How Real Estate Investment is Profitable For Retirement Planning in India?
Retirement planning should be a critical part of every individual’s financial planning. While it’s a common norm to save a part of the income every month, parking the money in the right retirement planning investments is equally important.
The word retirement invokes mixed feelings to many. For some, retirement is a relaxing time when they can finally enjoy the rewards of their hard work and to some, retirement is a dreaded period of financial uncertainty. What’s the difference between these scenarios? Efficient retirement planning and the lack of it.
The Simplest Retirement Planning Guide
What is retirement planning? In simple terms, retirement planning refers to strategically investing a part of your earnings into wealth-generating assets to create a retirement corpus fund that will help you maintain your lifestyle and meet expenses.
Once you retire, you bid adieu to your job responsibilities and the income stops. So, to live worry-free, it is advisable to start planning as early as possible. Another step that you should take to optimize your retirement planning is to keep a track of your expenses. This will help you save more and predict unforeseen expenses according to the inflation rate.
Inflation is an ever-ticking bomb that will chase you throughout your life. One way to stay ahead of it and spend the rest of your retirement life without fretting about not having enough savings is by having a concrete pre-retirement plan.
What is pre-retirement planning?
As the term suggests, pre-retirement planning refers to planning way ahead by setting definitive financial goals and predicting how much money you will need post-retirement. There are several advantages to pre-retirement planning. Several retirement plans offer tax rebates, you will not have to sell your assets to increase the available money post-retirement, and alternative investments like real estate assets offer better returns than a savings bank account.
What are the investment options for retirement planning?
For efficient retirement planning, it is crucial to understand all the available investment options. The first thing you should look for is complete diversification of funds to different asset classes. NPS, National Pension Scheme is an ideal option for that as even people with less experience can manage it. Public Provident is another low-risk investment option offered by the Indian government. For a tenure of 15 years, you can invest as little as INR 500 or a maximum of INR 15,0000 per year. The liquidity is quite low with a lock-in period of 5 years. To earn stable passive income, you can also invest in real estate. Through fractional ownership offered by wealth-tech platforms like Assetmonk, you can invest in commercial assets, co-living spaces, and warehouses without having to empty your bank account. This type of investment offers maximum returns. While these are only three of the options available to you, read this article to know about the rest.
Let’s compare the options: Real Estate vs Cryptocurrency
Like it or hate it, everyone is talking about cryptocurrencies. Some belief in the potential of these digital currencies while some pay attention to their extreme volatility. For your retirement planning clarity, let us compare cryptocurrencies with real estate investments, most volatile with least volatile.
Real estate investments are expensive compared to cryptocurrencies. But with concepts like fractional ownership, once inaccessible real estate assets are becoming affordable and accessible to a regular investor.
To buy cryptocurrencies, you just need to create an account with your chosen crypto-app. To make real estate investments, you will need some assistance from professionals to do all the paperwork. But these days, with the advent of wealth-tech platforms like Assetmonk, the complicated paperwork associated with real estate transactions and the job of due diligence will be taken by experts.
While cryptocurrencies might be easier to invest in, they are highly risky. More than the stock market, the crypto market is volatile and poses malware and hacking risks. Comparatively, the risk factor with real estate investments is extremely low because they are tangible financial assets.
Let us also compare Commercial Real Estate with Residential Real Estate
Commercial assets are strictly used for business purposes whereas residential assets are used for housing. While both of them earn rental income, there are differences in the number of returns you can earn amongst other things. Commercial assets are leased for longer durations than residential properties. This means commercial properties can hold tenants longer and have low vacancy periods, ensuring stable rental income.
At the same time, residential properties can increase their annual rental costs after every year. This doesn’t hold true with commercial assets as business leases often have fixed yearly rents. To completely understand the differences and make a smart choice, read this detailed article.
What makes real estate assets a crucial part of retirement planning investments?
There are five reasons to include real estate investments in your portfolio.
- For long-term investments, real estate properties scale up to higher values while being less risky and volatile.
- Investing in multiple properties will help you mitigate risk and diversify your portfolio, ensuring smooth cash flow.
- If the real estate market witnesses a dip, it’s always a temporary phase. The industry is highly elastic and rarely sees setbacks.
- Out of all the returns, capital returns will let you earn the most. The property’s worth will increase over time and when you decide to sell it, you will be entitled to higher profit margins.
- Lastly, real estate investors can take advantage of several tax benefits during the purchase of the property. If you opt for a home loan, you can save on tax on the principal amount up to INR 1 lakh per anum. If it’s a joint property, investors can claim a tax rebate of up to INR 2 lakhs.
Features of a profitable rental property
You now know that real estate assets fetch high returns in the form of rental returns and capital appreciation. Rental income is the monthly cash flow that can become your passive income. You can choose to spend the amount for your daily living expenses or re-invest it elsewhere. So, what should you look for in a profitable rental property?
- Demand: You should ensure that the property gets located in an area that attracts good tenants.
- Neighborhood: If you buy a residential property, it must surround essentials like good schools, supermarkets, shopping complexes, etc.
- Tax variation: Property tax differs from area to area. No doubt it is advisable to pay high taxes if the demand of the area compensates for it. But you should not pay high property tax for a low-demanding locality.
- Development: It is wise to ask for all the details regarding any future developments in the area before closing the deal for a residential property. A rapidly developing area will increase the value of the property.
- Rental Income: If rental income is your bread and butter now or post-retirement, ensure that the rental property will be lucrative in the future to rent it out to produce passive income.
- Educational institutions: If you want to invest in family-sized rental properties, having top-quality schools nearby can help you find decent renters. It can help you raise the value of your house and the rental revenue it provides.
- Amenities: The rental income of a rental property unit might also increase based on the facilities nearby and how simple it is to obtain them. Tenants in Bangalore, Chennai, and Hyderabad want to rent near the airport or their workplace.
- Management: If you want to invest in rental homes as a side business, you’ll need to hire a manager.
- Job Market: A rental property situated in an area with many offices will attract many renters. A strong employment market can significantly boost rental revenue since the property is in higher demand right away.
- Low vacancy rate: One must aim to reduce high vacancy rates because landlords get forced to seek renters. As a result, they lose their trump card. However, low vacancy rates, on the other hand, can enable landlords to boost rents.
But should you solely depend on rental income for retirement?
Rental income is one of the most advantageous types of passive income. Purchasing a home and renting it out for a living generates rental income. However, this is insufficient to cover your post-retirement expenses. It is vital to have a secondary source other than rental revenue from real estate investments for numerous reasons.
Some of the reasons everyone should have a backup aside rental income for retirement are to counter the everyday risk and uncertainties. It also helps you keep up with inflation. It also helps develop a substantial corpus for a pleasant post-retirement life.
As a result, instead of relying on rental income from real estate investments to cover your post-retirement needs, you could invest in these other investment possibilities. So, investors can put their money into fixed deposits, mutual funds, the national pension system (NPS), dividend investing, and Senior Citizen Savings Scheme (SCSS). Thus, earning additional money for retirement from sources other than rental can enhance your life tremendously. Your extra finances can help to reduce the risk of unexpected costs and uncertainty. There are several benefits to having a secondary source of income, such as lowering the financial risk of relying just on one source of income. Even if it isn’t feasible in a month or two, the tiny amount of extra money you earn each month may help you build up your savings in the long run.
So, where can an NRI investor invest for his retirement?
In today’s world, retirement planning is not an option; it is a need. So these are some of the best NRI retirement plans in which an NRI may invest for maximum rewards.
- Real Estate: The cost of a property in Delhi, Gurgaon, Mumbai, and other cities, whether commercial or residential, is rising faster than ever, making it a moment for all NRIs (Non-Resident Indians) to invest in India. NRIs can also take advantage of the Income Tax exemptions. NRIs can also readily invest in commercial and residential real estate.
- Mutual Funds – As an NRI, you have the option of investing in mutual fund schemes as well as monthly income programs. If one aims to retire soon, it is advisable to evaluate debt and equity before investing in a pension fund. Investing in MIP (Monthly Income Policies) would be ideal for long-term viability.
- National Pension Scheme – As an NRI, you obtain the same insurance and tax benefits as a resident if you invest in the National Pension Scheme. There are no lower or maximum restrictions to the number of contributions made each year under the National Pension Scheme.
- Exchange-Traded Funds (ETFs): ETFs are marketable instruments that follow stock components. As an NRI, one can invest in ETFs with a low transaction fee, and this is one of the simplest ways to gain exposure to Indian equities.
- Gold: Gold investments can get made in a variety of forms, including gold bars, gold ETFs, gold mutual funds, gold deposit schemes, and so on. Gold ETFs have a more transparent price structure and may be bought and traded like any other firm stock.
- New Pension System: An NRI between 18 and 60 can invest in the present NPS (New Pension System). To retire, one would need to invest in a Tier I account. The minimal contribution, in this case, would be 6,000 INR per year.
What are some risks that you could anticipate when planning your retirement? And how can you meet them?
Years of saving and preparation get required for a happy retirement. Here are six unforeseen dangers to plan for and deal with as you prepare for a carefree retirement.
- Unexpected Medical Bills and Long-Term Care: Our healthcare demands tend to rise as we become older. You can cover these costs in ways, including affordably priced healthcare and long-term care insurance.
- Inflation: Inflation risk is one of the unavoidable yet difficult-to-predict threats. Low inflation rates can be financially burdensome for retirees who live for a period; however, inflationary shocks can cause considerable reductions in retirement corpus. Real estate assets, dividend-paying equities, and inflation-indexed bonds are some strategies to account for inflation in your retirement portfolio.
- Housing Maintenance Expenditures: Most retirees forget to look beyond monthly or yearly home loan payments. Unexpected home repairs, damage caused by external conditions, and interior improvements to facilitate wheelchair access or other medical gadgets throughout the house can be pricey.
- Loss of a spouse: Along with the emotional hardship, abruptly losing a spouse may impair your retirement plan, as you would have expected. The good news is that you may reduce these risks by taking the following steps: – Life insurance, pensions, and other sources of income.
- Longevity: Another risk is outliving your retirement savings. While planning your budget, you may estimate your predicted age based on your present health state; nonetheless, it is vital to save a particular amount of money for a longer expected life duration. You may wish to reduce needless spending while also ensuring that you have a steady source of income for the rest of your life. A lifetime income stream might include a pension, monthly rental income from your homes, monthly dividend payments, or any company revenues, among other things.
- Relocation: To enjoy their golden years of retirement, many individuals contemplate moving to a different city or neighborhood with better facilities, weather, and living culture. Some may even have to sell their current home to purchase a new one in their desired location. In this instance, you must choose the best time to place your house on the market and examine the demand for properties comparable to yours in the years preceding your retirement.
But what can you do if you have a bad retirement plan? And how do you fix it?
In our elderly years, we’ll need a decent retirement plan as a walking stick. However, most of us fail to constitute such a retirement plan due to many reasons. You ask why? Let us understand better what contributes to a failed retirement plan to help us keep up.
The following are the most common mistakes people make when saving and investing for their post-retirement lives is a tardy start in which most people’s financial goals usually place retirement at the bottom of the list. The second is inflation which most fail to account for inflation in their retirement planning. It has a substantial influence on purchasing power. The third is the withdrawal of EPF Funds, where many people cash out their provident fund account. The fourth is the delay in obtaining health insurance. The fifth is no Emergency or Contingency Fund because failure to establish a high-level emergency fund would only necessitate the deployment of long-term assets to address medical problems. And the last is inadequate savings for early retirement.
However, fret not! There is still a way to help meet your post-retirement needs. You can save your retirement plan by setting realistic goals, analyzing your risk profile, deferring retirement, and investing in property insurance. Also, read on to see how real estate investments might help you remedy a failed retirement plan.
Retirement Planning Investment In India FAQ'S:
A retirement plan is a financial plan to create a Corpse fund that will aid the survival of a person even after retirement where there will be no or limited source of income.
In many instances, fractional ownership has been considered the ideal investment for retirees as these are comparatively hassle-free investments and as you are investing in real estate property, there is an assured asset appreciation.
There are five investments that are regarded as the safest to purchase, despite the fact that no investment is fully risk-free (bank savings accounts, CDs, Treasury securities, money market accounts, and fixed annuities). FDIC-insured bank savings accounts and CDs are common. A real estate is also an ideal option for those planning to invest with low risk.
Early retirement seems appealing, but it also implies that, due to financial commitments, you will have to quit working at the age of 40 or 45. According to industry experts, without sufficient preparation, it is nearly impossible, at least in India. Thus, detailed pre-retirement planning is important.
One can protect his retirement savings from a crash by having a diversified retirement portfolio. It involves investing in mutual funds of stocks, bonds, real estate, and even cash. Rebalancing a portfolio is also another way to protect retirement savings.
One of the best options for retirees is a bank fixed deposit (FD). The retirees appreciate the security and predictable returns, and the ease of operation makes it a solid option. However, interest rates have been declining in recent years.
While senior citizens might find it easier to procure money from the bank etc. Rental income is taxable even after retirement.
Fractional ownership is one of the finest investment options for senior citizens because of the monthly rental income, capital security, hassle-free investment, and lower capital needs.
Yes, Bitcoin and the investment through blockchain technology is a good investment as it is easy to trade and comparatively the most secure network to transact. It has made real estate a more approachable investment option as it breaks down real estate assets into small blocks. Investing in real estate using cryptocurrency and blockchain technology can help you reap the benefits of both options.
For higher returns, investment in Mutual Funds, Stock Markets, and Real Estate will be optimal. Whereas on the lower risk side, an investment in PPF, Gold ETFs, and RBI Bonds will be optimal.
Real estate is a viable investment as it provides investors with both long-term and short-term options. It is especially suitable for retirement plans as investors can invest in both long-term avenues capable of delivering steady and predictable returns from rental properties or even REITs and short-term options such as fractional ownership.
Based on their unique set of requirements and risk profiles, investors can choose to invest in various schemes. If the investment’s focus is to generate income in the form of dividends to tackle inflation, then investors must incorporate mutual funds into their portfolios. Additionally, for investors looking to develop a steady and predictable cash flow, they must consider investing in rental properties and FDs.
Planning is very important as picturing the goals would motivate one and keep him/her focused. Retirement planning and how to reach the goals would help one to set realistic priorities and stay organized. Sometimes one needs to do things in a particular order, so it is necessary to know when and where to start.
Related Articles
What is National Securities Depository Limited (NSDL)
NSDL or National Securities Depository Limited is a financial institution that was established to keep securities like shares, bonds, etc in the shape of non-physical or physical certifications, that is in demat format. The securities are maintained in deposit accounts, which are similar to funds in bank accounts. It allows for quick securities transfer because ownership gets transferred merely by ledger entries. This is frequently done digitally, saving the extra time required in the previous practice of exchanging physical certificates once a deal was concluded. India’s capital market, which has been around for almost a century, has always been quite active. But, due to settlements that are based on paper, it had significant flaws such as poor delivery, prolonged transference execution, and so on. To address these concerns, the Depositories Act 1996 was enacted and went into effect on Sept 20, 1995. This legislation mandated the Security Depositories establishment in India to manage securities. Security is a financial asset that…
Step-by-Step Process for Income Tax Login
Income Tax Login step-by-step process? To finish the E-filing of IT Returns, you must first successfully finish the registration procedure and connect to the IT E-filing site. You may utilize the e-filing site and a variety of services related to tax by finishing the income tax login process. The steps below will walk you through the process of finishing the income tax E-filing site login. Also, read Tax Saving via Deductions Under Section 80C 80CCC 80CCD and 80D. How To Do Income Tax Login? Step 1: Navigate to the Income Tax e-filing website. Select the “Login Here” option in the upper right-hand side of the site. Step 2: After clicking the “Login Here” option, you will be sent to the Income Tax Login webpage. Step 3: Also on the login screen, enter your User ID, which is your Permanent Account Number or PAN. Enter the password you created when you registered for your IT e-filing account. After you’ve…
Everything about CSC Digital Seva Portal
CSC Digital Seva Portal is a gateway that provides info on numerous firms and electronic governance to inhabitants in remote and rural areas of India. A CSC facility’s full name is Jan Seva Kendra or Common Service Center. Common Services Centers or CSC is a network based in India that aims to transform India into a digitalized country. CSC Scheme 2.0 got started in Aug 2015 for improving accessibility to digital and technological services for citizens in remote and rural areas of India. The CSC Digital Seva Portal’s Goals Connect 2.5 lacs of Gram Panchayats in India. Citizens of India should access trustworthy and up-to-date info. In villages, all basic services are given in a single place. Deliver low-cost, services that are of high quality to average people. Governmental welfare and social assistance programs are promoted. Develop new rural jobs and promote rural entrepreneurship. Registration for the CSC Digital Seva Portal To commence the registration process, one must comply with…
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY is an Open-ended Deferred Pension Plan. The scheme offers guaranteed return of 8% per annum for 10 years. Minimum pension amount is Rs. 1,000/ month and maximum pension amount is Rs. 10,000/ month depending on purchase price. Returns will be paid on a monthly basis. On maturity, the entire pension wealth will be paid in lump sum and no annuity will be offered thereafter by the Pension Fund Regulatory and Development Authority (PFRDA). The first installment of 5% or 50% whichever is lower is payable within 2 years from the time when account balance reaches Rs 1lakh/- which will happen after completion of 10th year under this scheme i.e before 2040s for most of us today! PMVVY is an Open-ended Deferred Pension Plan PMVVY is an open-ended deferred pension plan that provides guaranteed return of 8% per annum for 10 years. The scheme offers minimum pension amount of Rs. 1,000/ month and maximum pension amount of Rs. 10,000/ month…
How to update KYC for EPF UAN?
KYC is being adopted by most of the government and private sector organizations for maintaining the proper records of official matters. The Indian government has already made it mandatory for employees as well as consumers to link their Aadhar card with various types of accounts and digital entities. Therefore, it is also compulsory for you to link your EPF with your Aadhar as well as other important digital documents. Don’t know how to do it? Don’t worry, we have got your back! In this article, we’ll learn how to update KYC for the EPF’s UAN and also go through the basics. Stay tuned until the end to understand it better. What are the advantages of updating your EPF’s KYC details? A wide range of benefits can be reaped by updating the KYC on your EPF account. Some of those benefits are: You can make online withdrawal claims, which happen only after you link/seed your Aadhar with the UAN The transfer…
EPF Form 10C – Benefits, Eligibility & Documents
EPF Form 10C is used to request a reimbursement of the employer share, the withdrawal benefit, and the scheme certificate for membership retention. An Employees’ pension fund (EPF) or Employers’ Pension Scheme is a retirement plan that EPFO enfranchises for employees working in organized sectors. Both the employer and employee contribute to EPF during a person’s employment period at that company. UAN – This unique number is assigned to each member of EPFO. It consists of 12 digits. An EPF certificate gives information about the employee’s employment, including the service period and the family members that will be able to benefit from the scheme in the event of death. Individuals can choose to continue their work after they retire from a company. You can either transfer the company to your next one or withdraw it. In case of withdrawal, the person must file EPF Form 10C. Filling EPF Form 10C Online and offline filings of Form 10C are possible. These…
What Is Form 15G
Fill out Form 15G to declare that no tax deduction at source (tax deduction) is made from your interest income for the year if you have a fixed deposit (individuals under 60 and HUFs). Banks are required by the income tax regulations to deduct tax at source (TDS) from any interest payments made on fixed deposits, regular deposits, etc. There is an Rs. cap on it. Each fiscal year, it exceeds 10,000 rupees. EPF form 15G for PF submissions can now be made through the EPFO Unified Portal. Members of the EPF are now able to withdraw their PF online. TDS can also be avoided, which is a significant advantage. When is the TDS applicable? If an employee has less than five years of service and wants to withdraw EPF money that is greater than or equal to Rs. 50 000. 1.) When an employee is able to submit his or her PAN card (but the 15G form for EPF/15H…
Highlights of the Union Budget 2023-2024
Union Budget 2023-2024 maintained its focus on seven key areas, Saptarishi as said by Finance Minister Nirmala Sitaraman. The middle class has also received some respite in the form of adjustments to the new income tax scheme. The Finance Minister also adhered to the fiscal deficit path in the Budget, with a goal of 5.9 percent in FY 24 and a goal for the current fiscal year. Highlights of the Union Budget 2023-2024: Key Highlights The highly anticipated Union Budget 2023 has arrived, bringing good news for taxpayers with new income tax slabs, an infra boost, a focus on youth development, and a push for green energy. Assetmonk breaks down the key takeaways for you. Highlights of the Union Budget 2023-2024: Key Numbers Here are the key numbers that highlight the targets of the 2023 budget. Highlights of the Union Budget 2023-2024: 7 Priorities Inclusive development: STs, SCs, OBCs, Women, and other underprivileged groups have benefited from the government’s Sabka Saath Sabka…
How to Withdraw Old PF Money from Unclaimed EPF Account Online
How to withdraw PF money from unclaimed EPF account online? Employees who have unclaimed balances in their Provident Fund (PF) account have the option of either withdrawing or transferring the funds to their current employer. This can be a great way for them to access money they have saved throughout their working years, but it is important to note that withdrawals made before the end of the five-year period are considered taxable income. This can have a significant impact on an employee’s overall financial situation, and it’s important for them to be aware of this before making a decision. The Employees Provident Fund (EPF) is a government-managed program that is designed to provide financial security for employees in India. However, despite the government’s efforts to simplify the process of accessing PF accounts, the EPF still holds a significant amount of dormant accounts, totaling 27,000 crores. This can cause financial difficulties for many individuals who are unable to access their funds,…
National Pension Scheme Tier 2 Account
National Pension Scheme Tier 2 is a long-term investment scheme offered by the Government of India. It is a voluntary savings scheme where an individual can save for his/her retirement. The scheme is open to all citizens of India who are above the age of 18 years. The scheme has a lock-in period of 5 years, after which the account can be withdrawn. The scheme offers various benefits such as tax benefits, flexibility in investment and withdrawal, and a government guarantee. Tier 2 accounts can be opened with any of the authorized banks and financial institutions. The account can be opened with a minimum balance of Rs.500. The account can be opened online, offline, or through the Point of Sale (PoS) terminal. What is a National Pension Scheme Tier 2 Account? A National Pension Scheme Tier 2 account is a retirement savings account that offers you the flexibility to make partial withdrawals and deposits. This account is ideal for those…
National Savings Certificate Interest Rate 2023
National Savings Certificate (NSC) is a government-backed savings product available in India. NSC interest rates are determined by the government, and they offer a fixed rate of return over the life of the investment. The current interest rate for NSC is 6.8% per year. NSC interest rates are subject to change, but they have remained relatively stable over the past few years. In 2023, the interest rate is scheduled to increase to 6.8% per year. This will be the first interest rate increase since 2016, when the interest rate was increased from 7.6% to 7.9%. NSCs are a popular savings option for Indian citizens, as they offer a guaranteed rate of return and are backed by the government. If you are looking for a safe and secure investment option, NSCs may be a good option for you. Also, read NSC – National Savings Certificate. How the interest rates on National Savings Certificates have changed over time? If you’re looking for…
Post Office Tax Saving Scheme
The post office tax savings schemes are a government-sponsored investment plan in India. Under the schemes, investors can save taxes by investing in specific post office savings instruments. The schemes are currently available in all post offices across the country. The schemes offer several benefits to investors, including tax exemption on the invested amount, interest income, and capital gains. Investors can choose from a variety of post office saving instruments, including fixed deposits, National Savings Certificates, and Public Provident Funds. The post office tax saving scheme is a great way to save taxes and grow your money. If you are looking for a safe and secure investment option, this scheme is worth considering. Also read Post Office Time Deposit. What are the Post Office Tax Saving Schemes in India? The post office tax saving schemes are a long-term investment plan offered by the Indian government. Under it, you can invest in various post office saving schemes and get income tax…
EPF Form 5 for First-Time Employee Registration
What is EPF Form 5? EPF Form 5 is for First-Time Employee Registration. Each month, employers fill out EPF Form 5 with information on fresh hires from the previous month. These fresh hires qualify for the services of EPF. Employee Provident Fund Organization applies to all companies in the organized sector industry with 20 and more workers. These companies must offer EPF facilities to qualified employees as well as deposit to their EDLI, EPS, and EPF. Each month, they must notify EPFO of new recruits entitled to EPF offerings by completing Form 5 and sending the form to the EPF Commissioner in their region. EPF Form 5 Details Objective Submitting information on a new EPFO member in a specific month Website https://epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form5.pdf Qualifying criteria Employee Provident Fund Organization’s authority should extend to the employers. Is it necessary? Yes. Who is required to fill out EPF Form 5? Employers. Time for filling out EPF Form 5? Each month. Submitting the details…
How to Open NPS Account Online
Wondering how to Open NPS Account Online? But, firstly what is NPS? The National Pension System (NPS) is a social security scheme that may be accessed online. PFRDA has control over NPS. Its goal is to provide financial rewards via pension after retirement. The federal government created NPS in 2014. NPS is a scheme that is based on contributions that provide retirees with returns that are linked to the market. Also read NPS Vs PPF: Comparison, Return Rates & Which is Better. How to Open NPS Account Online? An NPS account can be opened in 2 ways: Through the BankBazaar portal Through the NPS portal Also, read NPS Customer Cares Support Toll-Free and Contact Numbers. How to Open NPS Account Online: Through the BankBazaar portal Step 1: Go to https://www.bankbazaar.com/nps-signup.html on the BankBazaar portal. Step 2: Select ‘Investments’. Next, select ‘National Pension Scheme’. Step 3: You’ll be sent to a fresh webpage. Step 4: Click the ‘Create new account’ button.…
LIC Jeevan Anand Vs PPF: What are the Differences?
LIC Jeevan Anand Vs PPF: What are the Differences? As can be seen, there are several sorts of investment routes, each with its own set of features and risk and return levels. Investments linked to the markets are those invested in the markets. They provide returns that are not guaranteed. Fixed-income investments do not participate in the market and ensure returns that are guaranteed. These are typically preferred by those who are averse to market volatility, and if these avenues provide tax breaks. Section 80C of the 1961 Act provides several potential investment possibilities with tax advantages. The LIC Jeevan Anand and PPF plans are the most prominent options under Sec 80C. These plans have certain commonalities and distinctions that you should be aware of before investing. So, let us investigate LIC Jeevan Anand Vs PPF differences. LIC Jeevan Anand Is? LIC Jeevan Anand is a well-known life insurance product firm that provides a variety of insurance options. LIC Jeevan…
How to Pay PPF online
PPF Online payment modes? Want to know how to do that? Yes, you can pay PPF online. PPF is a tried-and-true investing option for a huge segment of Indian residents. You might be accustomed to making a PPF payment in person, there are various methods for paying PPF contributions online too. The process of how to pay PPF online is not too complicated. Thus, allowing you to easily manage your investments with no problems. The Indian government fully supports the PPF plan, and there are zero dangers related to it. Presently, the PPF interest rate is 8 percent annually. The payments paid for the plan, as well as the interest produced from it, are totally tax deductible by Section 80C of the 1961 Act. Read PPF Interest Rates for FY 2022-23 (October-December). PPF online payment: How to do it? Wondering how to PPF online? Prior to understanding further how to pay your PPF online, you need first understand the different…
Tax Saving Via Deductions Under Section 80C, 80CCC, 80CCD, and 80D
Looking for tax saving hacks on your investments? Use these tax saving techniques via Sections 80C, 80CCD, 80CCC, and 80D. Sections 80C, 80CCD, 80CCC, and 80D of IT Law offer deductions based on different limits. The tax saving deductions mentioned above are a type of governmental assistance that assists taxpayers in minimizing the income of an individual and tax burden for a financial year. It also encourages payers who pay taxes to conserve and invest, which helps individuals establish a future that is financially solid. Deductible eligibility is determined by a number of factors, with different criteria specified for specific aims. Tax savings or tax breaks help individuals reduce their total tax burden, and tax liability, and eventually save money on their taxes. Several individuals tried to lower their taxes by making an investment in tax-advantaged techniques. The amount of tax that can get avoided depends on the type of tax advantage claimed. Sections 80C, 80CCD, 80CCC, and 80D of…
Pradhan Mantri Shram Yogi Mandhan (PMSYM)
Pradhan Mantri Shram Yogi Mandhan (PMSYM) is a social initiative launched in February 2019 by the Ministry of Labour and Employment (India) of the Government of India. Pradhan Mantri Shram Yogi Mandhan (PMSYM) is a pensions program for persons in the labor class who work in the informal economy and have a minimum age of 18 and a max age of 40. It provides qualified persons with a pension for months after they reach 60 simply by contributing modest sums each month. Read Pradhan Mantri Kisan Samman Nidhi Yojana. Highlights of Pradhan Mantri Shram Yogi Mandhan (PMSYM) Mr. Piyush Goyal inaugurated Pradhan Mantri Shram Yogi Mandhan (PMSYM) in February 2019. Pradhan Mantri Shram Yogi Mandhan (PMSYM)officially began on February 15, 2020. The workers of the unorganized/ informal sector are the type of beneficiaries that can profit from Pradhan Mantri Shram Yogi Mandhan (PMSYM). Pradhan Mantri Shram Yogi Mandhan (PMSYM) has around 42 crores of participants. The following are the contributions…
34 Best Passive Income Ideas For Building Wealth in 2023
“If you don’t find a way to make money while you sleep, you will work until you die.” -Warren Buffet There are tons of quotes on passive income but nothing resonates more than the above. The above is one of the best Warren Buffett quotes on passive income. Passive income, passive income ideas, and passive income sources – these are terms we are no longer strangers to but it’s often misunderstood. Sure, your 9-to-5 work pays you consistent income. That’s great. Yet you are well aware that you’ve always desired more. So you realize it’s past time to supplement your current income. A passive income stream…
Pradhan Mantri Kisan Samman Nidhi Yojana
What is the Pradhan Mantri Kisan Samman Nidhi Yojana? The Pradhan Mantri Kisan Samman Nidhi Yojana is a plan initiated by the Indian government. It gives income help of as much as Rs. 6000/- annually to all marginal and small farmers. Families of land-owning farmers receive an Rs. 6000/- cash advantage a year under the Pradhan Mantri Kisan Samman Nidhi Yojana plan. This amount will get paid Rs. 2000/- in 3 equal payments per 4 months. Also, read Saving Schemes in India. The Motive of the Pradhan Mantri Kisan Samman Nidhi Yojana? As we all know, agriculture is the backbone in the Indian economy. So, farmers are an important part of society. But, the economy has socioeconomic gaps between the urban areas with rural areas. So, farmers battle with long-term profitability. This problem has afflicted the majority of India’s people since its freedom. The state and federal governments have worked to solve this challenge. They have also introduced a variety…