Category: Finance

Everything to Know About the Accommodation Provided By an Employer

While it isn’t unprecedented for employers to give or provide accommodation that is free or at concessional lease, to their representatives, Income Tax laws collect taxes on such offices, contingent upon their valuation.

Because of the lack of available accommodation and so as to draw on the talent pool, numerous employers to give accommodation that is free or at concessional lease, to their workers. This is especially valid, if the companies are located in remote spots, where an individual is generally not willing to shift to, unless the proper accommodation is provided to him. The employer, once in a while gives the facility of a gardener, sweeper, and so on, at the accommodation given to the employees. These amenities given by an employer, are not tax-free in the hands of an employee. The tax laws have provisions for esteeming such facilities, which are named as ‘perquisites’ in income tax parlance. Let us now examine how this is done.

Taxable Facilities

It is fascinating to take note that these facilities, wind up taxable in the hands of the employees, not just when they are given to the workers, yet in addition, when such facilities are given to any of the members of the worker’s family. With the purpose of tax collection of provision of accommodation, the members of the family incorporates the life partner, kids and parents, just as life partners of the kids, workers and wards of the representative. In this way, any free convenience given to the parents of a worker, even at a place other than where the employee is working, will likewise turn into a perquisite and in this manner, wind up taxable. Accommodation for this purpose shall comprise, not only the residential house, but also a farm house, hotel, service apartment and guest houses.

Importantly, such services are taxable when they are provided to the employee not only directly by the employer, but also indirectly to him, due the reason of his employment. So, an accommodation provided to an employee of a company other than his employer, is also taxable in the hands of the employee.

For Central and State Government Employee

The tax laws provide different treatment to these facilities, depending on whether the employee is a government employee or not and also depending on whether he is a central government or state government employee. For government employees, the value of such a perquisite shall be the license fee as is already fixed for such accommodation by the state and central government respectively, if the accommodation is provided free to the employee. However, if any rent is recovered from the employee of the government, the taxable privilege shall be decreased to the extent of the rent recovered. The same shall apply, if the accommodation provided, is owned by the employer or is taken on rent from a third party.

For Non-Government Employees

The evaluation of the perquisite for accommodation that is given to an individual who is not a government employee would rely upon whether the accommodation is owned by the employer or is taken on rent. If the accommodation is taken on rent, the actual cost earned from the employer for such accommodation, subject to a maximum of 15 % of the salary as reduced by the rent, shall be treated as the value of the perquisite. However, if the accommodation is owned by the employer, the valuation of such perquisites will depend on the population of the place of accommodation.

Why should you invest in a guest house?

The more an employer takes care of their employee, the more the employer gain from it. Investing in a guest house id taxable, but paying taxes without actually staying is utter foolishness when you can accommodate your employees in them, you are in double gain. Providing accommodation, guest house, villas or apartments, to the employees helps employee gain the trust and loyalty. Hence, an employer or company should be investing in the guest house as it is definitely a win-win situation for the employer.

 

All you have to know about QuickPay Home Loan of Axis Bank

QuickPay Home Loan of Axis Bank

Axis Bank has presented a home loan element called ‘QuickPay’, where the EMIs decrease step by step, as the interest descends. Here, we will have a look at the advantages and disadvantages of this item and whether it bodes well for borrowers to decide on it

A home loan ought to be reimbursed amid its tenure, by the method of equated regularly scheduled payments (EMIs). The measure of the EMI, as the name mentions, remains the same, as it used to, all through the tenure of the credit, except if there are conditions like changes in the interest rates, justifying an adjustment in the measure of EMI. Home loan provides have been attempting to innovate, with their contributions.  Axis Bank have come up with something called ‘QuickPay Home Loan’, where the measure of EMIs go down continuously, as the premium descends.

What is QuickPay Home Loan by Axis Bank?

This is only a turnaround of another well-known product called the ‘telescopic home loan’, which is given by different loan specialists, including HDFC Limited, where the amount of instalment progressively goes up. This product is helpful for the general population who are at the beginning stage of their vocations and consequently, their salary is likewise moderately low. A noteworthy number of youngsters have been purchasing their first homes, toward the start of their careers. The telescopic home loan considers the potential for increment in the salary of the borrower and subsequently, encourages the borrower to get a higher sum as home credit and that as well, for a more drawn out tenure of 30 years.

The QuickPay Home Loan of Axis Bank is only the turnaround of the telescopic home loan product, where the measure of instalment goes down bit by bit. This can just occur with moderately higher instalment at the initial stage, when contrasted with conventional home loan products.

 

Should property buyers pick Axis Bank QuickPay Home Loan among the others?

The primary selling point for the QuickPay Home Loan, is that the general intrigue cost descends essentially. This is a fantasy, as the borrower pays the interest for the period for which he utilizes the cash.

Along these lines, logically speaking, this item does not lessen your interest cost, with respect to the utilization of the cash by the borrower. Thus, an ordinary home loan might be better, for different reasons.

Right off the bat, a larger part of home loan borrowers go use up the majority of their funds, to make the initial installment for the property. Purchasers may likewise need to get from companions and relatives, to support the edge cash, which must be paid at the same time, while adjusting the home advance. In addition to this, the home purchaser needs to spend for the fundamental tounches in the house. Under these conditions, it may not be plausible for a normal home purchaser, particularly those toward the start of their professions, to benefit the higher measure of home loan installments.

The QuickPay Home Loan is accessible under the gliding home loan rate routine, where the banks and housing finance organizations, can’t charge any prepayment penalty. All in all, when one can prepay his customary home loan, as and when he has surplus cash accessible with him, without causing any extra cost, for what reason would it be advisable for one to focus on higher home loan installments, with the accompanying danger of default in overhauling it?

One can, at any time, get the overall interest cost decreased, by prepaying some portion of the home credit at ordinary interims, contingent upon accessibility of surplus assets. With ordinary home loans, you additionally have the adaptability to design your prepayment, to augment your tax reductions, under Section 80C concerning the essential prepayment, just as interest benefits, under Section 24b of the Income Tax Act. Moreover, the financing cost for the QuickPay product is somewhat higher than that for a normal home loan. Henceforth, pondering over the points explained, it is up to you to choose QuickPay by Axis Bank regardless of whether he is toward the start of his profession or amidst his vocation or buying a villa or an apartment.

Top Tips To Finance Your New Villa

Top Tips To Finance Your New Villa

The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today. It is easy to get emotional when looking to buy a home and end up paying too much for the property. This is one of the many reasons as to why we provide you with the top tips to finance your new home.

1. BUDGET:

• Repayment of the loan is one major responsibility that comes along with the ownership of a home.

• Stick to your budget or else you would lose your peace of mind in the process.

• Budget well in advance, keeping in mind the other additional expenses that come with owning a home: house taxes, home insurance premiums, etc.

• Ensure to stay within your limits with your upper budget ceiling in mind when you make decisions.

2. DOCUMENTATION:

• All your documents like credit limits, bank limits, etc. must be up to date and well-organized.

• Essential documents must be kept handy as the process of securing finance for a home shall involve multiple steps.

3. FINANCIAL OPTIONS:

• Nowadays, umpteen number of options to get your home financed are present to pick from.

• Proper background checks on different financial loans and supports should be done.

• Mortgaging is a home loan that can be paid in a flexible time period while bank loans are a way more secure method of financing your home with a relatively low down payment.

4. PROCESS:

• Understand all the steps involved in financing a home.

• Budget appropriately and then search for homes that fit into your budget.

• Ensure that your dream home is within your budget and also caters all your needs and requirements.

5. RESEARCH:

• It is advisable for you to do your own research prior to your home hunt.

• Familiarize yourself with the basic knowledge and know-how about the in and out of housing quest.

• Always tread the path organized and prepared with your homework done well.

6. SAVE FOR DOWN PAYMENT:

• Save money for down payments way before you start your hunt in order to stay within your budget.

• Always make sure that you spend a pre-calculated portion towards the expenses associated with owning a home.

• The type of home you would be able to get financed depends upon the amount of down payment involved.

7. CREDIT SCORE:

• A measure of your credibility in the market is known as the credit score.

• People with a great credit score are often offered the best loans and deals.

• The credit score also demonstrates the credibility and clear financial track record of the people about to buy a home.

• Your credit score replicates your spot as a responsible buyer who can be trusted upon.

• Get your credit score calculated by professionals as there are chances that your loan might even get rejected if your credit score is too low.

It is vital to remember a couple of tips when you intend to get your home financed. At long last, read all reports deliberately before you consent to the loan agreement. The next time you begin your home hunt, nest habitation is undoubtedly where your ultimate housing hunt ends. To know more about Nest Habitation and properties, visit http://www.nesthabitation.com/landing-page/.