The Social Benefits of Tax Exemption in India

There is a compassionate part hidden among all of us. And, the thought of getting out there and doing something for the society also must have crossed our minds many times. But, how often have we actually gone ahead and done it? We get so caught up in our daily humdrum that our benevolence takes a backseat. But, as they say, ‘where there is a will, there is a way.’ So, one of the many ways that can provide you a platform to actively participate in social causes is to engage with a charity. Every charity works towards benefitting, uplifting, and sustaining the society by encompassing factors related to social, legal, environment, ecology, health, economy, education, welfare, and the like. The cause of each non-governmental organisation directly or indirectly reflects the broader perspectives of global organisations such as the UN, UNESCO, WHO, ILO etc. Since charities work at the ground zero level of the society; their involvement with a cause brings about a more sustainable outcome. Hence, when you get involved with a non-governmental organisation it provides you an avenue to constructively participate in a cause.

In view of the significant role of charities and to encourage participation of individuals and businesses in various causes, the Government of India has made the provision of tax exemption in India for all charitable donations. Yes, as per Section 80G of the Income Tax Act, contributing donations to a registered charitable trust can avail the donor 100% or 50% exemption on the donated amount based upon the type of charitable trust and the clauses of the Income Tax Act. The exemption is applicable for both online donation and offline donation. However, due to ease and convenience, many donors have started taking the online mode of contributing charity. And, since non-governmental organisations understand the worth of each penny, the donor can be rest assured that their money is being utilised in the right way. Hence, considering this form of tax exemption is quite a noble way to contribute towards the society.

Let’s take a couple of instances, if a donor identifies with an environmental cause such as afforestation and contributes towards Save Green, then his taxable income will be utilised towards increasing green cover and initiating several environment-friendly programmes. Similarly, if a donor identifies with child education and nutrition, then contributes towards TAPF, a non-governmental organisation in India. So, essentially you are contributing towards a healthier and educated society. And, you are also being a catalyst in nation-building.

Well, as you can decipher from the above-mentioned instances, your taxable income has the potential to transform the society in many different ways. Hence, don’t you think making an online donations or offline donations to charities can make the most of the tax exemption in India to upkeep your benevolence, save your hard-earned money while also partaking to uplift the society?

Some of the Biggest Mistakes When Looking For a Motorcycle Loan

The Essentials in deciding On Motorcycle Loan.

Sometimes the necessity or excitement of owning a motorcycle cast a bad spell on our buying decisions, especially when the purchase form is a loan. So, before making that impulsive mistake only to regret later consider these essential factors when deciding to apply for a motorcycle loan.

Interest Rates:

The moment you think of a loan, the interest rate coupled with it should ring a bell. Most often attract interest rates over shadow the risk factors involved. Always begin with good amount of research and comparison of interest rates. You do not want the burden of high interest rates steal the joy of riding your new bike!

Smart negotiation:

When you are about to make a purchase decision, do not merely focus on the form of payment and negotiate on how you intend to go about it. A smart negotiation effort would include, negotiating on the payment. Payment always precedes the payment method!

Loan Inclusions:

Discuss with the lender all the accessories that the loan is inclusive off. You do not want to pay additional bills besides paying off your loan. The wiser discussion and decision would be to know about the inclusions and the exclusions of the loan you have applied for.

Loan security:

Always consider what is at stake should you face difficulty in paying off your loan. Some lenders hold the purchased motorcycle as the security, failing to pay will mean ceasing your bike. Some other lenders may consider other collaterals as security. Unsecured loan plans are other alternatives but comes with a high cost of increased interest rates. So, your loan security should be well thought through deliberate decisions considering all the risks involved. You do not want to risk something in vain!

Loan penalties:

Pause before you sign your loan agreement. Although knowing the details of the penalties tailed to your loan amount can be cumbersome and you want to skip through it, it may not be the best of your decision. At best, avoid signing loan agreements that come with stringent penalties. A decision in time, saves you from a future disaster!

Easy loan termination:

Most lenders allow early clearance of your loan and some do not. It is best for you to verify the termination policies before you sign that loan agreement. You do not want to pay with interest rates, while you own the money to clear a credit.

Owning a motorcycle is useful as well as exciting, but what is more important is sustaining both while using it. Using the right loan tailored to your needs is worth every effort.

What You Should Know Before Committing To A Secured Loan

The loan is secured by the lending company by way of ‘second charge’, which is a different regime compared to the main mortgage that holds the property on a ‘first charge’ basis. The latter is a legal arrangement in which the property securing the loan is registered with the Land Registry.

A homeowner loan obtained through this process can be used for anything the borrow wishes safe for illegal activities or purchases. However, second charge mortgages are usually restricted to funding home improvements or funding huge purchases such as car buying. Alternatively, second charge loans can be used to consolidate existing loans and help reduce the debt obligation of a struggling borrower.

With this arrangement, the borrower is expected to make regular monthly repayments throughout the life of the loan, which can run up to 25 years. The process of selling and administration of first charge secured loans is regulated by the Financial Conduct Authority (FCA) for a considerable length of time.

Today, second charge loans are now exclusively regulated by the FCA and are expected to conform to the same regulations, rules and procedures of ordinary mortgages. What this means is that borrowers will be expected to demonstrate that they can pay back both first charge ad second charge mortgages.

Who is Eligible for a Secured Second Charge Mortgage?

Do you have an existing secured loan(s) or mortgage loans that are currently running? Do you wish to borrow a huge amount of loan than what standard personal loans can provide? If your answers to the foregoing questions are the affirmative, then you are the right candidate for second charge mortgage loans. These loans can go up to £250,000 and are suitable for borrowers who have accumulated sufficient equity in their homes to guarantee the security needed for the loan.

What to Look for Before Taking Out a Second Charge Mortgage

There are numerous things that you need to know before taking a second charge mortgage loan. Here are some of the things to look out for:

By second charge, it means that any default can mean the lender taking you to court and instituting repossession procedures. When this happens, the first lender recoups his or her money back while the second lender gets thee remaining out of the sale of the repossessed home.

Second charge loans come with variable interest rates, meaning that borrowers need to exercise a lot of restraint, as the rates are likely to go up and down. If you have secured a loan that comes with variable rate, you are likely to suffer most if the rates go up, so it is important to assess your ability to pay before committing to this type of loan.

Debt is often perceived as the last option by most homeowners, but financial experts say it can prove to be the only way a borrower can get out of a financial problem in a short term. When you restructure your loan to increase the repayment period, you certainly lower the monthly repayments but increase the overall payment in the long term.

Compare thee Loans before Borrowing

After assessing your need for money (loan), you need to shop around for the best loans warehouse to understand the affordability and the conditions. You need to schedule an interview with various or selected loans agencies before you sign up. Remember that unsecured loans do not have interest rates similar to secured loan types. Unsecured loans have a maximum ceiling of up to £25,000 but this amount may vary from lender to lender and from borrower to borrower depending on the circumstances.

Make Your Decision

With a wide variety of loans available, it can be difficult to make a decision on which loan suits your needs. However, you need to evaluate your own situation based on income, need, outgoings and your credit scores. You may also need to consider if you have enough equity in your property and whether you need a long-term or short-term loan. Perhaps the most crucial question to ask is why you need the loan in the first place.