October 24, 2021

What is free-float market capitalization?

Oct 19, 2021

The stock market today has a variety of investment avenues that suit the varied interests of different types of investors. Before diving head-first in stock market investments, it is imperative to understand the terminologies associated with an investment that could help you make better decisions. One such term that could guide your future investment decisions is free-float methodology in market capitalization.

Market capitalization stands for measuring the company’s outstanding shares multiplied by the price of each share. For instance, a company with 20,000 outstanding shares at Rs. 20 each will have a market capitalization of Rs. 4,00,000. In this standard calculation of market capitalization, the total number of shares, including private and public, is considered to arrive at a value. However, in free float, also known as float-adjusted capitalization, only publicly held shares are considered. Shares owned by promoters, trust and government bodies are excluded, which also means that actual market capitalization would always be higher than the free-float market capitalization value.

Free-float market capitalization is inversely proportional to market volatility. Since there are a limited number of shares, which can be bought or sold, fewer trades move the prices significantly. This is the main reason why investors prefer dealing with shares having higher free float, which, in turn, allows them to buy and sell shares without affecting the index’s overall prices.

Let’s understand through this example – ABC Ltd has 80,000 outstanding shares priced at Rs. 20 per share. Out of this, 30,000 shares are held publicly while the rest are privately owned.

  • The market capitalization of ABC Ltd:

Total outstanding shares × price of each share

80,000 × Rs. 20 = Rs. 16,00,000

  • Free-float market capitalization for ABC Ltd:

Publicly owned outstanding shares × price of each share

30,000 x Rs. 20 = Rs. 6,00,000

 Coming to the advantages of free-float methodology over total market capitalization:

  • When it comes to judging the true picture of a security, experts tend to rely on the free-float method as it considers the shares that are available for trading in the market, which represents an accurate reflection of market movements.
  • Many times, companies achieve large caps, but most of their shares remain privately locked, failing to present a true picture of their shareholding pattern. Indices in the market, which are performance trackers, are influenced by either price or market capitalization. With free float, it is possible to do broad-based indexing.
  • This technique could help investors in deciding the stocks to buy today by distinguishing companies whose shares are available in the market for trading.
  • Free-float market capitalization can also help in determining the float factor. For example, a company has 55,000 outstanding shares, out of which 16,000 are open for trading and 39,000 are closed. Each share is priced at Rs. 43. Therefore, the proportion of shares available for trading is 16,000/55,000 = 0.29. This is the float factor, which is assigned to each share price.

Investing in the stock market could be easy if you have the right tools and guidance to navigate through it. If you do not have the bandwidth to undertake thorough research and analysis, seeking expert could be a wise choice. A financial expert can curate bespoke stock investment plans based on your appetite for risk, investment horizon, and financial goals.

Reach out to one today to make smart investment decisions!

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Can an NRI open a joint account with a resident of India?

Aug 19, 2021

Non-Resident Indians are those persons who are Indian citizens but are living abroad due to various reasons. Most NRIs have families or relatives back home who partly manage their financial affairs in India. For example, if Mr Khanna is employed in Dubai, but his wife and children are living in India, then his wife will be in a better position to manage finances on the Indian side like paying or receiving rent, withdrawing funds, operating bank accounts etc.

Therefore, the question arises, is it possible for an NRI like Mr Khanna to hold a joint account in India with an Indian resident, who in this case is his wife? Up until 2011, this was not possible.

However, now an NRI can open joint residential savings account with an Indian resident on an ‘either-or survivor’ basis, under certain conditions. A joint account with an NRI can also be an NRO account.

As far as an NRI holding an Indian bank account on his own is concerned, it is still not allowed and attracts a penalty.

Joint Residential Savings Account with an NRI

So how does a joint account with an NRI and resident Indian work? Given below are the conditions in which this is possible.

– A joint residential savings account can be opened between an NRI and an Indian resident, provided that the Indian resident is a relative. A relative, in this case, can mean parents, siblings, siblings’ spouses, children, own spouse, children’s spouses, grandparents, grandchildren and spouses of grandchildren.

– All the rules and regulations applicable to a normal savings bank account in India will be applicable to such a joint account as well.

– The bank keeps all the relevant documentation with them, including a record for the need of a joint account. A signed declaration is also taken from the NRI indicating that they will not use the funds in the account in violation of the FEMA Act and will be responsible for the repercussions in case a violation does occur.

– The NRI account holder cannot deposit any money in the form of cash, cheque, remittances or direct credit into such an account.

– The money from this joint account is not repatriable, which means it cannot be transferred outside India.

– The resident Indian will be the primary account holder of the joint account. The NRI will remain the secondary holder.

– Such a joint account can be used to make payments by the resident account holder.

– In case the resident account holder passes away, then the NRI will become the sole holder of the account, but the account will be converted into an NRO account.

Joint NRO with an NRI

An NRI can also jointly hold an NRO or Non-Resident Ordinary account with a resident in India. However, such an account can only be opened on the ‘former or survivor’ basis.

Final Word

Thus, an NRI can hold a joint account along with a resident relative if the above conditions are met. This can either be a normal residential savings account or an NRO account as well. If an NRI wishes to hold an account in India as a sole account holder, then there are other options like an NRO account, NRE account or an FCNR account.

To open a joint savings account with an NRI, the account holders can visit the concerned bank along with relevant documentation and declaration as required by the bank and follow the bank’s protocol.

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All about PMAY (Pradhan Mantri Awas Yojana) – Key Benefits & Features

Aug 19, 2021

Dedicated to providing housing for Indians in both rural and urban areas, the Pradhan Mantri Awas Yojana (PMAY) was launched by Prime Minister Narendra Modi in June 2015. Pradhan Mantri Awas Yojana is a housing scheme where the beneficiary can get a home loan interest rate subsidy if he/she wishes to extend, construct or purchase a house. This credit-linked subsidy scheme is aimed at providing affordable housing for all by 2022. In case you are planning to buy a home, it is important to know the features and benefits of the PMAY scheme in order to boost your investment decision.

Features of PMAY

  • Pradhan Mantri Awas Yojana is categorised into two parts – Pradhan Mantri Awas Yojana (Urban) and Pradhan Mantri Awas Yojana (Gramin)
  • To avail the benefit under this scheme, the beneficiary should not own a ‘pucca’ or concrete house.
  • The beneficiary family would include husband, wife and unmarried sons and daughters.
  • The applicant family would have to provide their Aadhaar number while applying for the home loan under this scheme to avoid duplication.
  • The applicant can apply for a home loan under PMAY through any lending institution like banks, non-banking financial companies, rural banks, housing financing companies, etc.
  • The subsidy available under this scheme is up to 6.50% of the loan amount for a tenure of up to 20 years.
  • The benefit of the scheme can be availed across all urban areas in 4041 statutory towns in India.
  • Under this scheme, the houses are being constructed using eco-friendly raw materials. Moreover, they are designed to withstand natural calamities.
  • The interest subsidy is available for people belonging to categories of Economically Weaker Sections (EWS), Lower Income Group (LIG) and Middle Income Group (MIG – I & II).

The credit-linked subsidy scheme for the different categories is tabulated below –

Category Annual income Rate of interest subsidy Maximum loan amount Carpet Area of the house
Economically Weaker Sections (EWS) Rs 3 Lakh 6.50% Rs 6 lakh 30 Sq. Mtr.
Lower Income Group(LIG) Rs 3 lakh – 6 lakh 6.50% Rs 6 lakh 60 Sq. Mtr.
Middle Income Group –I (MIG) Rs 6 lakh –  12 lakh 4% Rs 9 lakh 160 Sq. Mtr
Middle Income Group – II Rs. 9 lakh – Rs 18 lakh 3% Rs 12 lakh 200 Sq. Mtr.

Benefits of PMAY

  • Women empowerment

PMAY scheme aims to help women participate in the financial decision-making of the family. To avail this scheme, it is mandatory for a family to have a woman as the owner or co-owner of the house.

  • Housing for all

The housing scheme is for people living in both rural and urban areas of the country. Moreover, there are preferential provisions for salaried women, disabled individuals, minorities like scheduled castes and scheduled tribes, widows, transgender people etc. In addition, if you are a senior citizen you can also expect to get ground floor accommodation under this scheme. PMAY also aims at accelerating slum rehabilitation by providing affordable housing and eco-friendly homes to first time home buyers.

PMAY is a positive approach of the Government to provide affordable housing for all. It will not only help people with low purchasing capacity to live with dignity in their own homes, but also contribute to slum rehabilitation. If you have been planning to buy a house, this could be the best time to do so under the PMAY scheme. Make sure to check your eligibility for PMAY and apply for a home loan today!

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Bajaj Finserv Login Portal for all your EMI Card needs

Aug 13, 2021

The Bajaj Finserv EMI Card is a payment strategy. This Bajaj EMI card has an already approved loan ranging from Rs 30K to Rs 3 lakhs in it. The amount of loan for you entirely depends on your credit appraisal. You can spend up to 3 lakh using your card and pay flexible EMI within 2 years. After you get yourself an bajaj EMI card you can use it to purchase anything as per your requirements.

The entire transaction would be transparent and there are no hidden cards on the EMI card. The processing fee varies depending on categories of purchase. However, you can not use your card everywhere. There are 60,000 stores and 1300 cities that have a partnership and where you can use the card. Not only offline shopping but also you can use this card for online shopping from Pepperfry, Amazon, MakemyTrip, Flipkart etc. There is a given eligibility criteria which you have to meet in order to get yourself a Bajaj EMI card and enjoy its perks.

Bajaj Finserv Network Card Login Portal

To get all access to all your details of your Bajaj EMI Card, Bajaj Finserv has for you The Bajaj Finserv Network Card login portal. This bajaj finserv login portal is a one-stop portal by which you track and manage all your monetary transactions. Besides, you can also look after your Bajaj EMI card very effectively. This Bajaj customer login can be used from any corner and at any time as per your convenience. Just by using the right credentials of your Bajaj EMI card you can log in and look into your transactions through the bajaj finserv login.

Steps For Bajaj EMI Card Login

To log in to the bajaj customer portal is easy and time-saving. All you have to do is follow some simple steps and work after your bajaj finserv login. The following are the steps for Bajaj EMI card login:

  • Go to the official website of Bajaj finserv
  • Find the bajaj customer portal to log in
  • Enter the required mobile number
  • You will receive an OTP on the given number
  • Provide the OTP in the bajaj customer portal and you can successfully sign in

Uses Of Bajaj EMI Card Customer Portal

Bajaj EMI card customer portal can help you to track and manage all your financial transactions. After you sign in using your bajaj EMI login credentials you can check the following fields:

  • The EMI status of the card
  • The utilisation limit of the credit card
  • The EMI expiration facts
  • Status of loan
  • Paid EMIs
  • In queue EMIs
  • Spending limit of the EMI card
  • Details of the dealer
  • Details of down payment due date and outstanding amount detail

The Bajaj Customer Portal helps you in managing and knowing all the facets related to investment on an EMI card. Also, it can help you to see and avail of various exclusive benefits and offers from Bajaj EMI Card.

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Regular mutual funds and direct mutual funds – Two sides of the same coin?

Jul 24, 2021

Investors in mutual funds have the option to invest in two ways. One option is direct mutual funds, where investors can buy funds directly through the website of a mutual fund company or through an aggregator offering direct funds. The other option is regular mutual funds wherein investors buy funds through a broker or an intermediary (distributor). This is one major difference between regular and direct mutual funds.

Deciding upon which option is better suited for your financial goals depends on various factors. We have compiled the basics you need to know about direct and regular mutual funds to help you decide which is the best option for you.

What are direct mutual funds?

Direct mutual funds are directly offered by fund houses or Asset Management Companies (AMC) to the investors. With no third-party involvement, direct mutual funds are exempted from brokerage charges or the commission that a distributor could get from the AMC. This could help you earn higher returns due to the lower expense paid. These funds can be bought through online or offline mode and are easily identified because of the word ‘Direct’ in the fund’s name.

What are regular mutual funds?

Regular mutual funds are bought through an intermediary. The intermediary charges fees to the fund houses for selling their funds. The fund houses then, in turn, pass this charge on to investors in the form of a slightly higher expense ratio. The total expense paid is slightly higher than that of direct mutual funds.

Advantages of regular mutual funds over direct mutual funds

  1. Expert guidance: A qualified professional can help you choose mutual funds schemes while taking into consideration your financial goals and risk appetite. They guide your investment journey to help you earn better returns.
  1. Convenience: Investing in mutual funds requires time-consuming research and might be tedious for many. An intermediary analyses these funds and thus saves the investor’s time and efforts. Also, they provide other value-added services that help investors to stay abreast with the fluctuations in the market.
  2. Constant portfolio monitoring: Markets are dynamic, and this calls for constant monitoring of your investments. Intermediaries that monitor market behaviour are quick on their feet to suggest that you sell or swap funds that are not performing.

Advantages of direct mutual funds over regular mutual funds

  1. Higher returns: Investing in direct plans eliminates brokerage charges. This reduces the total expenses spent on a fund. Thus, you are likely to gain higher returns on your investment.
  2. You’re in charge of your investment: With no intermediary involvement, you are in complete control of your investment.

Direct mutual funds vs regular mutual funds – Which is better?

The choice of direct vs regular mutual funds entirely depends on your investment profile. If you are a beginner or don’t have much knowledge about investment, you could go for regular mutual funds. However, if you’re well-versed with market trends and understand the mutual fund universe, direct plans might be the best option for such experienced investors.

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4 Scams to Avoid When Applying Online for an RV Loan

Jun 25, 2021

If you are looking to apply for an RV loan online, you need to be extremely careful about which lender you choose. RV loan scams may not be the norm today, but they still happen and easily, so when you are dealing with someone you haven’t met before.

At first glance, it can be hard to tell the difference between a legitimate lender and a scammer from their offers. However, the following red flags should help you spot a loan scam more easily.

1.    The lender is pressuring you to sign an agreement

The end goal of a scammer is to defraud you of your money, so they usually will employ all sorts of gimmicks to pressure you into accepting their loan offer. The most common gimmicks include:

  • Branding their loan offers as “one-of-a-kind” deals that you won’t find elsewhere.
  • Offering you lower interest rates if you sign an agreement with them immediately.
  • Urging you to start sorting the paperwork when you haven’t discussed the loan terms and rates yet.

If you notice an online lender is bent on getting you to close a deal with them, you should always be on the lookout. Chances are that you might be walking into an RV scam.

2.    The lender doesn’t need your credit

The odds of your getting approved for an RV loan will largely depend on your credit score and credit history, which is why you should be wary of lenders who promise to approve your loan application without first reviewing your credit history.

Do not let having a poor credit score excite you into signing a deal with such lenders. Instead, search for legitimate lenders who will offer you the best loan rates you can get with your credit score.

3.    The lender requests sensitive, unnecessary information

If a lender ignores your credit history and asks for your personal or banking information instead, this is a major red flag.

Such information is usually irrelevant to the RV financing process, so regardless of whatever excuse a lender gives you, never make the mistake of providing them with any sensitive information about yourself, especially when it can be used to defraud you.

4.    The lender requests an unsecured payment form

Be especially wary of lenders who request unusual forms of payment, such as gift cards, for your loan transactions. Unlike most other payment channels, gift cards can’t be traced or refunded, which is what makes it a popular option among scammers.

If the lender you are shopping at offers you several payment channels, all of which don’t allow or guarantee refunds, avoid such lenders and seek others who offer more secure options.

Final words

Falling victim to an RV scam can take years to recover from. If you plan on applying for an RV loan online, ensure you do thorough research on the lender to ascertain if they or legitimate or fraudulent. With sufficient research and the tips above, you will easily avoid the deceptive RV scams online today.

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How to Reduce Home Loan Burden with an Annual Bonus?

May 26, 2021

If you have availed a home loan, you must keep up with regular EMI payments to avoid home loan default. However, at times, managing monthly expenses and paying home loan EMI can be financially straining. The situation could get even more critical if you are the sole earning member of the family. Thus, whenever an opportunity arises, you must try to reduce your home loan repayment burden. Ahead, we have elaborated on how you can make use of the annual bonus to save on your EMI outflow and make repayment easier.

Using an Annual Bonus for Making Part-Prepayment of Home Loan

Your annual bonus is no less than a blessing in case you are finding it difficult to pay home loan EMIs regularly. Therefore, use your annual bonus wisely rather than spending it impulsively on an exotic vacation or an expensive purchase.

Use your annual bonus for paying an extra EMI every year or making a part-payment of your home loan. This will help you close your debt sooner by reducing the loan tenure. By prepaying your home loan, you can also opt to reduce your monthly instalment. This will decrease the chances of home loan default. You can save on the interest pay-out by repaying your home loan sooner than the specified tenure. Also, timely repayment will boost your creditworthiness, thereby making you eligible for attractive loan offers in the future.

Before using your annual bonus for home loan prepayment, ensure to make a note of the prepayment charges levied by the lender.

Learn about home loan prepayment with the help of an example:

Suppose you have taken a home loan of Rs 50 lakhs at a rate of 8.5% for 20 years. By using a home loan EMI calculator, you can easily get an estimate of your monthly instalment, which would be Rs 43,391.

Now, consider that you utilize your annual bonus and surplus income to make a part-prepayment of Rs 2 lakhs. With the help of a home loan prepayment calculator, you can easily calculate your revised EMI. You must enter the details such as the loan amount, tenure, interest rate, and the prepayment amount in the calculator. For a part-prepayment of Rs 2 lakhs, your revised EMI will be Rs 41,656. This would mean a reduction of Rs 1735 or 4% EMI savings.

However, if you wish to close your home loan sooner, you can keep your EMI at Rs. 43,391 and reduce the loan tenure.

You must not default on your home loan under any circumstances. This is because a home loan is a secured loan, and thus, in case of a default, the lender reserves the right to seize your property to recover its losses. Therefore, make sure that your home loan EMIs are always affordable. The longer the loan tenure, the lower will be your home loan EMI. Whereas, for short-term home loans, EMIs will be comparatively higher. However, the good thing is that you will be able to bring down the overall cost of borrowing by opting for a short-term home loan.

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Ask the right questions before starting a monthly SIP

Apr 24, 2021

Systematic Investment Plan abbreviated as and commonly referred to as SIP is the easiest way to invest in mutual fund schemes. There isn’t a more organized investment option as for now and SIP ensures that you save and invest a fixed amount at regular intervals (typically every month) till your investment objective is achieved. Not everyone has a hefty corpus to start investing in mutual funds and SIP ensures that even if you have Rs. 500 to Rs. 1000 every month, you can still invest this amount and kickstart your investment journey without worrying too much. Thanks to the introduction of SIP, it has become possible for almost everyone to give themselves a chance of earning long term capital appreciation through systematic investing.

If you too are keen on starting your mutual fund investment journey via SIP, here are some of the questions you must be asking to ensure that you are taking an informed investment decision –

What is SIP?

Systematic Investment Plan is an investment tool where you choose an investment amount that you are comfortable with and invest this amount at regular intervals till your investment objective is achieved. There is no limit on number of SIPs and investors can start SIPs in end number of mutual fund schemes without any restrictions. SIP ensures that you save and invest a fixed amount before you start splurging in that particular month.

Are SIPs safe?

SIPs are not safe, but they ensure that you do not invest all your amount at once, thus saving your entire finances from getting exposed to market volatility. If you are investing in equity funds, these funds are constantly exposed to volatile markets. But when you start a monthly SIP, only the amount that you invest every month is exposed to equity market’s explosive nature. SIPs do not require investors to time the market and you can start investing in mutual funds via SIP right away.

Can I stop my SIP?

The performance of mutual fund schemes fluctuates from time to time. Sometimes if the sector or asset class in which a mutual fund scheme invests crashes, investors might be concerned about the scheme’s performance. In such a scenario, investors can immediately stop their SIP investments in that particular fund. In case you realize that you have invested in the wrong scheme or there is another mutual fund scheme in the same category that has a better track record, you can immediately stop your investments and switch to a better performing scheme. There are no fines applicable for abruptly stopping your monthly SIPs.

Can I modify the SIP sum?

Just like it is possible to stop your ongoing SIPs, investors can even modify the SIP sum depending on their income needs. Ideally year after year, it is recommended to increase your monthly SIP sum by 10 percent. Some individuals find themselves in a situation where their monthly income might fluctuate from time to time. Such individuals can increase or decrease their monthly SIP sum and they can invest this modified amount in the following again. Again, there are no charges for modifying the monthly SIP sum.

Does power of compounding work with SIP?

Power of compounding is an investment technique that seems to come into effect only when you continue investing in mutual funds via SIP for a minimum period of 7 to 10 years. Power of compounding is nothing, but the interest earned on the interest earned from the initial investment amount. To witness your small SIP sums snowball into a large corpus, investors are expected to continue investing in mutual funds via SIP keeping a long term investment horizon in mind.

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Things to bear in mind before investing in hybrid funds

Apr 24, 2021

Individuals who wish to invest a portion of their hard-earned money in investment schemes must first understand financial planning in the best possible way. Financial planning asks investors to determine their appetite for risk as well as prioritise their life’s urgent goals so that they are able to diversify assets accordingly. Every investment scheme has some risk associated with it. Even conservative schemes offering fixed interest rates cannot be deemed entirely risk free. If you are someone who is young with an aggressive investment approach and long-term investment horizon, such individuals can consider investing their hard-earned money in market linked schemes like hybrid funds.

Hybrid funds are gaining traction among retail investors because they have a slight upper hand over other equity schemes. While equity schemes predominantly invest in equity and equity related instruments, hybrid funds follow a unique asset allocations strategy where the fund manager builds portfolio by investing in both equity and debt instruments. Multi asset allocation strategy usually works because equity as an asset class is known to get affected by the fluctuations in the market. When the markets are volatile and this leads to the equity portfolio to underperform, investments in the debt can add the necessary cushion.

Things to consider before investing in hybrid funds

Hybrid schemes invest in different asset classes, thus aiming to provide the right amount of diversification for investors. However, here are some of the factors to bear in mind before investing in hybrid schemes –

Decide which hybrid scheme to invest in – The investment strategy of every hybrid scheme varies depending on its investment objective. If you carry a high risk appetite, then an aggressive hybrid scheme might be more apt as it invests more in equity and the rest in debt. Similarly, a conservative hybrid fund is more debt oriented and invests 15 to 20 percent in equity. Investors should choose a hybrid that suits their investment objective and shows growth potential to target their financial goals.

Capital gains tax – The equity component of hybrid funds is taxed like equity funds. Capital gains from the equity component of hybrid funds is eligible for short term capital gains tax of 15 percent and long term capital gain tax of 10 percent (for gains exceeding Rs. 1 lakh). The debt component of hybrid schemes is applicable for a short term capital gains tax is applicable as per your income slab. A long term capital gain tax of 20 percent is applicable after indexation benefit and 10 percent without indexation.

Risk appetite – Hybrid schemes invest in securities whose performance may fluctuate depending on the fluctuating market trends. Such investments are high risk and over the short term, you may even face losses. This is why investors should ideally determine their appetite for risk and evaluate whether investing in hybrid funds suits their income needs.

Investment horizon – Since these are equity oriented schemes, investors should understand that they need to have a minimum investment horizon of 7 to 10 years. Investing in hybrid schemes for the short run will not only shun their chance of earning capital gains, but they might even lose out of their investment amount. Hence, it is better to keep a long term investment horizon while investing in hybrid funds.

SIP or lump sum? – Investors need to determine whether they want to make a onetime investment or start a monthly SIP in hybrid funds. Systematic investment plan ensures that you save and invest a fixed amount at periodic intervals. Investors can also refer to SIP calculator, a free online tool which lets them determine the overall wealth (approximate) which they will accumulate through SIP investing.   

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How Tax deduction on FD is calculated

Apr 22, 2021

The interest that you earned on a fixed deposit is taxable and dependent on different income tax slabs of individual earning interest; this varies from person to person. The income tax slab rates lie between 0% and 30% and the tax levied on fixed deposits is influenced by the income earned by the taxpayer in that particular year. There are tax saving FD rates that can help minimize the burden on your finances. Here is how tax deduction on fixed deposits works:

Tax Deducted at Source (TDS) on Fixed Deposits:

The TDS associated with the interest on fixed deposits is deducted by banks at the rate of 10% if the amount paid or to be paid is over RS.10,000. The limit is set at that amount per branch of that bank, for each individual. Thus, the TDS is deducted by the branch only if the amount paid from one single branch as interest is over Rs.10,000, even if cumulatively, the individual may receive more overall interest from their various FDs.

When the time to pay the interest comes, the bank will deduct the tax from your interest earnings, prior to depositing the rest in your account.

In case, the TDS deducted is lesser than your tax liability, you must pay the amount that is left.  In the event that the deducted TDS is more than your tax liability then you can claim a refund.

If the interest owed by the bank is over Rs. 10,000 and the individual has not submitted their Permanent Account Number (PAN), TDS will be deducted at a rate of 20% as per section 206AA of the Income Tax Act. This step acts as an incentive for all individuals to submit their PAN details as most do not want to miss out on tax saving FD rates.

No TDS deduction on Fixed deposits:

In a case where an individual’s total tax liability is zero but TDS is still deducted by the bank due to the interest payout exceeding RS.10,000 from one branch, the individual is considered eligible for a refund. Forms 15H and 15G introduced by the Government eases the process of filing for a refund, and the declaration forms are valid for the duration of one year. Every year, a new form must be submitted for zero or low TDS deduction on the interest earned on fixed deposits.


Along with TDS there are other forms of tax deduction on fixed deposits. For example, investors who are senior citizens can claim tax deduction on fixed deposits that have a lock-in period of five years according to section 80C of the Income Tax Act. Essentially, it’s important to assess all the available options with regards to fixed deposits and tax saver FD interest rates, as well as your own IT slabs while planning your finances, and you can do this with the help of FD tax calculator on the bank’s website. This is where Finserv MARKETS can come to your aid; a platform that is designed to attend to all your investment needs. Finserv MARKETS offers you a diverse range of financial solutions from the best providers in India, from which you can choose the fixed deposit that best suits your requirements and preferences.

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