CAR INSURANCE

 CAR INSURANCE

Choosing the right car cover
Should you opt for PAYD or usage-based car insurance policy?

TRADITIONALLY CAR insurance would come in the form of standardised plans. So, an individual user’s driving needs and habits would be irrelevant to his/her premium due. Let’s say that you are someone who typically carpools or travels by cab. The law would still need you to buy a regular motor insurance plan for the year. So, even if your car hits the road only about once a year, you would nonetheless be required to pay a hefty premium.

But motor insurance has become motor customer-friendly over the years. Now, car owners have the option of choosing their insurance plan based on their usage. As you can imagine, this comes with a verity of benefits for policyholders. Lets us take a look at some of  them

 

Lower insurance premium:

It is only fair that your insurance premium is calculated based on how often you need to drive your car. For instance, if you live in a relatively smaller city, chances are that you drive a maximum of 5,000 Km. There is no reason for you to pay the same premium as someone who drives 15,000 Km would pay.

In such a scenario, a plan like Reliance’s Pay As You Drive (PAYD) is deal for you. It comes with four predefined driving ranges:2,500 Km, 5,500 Km, 7,500 Km, and 10,500 Km. Even if there is one add month where you expect to drive more than usual, you can easily increase their driving limit as needed. If your driving limit usually sits somewhere around 15,000 Km, then Digit’s PAYD plan might be a sensible choice for you.    

Customisable plans:

In today’s age of hyper-personalization, a remote control of sorts even for insurance makes perfect sense. This is where a plan like a kotak Meter (Switch On/Off) Cover comes in. This plans allows you to turn off your own-damage policy when not driving. For every continuous 24 hours period in which the Own Damage-cover is ‘Off’, you will be rewarded with one bonus day. Policyholders can even receive cash back at the end of their policy period. This gives a more sustainable touch to car insurance.

Points for driving well 

The new PAYD model enables taping of a policyholder’s driving habits. The user’s plan can then be customized accordingly. So, someone who tends to follow driving rules gets a plan with lower premiums. This calculation is based on the information received from vehicle’s GPS tracker. There are algorithms in place that recommend the appropriate premium for each driver. This also factor into whether or not the user respect traffic signals, and or drives at a safe speed.

Another great add-on to have is Pay How You Drive. This enables tapping of a policyholder’s driving habits. The user’s plan can then be customized accordingly.

 

For multiple vehicles

If you own more than one car, you would typically have to pay a higher premium as your vehicles would be insured under two separate policies. You would also be required to fill out and maintain multiple policy documents for this. The PAYD model solves this problem with floater policies, i.e. a single combined policy for multiple vehicles. This way, you have to pay a lower premium as the benefits of your single plan are valid for multiple vehicles, even two- wheelers. This new model is efficient in terms of time, money, and effort

The Pay As You Drive model is an evolved, more customer-friendly approach to insurance. It is a must- buy for anybody who owns a vehicle.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 9868944340

The Different Kind of Home Loans.

 

The Different Kind of Home Loans.

Home loan is a generic term used for long-term loans that are availed for purchasing a property-a house, land, apartment, extension of the house, etc. However depending on the exact need for which the loan is required the customer can avail of a loan that fulfills that particular need. Here are the different categories.

I) Home construction loan:

As the name suggests, the loan can be taken by someone who wants to build a house. This can include the cost of the plot as well as the cost for constructing the house. The cost of the plot is only included if the loan is taken within one year of purchasing it.

II) Home purchase loan

To purchase a new or used flat or bungalow, one needs to apply for a home purchase loan. In case of new property, banks fund up to 90% of the cost of the house for a repayment period of up to 30 years.

III) Home extension loan:

If a home owner, at a later date, wishes to extend the usable space of the existing house, they can take a home extension loan. This usually involves structural changes to the house to create more space.

IV) Home improvement loan

If a existing house requires repairs, painting or renovation, the owner can avail of a home improvement loan. Some banks consider extension and improvement under a single category of home loan.

V) Bridge Loan

This loan is granted for the period till the owner sells the existing property after they have purchased a new property. The loan helps to bridge the funding gap that may arise for the time taken for sale of the existing property. A bridge loan is typically a short-term loan that is granted for up to two years.

Loan Against Securities (LAS)

Points to note

·         Age, income and credit score are the three major factors that affect sanctioning for home loans

·         An existing home loan can also be enhanced through a top-up loan to fund additional work.

SMART THINGS TO KNOW

An LAS is a secured loan where financial securities are pledged as collateral to the lender to borrow money.

Securities include equity shares, mutual fund, life insurance policies, gold deposit certificate, National Savings Certificates, Kisan Vikas Patras, etc.

One can avail of loan value of around 50% to 90% of the securities that are pledged as collateral.

Its is available in the form of an overdraft facility and interest is charged on the amount.

An LAS cheaper when compared to interest rates on a personal loan.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 9868944340

Don’t have PAN? File Form 10F manually

 

Don’t have PAN? File Form 10F manually

NRIs should check their Tax Residency Certificates too: If it has required details, submit it instead.

The Central Board of Direct Taxes (CBDT) has offered one-time relief to non-resident individuals (NRIs) who don’t, have a permanent account number (PAN) by allowing them to file Form 10F manually till March 31, 2023.

It July this year, the CBDT had issued a notification making it mandatory for non- resident taxpayers to file form 10F electronically on the income tax (I-T) e-filling portal if they wanted to claim the benefit of lower TDS (tax deducted at source). Income earned by an NRI in India is subject to TDS under the I-T Act, 1961.

Many non- residents taxpayers faced issues in filling Form 10F since the portal didn’t allow those who didn’t have PAN to file the form. Owing to the practical challenges  faced by them, the CBDT has issued the latest notification exempting  those who don’t have a PAN, and are not required to have one under the provision of the I-T Act, from the mandatory e-filling of Form 10F till March 31, 2023”.

What is Form 10F?

The government of India has signed the Double Taxation Avoidance Agreement (DTAA) with the government of foreign countries to help NRI taxpayer avoid paying double taxes on the same income in both the countries.

Form 10F (under Rule 21AB) must be filled to claim benefits under DTAA. This form provides specific information about an NRI taxpayer, such as nationality residential status, tax  identification number etc.”

 What is TRC?

The I-T laws require NRI taxpayer to provide a Tax Residency Certificate (TRC) to avail of DTAA benefits. If certain prescribed details are not available in the TRC, then the non-resident taxpayer is required to furnish additional document and information in Form 10F.

TRC is a certificate issued by the revenue authority of the NRI’s country of residence, certifying that the person is a tax resident of that country.

According to Indian I-T law, a non-resident person must obtain a TRC from the government of the country or the specified territory of which he claim to be a resident.”

Indian payers request the non-resident payee to provide them with a copy of the TRC.”On the basis of the TRC, the Indian payer can apply the beneficial provisions of the tax treaty to determine the non-resident‘s tax ability in India. The Indian courts have time and again emphasised the relevance of the TRC for a non-resident to claim treaty benefits.”

An NRI taxpayer’s TRC must have the following details for him to avail the benefits of DTAA: name, address , nationality, residential status for tax purposes, taxpayer’s status (individual , firm,etc.), Tax Identification Number (TIN) or any unique number  that identifies the person as a tax resident by that country’s government , and period for which the certificate is valid.

Use TRC in lieu of Form 10F

Use of Form 10F can be avoided if the required information is provided in the TRC.”Usually , nationality and the tax identification number are mentioned. If the status, period of validity , and address are also mentioned on the TRC, then submitting Form 10F is not required.”

“TRCs issued by the revenue authorities of some of the popular destinations that invest substantially in India (like Mauritius and Singapore) contain the prescribed particulars. Non-resident form those countries may not be required to provide Form 10F.”

What should you do?

Non-resident taxpayers who need to use Form 10F to avail DTAA benefits should file it manually by March 31, 2023. They should use the time window provided by the tax authorities to apply for and obtain PAN.

Non-resident taxpayers may be required to substantiate information they provide in Form10F. Have the relevant documents ready in case the tax authorities demand them.

ESSENTIAL POINTS:

DTAA is a tax treaty signed between countries to help taxpayers avoid paying double taxes on the same income

It becomes applicable when an individual is a resident of one nation but earns income in another

DTAA provisions apply to income from services provided and salary received in India.

If an NRI makes use of DTAA provisions, then tax is deducted at a lower rate on the above –mentioned incomes.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 8882286639