Budget 2020 has brought about several changes in the tax structure of India. Read on to know more about how the changes proposed in this year’s budget.

Budget is one of the critical events in the country that every taxpayer pays attention to. While some want the amount in tax slabs to be increased, others wish to the interest rate to go down. Things were no different with Union Budget 2020 too. Everyone wanted to see how the finance minister will help the citizens save money. The Govt has reduced tax rates of almost every salary group. However, the new budget is only for those who can let their exemptions go. For the ones who want to claim exemptions and deductions, they can pay tax with the old rates. The Govt has allowed the citizens to pick between the old and the new income tax rate.

Here is the income tax slab 2020

• People earning up to Rs. 5 Lakh don’t have to pay any tax. If their salary goes above Rs. 5 Lakh, then their tax slab will begin from Rs. 2.5 Lakh.
• People between Rs. 2.5 Lakh and Rs. 5 Lakh must pay 10% tax.
• Salary group between Rs. 5 Lakh and Rs. 7.5 Lakh will have to pay 10% tax.
• People who are earning between Rs. 7.5 Lakh and Rs. 10 Lakh must pay 15% tax.
• Salary group between Rs. 10 Lakh and Rs. 12.5 Lakh must pay 20% tax.
• For people in salary group between Rs. 12.5 Lakh and Rs. 15 Lakh, they must pay 25% tax.
• People earning above Rs. 15 Lakh must pay 30% tax. The tax rate for this salary group is the same as it was in the old regime.

Taxpayers must pay less amount with the new regime compared to the old regime. Here is a comparison between both the regimes-

Salary	New Tax Regime	Old Tax Regime
Up to Rs. 2.5 Lakh	Nil	Nil
Rs. 2.5 Lakh to Rs. 5 Lakh	5%	5%
Rs. 5 Lakh to Rs. 7.5 Lakh	10%	20%
Rs. 7.5 Lakh to Rs. 10 Lakh	15%	20%
Rs. 10 Lakh to Rs. 12.5 Lakh	20%	30%
Rs. 12.5 Lakh to Rs. 15 Lakh	25%	30%
Above Rs. 15 Lakh	30%	30%

However, the new income tax slab rate is only for those who will leave their exemptions. If people want to claim exemptions, then they can pick the old tax regime.

Here are some exemptions that are left out in the Union Budget 2020

• House Rent Allowance
• Housing Loan Interest
• Standard Deduction of Rs. 50,000
• Section 80C Deduction of Rs. 1.5 Lakh
• Leave Travel Allowance
• Medical Insurance
• NPS Contribution Deduction of Rs. 50,000
• Savings Bank Interest under Section 80TTB of Rs. 75,000
• Education Loan Interest
• Disability Deduction of Rs. 75,000 to Rs. 1.25 Lakh

The Govt has allowed some exemptions that can still be claimed

• Standard Deduction on Rent
• Life Insurance’s Income
• Leave Encashment on Retirement

The income tax exemption was different for three age categories in the old regime. However, it is the same for every age category in the new regime. The exemption limit was Rs. 2.5 Lakh for people below 60 years of age in the old regime. It was Rs. 3 Lakh for people between 60 to 80 years of age. For people above 80 years of age, it was Rs. 5 Lakh. In the new regime, the amount is Rs. 2.5 Lakh for every person.

 

According to Oxfam, 30.4 million South African’s live in poverty. Although the Rainbow Nation has long fought to achieve equality, the country still faces a great wealth divide. Black African women are particularly affected by this wealth gap, with 49.2% reported to be living below the poverty line in 2015.

South Africa’s unemployment rate is another factor affecting personal finance in the country. Currently standing at 26.7% of working adults, unemployment is a particular issue for South African youth, 55.2% of whom are not currently in work.

Amidst these – and many other hot button issues – a fight for financial inclusion is taking place. Supporting citizens to become informed about finance and access financial services is now the goal of many charitable organisations, government schemes and corporate outreach initiatives. Although increasing financial inclusion does not directly alleviate the problem of poverty, or increase job opportunities, this approach may empower consumers to make more informed decisions regarding their personal finances.

This empowerment may have many benefits. Consumers with enhanced financial literacy are less likely to fall prey to scams, or choose inappropriate financial products. By ensuring all South Africans have the tools they need to access and accurately evaluate financial services, the country may help individuals escape potential poverty traps.

Access to finance products

Financial education and access to financial services are the two cornerstones of financial inclusion. Across the 1.2 million km squared nation, many of the most financially vulnerable live in areas where services are less accessible. From basic current accounts, to access to regulated loan products, 11 million South Africans are currently unbanked or underbanked.

Technology is rapidly transforming this picture. 4G is now available across the majority of the country, and 80% of the population are believed to have access to smartphones. These figures will continue to rise, gradually reaching the poorest and most isolated communities, where access to digital financial services could at last provide people with convenient access to banking products.

Although South Africa’s “Big Five” traditional banks currently dominate financial services, a raft of new digital services are now entering the market, including short-term loan providers ‘Wonga’ and new digital bank ‘Bank Zero’, supporting remote access to financial products.

Boosting financial education

As financial products become more accessible, formerly financially naive consumers require financial education to ensure responsible use of such services. With 0.4% of all financial service companies’ after tax net profits going towards consumer financial education (in line with the Financial Sector Code), increasing funding is available to support South Africans in becoming informed consumers. In 2018, spending on financial education for consumers totalled an impressive R153 million.

But is increasing access and education paying off? The coming years will be critical in assessing the effects of burgeoning financial inclusion upon the South African population. If positive results are to ensue, education and access must come hand in hand, to ensure new communities have the appropriate skills to benefit from fresh access to services.

 

When it comes to businesses, loans are generally used to help achieve goals or even start up a business. A loan is a monetary amount that can help businesses by producing essential cash flow. Loans, in the traditional sense, are taken out by companies when they fall short on a payable amount for business necessities. This includes taking our loans for working capital, equipment purchase, or research and development purposes. Business can have different levels of cash flow necessity and therefore, needs for different kinds of loans.

What is the Difference Between Long and Short-Term Loans?

To put it simply, a long-term business loan is, as the name suggests, a loan that is made for a more extended time period. Long-term business loans usually include a large amount of information and data about your business, its plans, and past, current, and future financial plans. A lot of detail goes into accessing long-term loans as the creditor can be at risk for inserting their money into a business. However, this type of loan can be necessary for businesses planning significant changes or extensions. Long-term loans usually have long payback periods. Multi-year payback periods can last for a very long time; sometimes it can take decades to pay back these loans. While the interest rate on long-term loans is less than short-term ones, the interest ends up being higher due to them longer payback period.

A short-term business loan, on the other hand, may have a higher interest rate for payback periods, but ends up being much quicker and less costly to pay back than a long-term loan. Short-term business loans are generally much easier to secure. They are designed for quick access to short bursts of financial aid, especially geared towards small businesses. They pay off period for a short-term business loan is generally from one to five years. It can be paid off in a lump sum, or installments, depending on the contract and payable amount.

What is the Purpose of a Short-Term Business Loan?

A short-term business loan is helpful in a variety of cases. A short-term business loan can be taken out when a business needs a large amount of money for a short period. A short-term loan can come in handy in case of an emergency, or an unexpected event. For example, a short-term business loan can help in purchasing inventory for a holiday period for a bakery. They will be able to stock up on supplies and raw materials which they can then use to create the materials required to sell. Buying and stocking inventory when they know demand is about to rise benefits the small business substantially. This is mainly an important example as it shows that business expected a demand increase and prepared for it. In turn, they will be able to create a larger than usual profit and pay off the short-term business loan easily after the holiday season.

Another example of a short-term loan during the holiday season, or for special occasions is giving employee bonuses. Businesses, whether big or small, tend to give out holiday bonuses, which can be a great source of motivation and morale for employees. During this time, it is possible that a business may not have enough funds to give all the employees their deserved bonuses. In this case, a business can take a short-term business loan which they can then pay off as the company received cash flow.

How can you get a Short-Term Business Loan?

A short-term business loan is quite easy to source. The lender or creditor will require details for your business, which can range from the profit and losses statement to employee payrolls. The loaner will need to know the borrower’s loan history, including:

• How long it took to pay back previous loans
• Any current outstanding loans
• Complete details of all previous loans

Will you be able to get a Short-Term Business Loan for a Start-Up?

Short-term business loans are much less riskier than long-term business loans, and start-ups have an easier time qualifying for them. Usually, the requirements for a short-term business loan for a start up will include financial statements for the period of the loan, projected cash flow statements, employee records and details of salaries, overhead and rent expenses, etc. The creditor may ask for collateral, which can range from the business owner’s possessions to the business itself.

What About Interest Rates?

Interest rates for short-term business loans can seem hefty. However, they end up being much lower than with any other kind of loan. The higher interest rates are a small price to pay for an easy alternative for a loan. Even though the interest for a short-term business loan is high, the high repayment can be avoided by paying off the short business loan as soon as possible.

Overall, the process for a short-term business loan is much quicker and easier than its alternatives. The time it takes to receive a short-term business loan is comparatively faster than any other type of loan. Even the repayment schedule is on your terms and can be paid back in as little as one month! This can drastically cut down the interest payable on your loan repayment! However, this may be difficult for some businesses as the loan repayment schedule is usually spaced closer together than with other repayments, making the frequency of repayments higher.

Before opting for any business loan, it is imperative that you thoroughly research what the best option for your business is. There are many different loan options but if you are looking for short-term business loans, be sure you find the right place to get one!

 

 

Did you know that you can bet on many great online gambling sites from Canada? Many of them even accept Interac, so you can just pay in a flash. However, if you are looking for other banking methods, do not worry. If you have identified your best casino gambling site in the country, here are some of the other safe banking methods you can use.

#1. Instadebit.

As soon as you set up your new online gambling account, you can transfer your funds through Instadebit. It is fast, and there are no transaction fees which are incurred. You will only click on the Instadebit logo on your account, and you can top up your account. Instadebit uses the latest technology of SSI, which ensures that your funds are secure.

Also, after signing up with them, you need to write down your bank details when you fill in your application form. Instadebit is easy to use, and is popular among many Canadians.

#2. UseMyBank

UseMyBank is an accessible mode of banking payment for Canadian online gamblers. If you love to play poker, then it is an ideal option. Using this form of payment is easy because you will only require to provide your bank details.

Also, you will provide your current telephone number and email address. Do note that all the details you give out to UseMyBank should be valid. Transferring funds is simple because you will only click on the logo of UseMyBank on your online casino account. However, there is no withdrawing option with this method.

#3. Click2Pay

The Click2Pay option is a prevalent banking method in some of the world’s leading online casinos. Once you provide details to Click2apay account, you can deposit funds to your online casino account. Also, you can track your activity by checking the account’s history.

#4. Credit Cards.

For a long time, Credit cards have always been the number one option for most Canadian online gamblers. Most of the online casinos accept credit cards such as Visa and MasterCard to deposit or withdraw funds. The process is quite easy because you will enter your card details once instead of having to enter them every time you want to transact.

The charges for credit cards are relatively small compared to other options. On your cashier online casino account, you will get the credit card option, and you can check if your credit card is a viable payment or not.

#4. Ukash

Ukash is a banking option that uses a prepaid card for a large number of Canadian online gamblers. The cards are available online. You can purchase the card online, and 19 digits unique number will be sent to you via SMS. That number will be your identification number. Ukash is similar to Paysafecards, and you have the option to choose your denominations from as low as CA$10. The best part is that there is no limit to the number of Ukash cards which you can have.

Which of these banking methods have you already used?

To read more on topics like this, check out the money category

Summer is the easiest season to reason with somebody as to why they went on a two- to three-month-long overspending campaign right when warmer weather started coming around earlier this year. According to a survey from ING, the general public also believes that they are more likely to spend more money throughout summer than any other season. So, it’s understandable why you overspent. Here are five ways for you to reset your finances and get back to normal.

Bring Credit Card Utilization Ratios Down

Every credit card has an upper balance past which customers can’t spend any more than. When people max out their credit cards, their credit scores take a hit due to the increase in credit card utilization ratio. You should not have more than 30 per cent of your maximum credit card balance taken out at any time, as doing so substantially lowers your credit score. Thirty per cent is an ideal ratio if you’re looking to build a credit history, by the way.

See If Your Credit Report Is Correct

Since you spent too much these past few months, you might not have noticed unauthorized transactions wedged between all the ones you made on your spending sprees. As such, get a copy of your credit report – if not three copies from each of the three major credit bureaus – and see if any debts do not appear to be accurate. You may find that one or more debt accounts were charged against you by mistake.

Set Up an Appointment With a Personal Finance Guru

One of the best ways to learn about succeeding in personal finance is to get individualized help from a personal finance advisor, analyst, or else-wise-named professional. The personal finance pro could help you see mistakes that you’re currently making that you had no idea were even bad ideas in the slightest.

Most city governments across the country offer free credit and personal finance counselling services. As such, you may be able to find such services where you live instead of having to fork over money for them.

Start Cutting Your Balances Down Immediately

If you don’t have any balance on any of your debt accounts, you will soon end up having a non-existent credit report. While this can be used to some people’s advantage, you should be crazy about obtaining a great credit score. The single most important factor in the calculation of people’s FICO scores, also known as their credit scores, is how much money they owe to creditors.

Don’t Apply for New Forms of Credit or Debt

Taking out short-term loans or money on lines of credit or credit cards is often a bad idea because they come with high-interest rates. Credit agencies reason that if people are scrambling to get their hands on loaned assets from multiple potential sources, they’re almost certainly going to make a bad decision with whatever money or valuable assets that they get their hands on.