Credit cards offer convenience and financial flexibility, especially during festive seasons when attractive discounts and special offers abound. However, it’s crucial to use credit cards wisely to avoid falling into debt. Here are some tips to keep in mind when embarking on your festive shopping with credit cards:
Establish a Budget: Before you start your festive shopping, set a realistic budget. Determine the amount you can comfortably spend without straining your finances. Make a list of the items you plan to purchase and allocate specific amounts for each category to avoid impulsive spending. Consider your monthly income, existing debts, and financial obligations when setting your budget.
Choose the Right Credit Card: Look for credit cards that offer rewards, cashback, or discounts at popular retailers or online marketplaces. Some cards are designed specifically for the festive season and provide attractive benefits like higher cashback rates or zero-interest EMI options. Also, consider cards with no annual fees or low interest rates to manage your expenses effectively.
Know Your Credit Limit: Before using your credit card, ensure you understand your credit limit. Overshooting your limit can result in substantial penalty charges and harm your credit score. If necessary, request a temporary limit increase from your card issuer, but only do so if you’re confident in your ability to manage the additional credit responsibly.
Plan for Repayment: Develop a repayment plan before making purchases. Ideally, aim to pay off your credit card balance in full by the due date to avoid interest charges. If full repayment isn’t feasible, create a strategy that involves paying more than the minimum amount due to reduced interest costs. Align your repayment plan with your budget and financial goals.
Compare Rewards and Offers: Check the rewards and offers associated with your credit card before making purchases. Many cards offer cashback or discounts at specific merchants during the festive season. Take advantage of these promotions to maximize your savings. Some cards also provide additional benefits like extended warranties, purchase protection, or travel perks, depending on your shopping plans.
Monitor Transactions: Festive shopping often involves numerous transactions, both online and offline. To maintain control over your spending, regularly monitor your credit card transactions. Most card issuers offer online access to your statements, making it easy to track expenses. Staying aware of your spending in real time helps identify any fraudulent transactions and ensures you stay within your budget.
Avoid Impulse Buying: Festive sales and discounts can be enticing, leading to impulsive purchases. It’s crucial to distinguish between wants and needs. Take your time to evaluate each purchase and consider its long-term value. A well-thought-out shopping list will help you make mindful choices.
Approaching festive shopping with careful planning and spending can make the experience enjoyable and financially stress-free. Setting a budget, selecting the right credit card, understanding your credit limit, and taking advantage of rewards and offers are recommended steps. Additionally, closely monitoring your transactions and avoiding impulsive buying will help you have a truly joyous festive season.
If you were fortunate enough to inherit wealth, retirement planning might not be a pressing concern. However, for self-made individuals, the National Pension System (NPS) is a crucial addition to their investment portfolio.
The NPS was introduced by the Central Government to assist individuals in securing a retirement income. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the PFRDA Act, 2013, the NPS offers opportunities for tax savings and wealth creation.
1) Tax Savings:
The NPS provides tax benefits under Section 80C of the Income Tax Act. Subscribers can claim deductions of up to Rs. 1.5 lakh annually on contributions made to their NPS Tier-I accounts. This deduction reduces taxable income, resulting in lower tax liability.
Additional Deduction under Section 80CCD (1B): In addition to the Section 80C deduction, the NPS offers an exclusive deduction of up to Rs. 50,000 under Section 80CCD (1B). This additional deduction is a significant tax-saving advantage for NPS investors.
Furthermore, there’s a deduction of up to 10% of the basic salary under Section 80 CCD (2) for corporate employees who have NPS contributions deducted from their salaries. This deduction is capped at Rs. 7.5 lakhs.
Tax Exempt at All Stages: NPS enjoys tax-exempt status at all stages. While contributors can claim tax deductions on NPS contributions, withdrawals (up to 60%) are also tax-exempt. This makes NPS an Exempt-Exempt-Exempt (EEE) category product.
Suitable under Old and New Tax Regimes: NPS investments through salary deduction (80 CCD (2)) are available under both the old and new tax regimes, making them versatile for corporate employees.
2) Wealth Creation for Retirement:
Market-Linked Returns: NPS offers various investment options, including equity (E), corporate debt (C), government securities (G), and alternate assets (A). This flexibility allows investors to customize their NPS portfolio based on risk tolerance and investment goals. The equity component offers the potential for higher long-term returns.
NPS subscribers can adjust their equity participation (with a maximum of 75% in the NPS Tier 1 account). They can also invest up to 100% in an Equity Scheme within the NPS Tier 2 account, although this comes with no associated tax incentives.
Long-Term Savings: NPS is designed for retirement savings, promoting long-term wealth accumulation. This extended investment horizon facilitates the creation of a substantial retirement corpus. NPS investors benefit from the compounding effect over time as contributions grow and generate returns. This compounding effect significantly enhances the investment value, creating substantial wealth for retirement.
Investing in NPS, regardless of economic fluctuations, offers several advantages to Indian investors. It provides portfolio diversification, reduces tax liabilities, and ensures systematic progress toward retirement and pension goals. NPS is also a cost-effective financial savings instrument, portable across jobs and locations, making it a valuable choice for retirement planning.
After being in circulation for nearly seven years, the Rs 2,000 notes are about to become obsolete as the deadline for their exchange and deposit expires today. Passing the torch to Rs 500 notes as the highest denomination currency, these notes will be remembered for having the shortest lifespan in currency history.
“Their (Rs 2,000 notes) lifespan was relatively short because they served the purpose for which they were introduced. These notes filled the void created by the withdrawal of Rs 500 and Rs 1,000 notes and met the demand for high denomination currency,” explained R Gandhi, former Deputy Governor of the Reserve Bank of India (RBI).
The Rs 2,000 notes were introduced in 2016 to address the currency shortfall after the government’s decision to withdraw Rs 500 and Rs 1,000 notes.
According to the RBI’s statement issued on September 1, as much as 93 percent of the Rs 2,000 currency notes that were in circulation on May 19, the day when the currency was withdrawn from circulation, had been returned to banks.
In addition to their brief existence, Rs 2,000 notes were also seldom seen in daily transactions, raising concerns of hoarding for illicit purposes.
While Rs 2,000 notes will no longer be accepted for transactions from Sunday onwards, they will remain legal tender even after September 30. However, the Reserve Bank of India (RBI) is expected to make an announcement soon regarding the status of legal tender.
“Now that the majority of the currency has returned to the banks, the next logical step for the central bank is to remove the legal tender status of Rs 2,000 notes,” added Gandhi. He sees no need to introduce new higher denomination notes since digital payment methods are effective and secure. With the significant increase in digital payments in urban and rural areas, there is no demand for higher denomination notes.
Another significant question is whether the deadline for exchanging and depositing notes will be extended. Experts do not anticipate a blanket extension announcement from the central bank.
“Instead of announcing a universal extension, the RBI may adopt a selective approach if necessary. For instance, the central bank might offer some relief for NRIs,” explained an executive director of a public sector bank. After September 30, individuals can only exchange remaining notes at RBI regional offices.
In unit-linked life insurance plans (Ulips), a significant portion of the premium gets invested in both debt and equity markets. Those opting for such policies often favor growth funds since they allocate 60-80% of the fund to the stock market, offering the potential for higher returns. In contrast, non-linked insurance products invest no more than 15% in equities, with the rest going into various debt instruments.
Both linked and non-linked insurance products include a life insurance component, but it’s crucial to grasp the extent of that coverage. In Ulips, policyholders receive a risk cover equivalent to 10 times the annualized premium. So, if you pay Rs 50,000 annually, you have a risk cover of Rs 5 lakh. Conversely, a person around the age of 30 who pays Rs 50,000 for a pure protection plan can secure a risk cover of at least Rs 2 crore. Even with a traditional endowment plan (with profits), one can obtain an insurance cover of at least Rs 15 lakh. Over a 20-25 year term, the policy’s maturity value will be no less than Rs 40 lakh based on the current rate of bonuses offered by leading insurers.
A Limited Insurance Component
It should be evident to policyholders that Ulips provides relatively limited insurance coverage compared to the premiums they collect. The same premium amount can purchase significantly more insurance coverage under non-linked products. Since the primary goal of life insurance is to provide as much financial protection as possible at the lowest possible premium, it makes sense to first consider non-linked products and only contemplate purchasing Ulips once adequate insurance coverage has been secured. If an individual can afford to pay an annual life insurance premium of Rs 50,000, they deserve more than a meager Rs 5 lakh insurance cover.
While there’s no harm in purchasing an Ulip and expecting ‘high returns’ from the product in the near term, it’s essential to recognize that life insurance is primarily intended to offer reasonable insurance coverage based on an individual’s Human Life Value. Relying solely on Ulips and neglecting other conventional products may not be a wise financial decision.
Life insurance products play a crucial role in financial planning at various life stages. When income is low and liabilities are high, term insurance can be the best choice. As income grows substantially in later years, individuals should aim to save adequately for post-retirement days, with endowment and whole-life plans providing various living benefits. Deferred annuity plans can ensure a series of passive incomes during post-retirement years. Ignoring these products and exclusively purchasing Ulips could introduce additional risks into an already uncertain and risk-filled life.
SEBI has mandated that mutual fund unit holders must nominate beneficiaries, and here is a step-by-step guide to the online process.
SEBI, the Securities and Exchange Board of India, has extended the deadline for mutual fund account holders to nominate beneficiaries. They now have until January 1 to nominate a beneficiary or choose to opt-out by submitting a declaration form.
The Mutual Fund Nomination Process: A Step-by-Step Tutorial Mutual fund investors can nominate a beneficiary or opt out of nomination by contacting their mutual fund management company or registrar and transfer agent (RTA). Alternatively, they can complete these actions online through the mutual fund management company’s or RTA’s website.
For the online method, follow these steps:
Visit the NSDL portal.
On the homepage, locate and click on the ‘Nominate Online’ option.
Provide your DP ID, client ID, and PAN, and submit the OTP.
Choose either ‘I wish to nominate’ or ‘I do not wish to nominate.’
If you select ‘I wish to nominate,’ a new page will open where you can enter the nominee’s details.
On the e-Sign Service Provider’s page, check the box and click on ‘Proceed.’
Confirm the OTP.
What Is the Benefit of Mutual Fund Nomination? Nomination allows a mutual fund investor to select a person who will inherit their mutual fund units in the event of their demise, with the flexibility to choose a family member or close relative.
However, if an investor chooses to opt out of nomination, it means they have decided not to appoint a nominee. In such cases, the investor’s legal heirs will be entitled to receive the mutual fund units in the event of their demise.
What Happens If You Miss the Mutual Fund Nomination Deadline? If an individual mutual fund unit holder fails to nominate or opts out of nomination by September 30, 2023, their mutual fund folios will be frozen for debit transactions. As a result, they won’t be able to redeem their mutual fund units or make changes to their investment portfolios.
Advocate Daleep Singh Kaith has been elected as the President of the Himachal Pradesh High Court Bar Association. The election results were announced on Friday. Kaith secured 445 out of a total of 1,129 votes, emerging victorious over Senior Advocate Sunita Sharma and Advocate Ruma Kaushik, who were also vying for the position.
In addition to Advocate Kaith, other elected office-bearers include Advocate Ajeet Singh Saklani, who was elected as the Vice President, and Advocate Aashish Anand, who was elected as the Secretary.
The election process saw active participation from the legal community, with 1,129 advocates casting their votes out of a total of 1,399 registered advocates.
Advocate Daleep Singh Kaith’s election to the position of President of the Himachal Pradesh High Court Bar Association reflects the trust and confidence that the legal community has placed in him. His leadership will play a significant role in shaping the activities and priorities of the association, which represents the legal fraternity in the state.
The Reserve Bank of India (RBI) has extended the deadline for the exchange of ₹2,000 banknotes until October 7, 2023. The central bank had previously announced the withdrawal of ₹2,000 banknotes from circulation and set September 30, 2023, as the deadline for the public to exchange or deposit these notes.
This extension is seen as an effort to provide the public with additional time to complete the exchange process without last-minute inconveniences. The RBI has also offered exchange facilities at its 19 Regional Offices.
As per RBI data, on May 19, 2023, ₹2,000 notes worth ₹3.56 lakh crore were in circulation, of which ₹3.42 lakh crore has been returned to banks as of September 29. This indicates that only ₹0.14 lakh crore worth of ₹2,000 notes remain in circulation.
The RBI stated that approximately 96 percent of ₹2,000 notes in circulation as of May 19 have been returned. After October 7, 2023, the process for depositing/exchanging ₹2,000 banknotes will change. Individuals/entities can exchange these notes at RBI Issue Offices up to a limit of ₹20,000 at a time. They can also deposit ₹2,000 notes into their bank accounts in India. Moreover, individuals/entities within the country can send ₹2,000 notes through India Post to any of the 19 RBI Issue Offices for credit to their Indian bank accounts.
The RBI emphasized that courts, law enforcement agencies, government departments, or other public authorities involved in investigative or enforcement proceedings can exchange ₹2,000 banknotes at RBI Issue Offices without any restrictions. These banknotes will continue to be considered legal tender.
Dell Contemplates Increased Investment in Bengaluru R&D Center
Dell, the technology giant, is exploring the possibility of making additional investments in its research and development (R&D) center located in Bengaluru, Karnataka. The company, headquartered in the United States, already operates a significant R&D facility in the capital city of Karnataka.
To discuss this potential investment and strengthen its presence in the state, representatives from Dell recently met with M. B. Patil, Karnataka’s Minister of Large and Medium Industries & Infrastructure, along with other officials from the state government. The discussions aim to explore avenues for further expansion and collaboration between Dell and Karnataka.
Dell’s R&D centers play a vital role in the company’s innovation and product development efforts. The potential increase in investment reflects Dell’s commitment to harnessing the technological talent and capabilities available in Bengaluru, a city known for its thriving IT and technology ecosystem.
This move comes at a time when semiconductor manufacturer GlobalFoundries has also expressed its interest in expanding its operations in Bengaluru by hiring an additional 200 skilled workers. The city continues to attract major players in the tech industry, solidifying its status as a technology hub in India.
The Employees’ Provident Fund Organisation (EPFO) has granted a three-month extension, until December 31, 2023, to employers for uploading wage details related to higher pension options. The initial deadline for uploading wage details was scheduled to end on September 30, but it has been extended following representations from Employers and Employers’ Associations, as announced by the labour ministry.
As of September 29, 2023, there are still 5.52 lakh pending applications for the validation of pension option or joint options with employers. Given the volume of pending applications and further requests from employers, the Central Board of Trustees Chairman has sympathetically considered the extension.
This extension comes in response to representations received from Employers and Employers’ Associations requesting additional time to submit wage details for applicant pensioners and members.
To comply with the Supreme Court order of November 4, 2022, the EPFO had introduced an online facility for the submission of Applications for Validation of Option/Joint Options for pension based on higher wages. This facility was launched on February 26, 2023, and was initially available until May 3, 2023.
In total, 17.49 lakh Applications for Validation of Option/Joint Options have been received from pensioners and members until July 11, 2023.
Traveling is an exciting adventure, but it’s crucial to be aware of the potential risks and uncertainties that can disrupt your journey. Travel insurance plays a vital role in ensuring safer travels and peace of mind.
Alarming Statistics Every year, a staggering 1.4 million lost luggage incidents occur out of 28 million mishandled bags, as reported by Claim Compass. The Economic Times reveals that 1 in 4 passengers has experienced lost checked-in baggage in the last three years. Additionally, there are approximately 20,000 daily flight delays and cancellations. Shockingly, 47% of baggage losses happen during international transfers, according to The Telegraph.
Benefits of Travel Insurance Travel insurance is a safeguard for your investment in a long and expensive trip. It protects your hard-earned assets from uncertainties like trip cancellations or travel disruptions.
Medical emergencies can strike during your journey, especially in remote locations where immediate medical assistance may be limited and costly. Travel insurance provides coverage for medical expenses, ensuring you receive the necessary care without financial strain.
Unexpected events like flight cancellations due to bad weather or disruptions in hotel arrangements can wreak havoc on your travel plans. An illness or injury before your trip, or unforeseen circumstances, may force you to cancel. Travel insurance offers coverage for such situations, mitigating your financial losses.
Amidst the chaos of travel preparations, important documents and belongings can be lost or misplaced. Travel insurance also provides coverage for the financial losses associated with these scenarios.
Accidental damage to a third party’s property during your trip can result in significant expenses. Travel insurance covers these costs, protecting you from financial liabilities.
For students studying abroad, travel insurance is essential. It helps students deal with uncertain situations during their overseas studies and offers specific benefits tailored to their needs.
When buying travel insurance, consider the various plans and insurers available in the market. Students can opt for student-specific insurance plans with extended coverage and benefits. Study interruption coverage is an option to ensure safety against unexpected events during their time abroad.
In conclusion, travel insurance is a crucial investment for any traveler. It provides a safety net against the unforeseen events that can disrupt your journey and offers the peace of mind needed to truly enjoy your adventures.
