tools to manage your stock investments and even facilitate Robo-advisory standards to make you completely worry less about your investment handlings. They make investment easy and bring convenient options like mobile applications to keep track of your money. As the service packages of discount brokers are less, compared to full-service brokers, they sometimes only charge 10% of your transaction.

#### Robo-advisors

These are automated digital platforms that offer financial investment services. Robo-advisors are still new to the stock market and are the end product of tech invasion. They employ various technologies and algorithms to deliver attractive results. All their projections and consultancies are based on these computerized results and have little space for human-intensive supervisions. Once you give them your goals and financial situations, using advanced tech infrastructure, they figure out your interested areas and provide investment advice adhering to the results. These are best for long-term investors, as they can easily track company performance when the selling time frame is long. They are cheaper than other brokers and charge 0.2% to 0.5% of your total transaction. The only negative side of Robo-advisors is that the investment options will be limited in comparison, as it is more oriented towards mutual funds. 

Apart from this, now let us take a look at some vital things to remember while investing in the stock market;

###### 1. Search for facets impacting company stock value 

Before you choose a company and decide to try your luck, it is necessary to measure the depth you are jumping into. There are multiple factors that will influence the stock price of a company. Change in these factors may increase or decrease its future value. Many analysts are still unaware of this nitty-gritty that makes stock prices high or low. Thus, study your locale well and track the fundamentals that directly correlate to stock price before you start investing.

###### 2. Avoid leverage
 
Make sure you invest your extra money or what you consider as excess money. Leverages are borrowed money available to execute stock market strategies. Many people leverage money from banks hoping they could double the amount by investing. Unarguably there is a positive side to it. You can lend money from banks which will be credited to your marginal account. But imagine experiencing loss? It will become a liability as you will lose all the money that you have invested at the same time you need to pay your broker. Once you achieve a flair in investing, then you can move to such risky options. 

###### 3. Think twice about diversification

Diversification gives you the benefit of a middle ground. It will secure your position and reduce risks to some extent. A diversified portfolio is good if you incur unexpected losses. But avoid overdiversification. Many famous investors are against diversification and try to concentrate on a few stocks that have the potential to bring money. If you are bombarding money in different stocks, it will impact your growth and bring you limited profit.

###### 4. Have realistic expectations

The stock market is not a money lending machine. It doesn’t make you a billionaire overnight. All those who benefited from the field had employed stringent discipline methods and suffered losses before starting earning. Many think that putting some money in some common names is enough to make use of the market. But our experience tells us you need a holistic strategy to bring sustainable results. Following the mob is not always good and can even limit your profit. So, the best way to start buying stocks is by approaching a catalyst who can give you advice regarding the current and future markets.

As we have seen, managing the stocks all by yourself and keeping track can be daunting for many. Apart from this, before deciding where to invest, you can approach a professional consultancy service that can supply you with tools and ways to boost your profit. If you are looking for an efficient and experienced broker service, then Gotaxfile can help you will all the basic facts you need to know. We are a trusted advisor with a vast wealth of experience and help you comply with all the rules and regulations set by the government. Contact us to know more! 






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Whichever category you fall into, it is crucial to expand your knowledge and try out new things in the stock market. To lend a hand, this article will help you understand the important lessons to learn in stock investment. 

Important Stock Investment Lessons to Learn

The economic standstill in the past two years has led the government to take radical decisions to protect individuals and businesses all over the country. This is why the deadline for income tax filing returns (ITR) was extended from July to January 10th 2021. From choosing the right tax form to filing on time, there are various courses of action involved while processing your ITR.

As this wind of change is blowing around the country’s economic decisions, in this article, we are going to navigate the nuances involved in filing income tax returns online for salaried employees.

#### What is an Income Tax Return?
    
The income tax return is a form that you have to submit to the income department of India. It includes information about your acquired income and the tax applicable during a year. The tax form that you file varies according to your residential status, total income that you have earned in the financial year 2020-21 and based on the category you belong to.
There are mainly 7 types of forms – ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 that you are intended to pay before the deadline.

#### Why should you file Income Tax Returns?
 
Many gene-z and millennials think that ITR is not compulsory to file if you fall under tax liability, but the truth is that complying with the governmental tax regulations will only bring benefits to you.

1. If your gross annual income exceeds the basic exemption limit, then you are obliged to file income tax returns. Check out if the rule applies to you below;

*   If you are below 60 years and your income is Rs. 2.5 lakhs.
*   If your age is above 60 and below 80 and your income is Rs. 3 lakhs.
*   If you are above 80 and your income is Rs. 5 lakhs.

2. You also have to pay if you wish to claim your income tax refund from the government department or if you have capitalised any distant asset during the prescribed financial year.
3. If you need to enjoy the benefit guaranteed by the government of India.
4. If you would like to apply for a visa or a loan.
5. If you fall under the grouping of a business entity, then you have to file ITR despite your profit and loss rate.
6. If you do not meet the exceptional case limit, but if you fall into the following category, then you need to file an ITR; 

* If you have deposited a net amount of more than 1 crore in one or more bank accounts. 
* If you have sustained an expenditure of more than Rs. 2 lakhs on foreign travel for yourself or any other person. 
* Have spent an aggregate of more than Rs. 1 lakh on electricity consumption.   

#### Who can use ITR 1 form?
    
**As we have mentioned, salaried individuals have to file an ITR-1 form to file their income tax returns. You can use this form if;**

* You are a resident individual 
* Your total annual income is Rs.50 lakh
* Own house property
* Have additional income from alternative sources like winning a lottery or from games
* Agricultural income up to Rs. 5000

**However, you cannot use this form if you are;**

* A non-resident or a resident, not ordinary resident (RNOR)
* Has an income above this threshold
* Have profit from your business or profession
* A director in a company
* Invested in an unlisted share
* TDS has been withdrawn on certain cash payments
* Have foreign assets or income
* If your income tax is deferred on employee stock options (ESOP).

#### What are the different ways to file ITR?

To file the income tax returns on the salaried income,you can either choose the online or offline filing platform. If you are opting for the offline mode, then use the JSON utility to complete the details and upload them on the income tax website. On the contrary, if you are using the online mode, you need the following documents;

* Bank account
* Aadhaar card
* PAN card
* Form 16
* Investment information
* Form 26AS

If you are filing for the financial year 12-20, then you have to choose AY20-21 from the dropdown to file the return.

#### Process Involved in Filing Income Tax Returns

To commence the process, you need to assess your primary source of income. As a salaried employee, your primary source is typically your monthly salary. If you fall under this category, then you can file your income tax return using ITR 1 or what is generally called the SAHAJ form. In the 2019-20 tax year, the income threshold is Rs. 50 lakhs or below. To file, you need to register on the e-file website. Apart from this, you also have to update your PAN and Aadhar number on the same website. For successful registration, you can also link your contact number with your respective Aadhaar card. Through this, it is easier to receive e-verification. If there are any pending amounts to be received from your employee, then it is ideal to link your bank account to the e-file website. By doing so, the process of filing becomes smooth, and any late credit will be automatically added to your filing of ITR.

#### How to file income tax returns?
    
* Login to the income tax file portal on the income tax website.
* Enter your PAN Card number, password and fill in the Captcha Code to complete the login process.
* Select the ‘e-File menu’
* Click on the nexus ‘Income Tax Return’.

**Then you can start to fill the form on the income tax filing site**

* Your PAN Card number will be auto-populate
* Choose your application assessment year
* Select your ITR Form Number
* Select ‘Filing type’ as ‘Original/Revised Return’.
* Click on the submission key
* And finally, click on continue to finish the return filing.

You can cross-check the information given to ensure the accuracy of the information and all the mandatory arenas are filled correctly for successful filing. Below the ‘Taxes Paid option and Verification tab’ you can find the Verification options. To submit the filing click on the ‘Preview and Submit key. Skim through the form again and make sure every portal is filed correctly before final submission. The last stage is a verification and you can do it either through online or offline mode.

**For Online verification, follow these steps;**

* Select e-verify from the top menu, which is generally positioned under My account.
* Select the form that you need to reconfirmation
* If you are obliged with additional tax, you can simply click on ‘Pay Now’ and close it
* You can also verify it using Aadhaar OTP if you have linked it before the process.
* Now, jot down the OTP and click on ‘E-Verify’.

For offline verification,

* Take a xerox copy of the form and self-attest it using your signature, date and place it at the bottom.
* Send the document to the address that is given via speed post.
* If you are paying any additional taxes, then attach the check as mentioned or pay it online.

#### File your income tax return in time with GoTaxFile!

Identifying the correct form and filing your income tax returns by compiling all the documents may be time-consuming and confusing for some. As the due date and rules are changing, it is crucial to stay updated about the changing tax scenarios. This is why you need the expert assistance of GoTaxFile. We are a holistic avenue that brushes you through the guidelines and helps you file tax complying with the involving legalities. We bring necessary deductions and create a checklist to ensure precision. Get in touch to clarify your suspicions on filing the income tax return for this financial year. 





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As this wind of change is blowing around the country’s economic decisions, in this article, we are going to navigate the nuances involved in filing income tax returns online for salaried employees.


How to File Income Tax Returns Online for Salaried Employees?

#### GST Input Credit

GST is an unavoidable tax regime that you pay when you purchase any goods in India. But, if you are reimbursing the same amount of money during reselling the goods as tax, then it means you are running under a limited profit. Nevertheless, GST input credit can be at your aid. This benefit allows you to save the cascading of taxes by diverting and reducing it significantly.

Now, let’s take a sneak peek into the what’s and how’s of GST input credit.  

#### What is GST INPUT CREDIT?
    
Considering the changing tax laws in the country, it is vital to understand the Input tax credit (ITC) framework to crack the benefit. GST input credit allows you to reduce the tax that you have paid on the input while selling the output. For instance, if you bought goods worth Rs 10,000 and paid 10% as GST, and sold it for 25,000 and added 15% of GST; then you do not have to pay the entire amount; instead, the ITC allows you to pay just the additional 5%, as you have already paid 10% of it during purchase. Hence, the benefit can be unlocked at each stage of the supply chain and you can save a huge sum of money.

#### Who can benefit from GST input credit?

**This tax relief mainly targets;**

* Manufactures
* Suppliers
* Agents
* E-commerce operators 
* Aggregator
* Any person mentioned under GST Act

#### What are the different taxes under GST to claim ITC?
#### 

**You can claim GST input credit to the following taxes**

*  Integrated GST (IGST) – inter state movement of goods
*  Central GST (CGST)- intra state movement of goods
*  State GST (SGST)- intra state movement of goods
*  Union Territory GST (UTGST) – intra state movement of goods
* GST composition cess – notified goods

#### What are the rules for claiming GST input credit?
 
**Now, take a look at the rules that you need to comply with to claim GST input credit;**

1. The purchaser should have proof of his purchase; For instance hold on to your tax invoice, debit note, or other prescribed document given at the time of purchase.
2.  The goods must be collected and should be in the possession of the buyer. If you are paying in instalments then the GST input credit can be claimed against the tax bill for your last instalment.
3. From wherever you have purchased, the supplier also should have paid the tax to the government in cash or by claiming the input tax credit.  
4. The supplier should also have to file GST returns. As, per the new regulations, the government is ensuring GST compliance from all parts of the supply chain. Thus, it is vital to assure that the supplier fulfils the GST requirement along with the purchaser.
5. To claim the tax, you have to make the full payments of the goods within 180 days from the date of issuing the invoice to the supplier. If you are unable to cope with this date, then it will be added to your output tax liability. Despite this, in cases of partial payments, you are only allowed to avail credits proportionate to what you have paid. 

#### What are the eligibility criteria to avail of the credit?
 
**If you own a regular business, then the following are the parameters you need to comply with to become qualified for GST input tax credit;**

1. All GST registered individuals are eligible, except those who pay tax under the composition scheme.
2. If you have only applied for registration within 30 days from the last date of filing, then you can claim ITC only on the goods that you possess prior to this date. Also, you cannot claim the credit on purchases made for exempted supplies.
3. On the other hand, if you have voluntarily registered then GST input tax credit is allowed to claim on the day before the date of issuing the registration. Similar to the former case, GST input tax credit cannot be claimed for exempted supplies.
4. If you are charged tax under the composition scheme, then you can avail the credit for the inputs held in stock, and the inputs contained in semi-finished or finished goods in stock on the day before you make your tax payments under the composition scheme. In this case, also you will not be able to claim the ITC on exempted goods.
5. However, when your exempted supply becomes taxable supply, you can take advantage of the situation and claim the benefit preceding the day it becomes taxable. This time it is extended to inputs held in stock, semi-furnished and fully-furnished goods in stock and on capital goods similar to the exempt supply.

Importers can claim GST input tax credit and compensation cess. In spite of this, you cannot claim ITC on the Basic Customs Duty. If you are looking to avail of the offer on import goods, then you become eligible if;

**1.** **You declare GSTIN in the Bill of Entry compulsorily.**
 
**2.** **You incorporate the customs EDI system with the GST portal to ensure the authentication of ITC.**
    
#### Who cannot claim GST input tax credit?
* Composition dealers
* Non-business capital goods/
* Exempted goods
* Blocked credits under Section 17 (5)

#### What are the documents required for claiming the benefit?

* Invoice document provided by the supplier at the time of purchase
* If your amount is less than Rs.200 or reverse charge is pertinent on the purchase, then an invoice that is issued similar to a Bill of Supply is necessary for requesting the allowance.
* The debit note provided by the supplier (not obligatory).
* Bill of Entry or any other documents provided by the Customs Department.
* Bill of Supply given by the supplier
*  Any credentials like an invoice or credit note provided by the ISD.  

#### What are the latest amendments issued on claiming the GST input credit?
    

1. From January 2021 onwards, provincial credit is limited to 5%.
2. As per Rule 86B under GST, if the taxable supply goes beyond the threshold of 50 lakhs in a month, then you cannot avail of the credit amount if the output tax exceeds 99% of tax liability.
3. GST input tax credit will be auto-populated from GSTR 1 through GSTR 2B. Besides, it will be only available for monthly filers from 1 January 2020 and for quarterly filers from 1 April 2020.
4. If you want to make possible the auto population of tax liability, then it is compulsory to fill GSTR1 before GSTR 3B.

#### What are the forms necessary to file ITC?

**There are mainly 4 forms that you should know about before filing for GST input tax credit.**

1. ITC 01 – for new GST input tax credit registration
2. ITC 02 – in case of transfer or merger of ITC and so on
3. ITC 03 – in case of reversal of ITC
4. ITC 04 – for the goods dispatched to a job worker

#### File your GST Input Tax Credit without hassles with GoTaxfile!

As the GST rules are constantly altering in recent years, it is pivotal to stay updated about the different tax scenarios. Maximizing the benefit and minimizing the cost is the ultimate goal of any buyer. Adhering to this, GoTaxfile will back you with the necessary guidance that will boost your chance to avail of the offer. Our professionals file the GST input tax credit at the right time and easily comply with the complex rules to fetch the maximum amount. If you are struggling to cut short your additional expenses then contact GoTaxfile to unwrap credits that you deserve. 






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GST input credit allows you to reduce the tax that you have paid on the input while selling the output.

Input Credit Under GST

Real estate is a booming market in India. [Economic Times](https://economictimes.indiatimes.com/) noted that after the lull caused by the pandemic, the residential sales are gaining momentum, recording a robust improvement of 124% in the largest cities like Mumbai. According to estimates, the real-estate business will contribute to 13% of the country’s GDP by 2025 ([IBEF](https://www.ibef.org/)). Currently, it is the second-largest employment generating sector in the country. Due to rapid urbanisation, real estate is further pushing its growth to reach a sharp recovery in FY22. Hence, IBEF states that it will surge to more than Rs. 35 trillion in the next two years. However, buying real estate is a costly affair, and it includes many complex procedures. You need to analyse the current market and evaluate the future market before investing in real-estate businesses. To cope with these requirements, it is vital to do financial planning prior to signing the agreement. In this article, we will take a quick glance at the cruciality of real estate accounting and planning. 
                                                           
#### What is real estate? 
                                                       
Real estate means tangible property, and it comprises land, buildings, and air rights above and below the land. There are mainly 4 types of real estate, namely,                                                    

* Residential real estate 
* Industrial real estate 
* Commercial real estate 
* Land 

#### Why is financial planning in real-estate accounting important? 

Real estate is a profiting business that guarantees a lump sum amount to investors. As it comes with numerous tax benefits and cash inflows, investors are attracted to it like flies to fire. Nevertheless, only a strategic approach of real estate accounting can take you forward, considering the damage caused by the pandemic. 
                                                           
Real estate financing is a multifaceted concept that covers a wide range of long-term and short-term financial goals. The main objective is to augment the capital investment of the mortgage that you have acquired. So, calculating the renovation cost, expenses, cash flow of the rental property, and financing the mortgage – all need holistic financial planning from the lender as well as from the borrower. While planning for real estate accounting, it is crucial to incorporate the income statement, cash flow and balance sheet. You also have to ensure that the rental income should exceed the mortgage in meeting the financial wants. Creating a real estate business plan might help you achieve the future goals of your venture. All these plans will strengthen your business, bring capital and boost your overall performance. Along with this, remember to maintain accurate information of your performance in the plan. Exaggeration can negatively impact your business, so try to keep a clean image. 
                                                           
#### What are the different sources of finance for the real estate business?
                                                           
Due to the cost-intensive feature of real estate, you can get financial support from various entities. Let us take a look at the various potential options for real estate accounting; 
                                                           
**Bank Loans -** Taking EMI from banks is one of the most popular options, as the value of EMI will eventually decrease, but not the price tag of your property. Be vigilant about the type of loan you acquire. This is because the wrong scheme can compromise your interest rate, thereby impacting your income. Usually, banks support you with a 20% down payment and a tenure of 20 years, which is more than a successful real estate business person might seek. Additionally, lower interest rates, low processing fees all make it an ideal option for future investors. 
 
**Fractional real estate investments –** This supporting system will be taking over the Indian market after its rooting in the US. Fractional real estate investments assist high cost commercial real estate businesses that come under combined ownership. If you are a retail investor with limited CRE, then you can take this opportunity and diversify your portfolio. 
 
**Real estate investment trusts –** To easily manage your real estate accounting and financing, you can benefit from mutual fund schemes like REITs. Since its inception in 2014, it backs real estate investors with Alternative Funding Mechanism (AIF) and securities that give extra investment portfolios through Grade A commercial reality. The Securities and Exchange Board of India (SEBI) regulates this support scheme and is utilised after they appear on the stock exchange listing. 

#### What are the critical elements of real estate accounting? 

Real estate accounting is pretty different from other sectors. The guidance note covers all the crucial parts of a real estate transaction, joint development agreement, renovation of existing property, sales and so on. The accounting treatment of substances is often compared to the delivery of goods (Accounting standards 9). All the facets mentioned in the Revenue Recognition will also be a part of the sales. You can register the revenue after you include information about the transfer of ownership, the amount collected, risks and rewards of ownership transfer. On the contrary, if the substance of the transaction is like a construction contract, then accounting standard 7 will apply. To figure this out, you can check if the majority of the deals showcase the features of construction contracts or if an individual unit of sale is attached to the common amenities like flats under the township. Whatever the category you are in, you need RERA registration to proceed further. 

#### What is RERA? 
 
RERA keeps the real estate business projects under control with various regulatory standards. It creates a balance of interest between the consumer and the seller. As real estate accounting involves handling bulk amounts, RERA also protects real estate agents from misusing the money. As per the RERA Act, every individual who registers under the act needs to open a bank account called a “Designated bank account”. Hence, 70% of the received money are allocated to this bank account. This means a business person can only save only 30% of the amount to pay the admin fees. To withdraw the rest of the amount, you need a CA certificate in Form 3. 
 
Apart from this, RERA compels promoters to update real estate accounting every 4 months on the website. You also need to submit documents on CA, Engineer and Architect Certificate along with this on the website. Form 2A should be uploaded every four months, stating the quality certificate of the supervising engineer. This data should comply with the rules of the national building codes. Additionally, the annual audit should be submitted within 6 months from the end of the year using Form 5. 

**The significant highlights of RERA are**

1. All promoters need to register under RERA. 
2. If you haven’t registered within the deadline, then a penalty will be initiated. I will be 10% of the project cost. 
3. Advertisements of the property are allowed only after RERA registration. 
4. Any changes to the approved plan are not acceptable. If it is highly essential, then they need joint consent from 2/3 allottees who handled the work. 
5. You can give all the amenities in a brochure. Misinformation or mismatching accounts are strictly prohibited. 
6. If you are selling a flat, you need to establish a society for flat owners and ensure that they are taking care of the flat in the upcoming 5 years. 
7. You can create an Agreement of sale with the buyer if you have acquired 10% of the total flat cost. You also have to pay for the full stamp duty. 

#### Manage your real estate accounting and finance needs with Gotaxfile! 

If you are a beginner, managing real estate accounting can be daunting. In such cases, you can seek the help of a professional to handle you with the necessary accounting supports. Gotaxfile is an industry leader when it comes to setting accounting standards. We make the financing documentation process easy and hassle-free for you. We ensure that all compliances and RERA requirements are met with efficiency. For diverting penalties reach out to us as you kick off your real estate investment plans. 


 






                                                           

Financial Planning for Real Estate Business

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You need to analyse the current market and evaluate the future market before investing in real-estate businesses. In this article, we will take a quick glance at the cruciality of real estate accounting and planning. 


Financial Planning for Real-estate Business

Nurturing and providing financial support for a girl is often tangled with gender stereotypes and discouragement in many parts of India. To escape from these dark shadows of discrimination, the government of India has announced several schemes and projects. The aim is to bring the breeze of development to each corner of the nation and to financially support families with economic fluxes. That being said, this blog is a comprehensive guide about the Sukanya Samriddhi Yojana and all you need to know about availing of the scheme.

#### What is Sukanya Samriddhi Yojana?
    
Adhering to this, Sukanya Samriddhi Yojana is a campaign designed to empower and enrich girl children in Indian society. The scheme literally translates into ‘Girl Child prosperity scheme’ and is proclaimed by the Prime Minister of India in association with the Beti Bachao Beti Padavo scheme. According to it, you will be able to save a lump sum amount for providing a brighter future for a girl child, despite your financial instabilities. In addition to this, the scheme directly addresses problems and perceptions about the education and marriage of girl children.

This scheme provides a high interest rate of 8.4% to 7.6% and comes with complementary tax benefits of up to Rs 1.5 lakhs under 80c. The tenure of the account is 21 years from the date of opening of the account or until the marriage of the girl after she attains legal age.

#### Eligibility criteria and features of Sukanya Samriddhi Yojana

**The major criteria to unlock the scheme are;**

1. While opening the account, only the parents or the legal guardians are allowed, for a girl child of age below 10 years.
2. At the time of opening the account, the child should be less than 10 years old, and the account will mature at 21 years of age.
3. During withdrawal, the money is released to the person in whose name the account was created.  Apart from this, minor relaxations in rules are created for children who are born after 2nd December 2003.
4. In case of withdrawals, partial deductions are allowed, up to 50% for the purpose of higher education or marriage.
5. Multiple accounts are not allowed to operate at the same time. The depositor can only open one account in the name of a girl child.
6. The number of accounts that a family or legal guardians can open is limited to two girl children. In other words, you can only open accounts for 2 of your girl children.


**Major features of Sukanya Samriddhi Yojana**

1. The investment commences at Rs 250 and will go up to Rs 1,50,000 per year.
2. The maximum amount you can deposit in the SSY scheme is Rs. 1,50,000.
3. If you haven’t deposited the minimum amount of Rs.250, you are entitled to pay a penalty of Rs. 50.
4. Deposits can be made till the completion of 14 years, from the date of opening.
5. It is possible to transfer the account in the future.
6. A passbook will be issued to the depositors.
7. If the beneficiary gets married before the maturity date, then the account will be automatically closed.

#### Sukanya Samriddhi Yojana interest rate

The current interest rate of Sukanya Samariddhi Yojana is reduced from 8.4% to 7.6%. The interest will be terminated once the girl becomes a Non-resident Indian (NRI) or a citizen of another country. However, the rate of interest is decided by the Government of India and is determined on a quarterly basis.


| Duration | Rate of Interest |
| --- | --- |
| April 2020 onwards | 7.6 |
| 1 January 2019 – 31 March 2019 |8.5  |
|1 October 2018 – 31 December 2018  | 8.5 |
|1 July 2018 – 30 September 2018  | 8.1 |
| 1 April 2018 – 30June 2018 | 8.1 |
| 1 January 2018 – 31March 2018 | 8.1 |
|1 July 2017 – 31 December 2017  | 8.3 |
| 1 October 2016 – 31 December 2016 |8.5  |
|1 July 2016 – 30 September 2016  | 8.6 |
| 1 April 2016 – 30 June 2016 | 8.6 |
| From 1 April 2015 |  9.2|
| From 1 April 2014 | 9.1 |
    
#### How to calculate Sukanya Samriddhi Yojana?

The customers who have invested in the scheme can unveil the benefits once the amount attains maturity. You can calculate the allowance that you might receive using the SSY calculator. Nevertheless, you need to ensure that you have met all the eligibility criteria that are mentioned above to deduct the amount. In accordance with the details filled in by the customer, the calculator is employed to determine the amount you can gain. It is obligatory to make at least one contribution in a year till the maturity date. The calculator will assume the depositor has made the same amount throughout the year and consecutively calculate the benefit. No deposits are necessary between 15 to 21 years of a girl child. The complete maturity amount along with interest accrued can be unlocked at the time of withdrawal.

#### What if you have made a less or excess amount to the scheme?
    

* **Lesser than the threshold –** If you are not paying a minimum of 500 in a year, the account will be categorized as a default account. Nevertheless, you can activate the account by paying a fine of Rs. 50.

* **Greater than the threshold –** If you have exceeded the limit of Rs. 1,50,000, then the amount will not be added to the interest rate. You can withdraw the excess money anytime you want.

#### What is the difference between the SSY Scheme and a Fixed Deposit

Investing in SSY and fixed deposits have its own merits and demerits. Let us take a sneak peek into the major difference between these two accounts.

1. Sukanya Samriddhi Yojana is created to make a long-term investment, whereas Fixed Deposits can be opened for short-term or long-term benefits. FD prevents your money in times of economic downturn and helps you amplify your benefits for future utilization.
2. Any Indian citizen can open FD; Unfortunately, the SSY scheme can be only initiated for a girl child.
3. FD can be opened online, while the SSY scheme can be opened only through offline methods.
4. You can have more than one FD account, but only a single SSY account can be opened in the name of a girl child.
5. FD requires a minimum of Rs. 100 to start with, but for the SSY scheme, the minimum amount is Rs. 250.

#### Secure the future of your girl child with Gotaxfile

Despite being a government scheme, the Sukanya Samriddhi Yojana scheme has several limitations. If you are looking forward to starting investing for the future of your child, then Gotaxfile can back with the necessary guidance and facilitate a smooth deposition. You might lose track of the account or have tax-related queries and worries. Our skilful professionals will support you with the necessary consultation and guidance to efficiently manage your account. Get in touch with our mavens to know more! 








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Sukanya Samriddhi Yojana is a campaign designed to empower and enrich girl children in Indian society. Read on to know more about this scheme.

Sukanya Samriddhi Yojana – All You Need to Know

SIP is one of the most popular ways to invest in mutual funds. Its disciplinary nature and pre-defined investment intervals make it an ideal plan, especially for first-time investors. If you are seeking a plan to invest in a time-bound manner to reap benefits without getting bothered about the market dynamics, then you are in the right place. SIP is preferred over many other financial security mechanisms because it brings you an enjoyable retirement life. Before getting to know the tips for SIP, let us take a look at what SIP actually means.

#### What is SIP?
    
SIP is a retirement investment plan that utilizes your monthly savings to invest in mutual funds. If you are a prudent investor and like to invest money in a structured manner, SIP is a great avenue to divert a fixed amount of money to a selected mutual fund scheme. The catch is that by unlocking this benefit you can invest monthly, daily, quarterly or semi-annually. The money will be deducted from your account and will be directly invested in the mutual fund. However, activating it will force you to submit a lump sum periodically. Thus, in a way, you can say that it is not the best investment plan, but with the following tip for SIP you can effortlessly optimize the benefits.

#### TIPs for SIP

###### 1. 	Start investing early

If you are planning to adopt a scheme, then the foremost tip for SIP is to commence the process early. As your goal is to save more money from your income, it will take some time to allocate enough money to get an adequate outcome on your investment. This is where the power of compounding pitches in. It helps you magnify the amount that you have invested in. If you are aiming to earn not just the credited amount, then compounding is a way to ensure that goal. Compounding simply is a way of investing what you have generated so far. In this method, your procured returns will be added to the principal investment and then SIP will facilitate additional returns on this amount. The benefit is that it can double or triple your initial investment money.

For example, let’s take the story of Samuel and Zara. Samuel decided to invest Rs10,000 when he was 25 years of age and will be able to get a return of 15% in a year. Whereas, Zara started her investment journey when she was 35 and will be getting the same return annually. Both opted for the SIP scheme until they turned 60. As a result, Samuel will get a return of 14.86 crores while Zara will only get 3.28 crores. Thus, starting 10 years earlier helped Samuel to earn 3 to 4 times more than Zara.

###### 2. 	Choose direct [mutual funds](https://gotaxfile.com/resources/blog/What-Is-Mutual-Fund-and-How-It-Functions)

Once you decide to start early, what matters next is optimizing your outcome. This is why experts demand investors to choose their schemes wisely. There are various versions of mutual funds. Most often the funds that investors select might not be the best mutual fund scheme available. If you are selecting your scheme based on the reviews and star rating, then sorry to say; you got it wrong. Here are few tips for SPI to select the best mechanism;

* 	 Before entering your funds into various accounts, it is important to divide them into proper baskets. Always choose a large-cap mutual fund if you are looking for long-term benefits.
* 	Compare and contrast funds across various timelines and choose the one that lands at your preferable outcome. 
* 	It is also necessary to consider the risk that you might expose , if you haven’t calculated the returns.
* 	You also need to take into account the reputation and reliability of the company that you have decided to invest in.

Nevertheless, opting for direct mutual funds will give you a financial raise of 0.8%-1% annually to your earnings. Take, for instance, you like to take a SIP for Rs 10,000 for 20 years; and you have selected the “regular” equity mutual fund scheme. Consequently, after 20 years, you will get an annualized return of 12%. However, if you have opted for a direct mutual fund, you can annualize a return of 13%.

###### 3. 	Set a long-term goal and avoid fast withdrawal

Similar to early investment, setting a long-term goal is one of the vital tips for SIP. As SIP is more beneficial in the long run, it is preferable to accumulate the money until maturity date. This will give the desirable financial security that you seek to achieve in the long run. Apart from this, it is also crucial to set aside your immediate tendencies to withdraw SIP investment. In times of financial crunches or unplanned expenses, you might stop investing or withdraw unexpectedly. It can be a huge loss especially when the market is low and your profile value is less. It is always good to make withdrawals when you are nearing your goals. However, systematic withdrawals can work at your advantage to boost your income. Even if you are opting for systematic withdrawals, confirm that you are only touching your return corpus, not the principal portion of your investment. In this way, you can continue growing your return rate. Apart from this, you can even apply intelligence to make your SPI plan more effective. Intelligence will help you understand the pattern to optimize your funds.

That being said, it takes time to optimize your portfolio. Besides, you also need to get expert advice before opting you’re a scheme that fits your interest. If you are looking for an ideal financial mechanism, then keep these tips for SIP in mind to enhance your returns.
 
#### Become a disciplined investor with Gotaxfile!
    
Are you looking for professional services? Gotaxfile can back you with all the necessary information and guidance that are necessary before passing your final judgement. We have the best investment experts that give measurable results and consultations to bring maximum results. If you are a first-time investor, then initiating SPI is more effective than other plans. We will aid you with the amount you can invest in to increase your returns and about the nitty-gritty of how to make your investments. Contact us to know more!
 
 
 
 



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SIP is preferred over many other financial security mechanisms because it brings you an enjoyable retirement life. Before getting to know the tips for SIP, let us take a look at what SIP actually means.

What is SIP? Few Tips for SIP

Investing yearly is an effective way to increase your financial security in the long run. Unfortunately, most of our youngsters lack the practical knowledge and the life skills to manage money. Well, the culprit is our style of parenting! With inadequate opportunities to stretch their knowledge in finances, our young population are growing up totally clueless about the stock market. However, the truth is that if you are willing to learn, the world is open to limitless materials to boost your financial literacy. Moreover, in this article, we are going to be a crisp investigation of a few financial tips for young investors. Keep reading if you wish to earn some extra bucks.

Before getting into the topic let us take a sneak peek into the basic differences between savings and investing. Savings is a convenient and safer way to hoard some money. It brings you lower returns as you save only the money that you set aside from your earnings. However, investing brings you profit. Even though it is risky at times, it has the potential to fetch high returns.

#### 1.     Start with planning your finances

**Build a financial background:** Financial planning is crucial before you start investing. It is the first step that gets you closer to your goals of creating a corpus of wealth. Considering the attitudes of our youngsters today, most of them thrive under the consumerist attitude of the economy. Instead, you can leverage these spends and invest the rest of your finances in buying shares of your favourite brands. If you have the spark, then there are diverse industries to expand your financial landscape. Additionally, getting to know the realm of Mutual Funds NSE, Equity, BSE etc., will help you understand the stock industry better.
 
**Keep a record of your finances:** Before you start off, one of the vital financial tips for young investors is to know the avenue you are interested in and how much you will invest on a quarterly basis. But, the very idea of keeping a record of spending is excruciating for many. What we are suggesting is not to cut down all your expenses, but to invest small amounts without disturbing your current standard of living. If you think you cannot track the finances all by yourself, then you utilize finance planning applications or record your cash inflows and outflows in spreadsheets. These are long-run benefits that will empower your future with additional benefits.
 
#### 2.     Stick to your plans

**Be constant:** The success mantra for any goal in your life is consistency. Thus, if you are seeking financial tips for young investors, then unarguably we will suggest you adhere to your budget plans. This will prevent future debts and back you in case of emergency situations. Deviating from the budget can be risky especially when you are living in expensive Indian urban settings. You can keep the plan near sight as a reminder and this will help you set the goal for the immediate time being. On the other hand, this will also help you identify the surplus and additional resources.

 Now that you have a plan you can divide your budget and start calculating how much you can save in future. You can start a savings account and save five to seven months of expenditure funds as your emergency fund. This will mitigate adverse financial struggles and help you survive even in medical emergencies. As you do not have liabilities or children at this stage, you can easily save the otherwise neglected amounts. Thus, in the end, you will have a surplus amount to live a relaxed life at retirement.
 
#### 3.     Start investing

**Get to know the basics:** With more than enough time, you can start exploring and studying the nuances of the stock market. There are plenty of materials available online and all you need is to find time to educate your knowledge about mutual funds and financial software. As per the devised plan, you can slowly commence investing in the business. But, be careful while dealing with taxability, liquidity and rudimentary assets. To avoid early reap, you can tally each investment to each goal. Apart from this, you can select equity-oriented merchandise for long-term goals and debt-based products for short-term needs.
 
**Choose low-risk investments:** Do not get much carried away with the investments. As you are dealing with money, you do not have to face any severe impacts at the early stage. So, an important financial tip for young investors is to do your calculation before arriving at a conclusion. Experts suggest that young people should invest more in stocks with long-run benefits. To make it more effective, start mastering self-control. Avoid impulsive buying and think thrice before you make up your mind. Low-risk investing is also essential when you are nearing your goal. Investors can shit from equities to low volatile debt products in the last few years of the investment.
 
#### 4. 	Plan your tax
 
**Taxing investments:** Tax planning and account management are pivotal when it comes to financial tips for young investors. It is an essential component for successful financial handling. You can rearrange your cash flows, and claim the increments that you are entitled to in respective financial years. From this, you can calculate the taxable expenditure and the tax liabilities. Section 80C under the Income Tax Act 1961 in India allots deductions to young investors. Depending upon your tax regime you can unlock these benefits. If you are looking for a better grasp, you can learn about how returns will be taxed under the law.

As we have discussed, investment is an efficient alternative to attain a greater profit. Nevertheless, the uncertainty of investment can impact your financial welfare goal negatively. For instance, investment value can rise or fall in time. To avoid such situations, you can easily seek the consultation of professionals.

#### Kick-off your investments with Gotaxfile!
    
Gotaxfile is well versed in different financial tips for young investors. We will back you in any adverse circumstances by identifying the low-risk areas and taxable liabilities. You can also boost your investment by unlocking tax deductions and reductions. As the tax scenarios are constantly altering, our licensed specialists will keep an eye on the details that you might miss. In addition to that, our skilled experts can identify your potential profits and bring deductions by uncovering tax-free incomes. Whether you need long-term equitable funds or short-term debt-based funds, we assist with cutting-edge approaches to amplify your outcomes. Gotaxfile is a one-stop destination to get guidelines on investment and to reduce tax charges. Contact us to get a closer look! 



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In this article, we are going to be a crisp investigation of a few financial tips for young investors. Keep reading if you wish to earn some extra bucks.


Few Important Financial Tips for Young Investors

Are you planning to do your next purchase via credit card or loan? Then it is vital to keep your credit score intact. A good credit score is what you need to make a smooth purchase. Despite this, due to financial crunches, you may have missed a few paybacks. If you are one among those, then it can impact your credit score. What makes it even worse is the journey to improve your score. It is not only strenuous but also can cost you a lump sum. So, here are some helpful tips to increase your credit score. 

#### What is a credit score?
    
In short, a credit score is a 3-digit number that showcases your creditworthiness to a lender or a banker. Your credit history, the number of loans you have initiated, the credit card used by you, all matters, when it comes to calculating your credit score.

 In India, there are mainly 3 credit information companies – CIBIL, Experian, and Equifax. The CIBIL is the credit bureau in India that generates reports on your credit score. It has a terminal effect on your loan or other credit-related financial products. Moreover, most lenders have started categorizing their customers based on their credit scores. Depending on the risk-based pricing, your credit score varies, and the higher the risk, the more interest you need to pay.

If you are intending to buy something using your credit cards, then it is crucial to have a good purchase. It not only increases your chance of facilitation but also manifests your potential as a buyer. Whereas, a low credit score is symbolic of your failure to make payments on time. It impacts most of your future purchases, as it causes trust issues between the lender and the customer.  However, it is possible to get a loan in rare cases; but still, your credit limit will be too low. To get out of this hedge, you need to improve your credit score. 

#### How to improve your credit score?
    
Keep reading to know different methods you can incorporate to enhance your credit score.

###### 1.      Keep an eye on your credit report

Before taking credit or a loan, your primary checklist should be your credit report. It is an indicator of your creditworthiness and is the foremost priority in calculating your credit score. Keeping track of your credit report will also help you identify any errors or mistakes that could cost you a loan. The Federal Trade Commission in 2012 found that 20% of customers have found errors on their credit report. A subsequent study also discovered that 20% of customers who reported errors are still not satisfied with the precision of their score.  If you find some inconsistencies, then try to rectify them promptly. To make it easy, you can claim a report of your credit score every year, as credit bureaus are legally bound to provide you with one free credit report. 

###### 2.    Complete your outstanding transactions

If you have any pending outstanding bills to complete, then it is important to complete any previous dues before initiating a new one. It can slightly raise your score, as your payment history will mention this transaction. Late payments can ruin your score, hence, try to be consistent while paying. You can keep payment alerts or auto debit facility to effortlessly pay your pending money. Try to complete as much as you can to make the outstanding amount within your pocket bracket. Apart from this, try to minimize your credit lines, as it can be risky, even though it will improve your credit profile. In case of hard inquiry, you will be assessed on how much risk you possess as a borrower, and this can lead to rejection of loan application.  

###### 3.   Amplify your credit limits

Credit utilization is an important factor when considering credit scores. Increasing your credit limit will lower your credit utilization ratio and improve your credit score. Your credit utility shows your dependency on credit money, hence try to keep it below 30%. If you are employing the full potential of your credit limit, then you will be categorized as a high-risk borrower and it can negatively impact your credit score. As a wise borrower, you can reduce credit utilization by approaching lenders that accept multiple credit payments in a month. 

###### 4.     Plan your credit

If your score falls harshly, then you might not be planning your credits well. Credit can be helpful if you use it wisely. If you haven’t opted for a credit loan before, then your credit score will be less in comparison and will be difficult for you to obtain a new loan. Also, applying for an unplanned loan can bring unexpected liabilities. To avoid this, you can apply for different types of credit that include a mix of personal and secured loans. You can also apply for long and short term credit to have an attractive profile. Having more credit cards and heaping purchases can be counterproductive. Applying for a credit card can be a cost-effective way of purchasing high-value products. When you are attempting to try it out, choose lenders that have a high approval rate. Applying for credit cards from various sources will reduce your chance of approval and impact your credit score. 

It is not possible to enhance your credit score within a short time span. Only making on-time payments can boost your score. Apart from this, you can also try to reduce your credit claims and attempt to pay all your due in time. 

#### Improve your credit score with Gotaxfile! 
    
Do you want to boost your credit score? Are you looking forward to having a positive credit history? Then it is vital to consult a professional to get an expert opinion on your prevailing credit score. Gotaxfile is the perfect avenue to get external help on boosting your profile. We have experienced professionals who have industry knowledge in various fields. They help you effectively utilize and employ your credit usage in a profitable way. Contact us to know more! 




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Are you planning to do your next purchase via credit card or loan? Then it is vital to keep your credit score intact. So, here are some helpful tips to increase your credit score. 


Important Tips To Increase Credit Score

The journey from a dream to a revenue-generating company involves the support of capital investments. However, finding funds for the initial phase of the business is not simple as it seems. If you think a bank or any other financial institution will brace you during financial crunches, then let us assure you this happens only when the pigs fly. The result is the immature death of startup companies. Realizing these difficulties, the government has initiated a new scheme that intends to provide seed funding or basic funding facilities to emerging startups. The goal is to encourage new innovations and back them with concrete financial assistance so that they can yield in the future.

#### What Is a Seed Fund Scheme?
    
The Startup India Seed Fund Scheme envisages providing money support at the early stages of a company. Thus when you commence your planning with the proof of business concept, prototyping, product trials, market entry and promotion, you can seek necessary fiscal aid from the government. Once saved at the initial stage, the venture can slowly make it to further investments and raise money by approaching banks or joining hands with other firms. The inception of the scheme can be traced back to the Department for Promotion of Industry and Internal Trade (DPPIIT) which has dedicated about Rs. 945 crore for assisting budding ventures.

The Indian PM announced the scheme on 16 January 2021, and DPIIT notified it on 21 January 2021. According to it, you can unlock financial backup from venture capital firms and angel investors after you submit proof of your concept. The scheme will support up to 3,600 entrepreneurs all around the country and create about 300 incubators in the coming four years.

#### The objective of the scheme

India being a youthful nation, strives to promote innovative projects that suffer from the inevitable financial crisis in the present scenario. Most of these problems arise at the developmental stage of a company. Because companies cannot allocate enough funds during conceptualization, businesses will end up dying or succeeding. Giving this extra push will bring positive impacts to businesses, as more companies will flourish under the new scheme, creating more employment opportunities for the rest.

#### Who can apply for the scheme? 
 
Take a look at the following eligibility requirements to qualify for the scheme;

1. 	You can apply for the scheme if DPPIT recognizes your venture. Also, the incorporation should be within the threshold of 2 years at the time of application. To get recognition from the DPPIT department, follow the given link. [https://bit.ly/3qbCQdK](https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html)
2. 	You should have a clear business concept or idea to introduce the service or the product into the market. 
3. 	Your concept or service should deploy a tech-centric approach and should have technology infrastructure at its foundation. You can also integrate technology assistance in the business model, methodology, distribution. 
4. 	More weightage and encouragement is provided to startups that will contribute to the improvement of the community as a whole. Hence ventures that focus on waste management, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles and so on will be promoted at a vast scale. 
5. 	You will not be eligible if you have gained any additional governmental support of more than INR 10 lakh. This excludes any prize money, grand challenges, subsidized work environment, periodical financial aid of the founder, admittance to labs, or any other prototyping equipment. 
6. 	Apart from this, the Companies Act 2013 and SEBI (ICDR) restrictions denote that the shareholding capacity should be at least 51% during the time of the application to the incubator. After granted, the startup applicant can avail of the financial aid in the form of grants and debts/convertible debentures, adhering to the guidelines of the scheme.
 
#### Documents necessary for the application of the Seed Fund Scheme

Now let us take a look at the document criteria of the startup scheme.
1. 	You need to have a copy of the Adhar card of the owner, partner or director for verification of the ownership status.
2. 	Carry a copy of the registration document of your venture. These can be the documents that you have received with the State or Central Government; for instance Incorporation Certificate, Partnership Deed etc.
3. 	Address of your location or the current location of the company. 
Proof of your Residential area (generally owner, director, partner).

#### Eligibility Criteria for Incubators Under Startup India Seed Fund Scheme

* To qualify for the financial aid, the incubator should be;
* A legal entity registered or a part of the Societies Registration Act, 1860. 
* A Private Limited Company registered under Companies Act, 2013 or 1956. 
* A Trust registered under the Indian Trusts Act, 1882.
* A statutory body legally formulated by an Act of the legislature. 
* Registered at least two years prior to the registration. 
* Accommodation facilities for at least 25 people. 
* The incubation should have a minimum of 5 incubation startups going on before registration.
* The incubator should be headed by a full-time Chief Executive Officer with experience in entrepreneurship and business development and a team to mentor and guide the startups. They will validate the legal, financial, and human resource functions of the newly started venture. 
* Should not raise money with any external help of private third parties. 
* Incubators should be under the Central and State Governments.
* If the incubator is not registered to any of these governing bodies, then it should satisfy the following conditions; 
* Incubators should function for at least three years. 
* Must have a minimum of 10 ongoing incubations at the time of application.

#### How to apply?
    
To apply for the Seed Funds Scheme, open the official website of Startup India Seed Fund Scheme.

* Login on the top right side of the homepage
* The registration page of Startup India will appear on the screen.
* Now register your name, email, mobile number, password, and confirm it.
* You will receive an OTP to your mobile number; enter the OTP to the box.
* Visit the website again and click on the "Apply Now" option below the "For Startup" icon. You can log in with the previously entered password and ID.
* Finally, fill the appeared application form and upload the necessary documents and click "Submit".

#### Find great backing in managing the compliances for the seed fund scheme with Gotaxfile!
    
Applying for the scheme can benefit your Startup by giving additional financial support at the initial stage. If you need help with the application or find it difficult to comply with the regulations, you can contact Gotaxfile experts. We help you with the tax intricates and documentation filing of the Startup India Seed Fund Scheme and are well-equipped to assist you throughout the process. Contact us to know more! 


 
 
 


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The government has initiated a new scheme that intends to provide seed funding or basic funding facilities to emerging startups.

What is a Seed Fund Scheme? Who Can Apply for It?

Planning your financial future is essential. It would be desirable if you had the necessary financial security by the time you retire. The government thus provides a National Pension Scheme, by which you can secure your as well as your family's future. In this article, let's dig deeper into NPS. What is it? How can you be eligible for it? The types of NPS accounts, benefits of an NPS account, and lastly, how can it help you save on your income tax? Let's begin with these critical points! 

#### What is NPS?
    
National Pension Scheme or NPS is a government-approved pension scheme that allows individuals to secure their future safely. It often refers to as National Pension System. This government-sponsored plan was launched in 2004 by the PFRDA (Pension Fund Regulatory and Development Authority of India). 

In this scheme, the subscriber or applicant can make a regular contribution to the NPS account when working and then receive the benefits from this contribution after their retirement. This scheme is for any employee working in the public or private sector, organized or unorganized sector, or any service except for the army servicemen. You can apply for an NPS account and enjoy the benefits of this post your retirement. 

All the contribution to your NPS account is invested in the market by the authorities. The sum gets primarily invested in debt or equity. You get the benefit of the returns from these investments. It is mostly between 8 - 10 percent of your total contribution. You are eligible to withdraw a pre-determined percentage from your contribution in case of emergency. This will depend on the type of NPS account you have. Here are the two types of NPS accounts. 

#### Types of NPS

There are generally two types or classes of NPS accounts:
These two differ in terms of the withdrawal amount.

###### 1. Tier I account: 

This one has a limitation on withdrawal. It is a basic pension account. Before the age of 60, you cannot withdraw 75% of the amount. You have to use this 75% to buy the annuity from the life insurer. You can only withdraw 25% of the amount from the NPS till the age of 60. 
Further, once you cross the 60 age mark, you are eligible to withdraw 60% of the contribution. And you must contribute the remaining 40% to buy the annuity from the life insurer. 

An annuity is a series of fixed payments that an insurer pays at a fixed interval of time until his death or the plans' maturity. 

###### 2. Tier-II account:

This type of account has no limit on withdrawal. It is a voluntary savings account. There is no compliance for an annuity or life insurance. 

You can choose the NPS account type according to your preference and eligibility. 

#### Eligibility Criteria for NPS

**For you to open an NPS account, here are a few things that you must adhere to-**
    

* You should be a minimum of 18 years of age, and the maximum age for applying for an NPS account is 65 years. 
* You also have to be an Indian citizen. 
* You shouldn't have an already existing NPS account 
* Lastly, you also must be KYC compliant. 

If you comply with all these, then you can apply for an NPS account.

#### Benefits of NPS

Having an NPS account has a ton of advantages. Here are a few of the most significant ones- 
 
###### Returns on the contribution:

As mentioned before, a portion of your contribution to your NPS account is invested in equity capital. It yields returns on the amount. Now, there are chances that these may or may not generate high returns, but these are surely higher than other available options, for example, PPF. On average, this scheme can give you an annual return of up to 8-10% of your total contribution. This return is higher than most other schemes. Also, if you are unhappy with the returns on your contribution, then you can also ask to change your fund manager. 

###### Risk Assessment: 

Now, as you get older, your risk handling capacity reduces. With the National Pension Scheme, your risk assessment gets done beforehand. You are protected against any risk till you attain the age of 50. 

###### Easy early withdrawal and exit rules: 

The best feature of this pension scheme is that you can withdraw a certain fixed percentage of the contribution before you reach your retirement age. In the Tier-I account, it is up to 25 percent. It is possible in case of an emergency. This factor could be medical case death, buying or building a house, or education of any family member. After 60 years of age, you are then eligible to withdraw up to 60% of the contribution. 

###### Option to change the scheme or your Fund manager:

If you are unhappy with your returns or the scheme, then you have an option to change it. You can manage it your way. 

###### The contribution amount is as per your convenience:

With the National Pension scheme, you have the right to choose your contribution. You can pay a fixed amount, or you can increase or decrease it according to your preference. 

###### You can choose your preferred investment avenues:

With NPS, you possess the flexibility to choose the desired form of investment. You can contribute and see your investment grow. 

#### Safeguard your future by investing in NPS seamlessly with the backing of Gotaxfile!
    
Now, if you are willing to secure your future, you are at the right place. Gotaxfile is an online platform that can help you with your finances and personal investment. If you are willing to apply for an NPS, you can leave the application and management worries to Gotaxlife. We can help manage all your regulatory and financial troubles. It is one of the exclusive services that our company offers. With just one sign-up of Gotaxfile, you can access finance gurus and mentors who will help you reach your financial goals and guide you along the way. Be it filing the income tax returns or bookkeeping, or forming a company, Gotaxfile got you covered.     


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The government provides a National Pension Scheme, by which you can secure your as well as your family's future. In this article, let's dig deeper into NPS. What is it?

What is National Pension Scheme? Benefits of NPS

Much awaited news come from twitter handle of Central Board of Indirect taxes just before.

### Due date for GSTR9 and GSTR9C for FY 2019-20 which was extended from original due date of 31-Dec-2020 to 28-Feb-2021, is further extended to 31-Mar-2021...
### 

Read [Press release](https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1701546#.YDuWgXk3gKI)
Click [here](https://twitter.com/cbic_india/status/1366005973865820160?s=09) to read full tweet message....

 Now this time, it seems that this is final due date and government is more like not to further extend this beyond 31-Mar-2021.
             
 So it is advisable to all professionals to complete the activity as soon as possible to avoid late filing fees and penalties...
             
#GSTR9 #GSTR9C  #Gotaxfile

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This is recent update, news from different sources

India News

After A long wait today, due date further extended for GSTR9 and GSTR 9C for FY 2019-20. 

GSTR9 GSTR9C for FY 2019-20 Due date extended to 31-03-2021

DG Gupta, CA, CS

Due date for GSTR9 and GSTR9C for FY 2019-20 which was extended from original due date of 31-Dec-2020 to 28-Feb-2021, is further extended to 31-Mar-2021...

DG Gupta, CA, CS

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GSTR9 GSTR9C for FY 2019-20 Due date extended to 31-03-2021

DG Gupta, CA, CS Follow

Due date for GSTR9 and GSTR9C for FY 2019-20 which was extended from original due date of 31-Dec-2020 to 28-Feb-2021, is further extended to 31-Mar-2021...

DG Gupta, CA, CS Follow

More from GoTaxfile

Investments That Can Be Claimed for IT Deductions

Nidhi Company - An Insight

Important Stock Investment Lessons to Learn

How to File Income Tax Returns Online for Salaried Employees?

Input Credit Under GST

Financial Planning for Real-estate Business

Need some Help?

DG Gupta, CA, CS

DG Gupta, CA, CS