How to Calculate Income Tax on Salary?

It is a pleasant feeling to get paid toward the finish of consistently for all the exertion you put in your work, yet aren't you disillusioned when the business deducts higher assessment? So how would you stay away from the high assessment finding from your pay?

Any pay gotten by a representative is saddled under the head Income from Salaries. It is just asses sable when a business representative relationship exists. The principal thing one has to know is the pay section they fall under. At that point the worker needs to present their announcement about their proposed speculations so that the business can think about them before deducting the wage impose from the representative's compensation. By pronouncing the duties ahead of time you don't need to experience the extensive procedure of filing for discounts from the Income Tax Department.

Pay incorporates your Gross pay, Provident Fund, Insurance, Leave pay, Gratuity, Employee State protection and Labor Welfare Fund.

Net Salary: 
Net pay is the entirety of Basic pay + Dearness stipend + House Rent Allowance + transport remittance + unique recompense + other recompense.

You can contribute under the Section 80C to a most extreme of Rs.1,50,000. Or, on the other hand on the off chance that you are in a higher assessment section, you can spare Rs.45,000 in expense.

You can make the interest in Provident Fund, Life Insurance Premium, Equity Linked Savings Scheme, Home Loan regularly scheduled payment, National Savings Certificate, Infrastructure Bond, Pension Funds, Tuition expenses and Unit Linked Insurance Plan.

Under Section 80D, you can assert Rs.25,000 as medicinal costs and Rs.30,000 can be guaranteed by senior nationals.

The conclusions on House Rent Allowance is the slightest of the accompanying: 

1. Either the real HRA sum. 
2. 50% of your essential pay if the worker is living in metro and 40% if the representative is living in a non-metro territory. 
3. Additional lease paid over 10% of his pay. 

While you have your very own place, you can't guarantee findings for Home credit intrigue installment and lease. However, a few people do guarantee both while they are living in their own homes. In the event that they are remaining with their folks, they demonstrate that they are paying rent to their folks and claim the HRA. The other case is the point at which you have your own particular house, however you remain in a leased convenience, as the work environment is a long way from your home. You can then claim HRA and also conclusion for the home credit intrigue installment.

Findings on Income from Salary 
The findings on Income from Salary falls under the Section 16 of the Income Tax Act. The reasonings are:

1. Entertainment Allowance under Section 16(ii): Deduction is permitted by method for excitement stipend given by a business. This finding is accessible just for the Government workers. The derivation is either the 1/fifth of compensation without including the advantages or perquisites or different recompenses or Rs.5,000, whichever is lesser. The non-government workers can't profit this reasoning. 
2. Tax on Employment under Section 16(iii): The Professional Tax is permitted as a finding while at the same time processing salary from compensations.

How to Convert B Khata to A Khata?

B Khata Property

  

In a country like India where land is top rate, owning a belongings is possibly the final intention for thousands and thousands. it's miles honest to mention that property transactions may be a murky affair, regularly changing lives, either for better or for worse. simple mistakes throughout property transactions can be disastrous, with instances of fraudulent purchases in the information every different day. in this context it'd be vital to recognise about the “Khata” machine which is observed in parts of our us of a. buying a belongings does no longer bring in the stop of approaches associated with it, as property tax bureaucracy an important a part of after-purchase “offerings”.

What's a Khata?

A Khata is a sales file containing the assessment for a property, specially with regards to its tax implications. it's far an identification which provides information about the belongings, which includes its vicinity, length, constructed location, and so on. It signifies that a assets owner is paying the important assets tax to the worried authority.

History of B Khata:-

The history of B Khata may be traced returned to 2007, while Bengaluru become reorganised into its present civic body, the Bruhat Bengaluru Mahanagara Palike. 7 city Municipal Councils which include Bommanahalli, Dasarahalli, Mahadevapura, Krishnarajapuram, Raja Rajeshwari Nagar, Yelahanka and Byatarayanapura were merged with the town Municipal Council of Kengeri and 110 villages to shape BBMP. post this reorganisation a brand new and uniform belongings taxation system became carried out and homes which did no longer have approval of the organization however still persisted to experience facilities were classified as B Khata homes.

In essence these were homes which were unauthorised and which did not pay any property tax. An acknowledgement become issued to these residences submit an modification to the legal guidelines and they came to be termed as B Khata.

What's B Khata ?

B Khata certificate are given to any property which does now not fall beneath BBMP jurisdiction. Such residences are unauthorized however receive all of the facilities furnished with the aid of the civic organizations. B Khatas are not considered as valid Khata extracts and proprietors will not get the identical advantages as A Khata residences.

B Khatas had been historically issued in the following instances.

1. If the assets is part of an unauthorized layout.
2. If the property is on sales land sans DC conversion.
3. If a property doesn’t have a legitimate Occupancy certificate.
   
   

Significance of Khata:-

Khatas are extremely essential documents associated with assets, the blessings of that are mentioned under.

1. mortgage approvals – Banks do not approve domestic or land loans for homes which do now not have a legitimate Khata. A legitimate Khata is an crucial prerequisite with a view to acquire a mortgage towards assets.
2. Civic services - A valid Khata allows property owners to apply for primary civic services like water connection, electricity supply or cellphone connection.
3. License – All commercial institutions want to have a legitimate Khata to be able to attain a industrial license.
4. building license – A valid Khata is vital before a assets owner receives license to assemble a constructing.
5. Sale – A Khata reflects the tax history of a assets, supporting shoppers gauge their buy.
6. homes which have B Khata aren't entitled to licences or loans but can offer temporary answers to buy land, even though buildings aren't allowed on such lands/residences.
   
   
   
   

How to Convert B Khata to A Khata?

property proprietors who want to transform their B Khata residences into a Khata homes need to comply with three easy steps.

1. Request for DC conversion in their belongings, i.e. it should be changed from agricultural use to non-agricultural use through the District Commissioner.
2. make sure that all assets taxes are paid till date without any dues.
3. Pay betterment fees. A betterment price wishes to be paid to the civic authority for the services in place.
4. The concerned civic authority might convert the B Khata to A Khata once those duties are done, furnished the documents are in vicinity.

B Khata Loans In Bangalore: Understanding the Khata and difference between A K...

B Khata Loans In Bangalore: Understanding the Khata and difference between A K...: What is a khata?  A Khata is basically an income report, specifying the appraisal of a property, recording insights about the property, fo...

Understanding the Khata and difference between A Khata and B Khata

What is a khata? 
A Khata is basically an income report, specifying the appraisal of a property, recording insights about the property, for example, estimate, area, developed region et cetera with the end goal of installment of property assessment.

It is likewise a sort of distinguishing proof of the individual who is essentially at risk for installment of property assessment. It is one of the required records on the off chance that you require a building permit, exchange permit or credit from banks or whatever other money related foundations.

What is the distinction between an A Khata and B Khata? 
What any property purchaser ought to know while purchasing property in Bangalore is that it ought to have A khata.

An A khata implies you are purchasing a property that is legitimate, and it will enable you to develop on it and acquire an exchange or building permit. Here are some further subtle elements on the distinction between A Khata and B Khata.

At that point how did the term B Khata appeared? 
Well in 2007 when BBMP appeared 2 things were clear:

1) There were numerous properties that fell under its purview that were illicit developments

2) There was a requirement for a uniform tax collection strategy

Concerning previous the BBMP found that these unlawful developments were appreciating municipal comforts without paying charges. While with respect to the last mentioned, there was a need to unite the assessment gathering procedure to make it less complex which was before gathered by 3 unique bodies.

Presently, the recently shaped BBMP had the ability to collect duties on the previously mentioned illicit developments. The assessments gathered from these properties were recorded in an enroll referred to in like manner speech as B enlist and the khata issued in that was known as a B khata.

Along these lines anybody having a B khatha basically is a non BBMP affirmed development. Consequently it is not fitting to purchase such properties.

In any case, it is not out of the question to say that any B khata property can be changed over into an A khata property.

Readmore

www.bkhataloans.com

Home Construction Loan

Home Construction Loan

 Features and Benefits

 A Home Construction Loan is essentially a short-term loan that is given to people who are constructing a building over an empty plot of land. These loans are unique in the sense that your entire loan amount is not disbursed in one go. Depending on the stage of construction, you place draw requests with your lender who then releases the required funds. You pay interest only on the money that you use and not on the total loan amount.

 Instant approvals

 When you’re applying for a house building loan, you can’t spend time waiting for your loan to be approved. With Bajaj Finserv, you can apply for a Home Construction Loan and have it approved within 5 minutes!

Fast disbursal

 We don’t make you wait for weeks to disburse your loan amount. All loan disbursals happen in 72 hours or less. All your draw requests will be processed swiftly and on time. 

Low Interest Rates

 Thinking about what construction loan rates are like? At Bajaj Finserv, we offer extremely low construction loan interest rates to all our customers. You can determine your EMI amounts easily by using our construction loan calculator.

 Online account access 

 Get unfettered access to your loan amount online no matter where you are. Just log in to your online account to check your payment schedule, interest certificate, track repayments, and view key information related to your loans through our digital customer portal.

 Eligibility and Documents for Home Construction Loan

 Our Home Construction Loan has been designed for salaried professionals looking to build their homes across top cities in India. We have a set of very basic eligibility criteria and minimal documentation requirements. Here is the complete list of requirements for Home Construction Loan eligibility.

 Home Construction Loan: Fees and Charges 

 We understand how important it is to save money when you move into a new home. For this very reason, we offer nil prepayment and foreclosure charges if you’d like to clear your debts before the tenure is over. For information on processing fees, the rate of interest and other charges, please visit the link provided to get a better understanding. of Home Construction Loan charges and interest rates.

Readmore

www.bkhataloans.com

When Should I Refinance My Mortgage Loan?

When Should I Refinance My Mortgage Loan?

 Refinancing your mortgage can be a money-saving move, but not in every situation. Since there are costs associated with all refinances, sometimes getting a lower interest rate can actually be more expensive than keeping your current loan. Plus, sifting through all those lender offers can be overwhelming and even misleading. 

 So how do you determine if a refinance is right for you? First, you need to understand how refinancing works. Then, consider your financial situation and what you want to accomplish with a refinance. Finally, take a look at loans you’re eligible for in the context of your long-term financial goals. 

 The factors below detail this process and will help you make an informed decision when it comes to whether or not to refinance your current mortgage.

 Factors to Consider Before Refinancing 

Consider the following to get a sense of how likely a refinance is to help you, if you’re eligible for one, and how to go about structuring it:

 1. Current Interest Rate 

Simply put, if you can get into a lower rate mortgage, a refinance is worth looking into. That said, consider how long it will take you to recoup closing costs. 

For example, if you paid $2,000 to refinance your mortgage to a lower rate and your payment dropped by $150 per month, it will probably take you just over a year to break even. Generally, at least a half point to a full point reduction in the interest rate will save you enough money to cancel out the closing costs within a few years.

 2. Jumbo Loan

 If your initial mortgage was a “jumbo loan,” but you have since paid down the balance to less than $417,000, you may be able to get a “regular” refinance. In other words, there’s a good chance you’ll qualify for a lower interest rate even if rates in general have not gone down significantly.

 3. Closing Costs 

Since every mortgage, including a refinance, has fees associated with it, you need to understand how you’ll be paying them and if even it makes sense for your situation.

 For example, in a “no cost” mortgage, you are either tacking the fees onto the loan balance or accepting a higher interest rate to cover those fees. If you can afford it, you’ll save money over the long-term by paying the fees out-of-pocket. However, if you can’t afford it and plan to stay in your house for a while, adding the fees to your loan balance is likely to work out better than accepting a higher interest rate. But if you expect to move over the next few years, accepting the higher interest rate will be more advantageous.

 Consider your whole financial picture when determining whether or not to finance your closing costs. For example, if you have high interest credit card debt, but have cash on hand to afford the closing costs, it might make sense to pay off the high interest debt and finance the closing costs instead. Then, you can direct the payments that would’ve gone to your credit card to your home loan. In this way, you could pay off the closing costs faster than you could have paid off the same amount of credit card debt. 

 4. Mortgage Prepayment Penalty 

Some mortgage brokers and banks offer loans that have a mortgage prepayment penalty. While a loan with a prepayment penalty usually has lower fees or a better rate, if you pay the loan off early, you’ll owe a fee which can be steep. The penalty is in place for a set period of time and can sometimes go down with time. But if you want to refinance your mortgage before the prepayment penalty expires, you’ll have to pay the penalty, which can ultimately make refinancing more expensive than it’s worth.

 5. Length of Time You Stay in the Home

 This is important in the context of closing costs and especially if you’ll consider a new loan with a prepayment penalty. When it comes to closing costs, you want to make sure you recoup the expense before you move.

 For example, if you paid $2,000 in closing costs and you now pay $100 less in interest each month, it will take 20 months before you actually break even and start seeing real savings. If you financed those closing costs by adding them onto the loan balance, it will take even longer. 

 If you aren’t planning to be in your home for at least two years, it’s probably not worth refinancing at all – unless, perhaps, you refinance from a very high rate to a much lower one, or if you trade out-of-pocket closing costs for a higher interest rate that is still lower than your original mortgage rate. 

 If you’re entertaining the idea of tacking a prepayment penalty onto your new loan to get a lower rate, you should be committed to staying in your home through the prepayment penalty period, which could be as long as five years or more. 

 6. Your Credit Score 

If your credit has improved since you got your original mortgage, you may now qualify for a lower rate. Check your credit report before you begin the process to confirm whether or not this is the case. Often, a few years of timely mortgage payments will improve your score such that you qualify for a lower interest rate.

 Also, compare your debt and income now to what it was when you took out the original mortgage as banks generally require that your debt to income ratio fall below 36%. If you’ve since accumulated significant debt or if your income has declined, you may not qualify for a lower rate or a refinance at all in spite of stellar credit.

 7. Amount of Equity in Your Home 

Most lenders want to see some amount of equity in order to qualify you for a loan. Generally speaking, the more equity in your home, the easier it will be to refinance. A minimum of 20% is ideal, but you may still be eligible for a refinance even if you have less, such as 10%. However, the terms may not be as favourable. 

 To refinance with low or no equity, see the “Special Situations” section below. 

 8. Adjustable-Rate or Balloon Mortgage

 Most people who have an adjustable-rate mortgage or a balloon payment mortgage count on refinancing at some point if they plan to stay in their home. Since refinancing can take a while, give yourself enough time to apply and get approved before your rate adjusts or your balloon payment comes due. Double-check your loan documents to make sure you know exactly when this date is and plan ahead. 

 9. Loan Term

 Many people refinance into a new 30-year mortgage over and over, and never get closer to the goal of owning their home outright. Since interest makes up the large majority of your payments in the first ten to fifteen years, you will pay a lot more in interest if you keep resetting the clock.

 Therefore, it’s generally a good idea to request a loan term as long as the number of years remaining on your original mortgage, as long as you can afford it. This allows you to pay off your mortgage according to the original schedule, while still reducing your rate. You can even refinance into a shorter term, which may raise your payment, but could get you an even better rate and set you up to pay the loan off sooner. 

 Remember, don’t focus on the monthly payment to the exclusion of the loan’s term, your rate, and closing costs. For example, some unscrupulous mortgage broker may show you a loan with a lower payment that actually has a 30-year term, high expenses, and a rate that isn’t much lower than the rate on your current mortgage. 

 10. People Listed on the Refinanced Mortgage

 Generally, if you’re trying to add or remove someone from a mortgage, such as after a marriage or divorce, the lender will require you to refinance. This is done to determine whether or not the other person will qualify, or if you will qualify alone. However, you may be able to work something out with the mortgage lender in order to accomplish your goal without going through a full refinance. This is especially true if the person who will have been on both mortgages can qualify for the mortgage by themselves.

 11. Second Mortgage or Home Equity Loan 

If you have a second mortgage, a home equity loan, or a home equity line of credit (HELOC), you may be able to save a lot of money by refinancing that into your primary mortgage. To determine if you can, add up all your home loans together. If your home’s current value exceeds the value of the loans, you may be able to refinance your loans into one. In this way, you’ll pay one low rate on the entire amount instead of one low rate on your primary mortgage and a higher one on the second.

                                      Readmore

                           www.bkhataloans.com

Construction Loan for Bkhata Sites in Bangalore

What Is a Construction Loan?

A construction loan is often a short-run loan accustomed purchase the value of building a home. it should be offered for a group term (usually around a year) to permit you the time to make your home. At the tip of the development method, once the home is done, you'll have to be compelled to get a replacement loan to pay off the development loan – this is often generally known as the “end loan.” 

Qualifying for a Construction Loan

Banks and mortgage lenders area unit usually suspicious of construction loans for several reasons. One major issue is that you just have to be compelled to place plenty of trust within the builder. The bank or investor is loaning cash for one thing that's to be created, with the belief that it'll have an exact worth once it's finished. If things fail – as an example, if the builder will a poor job or if property values fall – then it might prove that the bank has created a nasty investment which the property isn’t value the maximum amount because the loan. To try to shield themselves from this problematic outcome, banks usually impose strict qualifying necessities for a construction loan. These sometimes embody the subsequent provisions: 

 A Qualified Builder should Be concerned. a certified builder may be a authorised general contractor with a longtime name for building quality homes. this implies that you just might have associate particularly-exhausting time finding an establishment to finance your project if you're desiring to act as your own general contractor, or if you're concerned in associate owner/builder scenario. 

The investor desires elaborated Specifications. This includes floor plans, in addition as details concerning the materials that area unit getting to be employed in the house. Builders usually place along a comprehensive list of all details (sometimes known as the “blue book”); details typically embody everything from ceiling heights to the kind of home insulation to be used.

The Home worth should Be calculable by associate Appraiser. Although it can seem difficult to appraise something that doesn’t exist, the lender must have an appraiser consider the blue book and specs of the house, as well as the value of the land that the home is being built on. These calculations are then compared to other similar houses with similar locations, similar features, and similar size. These other houses are called “comps,” and an appraised value is determined based on the comps. 

You Will Need to Put Down a Large Down Payment. Typically, 20% is the minimum you need to put down for a construction loan – some lenders require as much as 25% down. This ensures that you are invested in the project and won’t just walk away if things go wrong. This also protects the bank or lender in case the house doesn’t turn out to be worth as much as they expected.

 Providing that you meet all these criteria and have good credit, you should be able to qualify for a construction loan. Generally, lenders also require information regarding your income (to be sure you can afford the mortgage payments) and your current home, just as they would with any type of standard mortgage loan.

 How Construction Loans Work 

Once you have qualified for and been approved for a construction loan, the lender begins paying out the money they agreed to loan to you. However, they are not just going to give the builder the cash all at once. Instead, a schedule of draws is set up. 

 Draws 

 Draws are designated intervals at which the builder can receive the funds to continue with the project. There may be several draws throughout the duration of the build. For instance, the builder may get the first 10% when the loan closes, and the next 10% after the lot is cleared and the foundation is poured. The next influx of money may come after the house is framed, and then the subsequent payout after the house is under roof and sealed up. 

The number of draws and the amount of each is negotiated between the builder, the buyer, and the bank. Typically, the first draw comes from the buyer’s down payment (so it is the buyer’s money most at risk). It is also common for the bank to require an inspection at each stage before releasing the money to the builder. This helps to ensure that everything is on track and that the money is being spent as it should. 

Once all the draws have been paid out and the home is built, the buyer then needs to get the end loan in order to pay off the construction loan.

 The Construction Loan Rate 

 With a construction loan, as with all other loans, you must pay interest on the money you borrow. Typically, construction loans are variable rate loans, and the rate is set at a “spread” to the prime rate. Essentially, this means that the interest rate is equal to prime plus a certain amount. If the prime rate is 3%, for example, and your rate is prime-plus-one, then you would pay a 4% interest rate (which would adjust as the prime rate changes). 

In many cases, construction loans are also set up as interest-only loans. This means you only pay interest on the money you have borrowed instead of paying down any part of the principle loan balance. This makes payment of construction loans more feasible. 

 You also pay only on the amount that has been paid out already. For instance, if you are borrowing $100,000, and only the first $10,000 has been paid out, you pay interest only on the first $10,000 and not on the full $100,000. You need to make monthly payments for this loan – just as with a conventional loan – so your monthly payments should start low when only a small amount has been borrowed, and gradually increase as more of the money is paid out to your builder.  

Disadvantages 

Construction loans make it possible to build a home when you might otherwise be unable to do so. Building a home can be a great experience if you want to design something unique or specific to your needs and the needs of your family. However, there is also significantly greater risk when procuring construction loans than just purchasing an existing home.

 Some of the potential risks include : 

 The Home Will Not Be Completed on Schedule and on Budget. If your house is not completed according to schedule, you may have to pay additional costs for rental accommodations, or pay two mortgages for longer than expected since you won’t be able to move in. In some cases, the final payment on your construction loan will become due and you will have to pay a fee to extend that loan – at least, until the house is finished and you are able to refinance into an end loan.

When Finished, the Home Will Not Be Worth at Least as Much as It Cost to Build. You could encounter this unfortunate situation if the builder does a poor job, or if the overall housing market plummets. during this case, you need to come back up with further money once it comes time to finance the development loan into associate finish loan.

 You Will Be Unable to Qualify for associate finish Loan. If your financial gain or credit drastically changes, you'll be unable to qualify for associate finish loan – and this could produce a big drawback, as construction loans don't seem to be meant to be permanent. once the project is completed, the balance must be paid off. it's primarily a balloon mortgage, which suggests you pay interest throughout the project, with the complete balance due at the tip. If you can’t finance to pay off that entire balance – and also the investor refuses to increase the development loan to permit you to finance somehow – you'll find yourself losing the new home to proceeding if you can’t create the payment.

Readmore

www.bkhataloans.com