Author: Invest Policy

Taxes are the backbone of a nation’s economy, helping fund public services, infrastructure, and development. Every citizen must contribute by paying taxes as per their income. While paying taxes is a legal obligation, some people intentionally or unintentionally fail to fulfill this responsibility. But what happens if someone refuses to pay taxes? Let’s explore the consequences, including fines, interest, and the possibility of jail time. Understanding Income Tax in India The Indian tax system is based on income brackets called tax slabs. Taxpayers can choose between two systems—the old tax regime and the new one, each offering different tax rates…

Mutual funds are a popular investment option in India, with a growing number of investors venturing into them every year. However, despite their popularity, many investors lack a proper understanding of mutual fund categories and their differences. Two commonly discussed categories are small-cap mutual funds and large-cap mutual funds. Knowing the differences between these two can help investors make more informed decisions. Understanding Small-Cap Mutual Funds Small-cap mutual funds are equity-oriented schemes that focus on investing in companies with smaller market capitalizations. According to SEBI (Securities and Exchange Board of India), these are companies ranked 251st and below in terms…

Indian Railways, the world’s fourth-largest railway network, carries over 2.5 crore passengers daily. For many travelers, booking reserved tickets ensures a comfortable journey. However, life is unpredictable, and sometimes you may find yourself unable to board the train from your designated station. Did you know that Indian Railways offers a facility to change your boarding station? Yes, you can switch your boarding point if needed. Here’s a complete guide on how and when you can do it. When Can You Change Your Boarding Station? Passengers are allowed to change their boarding station up to 24 hours before the train’s scheduled…

The Employees’ Provident Fund Organization (EPFO) has introduced a significant change in its rules for claim settlement. This move is set to benefit nearly 7 crore active subscribers by providing higher interest payouts on their provident fund money. The updated rule ensures that interest is calculated until the exact date of claim settlement, unlike earlier provisions. Key Change in Claim Settlement Rules Previously, under Paragraph 60(2)(b) of the EPF Scheme 1952, members withdrawing funds before the 24th of a month received interest only up to the end of the previous month. This often resulted in a loss of interest for…

The recent Supreme Court ruling has put an end to income tax exemptions on the salaries of priests and nuns, stirring conversations around religious income and tax policy. For years, priests and nuns working in churches, particularly in Catholic institutions, enjoyed a unique tax-free status. However, with the rejection of 93 petitions from various religious organizations, the Supreme Court has set a new precedent, requiring all salaried individuals, regardless of religious affiliation, to pay taxes on their income. Background: Why Were Priests and Nuns Exempt from Tax? The roots of this exemption date back to the 1940s during British rule…

The Central Government has provided much-needed clarity on General Provident Fund (GPF) disbursements for retired employees. To address frequent questions on delayed GPF interest payments, the Department of Pension and Pensioners’ Welfare (DoPPW) released new guidelines on October 25, 2024. These updated instructions outline the steps to ensure timely GPF disbursement, clarify interest policies on delayed payments, and specify responsibilities for officers handling these transactions. Here’s a breakdown of what the new guidelines entail and how they impact retired employees expecting their GPF benefits. Key Points of GPF Disbursement for Retired Employees 1. Ensuring Timely GPF Payments 2. Unconditional Disbursement…

Public Provident Fund (PPF) accounts have long been a popular savings tool in India, offering good returns and tax benefits. However, starting from October 1, 2024, significant changes to the rules have been introduced by the government. These new regulations will impact the interest rates on minors’ accounts, non-resident Indian (NRI) accounts, and even those who hold more than one PPF account. Here’s a breakdown of the most crucial updates and how they might affect your savings. No Full Interest for Minors’ PPF Accounts Until now, parents or guardians who opened a PPF account in the name of their minor…

Retirement is a phase of life that brings the need for a stable and sufficient income, as expenses do not stop even after regular salary ceases. For those planning retirement with a salary of Rs 40,000 per month, using a combination of Employees’ Provident Fund (EPF), National Pension System (NPS), and Senior Citizens’ Savings Scheme (SCSS) can help build a retirement corpus of Rs 3 crore or more. With a smart strategy, these schemes together can ensure financial security and a regular income after retirement. Let’s break down how these schemes work and how you can achieve this goal. Understanding…

If you’re planning to buy a new car, especially during the festive season, you can save money on the final price in several ways. Most buyers don’t realize that the on-road price, which includes taxes, insurance, and other extras, can be reduced significantly if you know what to look for. Here are some easy-to-follow tips that will help you lower the on-road cost of your vehicle and get a better deal. Don’t Feel Obliged to Buy Insurance from the Showroom One of the easiest ways to cut down the on-road price of a car is by opting out of buying…

The recent economic decisions made by China, particularly a cut in interest rates and a substantial economic package, have sparked optimism in India’s metal and chemical sectors. China, being the largest consumer of steel globally, directly impacts the Indian metal market. With the real estate sector slowdown in China, these measures were aimed at boosting their economy, but Indian companies like Tata Steel, Vedanta, and Hindalco are already seeing the benefits. Metal Stocks See Strong Buying Since China is a major importer of iron and steel, India’s export market is deeply linked to the Chinese economy. Companies like NALCO, NMDC,…