Broking firm, Motilal Oswal has a “neutral” rating on the stock of Bajaj Auto, with a price target of Rs 4,000 on the stock. “Bajaj Auto’s operating performance was driven by a favorable mix, lower marketing spends, and operating leverage. It has both near (3W recovery) and long term (premiumization and exports) levers, which are fairly reflected in current valuations.
We upgrade our FY21E/FY22E EPS by 7%/5% to factor in mix, cost savings, and an upgrade in KTM’s PAT. Maintain Neutral,” the broking firm has said.
Management commentary as per report of Motilal Oswal Institutional Equities
Outlook: Domestic 2W sales were back to last year’s levels. Base effect will drive growth, but on a like-to-like basis it would be in low single digits. Domestic 3Ws would see a QoQ recovery, but decline 50% YoY. The growth momentum in exports would continue, with 12-15% growth in most markets. If Association of South East Nations (ASEAN) recovers, it would clock its best ever exports.
2W export volumes have recovered well with: a) South Asia (excluding Sri Lanka) and Africa back to pre-COVID levels, b) Latin America 80-90% levels, and c) ASEAN at 50% levels. 3W exports are seeing a gradual recovery with Latin America at 50-60%, ASEAN at 25%, and other markets at or above pre-COVID levels. Bajaj Auto has gained market share in all export markets.
Raw material costs is estimated to increase by 3pp QoQ due to commodity cost inflation. It has raised prices by 1% each in domestic 2W/3W in 3QFY21 and by 1.25% in Jan’21 for domestic 2W. It also hiked export prices to cover capping of MEIS incentives and rise in RM cost. Price increases have to be calibrated as demand recovery is fragile, and might be required to be phased out.
Electric Vehicles: Chetak e-scooter bookings remains closed since the end of Mar’20 due to supply chain issues. It expects to iron out these issues in the next 2-3 months and would look to expand its presence in the top 24 cities by FY22- end (from two cities at present). It is actively pursuing development of e3W and e-Qute, and plans to launch one in 2HFY22.
Capital expenditure (capex) for FY22/FY23 would be higher than the normal run-rate as it would be investing Rs 6.5 billion for a new plant for high-end Bikes (commissioning in FY23). Capex for FY22/FY23 would be Es 5.5-6 billion per annum.
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The bank made drastic improvement in its asset quality with gross NPA decreasing 365 bps to 9.04% of gross advances, from 12.69%, y-o-y.
Chennai-headquartered public sector lender Indian Bank on Friday reported a net profit of Rs 514.28 crore for Q3FY21, on the back of asset quality improvement and cost management measures. It had incurred net loss of Rs 1,739 crore in the same quarter last fiscal. On the sequential basis, too, its net profit has increased by25%.
Speaking to media persons through virtual mode, after releasing the earning performance, Indian Bank MD & CEO Padmaja Chunduru said the bank has continued its steady growth in both business and profit combined with good control over asset quality. Post the merger of Allahabad into Indian Bank, the gains in terms of CASA, larger geographic footprint, ability to take higher exposures, economies of scale, are all tangible now.
“Our relentless focus on credit monitoring has yielded results in restricting slippages. Even taking into account unflagged NPAs the position is very much in control. Process changes that the bank has implemented in first two quarters, centralising the processing on both liability and asset side are now yielding results. The bank is investing heavily in IT and digital infra and security controls to ensure a seamless, pleasant banking experience to our customers,” she said.
The bank made drastic improvement in its asset quality with gross NPA decreasing 365 bps to 9.04% of gross advances, from 12.69%, y-o-y. On a sequential basis it decreased by 85 bps. Similarly, net NPA came down to 2.35 % from 4.22% with a reduction of 187 bps. On a sequential basis it decreased by 61bps. “Our aim is to keep gross NPA and net NPA below 9% and 3% respectively, going forward,” she said.
Provisions and contingencies for Q3FY21 were at Rs 2, 585 crore as against Rs 4,555 crore in the corresponding quarter of previous year. Specific loan loss provisions for Q3FY21 were at Rs 738 crore, compared to Rs 4, 705 crore in Q3FY20.
Chunduru said bank will have to only restructure 1.6% to 2% of the loan book post-lifting of the moratorium and the collection efficiency during December stood at above 90%.
The bank’s total capital adequacy ratio (CRAR) improved by 42 bps to 14.06% as on Q3FY21 in comparison to 13.64 % as of Q2FY21 as against regulatory requirement of 10.875%. Tier-I CRAR was at 11.18 % as on Q3FY21 versus 10.74% as on Q2FY21 on sequential basis.
Chunduru said the board of the bank has approved raising of Rs 4, 000-crore capital and this will be done to bring down government’s shareholding to 75% from the current 88.06%. The board has also approved raising of tier 2 capital aggregating up to Rs 3,000 crore through issuance of Basel III-compliant AT1 / tier 2 bonds in one or more tranches during the current or subsequent financial years based on the requirement. “We don’t need to immediately raise capital, but we are ready with the enabling resolution so that we can do it as and when the market situation is conducive,” she said.
The net interest income of the bank rose by 31% to Rs 4, 313 crore from Rs 3, 293 crore while net interest margin (NIM) increased by 42 basis points and stood at 3.13% for Q3FY21 as against 2.71 % for Q3FY20. However, non-interest income was lower at Rs 1,397 crore as against Rs 1,673 crore on account of lower profit on sale of investment and slowdown in recovery in bad debts.
Because of the stability and certainty of returns, risk-averse investors always favour banks’ fixed deposits (FDs) in general. In your portfolio, FDs offer flexible tenures and flexibility to withdraw wherever appropriate. You should save a certain amount of your investments in FDs in lieu of declining interest rates. Considering the competition they face in attracting deposits, the smaller private banks prefer to top the rate map on fixed deposits. Before investing in FDs, though, you can do a detailed risk evaluation and the bank’s due scrutiny.
Currently, 6.5 percent interest rates on one-year FDs are provided by small private banks. For example, on a one-year FD, IndusInd Bank, RBL Bank and Yes Bank offer 6.5 per cent interest rates. Opposed to those presented by public sector banks, these returns are much stronger. Compared with leading private banks, the interest rates provided by small finance banks are stronger. For an instance, AU Small Finance Bank and Ujjivan Small Finance Bank provide 5.50 and 6.50 percent interest on one-year FDs, respectively.
On one-year FDs, major private banks such as ICICI Bank and HDFC Bank provide 4.90 per cent interest. Axis Bank is promising an interest rate of 5.15 percent. On a one-year FD, which is the lowest rate across all private banks, Kotak Mahindra Bank offers 4.50 per cent interest only. On one-year FDs, public sector banks namely Union Bank, Bank of India, Punjab & Sind Bank and Canara Bank bid 5.25% interest. Whereas State Bank of India (SBI) and Bank of Baroda (BOB) are providing interest in their one-year FDs at 5% and 4.90%, respectively.
Top 5 Private Sector Banks With Returns Up to 6.5% On 1-Year FD
Banks
ROI in %
IndusInd Bank
6.50
RBL Bank
6.50
Yes Bank
6.50
DCB Bank
6.25
IDFC First Bank
4.30
Top 5 Public Sector Banks With Returns Up to 5.25% On 1-Year FD
Banks
ROI in %
Bank of India
5.25
Canara Bank
5.25
Punjab & Sind Bank
5.25
Union Bank
5.25
Punjab National Bank
5.20
Key benefits of bank fixed deposit
A fixed deposit account can be opened by any Indian citizen, including minors & HUFs, to get better returns than standard savings accounts. Some other advantages of a fixed deposit account are as follows:
FD proposes a stable tenure of between 7 days and 10 years. Therefore, investors can select the tenure of the investment based on the needs of funds and the purpose of the investment.
In terms of the amount of investment, a fixed deposit strategy often offers flexibility. In your FD accounts, you can deposit as low as Rs 100.
You can also contribute in a Flexi fixed deposit scheme along with the standard FD scheme. The Flexi deposit enables the investor to link his fixed deposit account to a savings bank account and, according to the requirements of his funds, allows his excess savings to transfer in and out of the associated FD account.
You can even deposit in a tax-saver FD to earn tax benefits. You can get tax deductions of up to Rs 1.50 Lakh on your holdings with a tax-saver FD.
You can also interlink multiple deposits to your Savings Bank Account with a sweep-in facility of fixed deposit to receive a higher interest rate on your invested money which is usually stronger than a standard savings account.
How interest income from a fixed deposit is taxed?
Fixed Deposits’ interest income is completely taxable as per your tax slab. You can check that on the Income Tax Return under the heading ‘Income from Other Sources.’ This tax is withheld by the bank at the source at the time the interest is added to the account, and not until the FD expires. Thus, if you hold an FD for 3 years, banks at the end of each year will subtract TDS. If the interest income from all FDs with a bank is less than Rs 40,000 per year, the bank is not allowed to deduct any TDS as per the guidelines of RBI. In the case of a senior citizen aged 60 years and over, the cap is Rs 50,000. The cap of TDS on interest income was Rs. 10,000 prior to Budget 2019. Out of all the FDs you have with the bank, the bank calculates the interest benefit for the year. If the interest benefit crosses Rs 40,000, there will be a 10 percent TDS deduction (Rs 50,000 for senior citizens). The cap of TDS on interest income was Rs. 10,000 prior to Budget 19. But remember that if you do not support the bank with your PAN info, 20% TDS will be deducted. When the overall income is lower than the required taxable amount, no TDS is deducted. The bank will not subtract TDS where there is no tax due by the individual. In those situations, however, TDS will not be deducted by the bank only if you submit Form 15G or 15H to receive tax-free income. Submitting Form 15G and Form 15H to the Bank is the best way to ensure that no TDS is withheld by the Bank. In order to prevent the whole inconvenience of the IT Department’s additional TDS deduction and resulting refund you need to submit these forms at the beginning of every fiscal year.
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You can decide for the VPF Voluntary Provident Fund if you are searching for a long-term investment opportunity with good yields and a low potential risk. This scheme, operated by the Government of India, provides participants with tax benefits. The Voluntary Provident Fund (VPF) is a scheme coming under the conventional savings scheme of the Provident Fund. That being said, under the VPF scheme, the contributor agrees, on a monthly basis, on the amount of the fixed contribution to the scheme. VPS enables you to deposit more in your EPF account, and it’s voluntary, as the title implies. The scheme does not comprise the required 12 percent made by the employee towards EPF.
A glance at VPF
Currently, as your contribution to the EPF, your employer subtracts 12 percent from your basic income per month. Employers even contribute 12 percent towards your EPF account, of which 8.33 percent falls to the Employers’ Pension Fund (subject to gross basic salary of Rs 15,000 or Rs 1,250). Under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, it is the statutory provision. Your retirement corpus makes up the monthly contributions, combined with interest accrued over the years. Towards VPF can contribute up to 100% of their basic salary+DA (dearness allowance). The interest rate of the VPF is identical to the scheme of the EPF.
It is not compulsory that employers or employees contribute towards the scheme. The scheme, though, has a 5-year lock-in term. The interest rate of the VPF is determined on an annual basis by the Government of India. Although the VPF is an extension of the EPF, only salaried employees who earn salaries in their salary accounts on a monthly basis are liable for investment in the initiative. Your additional contribution will give you the same rate that the EPFO annually declares for the EPF schemes, as well as the same tax deductions. Comparably, guidelines on withdrawal will exist though. Therefore, not only will the contribution count for deduction under section 80C, the interest accrued will also be tax-free over the investment period. After all, it is an extension of the EPF scheme-tax exempt of EEE classification at investment, accumulation and maturity levels.
Key benefits of VPF
As VPF falls under the category of Exempt-Exempt-Exempt (EEE). Employees can therefore reap tax savings and, in the long term, earn a substantial sum of money by contributing to the VPF. The key advantages of a VPF account are described below:
There are no uncertainties inherent in participating in the scheme as the scheme is run by the Indian Government. It is very worth it to go for a VPF portfolio relative to other long-term investing opportunities offered by private entities.
The rate of interest is 8.50 percent p.a. under the VPF scheme. The interest provided by the contributions is also tax-deductible.
The procedure for opening a VPF account is quite clear. Through submitting the registration form, employees can notify their employer’s accounting department and request them to open a VPF account. The existing EPF account will also serve as an account for the VPF.
In the event that people change their employers, it is very easy for them to switch the old company’s VPF account to the existing one.
How can I open a VPF account?
Via your employer, you can instantly begin contributing towards VPF. No KYC specifications have to be met. No KYC specifications have to be met. Every month, you can opt to start, end, raise or reduce your VPF contributions. That being said, only at the beginning of the financial year do certain employers have a period to make these adjustments. Thus, you need your employer to confirm with you. VPF will automatically close the range if your EPF investment is not worthy of exceeding the Rs 1.5-lakh section 80C threshold.
How can I withdraw money from my VPF account?
Withdrawing money from a VPF account could be helpful in the case of financial obligations due to medical crises. Employees are required to fill out Form-31 and have a written application form for VPF withdrawal. Employees will be eligible to have the Form-31 from the Human Resource (HR) team of their company or from the government site. The relevant documentation must be submitted, namely employee details such as PF number, postal address and bank details. There must also be a cancelled cheque submitted. Don’t forget that all documents along with the application form must be self-attested before submitting. Employees are permitted to withdraw from the VPF account in case of any unexpected financial crises. Here are some of the possible reasons:
If the account holder’s or his/her children’s medical costs are to be met.
For the higher education of children or for marriage purpose of the account holder.
To purchase new land or a property, or to build a house.
Interest rate for VPF
The interest rate is fixed by the Indian Government and is updated annually. For FY 2019-2020, the interest rate is 8.50 percent p.a. Because of its high rate of interest and tax incentives, investments in a VPF account are attractive. A summary of PPF and VPF interest rates is provided below:
Year
ROI in % p.a. of PPF
ROI in % p.a. of VPF
2019-2020
7.10
8.50
2018-2019
7.6 to 8.00
8.65
2017-2018
7.6 to 8.00
8.55
2016-2017
8 to 8.1
8.80
2015-2016
8.70
8.80
2014-2015
8.70
8.75
2013-2014
8.70
8.75
Our take
Apart from being stable, the interest rate generally announced by the EPFO is higher than that of many other debt investments, and also it is guaranteed by the central government. Your VPF investments can raise your retirement portfolio substantially owing to the impact of compounding. VPF is one of the strongest debt resources that suits moderate investors searching for options for secure retirement funds if you choose to contribute more to ensure a stable retirement life. Over the years, the interest received on your contribution compounds, culminating in a huge retirement pool. A VPF account is best tailored to all such salaried persons willing to invest and reduce their tax liabilities in a long-term financial resource. For individuals reaching near to their retirement and seeking a secure and robust alternative for pension funds, a VPF account is undoubtedly a smart and secure bet.
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These days you just need to have skills and interest and there are opportunities galore to earn your living. And for regular income earners, this has come as a good source of secondary income from platforms such as Instagram, Facebook, Youtube. And if you too have some income source from such platforms, it needs it mention in the ITR and there is tax outgo beyond some specified limits.
Earning Income From Social Media Platform: Here Is How Tax Implication Arises On Such Income
Classification of Income earned via different social media platforms
Interestingly, such income from blogging precisely cannot be classified into the five income heads as per the Income Tax Act. But is invariably charged to business or professional income and is charged accordingly.
How to show such earnings from social media platform in ITR?
Now the classification of such an income is known to us and besides the regular income, the net earnings from social media also need to be shown in the ITR. And if the quantum of income through such source is huge i.e. above Rs. 50 crore as above in net annual turnover then towards the end of the financial year, their tax audit is also to be done. And when making this net income declaration from social media platforms, you need to deduct annual expenses.
“Income from social media falls under the purview of service sector and hence the income tax audit becomes mandatory if one’s net annual turnover is Rs 50 lakh or above. However, it doesn’t mean one needs to pay income tax on Rs 50 lakh. One’s expenses have to be deducted while calculating the net income from the social media. For example, one needs to go for the internet expenses, private video and photo shoot, social media experts for getting more traction on one’s social media account, etc. These are some common expenses that one must deduct from the annual turnover during the ITR filing”, said another SEBI registered tax and investment expert Manikaran Singhal explaining the rules for the same.
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“They require policies to implement loan restructuring for consumers based on certain criteria — encouraging consumers to at least partially repay their debts,” the report said.
With a huge spike in delinquent accounts after the pandemic, fin-techs have seen a sharp deterioration in their portfolios. At 43%, fin-techs had eight times more delinquent accounts than private banks for whom the comparable figure was 5% for August 2020, TransUnion Cibil said in a joint report with the Digital Lenders’ Association of India (DLAI).
There is a need for fin-techs to place greater focus on collections in the light of heightened delinquencies and a riskier customer base, the report said. “Compared to peer members, the huge volumes sourced by fin-techs were largely small-ticket loans and from riskier segments,” the report said.
It added that in contrast, banks have generally been lending to consumers in prime and above risk tiers and those with a relatively stable flow of income, while also leveraging their liability base to acquire personal loans. “At the same time, fin-techs have onboarded consumers with low credit scores and leveraged more alternative data.”
The rise in delinquent accounts calls for a closer look at portfolios and emphasises the need for better collection strategies, the report said. It also observed that the upsurge in delinquent accounts after February 2020 is attributable to accounts flowing to a higher delinquency bucket each month — bloating the 90+ days past due (DPD) bucket. To avoid high non-performing assets (NPAs), fin-techs need to manage delinquent accounts in early collections buckets, the report said.
In the current situation, as the moratorium has ended, more consumers will enter delinquency buckets and make the collection process even more challenging, the report said. Traditional collection strategies work well for banks due to their superior physical reach, larger team sizes, and multitude and size of loans. Fin-tech lenders need a different approach.
“They require policies to implement loan restructuring for consumers based on certain criteria — encouraging consumers to at least partially repay their debts,” the report said.
With credit for demand expected to climb during and after the festive season, partial repayments will help lenders manage their balance sheets. There is a pressing need for a robust and cost-effective collection mechanism to maintain overall profitability, according to the report.
For the quarter of (January-March) of the fiscal year, salaried persons across India whose income comes under the taxable slab are required to disclose their actual expenditure facts to their employers. Which means that we are in the last quarter of the 2020-21 fiscal year and currently most of among us are undoubtedly searching for investments that will fetch tax benefits. When it comes for tax saving investments a plethora of strategies are waiting for us to fetch tax liabilities under section 80C of the Income Tax Act. Section 80C covers countless investments from which you can seek tax benefits on the income earned. This is up to a cap of Rs 1.5 lakh in a financial year, though. Thus, below are the top tax saving strategies that can be taken into consideration while planning for tax savings:
Public Provident Fund (PPF)
If you are searching for a secure long-term investment Public Provident Fund or PPF can be a good bet as you will get guaranteed returns against the capital deposited. It comes with a lock-in period of 15 years and even the interest you receive in a PPF account is tax-free under section 80C. Currently, the interest rate on PPF is 7.1 percent after the government held the interest rates on small savings schemes namely PPF and NSC untouched for the January-March quarter. At any public sector or private sector bank or post office a PPF account can be opened. In a financial year, you can deposit a minimum of Rs 500 and a maximum of Rs 1.50,000. In addition, the contribution can be made in lump-sum or in instalments.
National Savings Certificate (NSC)
With a short tenure of 5 years and assured interest rate National Savings Certificate (NSC) of post office can also be taken into consideration when you are going to invest for tax benefits. With a relatively higher interest rate than a fixed deposit of most of the banks as of now this certificate can be purchased at the nearby post office. Interest earned from NSC can also allow you to reap tax benefits up to a limit of Rs 1.5 lakh under Section 80C. Presently, according to the details available on the India Post portal, the interest rate applicable on NSC is 6.8 per cent, which is compounded annually but payable at maturity.
National Pension System (NPS)
The National Pension Scheme, or NPS, is a kind of government’s voluntary pension savings tool. This initiative is applicable to all public, private and even unorganized employees and allows subscribers to make a fixed contribution to ensure their retirement in the form of a pension benefit. NPS enables individuals to invest during their careers before the retirement age in a pension scheme. A certain proportion of the overall corpus can be withdrawn by investors upon retirement. The outstanding balance of the corpus will be provided to the NPS subscriber as a monthly pension following retirement. As of the date of submission of their application, those applying for NPS must be between 18 and 65 years of age. Under NPS-for your and for the employer’s contribution, there is a tax benefit of up to Rs.1.5 lakh. The self-contribution, which is inclusive of Section 80C, includes 80CCD(1). The overall exemption that can be claimed under 80CCD(1) is 10% of the salary (Basic+DA) but not higher than the limit specified. This cap is 20 percent of gross income for the self-employed taxpayer, Section 80CCD(2) comprises the NPS contribution by the employer. The overall amount liable to be deducted shall be the lowest of the following:
Employer’s actual contribution towards NPS
10% of salary (Basic+DA)
Under section 80CCD(1B), you can claim any additional self-contribution (up to Rs 50,000) as an NPS tax saving. Accordingly, the scheme enables a tax allowance of up to Rs 2 lakh in full.
5-Year FDs Of Banks
With a short tenure of 5 years and assured returns, a tax saving FD is another bet here. An individual can claim tax deductions under Section 80C up to Rs 1.5 lakh by investing in a five-year FD. At any public sector or private sector bank in India one can open a tax saver FD account. It should also be remembered that, although this investment vehicle will provide the individual with a tax advantage, at the time of maturity, the tax deducted at source (TDS) from the interest on these FDs is applicable. Considering the prevailing bank-to-bank interest-rate condition, some small financial banks are still offering higher interest rates on tax saving FDs compared to other tax-saving instruments.
Maximum tax gain that can be availed by a tax saver
You can minimize your taxable income by Rs. 4,75,000 (details below) for FY 2019-2020 (AY 2020-21.), assuming that you optimize your tax benefits using investments and voluntary expenditure.
Section
Overall Deduction
Standard deduction
Rs 50,000
Section 80C
Rs 1.5 lakh
Section 80CCD(1B) NPS
Rs 50,000
Section 80D
Rs 25,000
Section 24(b)
Rs 2 lakhs
Total
Rs 4.75 lakhs
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If you are seeking to purchase a used car on loan, you will be well-advised to review all banks’ latest loan offers and pick the one that ideally suits your needs Look for things like the provided interest rate, processing charge, pre-payment charges, overall amount, period of the loan, and so on. Remember that some lenders only provide such loans on used cars that are less than three years old and sometimes the maximum allowed term is 5 years, whereas some lenders provide such loans for a period up to 7 years. Because of the lockdowns due to COVID-19, the nation was restricted to its home for months in 2020, but sanity has now attempted to recover after the social pressures have relaxed. But, because of the lockdowns, if your attempts to purchase a car were postponed last year, you can now go forward and fulfill your objective.
The country, nevertheless, has yet to stabilize from the pandemic losses, with many still unsure about their financial prospects. In such a scenario, a good approach to improve our finances against potential risks may be to save as much cash as practicable by minimizing expenditures. Currently, perhaps one of the best cost-effective approaches to acquire a car, particularly if you can somehow also loan it from most lending institutions in the nation. Hence, if you are searching for a car loan below are the cheapest interest rates that are currently being offered by the top 20 banks of the country.
Banks That Provide The Cheapest Interest Rates On Car Loans
Sr No.
Banks
ROI in % per annum
1
Canara Bank
7.30
2
Bank of India
7.45
3
Punjab National Bank
8.30
4
Indian Overseas Bank
8.55
5
Central Bank
8.80
6
UCO Bank
8.80
7
State Bank of India
9.20
8
Punjab & Sind Bank
9.85
9
Bank of Maharashtra
10.05
10
Karnataka Bank
10.38
11
Union Bank
10.40
12
Indian Bank
10.85
13
Dhanlaxmi Bank
11.60
14
Jammu and Kashmir Bank Ltd.
11.95
15
ICICI Bank
12.00
16
Karur Vysya Bank
12.00
17
South Indian Bank
13.30
18
HDFC Bank
13.75
19
Federal Bank
13.80
20
Axis Bank
14.55
Documents required to apply for a car loan
For a car loan application, multiple documents that define the required particulars such as your identity, proof of income and residence are needed. The records pertaining to new or used car, though, are the most relevant of all. The entire set of relevant car loan paperwork makes one qualify for the loan and one can not do so providing the necessary documents. While the criteria for paperwork varies from lender to lender, a list of documents generally needed when applying for a car loan is as follows:
Basic proof
Application form properly signed and filled, accessible on the online platform or manually at the bank’s branches.
2-4 recent passport size photographs
Identity proof: Passport, Pan Card, Driving License, Voters ID card, Aadhaar card
Address proof: Bank statement, Rent Agreement, Voters ID card, Ration card, Passport, Driving License, Utility bills, property tax proof.
Age proof: Voter ID card, Birth certificate, Passport, Aadhaar card, Pension payment order
Income proof
Salary proof of the last 3 months
Form 16
Bank statement of the last 6 months
Latest IT return proof
Profit and loss statement
Balance sheet
PAN Card
Vehicle information documents that may contain the retailer’s sales records
In consideration to confirm that, with respect to the purchased car, all relevant laws and guidelines are complied with, the purchaser must also submit copies of the Vehicle Motor Insurance and Driving License.
Eligibility criteria to apply for a car loan
A car loan in India can be applied for by almost anyone who satisfies the standard car loan eligibility requirements. The specific conditions for taking up any loan are determined by the car loan user’s age, employment status and other personal considerations, together with, in addition, their repayment ability. For a person to be eligible for the authorization of a car loan, the standard criteria, regardless of the financial institution or loan amount, include:
He or she must be a salaried or self-employed individual
He or she must be an Indian resident or NRI
He or she must have a minimum and maximum age limit of 21 to 65 years old(may vary from bank to bank).
He or she must fit the minimum salary requirements of the bank lender
Note
For data collection, interest rates on used car loans have been listed for all mentioned (BSE) public and private banks. There is no consideration for banks for which data is not accessible on their databases. Details obtained from the databases of the respective banks. On the basis of the lowest interest rate, banks are classified in increasing order. The table displays the lowest interest rate provided by banks on loans of up to Rs 5 lakh and for a period of up to 5 years. The interest rates referred to in the table are indicative and can differ based on the Terms & conditions of the bank.
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The BSE barometer of top 30 firms, S&P BSE Sensex, reached the 50,000-mark for the first time on Thursday, hitting a record high of 50,140 in opening deals. The market capitalisation of listed firms on the BSE, too, touched a record high of Rs 199 trillion.
Sensex’s journey from 45,000 to 50,000 currently is the fastest 5,000-point rally in the history of Dalal Street’s oldest equities index and was completed in just 48 days. It’s run from 40,000 to 45,000 levels took 561 days to accomplish.
According to experts, Foreign Portfolio Investors have been the main driver behind the market rally in India. After the initial bout of selling in the earlier part of 2020, FPIs have been consistently buying Indian equities so far. As per the data available with the NSE, In the year 2020, FPI made a net equity investment of Rs 1.5 lakh crore into the Indian market.
Vijay Chandok – MD & CEO, ICICI Securities said- “Sensex crossing the important milestone of 50,000 is a telling sign of economy and markets shifting orbits on broad-based recovery and better days ahead. The combination of strong capital inflows, low interest rates and leaner balance sheet of India corporates along with government measures for growth is expected to lift the economic growth ahead. The same is likely to resonate in capital markets, thereby keeping the markets buoyant in the long term.”
Global markets have remained supportive so far. Yesterday Wall Street hit new records and stock markets across the globe climbed after US President Joe Biden took office on Wednesday as traders were joyful over his plan to inject even more stimulus into the world’s largest economy
Investors’ sentiment turned positive after the government managed to contain the spread of the coronavirus. Fresh Covid cases have fallen from a peak of more than 1 lakh daily cases to around 15,000 per day now, which boosted hopes of faster economic recovery and further opening of the economy.
Gaurav Awasthi, Senior Partner – IIFL Wealth Management said- “Sensex at 50K is a psychological feel good factor and has no significance on the decision to invest or exit from equity markets. The relevant yardsticks to look at for investing include the current valuations and future earnings trajectory of underlying companies. The longer term view remains positive given the strong tailwinds in a host of industries including IT, pharma and manufacturing. However, the current valuations do warrant some caution with likelihood of increased volatility in the short term.”
Experts also believe that the forthcoming Budget, just 10 days away from now, will also prove to be critical for the markets, as it may showcase the government’s agenda for reforms and growth of the economy going forward. Many also believe that as Sensex crosses 50k, valuations look stretched. Valuations are a function of earnings, and earnings are not coming through making it a key risk at the current juncture.
“I don’t think the market is overvalued by a big margin. It is just that it is looking at the future with a lot of positivity. Now, if those corporate earnings materialise, those growth materialises then Sensex will continue to rise. But please remember, Sensex will go up and down. From its fair value, it can become cheaper and more expensive. Very few people will be able to predict how Sensex will move in the short term”- said Motilal Oswal, MD and CEO, Motilal Oswal Financial Services.
One of the most common strategies used by Indians for investment is fixed deposits(FD). Also, for the intention of tax benefit under Section 80C of the Income Tax Act.1961, due to elegance and assured returns, many favour tax-saving fixed deposits over other mechanisms such as PPF, 5-Year NSC, NPS that deliver decent returns. By investing in a tax saving FD one can reap tax benefits up to Rs 1,50,000 in a fiscal year. Important to note here is that, on different factors tax-saving FDs vary from regular FDs. Below are the 10 essential characteristics of tax-savings FDs that you must consider before parking your money.
There is a lock-in period of 5 years on tax saving FDs which means premature withdrawal is not allowed before the specified duration.
For opting a tax saving FD scheme only resident individuals and Hindu Undivided Families (HUF) are eligible.
It is possible to open tax-saving FDs either individually or jointly. In the case of a joint holding, the tax gain under Section 80C can only be claimed by the primary holder.
On these FDs, one can pick either a monthly/quarterly/annual interest payout preference. Even one can also have a compounding option for the reinvestment of interest gained.
As per the income tax slab, the interest amount is added to your annual income which will be taxable and paid on a quarterly basis.
At a rate of 10 per cent on the annual interest received on these FDs, banks subtract TDS. By submitting Form 15G/H to the bank at the beginning of the financial year you can avoid TDS.
With the exception of cooperative banks and rural banks, tax-saving FDs can be opened at any public or private sector bank.
As we are talking about 5-year tax saving FD, post office time deposit also allow you to reap tax benefits under Section 80C.
You will not be allowed to make premature withdrawal or apply for a loan against tax saving FDs.
The interest rates provided differ from bank to bank on these deposits. Although the lowest rate of tax-saving deposits i.e. 5.4 per cent is provided by leading commercial giant SBI, there are still some small finance banks that offer higher interest rates up to 6.75% on 5 year tax saving FDs.
Best Tax Saving FDs
Banks
ROI in %
DCB Bank
6.75
Yes Bank
6.75
Equitas Small Finance Bank
6.75
IndusInd Bank
6.50
AU Small Finance Bank
6.50
RBL Bank
6.40
Top 5 Commercial Banks That Offer Higher Return On Tax Saving FDs
Tax-saving fixed deposits are issued by the majority of banks and non-banking financial firms. Investors must consider the various interest rates along with other terms and conditions of the banks providing fixed deposit tax benefits before choosing any tax saving schemes. Here is a short discussion of the numerous tax-saving FD of the largest commercial banks of India.
Banks
ROI in % for general public
ROI in % for senior citizens
SBI
5.40
6.20
HDFC Bank
5.50
6.25
ICICI Bank
5.50
6.30
Kotak Bank
4.75
5.25
Axis Bank
5.50
6.05
SBI Tax Saving FD
The interest rates for regular deposits is 5.4% and 6.20 percent for senior citizens are kept at SBI tax saving FD. As per Section 80C of the Income Tax Act, 1961, it provides a term of 5 years and tax deductions. The minimum deposit accepted by SBI for tax saving FD is Rs 1,000 up to a limit of Rs 1.5 lakh.
HDFC Bank Tax Saving FD
For regular investors, the HDFC tax saving FD provides an interest rate of 5.50 percent and an interest rate of 6.25 percent for senior citizens including a 5-year lock-in term. Similar to SBI, the maximum deposit balance is Rs 1.50 Lakh and the minimum limit is Rs 100. Investors can pick between a monthly or quarterly payout option.
ICICI Bank Tax Saving FD
investors can spend either in a traditional plan (provides a monthly or quarterly payout) or in a reinvestment plan (interest compounded quarterly reinvested with the principal amount) under the tax saving FD of ICICI Bank. One can deposit with a minimum limit of Rs 10,000 up to a cap of Rs 1.50 Lakhs in 5-year tax saving FD of this bank. The interest rates are 5.50 percent for regular investors and 6.30 percent for senior citizens respectively.
Kotak Bank Tax Saver FD
For regular investors the interest rate is 4.75 percent and for senior citizens the interest rate is kept at 5.25 per cent under Kotak Bank 5-year tax saver FD. The minimum and maximum deposit limit here is Rs 100 and Rs 1.5 lakhs respectively.
Axis Bank Tax Saving FD
Axis Bank 5-year tax saving FD proposes an interest rate for the general public 5.50 percent and for senior citizens 6.05 percent respectively. One can deposit in Axis Bank Tax Saving FD up to a limit of 1.5 lakh for a lock-in period of 5 years.
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