A home loan top up is a special facility offered by the financial organisations to the existing home loan borrowers. While some lenders limit the usage of the loan to home-related purposes, there are other financial organisations that do not have such restrictions. You can use the home loan top up facility for various personal and professional expenses like marriage, going on a vacation, debt consolidation, business expansion, etc.

If you don’t have an existing home loan with a specific lender, you can still opt for a top up facility when you avail a balance transfer and get additional funds from the new lender. The interest rate for the top up loans may be slightly higher than the traditional home loan, and it generally starts from 7% per annum. Also, the interest rate for women is usually lower than the interest rate for men.

What are the benefits of applying for a home loan top up?

•         If you are facing a cash crunch or you need additional funds for buying a bigger home or for home renovation, applying for a home loan top up is a better alternative than personal loan as the interest rates are much lower. Affordable interest rate automatically translates to affordable EMI and the repayment becomes much easier.
•         You can use the home loan top up amount for a variety of purposes. You can use it for home renovation, home extension, business expansion, etc. Depending on the lender, you can use the amount for personal expenses.
•         Another significant advantage of applying for a home loan top up is that the approval process is faster, and it requires minimal documentation. This is especially true if you avail of the loan with your existing lender.
•         Just like home loan, you can avail of tax benefits on home renovation if you use the amount for home construction or renovation.

Tax Benefits on top up home loan

You can claim tax benefit on home loan top up if you use the amount for specific purposes. The maximum deduction you can claim is up to Rs. 30,000 for a self-occupied home. If you are using the amount for renovation, repairs, or extension of the property that you have let out on rent, there is no limit on tax deduction. However, in both the cases, the tax deductions come under the overall limit of Rs. 2 lakhs per year that is available on the interest component of home loan.

If you avail home loan top up for home construction, you can avail tax benefit on both the interest and the principal component subject to the limit prescribed under Section 80C and Section 24(b) of the Indian Income Tax Act.

What are the eligibility criteria for availing home loans top up?

The criteria for home loan top up vary from lender to lender. But mostly lenders have the following requirements:

•         You must be aged between 21-65 years
•         You must be a self-employed professional or a salaried employee with a regular income source
•         You must be a resident Indian

What is the maximum amount you can borrow and what is the maximum repayment term?

The maximum amount you can borrow is generally limited to the original home loan amount sanctioned to you or up to Rs. 50 lakhs, whichever is lower. Also, you can apply for a top up loan only after 12 months after disbursement of the existing home loan.

Most lenders in India allow you to repay the top up loan over a longer period up to 15 years. But it greatly depends on the lender’s assessment of your financial profile, age, etc.

Final Word

Home loan top up is an excellent facility that allows you to get additional funds for your requirements. So, make the best use of it but be aware of its various requirements and implications before you apply for the loan.

ESG investing — that is, investing in companies with strong environmental, social, and governance profiles — is among the most talked-about subjects in company board meetings and among investors.

Explaining What ESG Means

Thousands of investors consider a company’s ethics and environmental impact before investing. In terms of the work environment and the company’s overall goals, social and governance considerations are more important to these investors. When it comes to determining whether or not to invest their hard-earned money in a firm, these factors are equally as significant to some investors as financial aspects. ESG investment entails taking into account a company’s strategies and progress in the following areas:

• Environmental: Future investors are interested in learning what actions companies are taking to protect the Earth’s resources while continuing to operate in a sustainable manner. What is the company doing to save the environment?

• Social: Some investors believe it is also vital to understand a company’s relationships with its personnel and vendors. Do they give everyone an equal chance? Are they friendly and approachable to other businesses, consumers, and the community in which they operate? What role does the company play in the community’s growth and success?

• Governance: ESG investors are also interested in knowing what safeguards a firm takes to monitor its board of directors and management team. What policies and procedures are in place to ensure that the firm is managed appropriately and fairly, and that all employees have equal chances regardless of their demographics?

This is where the infographic comes in handy. Regulatory fines, disgruntled shareholders, public shame, and other potentially damaging, value-obliterating events are less likely in organizations with strong ESG scores. Furthermore, organizations who manage their people in a socially responsible manner have lower employee turnover and a more engaged and productive workforce. These and other characteristics make high-scoring ESG companies ideal long-term investment possibilities. Continue reading to find out more.

Is increasing your wealth one of your objectives? Do you desire to be debt-free and free of any financial worries you may have? Would you like to know that you are not only comfortable today, but that you are also accumulating wealth that will help you and your family survive and prosper in the future?

You can fulfill all of those objectives by accumulating capital. While you may believe that in order to develop wealth, you must inherit money or have a high-paying profession, the truth is that wealth is more closely linked to conduct than to how much money you earn or inherit.

Changing your behavior should begin with a mental shift. To build riches, you must believe in your ability to do so and be willing to take steps to make it a reality. Being cash-flow positive, or taking in more money than you spend, is one of the first steps toward accumulating wealth.

Many people underestimate how much money they spend on non-essential products. It’s quite simple to keep track of the money you earn – for many people, this simply involves keeping track of their paychecks. You are, however, probably unaware of how much money you spend on a regular basis. Keeping track of all of your expenses, either by writing them down or using an app, can be beneficial. If you spend more than you earn, you are in a cash-flow negative situation and should cut back on your expenditures in order to develop wealth.

Your debt-to-income ratio, or how much debt you have, is another factor to consider. The more debt you have, the harder it is to pay it off. It may be impossible to save money in some situations. Not all debt, though, is bad. For example, investing in a college education that will prepare you for a career you enjoy while also allowing you to earn more money may be justified. It may also be useful to take out a mortgage to assist you and your family develop equity in a property.

The idea is to think about debt carefully and look for ways to avoid or reduce it. So, if you want to go on vacation, you’re better off putting money aside for months and saving for it in advance rather than placing the trip on your credit card and paying for it later.

Another part of accumulating wealth is putting money aside on a regular basis. Establishing an emergency fund that you may use now and in the future is a good idea. You should also start saving for retirement as soon as feasible. Saving is automatic and uncomplicated when an amount is debited from your bank account on a regular basis.

Check out the resource below for more wealth-building advice.

Professional tax has often been confused with TDS. But the two are totally different from one another in numerous ways. But before getting into the comparison, it is important to under their definition as most of the differences are hidden in the definition itself. So without further ado, let us begin.

What is Professional Tax?

Professional tax is a form of income tax that you pay to the state for the services and infrastructure it provides you. As the professional tax is regulated by the Indian states, they vary from one state to another. Moreover, not every Indian state follows the system of professional tax. Only in a handful of them, professional tax is applicable. 

Professional tax is paid on the basis of the professional tax slab each state has formulated. Therefore, the professional tax slab of each state will also vary from another. 

What is TDS?

Tax Deducted at Source or TDS is a tax deduction if the income of a person is above the tax limit threshold. Just like a professional tax slab, the rate of TDS is determined by the tax department. It is usually the employer whose duty it is to deduct TDS before making the final payment to the employee. The one who deducts this tax on behalf of the payee is called a deductor whereas the recipient of TDS deducted income is called a deductee. 

Differences Between Professional Tax and TDS

Now that the basic difference between professional tax and TDS has been established, it is time to understand their differences.

1. Professional tax is paid by almost all the individuals provided their income is above the professional tax slab. TDS is deducted at the source. Before you receive your final income, TDS will be deducted with the presumption that your income is above the margin of tax exemption. 
2. Professional tax is limited to a handful of states. You do not have to pay this tax in many states. But for TDS, no such thing holds. You have to pay TDS if your income surpasses the limit from which taxation is applicable. It stands in all the states of the country. 
3. Exemption limits for professional tax vary from state to state. In Andhra Pradesh earning less than Rs 15,000 does not make you liable for professional tax. The exemption limit on TDS, on the other hand, is Rs 2,50,000. 
4. Professional tax is deducted on the basis of your monthly income. Although you can claim a deduction for it in case your income falls below the professional tax slab. Know more on how to claim a deduction against professional tax. For TDS, the same can be said but with the added advantages that you can claim for it while filing your income tax returns. 
5. The maximum payment for a professional tax is Rs 2,500. Where for TDS, no such amount is fixed.
6. Professional tax is not an advance you pay as taxes but a state tax itself. TDS, however, can be considered an advance on your tax paid by the deductor in advance on your behalf. You can claim a deduction for TDS while filing your income tax returns.

Similarities 

Despite major differences, there are also many similarities between professional tax and TDS. They are as follows:

• Both these taxes can be shown in the salary slip.
• They are deducted by the employer. 
• Both are a form of indirect tax
• Both can be claimed as deduction 
• Both are periodic rather than annual. 

Hence, it is important to know in detail about professional tax and TDS before you can distinguish one from another. There are many differences as well as similarities among them. It is only by comparing both of them can you figure out the differences they have in their essence and functionality.

If you are here because you have been scammed online and are currently looking for a solution, then let me tell you about Action Refund. It is a firm that is new in the space of funds recovery that you end up losing through the internet or through online scams. I will be sharing an honest Action Refund review for your enlightenment and understanding of where this particular firm stands in terms of recovering your funds. 

Consultants with No Experience

When it comes to providing support, Action Refund aims to do it with its full potential, but is that enough?The firm is new to the space and thus, needs time to get accustomed to the ways of getting your money back from online scams. The teamisn’t always enthusiastic and doesn’t feel like they are aiming to learn more from their experiences.In other words, you can’t expect miracles to happen when you get in touch with this company. 

Free Consultation and Charges

Similar to major consultation/money recovery firms, Action Refund also offers the first consultation for free. However, the assessment it gives is also not much satisfactory, which means that more consultations are required before the firm is fully able to understand your case. This means that you have to set up an account and make the required deposit before the second consultation can take place. 

Gathering of Useful Information

You may observe that the platform would get in touch with you from time to time to gather information. At one point, you may even get agitated because this back and forth movement may become common. However, majority of the veteran firms do it once or twice and gathering all the information they need in order to pursue the case. The firm may even ask you to get in touch with your bank to acquire necessary details around transactions, while funds recovery funds do it on your behalf.

Case Assessment and Strategy

As mentioned earlier, Action Refund’s case assessment is currently not as accurate or effective than other veteran funds recovery firms. This means that if the assessment takes time, so would the strategy surrounding the case. Therefore, once the consultations have been conducted, you need to wait for the firm’s case manager to get in touch with you to discuss the strategy and plan.

Does Action Refund Provide You Updates?

When it comes to pursuing the case, Action Refund is not as experienced as well as active as other major firms. At times, the firm may take several weeks before it gets in touch with you to provide an update on your case. This is because the firm is short on resources but tends to get more cases it can handle effectively and efficiently. On several occasions, you may have to get in touch with them to acquire an update on the matter. There are chances that they may have an update around your case but weren’t able to contact you because of shortage of resources.

This is the reason you need to be very calm and patient when it comes to letting Action Refund deal with your case.

Support Team at Action Refund

When it comes to providing customer support, Action Refund does it via email and landline. However, you may have to wait before a representative gets free from other customers before assisting you. At times, you may have to wait more than 5 minutes before you actually get through to someone. When it comes to emails, you may have to do it several times before they respond to your email.

Always be Careful

Admit it, you are here because you were scammed and the responsibility of being scammed falls completely over you. None of this would have happened if you were vigilant and cautious choosing a platform. 

Therefore, it is advised to always be cautious so you never end up being stuck at a situation where you find it difficult to trust even a platform that is offering funds recovery.