At a time when interest rates are about to reverse and again take a northward journey, this deposit from home financier company HDFC shall still be a safe bet.
HDFC which is a brand in itself has won the trust of 0.6 million depositors and has received AAA ratings from two of the leading rating agencies, Crisil and ICRA. This highest rating has been consistently maintained for 26 years in a row.
The new increased rates on FDs which also point to a rate reversal are applicable from March 30, 2021. Senior citizens shall be eligible for a higher rate by 0.25 percent per annum.
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Long-term equity returns have historically outperformed cash and fixed-income investments such as bonds. Stock prices, on the other hand, tend to rise and fall over time. Because stock market fluctuations tend to smooth out over longer periods, investors may want to consider a long-term perspective for their equity portfolio. You can also build a diversified stock portfolio by purchasing small-cap, mid-cap, and large-cap stocks. None of the other three investment options allows you to diversify your portfolio by investing a small amount of money. In a nutshell, you can invest a small amount of money in the stock market and watch your wealth grow.
Securities Transaction Tax (STT)
The STT, which was introduced in 2004, is a type of direct tax levied on the purchase or sale of every security listed on the stock market. In other words, the investor is responsible for paying this tax at the time of each transaction.
Capital Gain Tax
A capital gain is any profit or gains derived from the sale of a “capital asset.” Since this gain or profit falls under the category of “income,” you will be required to pay tax on it in the year in which the capital asset is transferred.
Based on the holding period, capital gains are taxed differently:
Short Term Capital Gains
Any gains arising from the sale of shares within one year of their purchase are considered short-term capital gains under section 111A. Profits earned from the sale of STT (Securities Transaction Tax) paid shares that are traded on a recognized stock exchange are taxed at a rate of 15%. When shares are sold at a higher price than when they were purchased, the seller makes a short-term capital gain. Short-term capital gains arising from the sale of non-STT paid shares, bonds, debentures, and other listed securities, on the other hand, will be taxed at the individual income tax rates.
Long term capital gain on sale of equity
Any gains arising from the sale of (unlisted)shares within three years of the date of purchase are considered long-term capital gains under section 10 (38). Profits earned from the sale of STT (Securities Transaction Tax) paid shares listed on a recognized stock exchange are tax-exempt under section 10 (38) of the Income Tax Act, implying that no tax will be levied on such long-term capital gains. For equities listed on a recognized stock exchange such as the BSE or NSE, any gains on shares held for more than 12 months are considered long-term gains. Long-term capital gains are also currently tax-free. Long-term capital gains on non-STT paid shares, bonds, debentures, and other listed securities, on the other hand, will be taxed at a rate of 10%. However, gains exceeding Rs 1 lakh per financial year are subject to a 10% LTCG tax. To put it another way, LTCG of up to Rs 1 lakh is tax-free.
Loss from Equity Shares
Short-term capital loss
Any short-term capital loss from the sale of stock can be offset against any short- or long-term capital gain from any capital asset.
Long-term capital loss
After amending the law to tax gains over Rs 1 lakh at 10%, the government has also announced that any losses arising from listed equity shares, will be allowed to be carried forward.
The interest rate provided under the Senior Citizen Savings Scheme is adjusted every quarter. The interest rate announced at the time of investment stays unchanged for the term of the maturity period and is unaffected by changes in the upcoming quarter. For instance Mr. A has deposited Rs 1 lakh in SCSS on December, 2020 and recently in March 2021 the government has kept the interest rate unchanged i.e. 7.4% for the three months ending June 30, 2021. Hence, your deposit will earn the same interest rate throughout the maturity period of 5 years even if it is revised in the later quarter.
SCSS premature withdrawal and account closure calculation
One year after the account is opened, a person can withdraw money from his or her SCSS account. One year after the account is opened, a person can withdraw money from their Senior Citizen Savings Scheme account. If the account is closed within one year, no interest will be paid, and all interest paid will be deducted from the principal. If the account is closed after one year but within two years from the date of opening, 1.5 percent of the principal will be deducted. If the account is closed after two years but within five years from the date of opening, 1% of the principal will be withheld as a penalty. For instance: Mr A has opened an SCSS account on 1st February 2018 and deposited Rs 1 lakh. But unfortunately he closed the account on 6th January 2020, then he will be charged a penalty of Rs 1,500.
Quarterly disbursal calculation
The Senior Citizen Savings Scheme provides a quarterly payout option for the account holders. Which means that account holders will get the interest payment on a quarterly basis. For instance: Mr A deposits Rs 5 lakh then he will get a quarterly payout of Rs 9,250.
Rs {(5,00,000 x 7.4% x 5) / 20} = Rs 9,250.
As a result, Mr. A will receive roughly Rs. 9,250 as interest over the period of 20 quarters.
NEW YORK: Inflows into cryptocurrency funds and products hit $4.9 billion as of April 16, with the pace of increase slowing a bit in the first two weeks of the month after hitting record levels in the first quarter, data from digital currency manager Coinshares showed on Tuesday.
Inflows in the first two weeks of April hit about $400 million to $4.9 billion, or about 9% higher than an all-time high of $4.5 billion in the first three months of the year.
The pace of inflows had already moderated in the first quarter, after a 240% surge in the fourth.
That said, inflows in the second week of April totaled $233 million, the largest since early March, Coinshares said.
Bitcoin’s rise also slowed in the first two weeks of the month, growing just 5.7%, although it hit a record just under $65,000 during that period. After touching that all-time peak last week, bitcoin has plunged nearly 18% in six days. Bitcoin last traded up 0.8% at $56,161.
“There were … signs of excessive exuberance in the market, and a correction looked imminent,” said Pankaj Balani, chief executive officer of Delta Exchange, a crypto derivatives trading platform.
Inflows last week were more spread out to include other digital assets outside of bitcoin and ethereum.
Bitcoin still saw the largest inflows of $108 million, with ethereum snagging $65 million. But investors poured money into other digital tokens, including bitcoin cash, Polkadot, Binance, and Tezos, Coinshares data showed.
Crypto assets under management (AUM) have also surged to a peak of $64.2 billion, the data showed. In the first quarter, the sector’s AUM was $59 billion. Last year, assets under management for the sector hit $37.6 billion.
Grayscale is still the largest digital currency manager, with $49.5 billion in assets as of the second week of April, while CoinShares, the second biggest and the largest European digital asset manager, oversees about $5.7 billion in assets.
XRP has been the most popular digital asset in recent weeks with weekly inflows of $33 million, nearly doubling its assets under management to $83 million.
After a 400% rally in the past week, the total value of all circulating Dogecoins in the world is about $50 billion, according to data provider CoinMarketCap.com.
That makes it bigger than the market cap of Ford Motor Co. and Kraft Heinz Co. — and nearly equal to Twitter Inc., the platform where Elon Musk and Mark Cuban have promoted the Shiba Inu-themed meme coin.
No one thinks these blue-chip stocks are all that comparable to Dogecoin, a fringe asset with no real purpose beyond being a joke on social media. But the similarity of their market values underscores the boom in cryptocurrencies that’s taken Wall Street by storm.
It’s all part of the dizzying trajectory for Dogecoin, which has delighted followers of so-called alt coins, but dismayed some crypto enthusiasts who worry that it’s only adding to volatility and detracting from its more useful endeavors, like decentralized finance.
Dogecoin prices climbing once again, with fans rallying behind the #DogeDay hashtag to celebrate April 20, or 4/20, known in cannabis culture as a day for smoking marijuana. Prices were trading just below 40 cents, according to CoinGecko.com.
Meanwhile, other cryptocurrencies have been mired in a slump as euphoria from Coinbase Global Inc.’s listing wears off. Bitcoin, the world’s largest token, has fallen for five straight days, back to $55,000.
SBI Card and ICICI Bank saw an 80-110 basis point (bps) increase in market share in outstanding cards to 19% and 16.8%, respectively, in February 2021 from 18.3% and 15.8%, respectively, in FY20.
The issuance of new credit cards fell in February, with over 5.49 lakh new credit cards being issued during the month, implying a 47% year-on-year (y-o-y) decline and 21.57% month-on-month. The total credit card base stood at 61.6 million at the end of the month, down 8% y-o-y. ICICI Bank continued to lead in fresh issuances, accounting for over 36% of new cards, showed data released by the Reserve Bank of India (RBI).
Interestingly, ICICI Bank held a 70% share in new credit cards issued in December 2020 — the same month when the RBI barred market leader HDFC Bank from issuing fresh cards as penalty for repeated digital outages. Thereafter, ICICI Bank’s share fell to 38% in January 2021. In February 2021, ICICI Bank was trailed by SBI Card (18.1%) and Axis Bank (18%) in new issuances. In FY21, ICICI Bank gained the highest incremental market share of 32.4%, followed by SBI Card at 30.6%, Motilal Oswal Financial Services (MOFSL) said in a report on Tuesday.
Credit card spends declined 4% y-o-y to Rs 60,400 crore in February. In the 11 months to February, total spends declined 18.4% y-o-y to Rs 5.6 lakh crore. Among large players, ICICI Bank reported a 10% y-o-y growth in monthly card spends, while HDFC Bank and SBI Card reported a marginal decline, MOFSL said.
SBI Card and ICICI Bank saw an 80-110 basis point (bps) increase in market share in outstanding cards to 19% and 16.8%, respectively, in February 2021 from 18.3% and 15.8%, respectively, in FY20. RBL Bank and IndusInd Bank have largely maintained their market share, while other mCIcajor players — HDFC Bank, Axis Bank, Citi, Kotak Mahindra Bank, American Express and Standard Chartered Bank —have lost market share, the report said.
“While the surge in Covid-19 cases and ensuing lockdown in various states could slow down the recovery momentum, SBICARD would continue to gain market share, led by its diverse acquisition channels,” analysts at MOFSL said.
Facing cash crunch and amid it have got infected by this lethal coronavirus which is all the more dangerous in its second wave. Here are some easy to go to option that may not prove costly for you in the long run.
Short Of Money Amid Covid 19: Easy And Low Cost Borrowing Options
Here we will stress that funds can be needed even if someone has a Covid 19 coverage because the insurer might not allow cashless treatment or there can be other constraints. There can be ‘n’ other reasons such as you happen to visit the non-network hospital for treatment and other such similar issues.
So, in a case if you want quick and easy money:
1. Pledging gold or taking gold loan:
Securing loan against gold is easing, it being a secured loan. Interest rate on such loans starts at a nominal 7 percent or so. Considering your repayment capacity you might get a lucrative rate of interest. Now in a case, gold prices see sharp correction, the lender may ask you to deposit extra amount or to submit more of gold to make up for the statutory loan to value ratio, failure to do so may result in selling of your gold.
2. Can also take shelter of credit card:
Revolving credit costs a great deal in double digits and so it shall be wise to go for a cheaper loan. One may combine different debts and go for debt consolidation and choose the low-interest rate credit option.
3. Pre-approved loans:
These are also easy to go to options as they are processed and disbursed easily. Those with long standing with the bank and based on the customer’s bank account and credit history, there is decided some pre-approved loan. The interest rate on this loan option may vary in the range of 9-26 percent.
4. Loan against security:
Here for any underlying security including insurance policy FDs, shares, mutual fund etc. Say for instance in the case of insurance redemption one can get as loan amount equivalent to 60-90 percent of the surrender value, in case of mutual funds 50-70 percent of the share or mutual fund value.
Also, there could be full offloading of these securities to receive the full value.
5. Withdrawal from EPF:
EPF i.e. for retirement can also be opted in a case there is no other go to option for funding. And as per the PFRDA, the funds can be released in as less than as 3 days.
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In some conditions, the Employees’ Provident Fund (EPF), a government-managed pension scheme run by the Employees’ Provident Fund Organization (EPFO), enables contributors to only make partial withdrawals or advances from the PF account. Before retirement and for particular purposes such as marriage, education, or to cover emergency medical expenses for yourself, your partner, children, or dependent parents, repayment of a home loan, purchasing a home or home reconstruction, and so on one can withdraw a portion of his or her EPF corpus. EPF Form 31 is used to submit a request for a partial withdrawal of funds from the EPF. As a result, we’ve outlined the rules and conditions under which a person can use EPF Form 31 to make a partial withdrawal from the EPF.
EPF Partial Withdrawal Rules
EPF partial withdrawal rule in case of unemployment: In the event of a job loss, an EPF subscriber can make a partial withdrawal up to 75% of his or her EPF balance after one month of unemployment, whereas the remaining 25% is allowed for withdrawal if the unemployment lasts for another month.
EPF partial withdrawal rule for purchasing a land, a new house or construction: An amount up to 24 times an individual’s monthly salary and dearness allowance can be withdrawn for land purchase. Individuals can withdraw up to 36 times their monthly salary and dearness allowance for home purchases. The land or house must be purchased in the individual’s name, his or her spouse’s name, or jointly. To make a partial withdrawal, though, he or she must have completed 5 years of continuous service.
EPF partial withdrawal rule for education: Employees can withdraw up to 50% of the contribution to finance the education cost of their own or their children after class 10th. As a result, up to 50% of the contributions can be withdrawn three times for marriage or education and for the same the subscriber must have completed 7 years of continuous service.
EPF partial withdrawal rule for marriage: A PF advance can be made in the case of self, a child’s marriage, or a brother’s or sister’s marriage. A maximum PF withdrawal of 50% of the employee’s contribution is allowed. Subscribers must complete a period of 7 years of service to be eligible for this benefit.
EPF partial withdrawal rule for home renovation: Consequently, PF can be withdrawn for a home renovation, but the subscriber must have completed 5 years of service. As a result, a subscriber can withdraw up to 12 times his or her salary for repairing and renovating his or her house, and up to 24 times his or her salary for purchasing a site or plot of land.
EPF partial withdrawal rule for medical treatment: You can withdraw funds from your PF account to pay for medical care for yourself, your partner, your parents, or your children. The subscriber has the option of withdrawing six months’ basic wages and Dearness Allowance (DA) or employees’ contributions with interest, whichever is low. As a result, a person can withdraw up to six times his or her salary for medical costs. Furthermore, there is no requirement for a minimum period of service or employment.
EPF partial withdrawal rule for home loan repayment: If the subscriber has completed 10 years of service, he or she can withdraw up to 90% of both the employee’s and employer’s contributions. Remember that the property must be declared under the employee’s or spouse’s name, or jointly. As a result, up to 36 times the subscriber’s salary can be withdrawn for the repayment of a home loan.
EPF rule to make a partial withdrawal before retirement: After reaching the age of 57, an amount of up to 90% of the accumulated corpus, including interest, can be partly withdrawn.
How to make partial withdrawal online from an EPF account?
To apply for an EPF withdrawal online via the EPF portal, first ensure that your UAN (Universal Account Number) is enabled, and it is linked with your mobile number, ensure that your UAN is linked to your KYC, which includes Aadhaar, PAN, and bank account details. Now follow the below listed steps to make a partial withdrawal from your EPF account:
Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and sign in to your account using UAN and password.
Now click on ‘Online Services’ and select ‘Claim (Form-31, 19 & 10C)’ from the drop-down list.
The ‘Online Claim’ page will display your KYC details and other. Now you need to enter the last four digits of your bank account and click on ‘Verify’
Now click on ‘Yes’ to accept the terms and conditions and then click on ‘Proceed’
In the claim form, select the claim as EPF part withdrawal (loan/advance) under the section ‘I Want To Apply For’.
According to the above discussed rules, if you are not eligible for any of the services, such as PF withdrawal or pension withdrawal, the option will not appear in the drop-down list.
Now select ‘PF Advance (Form 31)’ under the drop-down menu ‘I Want To Apply For’ and mention your purpose, amount that you want to withdraw and your address.
Now click on ‘Submit’ and within 15-20 days you will get the amount in your registered bank account once your withdrawal request is approved.
Steps to check Form 31 claim status online
After submitting the EPF Advance Form in either offline or online mode, you can verify the status of your Form 31 Claim by following the steps outlined below:
Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and login to your account using UAN and password.
Now under the ‘Online Services’ section, click on ‘Track Claim Status.’
On the next page you can track the status of your claim and also you will get the option of Transfer Claim Status’.
You can also track the status of your claim using SMS, Missed Call facility and via UMANG app, to know the process, click here.
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Interest rates in the country are finally seeing bottoming out and after opening the window to still avail of lower interest rates on various loan products, the country’s biggest lender has rolled back the offer and new home loan borrowers will get a lowest loan rate if meeting the eligibility criteria of 6.95 percent.
“Though impact of incentive withdrawal is just 25 basis points, it may have a system wide impact because other financial institutions usually follow SBI with a time lag,” ET Wealth quoted Naveen Kukreja, CEO & Co-founder, PaisaBazaar as saying.
And now another incidence substantiating the move is the hike in FD rates by mortgage lender HDFC which brought about a hike of 10-25 basis points after a time period of 29 months, suggesting reversal of interest rate trend in the country. This is as the higher cost of funds will have to be managed by a consequent hike in loan rates.
Now so in all probability banks will hike the interest rate on floating rate loans:
In an event if there is interest rate hike then banks shall extend the tenure and not increase the EMI amount. There can be a case that on an outstanding loan amount of Rs. 50 lakh for a tenure of 20 years, you may have to service 23 more EMIs and if you do not wish to push your loan tenure, an additional amount shall have to be borne for the increase in interest rate.
Nonetheless those in the higher age bracket will not be given this loan tenure reset option so with no option left they would have to pay higher EMIs.
Also, this increased tenure burns a hole in your pocket through higher interest payout. Another suggestion here can be to offload your investments in low yielding instruments and make upfront payments.
Switching of loan to other lender offering a lower rate is advised in case the loan tenure remaining is still long say 15 years.
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Nifty and Sensex even as most expected would remain unnerved by the second wave has seen a sharp fall from its highs scaled in February and now experts are of the view that the current dips present buying opportunity and more precisely into Covid -19 proof sectors.
So, here we lists out some of the experts recommendations for handsome gains in few weeks time:
1. ONGC:
The weekly 14-period RSI looks positive and the correction in the stock has been over. And at current market price of Rs. 103- 104, there is a potential for the stock to still move higher in price as indicated by the intermediate and long-term technical setups. As it is the stock is trading above the 20 day and 50-day moving average. The target set for the stock is Rs. 115 and stop loss of Rs. 103 be placed.
2. Cipla:
This scrip is seeing mixed action at one place for not meeting Remdesivir requirement there has been threatened action and at another brokerages have been recommending the pharma counter for good gains. ICICI Securities has recommended a ‘Buy’ call on the stock with a target price of Rs. 1025 per share. “Stock in strong up trend sustaining above the rising trendline breakout area joining previous highs since August 2020 and MACD in buy mode”, suggests the brokerage.
3. Strides Pharma Science:
From the current levels, a huge rally is seen to a target price of Rs. 1200, meaning an upside of 75 percent. The stock is trading above all averages that are in a rising trend. The stop loss for the stock suggested is Rs. 780.
4. Graphite India:
The stock has been trading above its 200-day moving average. Investors can look at buying Graphite for a target of Rs 790 in the medium term with a stop loss at Rs 440. The recommendations are of CapitalVia Global Research.
5. Jubilant FoodWorks: Buy/ Target- Rs. 3000
A strong reversal formation near the retracement support zone indicates bears have started to lose interest in the stock. If it consistently trades above Rs. 2720 as it is now, a pullback rally may be expected. At current levels, traders can buy into the stock for a target of Rs. 3000 and on dips between Rs. 2820 and Rs. 2780, with a stop loss below Rs. 2720.
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