Latest news with #DeepakKumarJain
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Business Standard
3 days ago
- Business
- Business Standard
Influencers to F&O traders: here's what ITR utility update means for you
As India's digital economy evolves and more taxpayers report income from non-traditional sources like content creation and speculative trading, the Income Tax department has overhauled its ITR utility to introduce a revised list of 'Nature of Business/Profession' codes. This change, effective from assessment year (AY) 2025–26, is designed to bring more clarity, compliance and alignment with sector-specific practices. Why did the Income Tax department make this change? The update is a response to the changing economic landscape. 'The revised codes aim to better capture emerging income sources, like social media influencing or F&O trading, while reducing ambiguity in disclosures,' said Parag Jain, chartered accountant & tax head at 1 Finance. The older codes were too generic, leading to inconsistent classification and potential compliance gaps. The change also boosts the department's analytics and cross-platform matching. 'It is a strategic move to enhance digital governance, improve compliance, and match data with GST and MCA systems,' said Deepak Kumar Jain, founder & chief executive officer of Vivek Jalan, Partner at Tax Connect Advisory Services LLP, noted that the classification will also help the department compare profitability within sectors using AI tools, which may affect how returns are scrutinised. What changes for small businesses, freelancers, and professionals? The new codes help taxpayers report income more accurately. For example: A freelance graphic designer must now use code 14010 instead of the generic 0607 A mobile retailer should now choose code 09019 instead of selecting 'Others' F&O traders must now use code 21010, replacing older catch-all financial activity codes YouTubers and influencers have a new code: 16021 'These help align disclosures with actual income and reduce mismatches,' Parag Jain said. Sonu Jain, chief risk officer at 9Point Capital, added that better classification can also ensure eligibility for presumptive schemes under Sections 44AD/44ADA. What if the wrong code is selected? While there's no explicit penalty, the risks are real. 'Wrong codes can trigger AI-based scrutiny, mismatches, or even notices,' Parag Jain noted. 'This is especially critical if the data doesn't match with GST or MSME/Udyam records,' Deepak Kumar Jain added. Jalan pointed out that if declared profits diverge significantly from industry norms, for instance, an influencer showing just 20 per cent profitability where the average is 50 per cent, they may need to furnish expense justifications. What should taxpayers and CAs do now? Experts agree there's no need to revise past filings. 'This is a forward-looking change,' Sonu Jain said. However, accuracy this year is essential. 'Use the latest ITR utility, match codes with GST/MSME records, and verify presumptive scheme eligibility,' Deepak Kumar Jain advised. In short, the ITR utility's new codes aren't just a formality. They are a signal that the tax system is adapting to modern income sources and taxpayers must adapt too.
Mint
22-07-2025
- Business
- Mint
Prepaid credit card: Can it help build your credit score? Find out
Prepaid credit cards, commonly known as loadable credit cards or prepaid cards, have gained notoriety lately, as a viable alternative to banking. But do prepaid credit cards actually boost or lower your credit score? Let's look into this in-depth and how it affects your credit health. To make purchases using a prepaid credit card, you will need to load your prepaid credit card with funds. You are spending your own money, similar to a digital wallet, so it is not credit. It is a prepaid option with some conveniences such as no requirements for a bank account or credit check with all the convenience of tap-to-pay, online shopping, and international acceptance. Prepaid cards have their own cost structure, even if they are convenient: Activation or issuance fee: A one-time fee when acquiring the card. A one-time fee when acquiring the card. Reloads: Fees for online, cash, or bank transfers of money onto the card. Fees for online, cash, or bank transfers of money onto the card. Monthly or annual card maintenance fee: Regular fixed fee to maintain an account. Regular fixed fee to maintain an account. Fees for ATM withdrawals: For cash withdrawals in India and overseas. For cash withdrawals in India and overseas. Inactivity/dormancy fees: Used at times when there isn't any need for a few months. When making your decision on a prepaid card, you should assess the cost structures, as these fees could compromise the convenience of the card. Banks Prepaid credit card variant SBI Bank State Bank Gift Card State Bank EZ Pay Card HDFC Bank Millennia Prepaid Card GiftPlus Card Axis Bank Meal Card Gift Card ICICI Bank Expressions Gift Card PayDirect Card Yes Bank Yes Bank Corporate Gift Card Yes Bank Payroll Card Bank of Baroda Baroda Gift Card Baroda TravelEasy Card (Note: Please visit the bank's official website to learn more about the prepaid card of your choice. It is crucial to choose the one that best meets your needs.) No, your spending habits are not reported to credit bureaus because you are not taking out a loan. No credit history accumulation, there will be no record that your account is active credit. No credit utilisation impact, because there is not a credit line. No payment behaviour impact, either on time or late. Pre-paid cards have therefore no impact in improving or degrading your credit history. Deepak Kumar Jain, Founder and CEO of explained, 'A prepaid card doesn't involve borrowing or credit; it is a card that is preloaded with a certain amount that you can use to pay for travel and other expenses. Once that balance is exhausted, you need to reload it for spending. It's like spending from your wallet or debit card; there is no credit or borrowing involved, so it does not impact the credit score. The uses of prepaid cards are not reported to credit bureaus like CIBIL or Experian, so they will neither help you build or improve your credit score nor impact it negatively.' Prepaid cards have many benefits: Budgeting control: You cannot spend more than what is loaded. You cannot spend more than what is loaded. Great option for online purchases: Increase safety if doing business with unknown vendors. Increase safety if doing business with unknown vendors. No risk of debt: You get the convenience of a card without the risk of credit. You get the convenience of a card without the risk of credit. Great for unbanked or for kids: A financial tool for beginners. For their characteristics they are truly the best option for gifting, travel, and for budgeted purchases. In conclusion, prepaid credit cards can be an excellent alternative for spending options for travel, gifts, and budgeting, but they have no impact on credit scores. Overall, unsecured credit cards with low limits, secured credit cards, and payments made on a regular loan are much better products for individuals who are serious about improving their creditworthiness. For all personal finance updates, visit here. Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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Business Standard
10-06-2025
- Business
- Business Standard
Tax filing for elderly: Don't overlook or incorrectly claim key deductions
The tax-filing season has begun. Senior citizens should take advantage of the deductions and exemptions available to them. Here's a concise guide to help them make the most of these benefits and file their tax returns accurately. Higher deduction limits Medical deductions: Senior citizens enjoy higher deductions on medical insurance premiums. The deduction limit is Rs 25,000 for those below 60 years. 'It is Rs 50,000 for senior citizens. And if they pay the premium for a dependent senior parent, they can claim an additional Rs 50,000,' says Deepak Kumar Jain, founder and chief executive officer (CEO), Tax benefits for preventive health checkups of up to Rs 5,000 can be claimed within the Rs 50,000 limit under Section 80D. 'If no medical policies have been taken for senior citizens, medical expenses incurred for them (paid other than in cash) can be claimed as a deduction under Section 80D,' says Abhishek Soni, co-founder, Tax2Win. Senior citizens can also claim up to Rs 1 lakh under Section 80DDB for specified diseases, compared to Rs 40,000 for those aged 59 and below. Deepak Kumar Jain informs that this applies to diseases like cancer, Parkinson's, and chronic renal failure. 'If a resident senior citizen, super senior citizen, or their dependant suffers from pre-specified diseases, they can claim a deduction for expenses incurred on treating those diseases,' says Soni. Interest income: Under Section 80TTB, senior and super senior citizens can claim a deduction of up to Rs 50,000 on interest income from savings accounts, fixed deposits, or recurring deposits held in banks and post offices. 'People in this category have retired from service and may not have a regular source of income other than interest from deposits. Hence, providing a higher deduction would enable them to have more disposable income for meeting needs such as health care,' says Sethuraman. Reverse mortgage proceeds are tax-free under Section 10(43). Senior citizens opting for the new tax regime must forgo many of these deductions. 'These include deductions from 80C to 80U, and the higher exemption limits. However, the rebate under Section 87A will still be available,' says Soni. Exempt from filing ITR For individuals aged 59 and below, the basic exemption limit is Rs 2.5 lakh. 'It is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens under the old tax regime. If their income is below this limit, they are not required to file ITR,' says Sudhakar Sethuraman, partner, Deloitte India. Section 194P exempts individuals aged 75 and above from filing tax returns. However, all these exempt categories may still have to file ITR if they meet certain conditions (see box). Those with only pension and interest income from the same bank are not required to file returns. Senior citizens with income below the taxable limit can submit Form 15H to ask banks not to deduct TDS (tax deduction at source). Deepak Kumar Jain suggests filing ITR even if no TDS is deducted. Resident senior citizens not having income from business or profession are exempt from paying advance tax. 'They can pay self-assessment tax at the end of the year instead,' says Deepak Kumar Jain. Points to remember Senior citizens must carefully report all sources of income. 'Include pension, rental income, and capital gains,' says Shubham Jain, associate director, Nangia Andersen. He observes that seniors often miss out on deductions specific to them or claim them incorrectly. Retain payment proof such as premium receipts for insurance, interest certificates, medical bills, and capital gains statements. Deductions should be claimed for payments made in the relevant financial year. 'Changes to the capital gain tax regime, especially regarding indexation benefits on the sale of land or a building introduced this year, should be kept in mind when reporting income,' says Shubham Jain. Seniors must accurately report income to avoid discrepancies with Form 26AS and the annual information statement (AIS). Review both these documents carefully before filing ITR to prevent triggering automated notices. 'Even small interest income, if skipped, can create a mismatch and delay your refund. The portal now highlights mismatches. Use that to your advantage,' says Shubham Jain. Seniors must choose the correct ITR form based on income type, such as pension, interest, rent, or capital gains. After filing, validate the return using an Aadhaar-enabled one-time password to avoid processing delays. Seniors must select the tax regime best suited to their income sources and deductions. Finally, a thorough review before submission can help avoid common errors. Mention bank details accurately to ensure timely refunds. File ITR even if income below exemption limit Made current account deposits above Rs 1 crore
Hindustan Times
07-06-2025
- Business
- Hindustan Times
RBI's 50 bps repo rate cut bonanza: Here's how it will impact homebuyers' EMIs
Although the festive season is still months away, RBI's 50 bps rate cut is welcome news for prospective homebuyers, as it will help lower overall borrowing costs. For existing homebuyers, the RBI's rate cut means they can now opt for a higher loan amount without increasing their EMI. The central bank has also adopted a neutral stance, signaling that it is unlikely to either cut or hike rates aggressively in the near term. This suggests that further rate cuts are not expected anytime soon, making it an opportune moment to buy a home—especially for those who are ready and need one. However, experts caution that undecided buyers should not base their homebuying decisions solely on lower interest rates. Other financial and personal factors must also be considered. Also, the actual benefit, however, hinges on how quickly banks pass on the cut by reducing their Marginal Cost of Funds-based Lending Rates (MCLR). 'With the RBI announcing a third rate cut this calendar year, bringing the total repo rate reduction to 100 basis points (bps), we're seeing a gradual but positive shift for borrowers. Although each cut, including the recent 50 bps reduction, may seem modest in isolation, cumulatively they help ease the overall cost of borrowing,' says Deepak Kumar Jain, founder and CEO of a loan distribution company. For instance, on a ₹50 lakh home loan over 20 years, the EMI drops by around ₹3,164. For loans of ₹1 crore and ₹1.5 crore, the monthly savings are approximately ₹6,329 and ₹9,493, respectively. While these savings aren't massive, they do improve affordability, especially in a high-cost housing market. The rate cuts since the beginning of the year also mean that borrowers can now opt for a higher loan amount while keeping their EMI unchanged. With the RBI having reduced the repo rate by 100 bps so far this year, home loan rates are expected to fall further as banks begin to transmit the benefits of the monetary policy. 'This means if someone is paying a 9% interest rate for a ₹1 crore home loan and the interest rate comes down to 8%, then by keeping the EMI constant, they can opt for a higher loan amount by almost ₹7.5 lakhs,' says Abhishek Kumar, founder and chief investment advisor of SahajMoney, a financial planning firm. The actual transmission to the end borrowers would depend on how quickly the banks pass on the benefits through lower Marginal Cost of Funds-based Lending Rate (MCLR) rates. Thanks to the 100 bps rate cut this year, including a fresh 50 bps slash, Priya, a young IT professional in Pune, sees her ₹50 lakh home loan EMI reduced by over ₹3,000. That saving bridges the gap between rent and ownership, letting her seriously plan her move from tenant to homeowner. The RBI has also cut the Cash Reserve Ratio (CRR) by 100 bps. This does not have a direct impact on home loan interest rates but there is an indirect impact. 'The reduction in the Cash Reserve Ratio (CRR) will help boost liquidity in the banking system, which means that banks have more funds to lend. Developers will be able to access more capital for their projects, and this can positively impact project completion timelines. It also gives banks the option to reduce home loan interest rates, which will have again positively impact sentiment in the affordable and mid-income segments,' says Anuj Puri, chairman, Anarock Group. 'With this RBI rate cut, the EMIs will come down by almost 10-12%. For example, if a person wants to continue with the same tenure the EMIs will be lesser, however if someone opts for a shorter tenure, the EMIs can remain the same and the loan can be paid within a shorter tenure,' said Sanjay Daga, CEO and managing director of Anex Advisory. Assume you have a ₹50 lakh home loan with an interest rate of 8% per annum and a tenure of 20 years. - Loan Amount: ₹50,00,000 - Interest Rate: 8% per annum - Tenure: 20 years - EMI: approximately ₹41,833 - Loan Amount: ₹50,00,000 - Interest Rate: 7.5% per annum - Tenure: 20 years - EMI: approximately ₹38,781 In this scenario, the EMI would decrease by approximately ₹3,052 ( ₹41,833 - ₹38,781), which is around a 7.3% reduction. If you choose to keep the EMI the same ( ₹41,833) and opt for a shorter tenure, you could potentially save around 2-3 years on your loan repayment, depending on the lender's calculations. The RBI has also shifted to a neutral stance. Which means that they are neither inclined to cut nor hike interest rates aggressively in the immediate future. This means that further rate cuts in the immediate future are not likely. Hence it makes this the perfect time to buy a house if you really need one. However, homebuyers who are undecided should not base their decision solely on the reduction in home loan interest rates. 'Since floating rate loans fluctuate over the loan tenure, interest rates may rise or fall in the future. Instead, buyers should also consider their other financial goals and ensure they can afford the EMI payments throughout different economic cycles,' explains Kumar. Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
Economic Times
06-06-2025
- Business
- Economic Times
Big savings for home loan borrowers as EMIs to fall significantly after RBI cuts repo rate by 50 bps
RBI MPC meeting Updates: RBI cuts repo rates by 50 bps to 5.5%, CRR by 100 bps The Reserve Bank of India (RBI) is continuing the trend of delivering good news to home loan borrowers, especially in 2025. The RBI has decided to cut the repo rate by 50 basis points (bps). The latest cut in the repo rate means that the interest rate on home loans will decrease, which means that EMIs or the tenure of the home loan will also come down. The central bank has also cut the Cash Reserve Ratio (CRR) by 100 basis points to 3% from 4% earlier. With the CRR and repo rate cut, banks will be more comfortable in cutting home loan interest rates. The RBI has changed the monetary policy stance from accommodative to neutral in today's monetary policy meeting. This means that with a 100 bps repo rate cut so far, the future rate cut is less certain and will largely depend on inflation and growth is worth noting that the RBI has reduced the repo rate by a total of 50 basis points in February and April 2025. With the current 50-basis-point cut, the repo rate has fallen by 100 basis points overall in the first half of 2025. Also read | What should FD investors do now as interest rates to fall further with RBI cutting repo rate again by 50 bpsAman Trehan, Executive Director, Trehan Iris, said, 'The RBI's 50 basis point reduction in the repo rate to 5.5% is a significant boost for the real estate sector. Lower borrowing costs will make home loans more affordable, enhancing buyer sentiment, particularly in the affordable and mid-income segments. Additionally, the 100 basis point cut in the Cash Reserve Ratio improves liquidity, enabling banks to pass on the benefits to consumers more effectively.' Deepak Kumar Jain, Founder and CEO of CredManager, says, "With the RBI announcing a third rate cut this calendar year—bringing the total repo rate reduction to 100 basis points (bps)—we're seeing a gradual but positive shift for borrowers. Although each cut, including the recent 50 bps reduction, may seem modest in isolation, cumulatively, they help ease the overall cost of borrowing. For instance, on a Rs 50 lakh home loan over 20 years, the EMI drops by around Rs 3,164. For loans of Rs 1 crore and Rs 1.5 crore, the monthly savings are approximately Rs 6,329 and Rs 9,493, respectively. While these savings aren't massive, they do improve affordability, especially in a high-cost housing market." Also read | Rs 7.71 lakh savings on Rs 50 lakh home loan: Check how much you will save after RBI's 50 bps repo rate cutA home loan borrower has an outstanding loan of Rs 50 lakh at an 8.5% interest rate and 20-year tenure. With a 100 bps rate cut so far, the total interest savings will be Rs 7.47 lakh in the entire tenure. This will happen because total interest payments will decrease from Rs 54.14 lakh to Rs 46.67 lakh over a 20-year tenure. Now, if you decide to keep the same tenure, then your EMI will fall down from Rs 43,391 to Rs 40,280 - savings of Rs 3,111 per you keep the same EMI of Rs 43391, the tenure of your home loan will reduce substantially from 20 years to 17 years - a drop by almost three years. This will end up with huge interest savings of Rs 15.44 reasons have prompted the RBI to consider a third rate cut. According to the Bajaj Broking report, "Headline CPI inflation remains consistently below the RBI's medium-term target of 4%."According to the government's data, the CPI Inflation in March 2025 was 3.34%. This further decreased to 3.16% in April 2025. According to the SBI Research Report, "CPI Inflation may come down to 2.9% in Q1 FY26 as food inflation is expected to be within the target in June quarter. Above normal monsoon prediction by IMD, strong arrival of crops and decline in crude oil prices revising down our CPI estimate to 3.5% in FY 26 with downward bias."Another reason for the RBI's repo rate cut is the expectation of muted credit growth in FY26. As per the SBI research report, the commercial banks' credit growth slowed to 9.8% as on May 16, 2025, compared to 19.5% in the last year. During April and May, credit declined by Rs 15,676 crore, while deposits grew by Rs 3.06 lakh crore. A decent credit growth is required for economy to maintain its growth and a lower interest rate helps in boosting the credit economy is also not growing at the rate to match its true potential. "GDP growth appears to be softening, worsened by external shocks such as trade disruptions from recent U.S. policy moves," said Bajaj Broking in its report. With inflation being firmly in grip, focus of the central bank shifts towards economic growth and a lower rate regime helps in boosting the latest repo rate cut, home loan EMIs are expected to decrease further. Following the 50-bps repo rate cut by the RBI in February and April 2025, many banks have recently reduced their repo-linked EBLRs by a similar magnitude. However, many borrowers are still with old interest rate regimes like MCLR, base rate and BPLR, so, the quantum and speed of benefit of interest rate reduction will vary for Agarwal, CEO, Paisabazaar, says, "The 50-basis-point rep rate cut should lead to reduction in home loan interest rates, both for new and existing home loan borrowers. However, the quantum and time of the rate cut transmission would depend on factors like type of interest rate benchmarks used by the lenders, their rate reset related policies regarding, rate reset dates set for the borrowers, etc. The transmission would be quickest and absolute in case of existing home loans linked to the repo rate. The exact date of rate cut transmission to the existing borrowers would depend on the rate reset dates set by their respective lenders. Till then, they will continue to repay their loans as per their existing interest rates. As the cost of funds of the lenders play a major role in determining their internal benchmark rates, there would be a longer lag in the transmission of repo rate cuts to home loans linked to MCLR- or other internal benchmarks." Home loan linked to EBLR: As a majority of floating rate interest rate of home loans taken from banks is linked to an External Benchmark Lending Rate which is repo rate in most cases, then with the latest repo rate cut, your home loan interest rate will come down further in the coming months. "The majority of new home loans in India today are linked directly to the RBI's repo rate, under the Repo Linked Lending Rate (RLLR) framework introduced in 2019. As a result, changes in the repo rate are typically transmitted quickly to borrowers through lower interest rates and reduced EMIs," says Yashish Dahiya, Chairman & Group CEO of PB Fintech. Once the lender decides to go for reduction of interest rate, it will give you the option to either reduce your EMI by keeping same home loan tenure or keep the EMI unchanged and get reduced home loan tenure. According to experts and as per our calculations above, reducing your home loan tenure offers more benefits in the long term. Home loans linked to MCLR, base rate or BPLR: 35.9% of loans are linked to MCLR as per the SBI research report. MCLR has a longer reset period than EBLR. In a falling interest rate scenario, it is beneficial to have an interest rate regime which is faster in passing the benefit of interest rate reduction. If your home loan is still linked to the MCLR or any other loan regime, then you should switch to the EBLR-based regime to get quicker benefit of interest rate reduction and save on interest costs. The SBI research report anticipates that the RBI will cut the repo rate by 100 basis points in FY 2025-26. The central bank has already reduced the repo rate by 25 basis points in April 2025. With the current cut of 50 bps, there is still scope for 25 bps reduction in the coming months.
