A method of collecting income tax by deducting it from the income earned, at the time of payment.
Ever since India started its Digital India Movement, Indians’ adoption of digital payments has gone up steadily. Cashless transaction has been embraced across the board all the way down to chaiwalas with whom you can complete your payment using your phone, without fumbling for change in your wallet.
PayTM and PhonePe, that function using UPI are widely popular for daily transaction. There are many more options available in India beyond these.
A payment method is a way that you use to transact money as payment for a product or service. Cash, credit card, debit card, cheques, UPI etc. are various payment methods that are common in India.
Let’s look at an almost exhaustive list of payment methods you can use in India.
UPI - Unified Payments interface is a revolutionary system that has enabled Indians to access multiple bank accounts within a single interface. Users can seamlessly transfer money to businesses and other users using an app. All you need is an active bank account with a participating bank and you’ll be able to create a UPI id for yourself.
Just like an email, a UPI id allows people to send money directly to you, into your bank account. With 0 transaction fees, UPI is the most accessible payment method available for Indian smartphone users.
Popular UPI Apps In India
Digital Wallet, sometimes referred to as ‘e-wallet’ is a virtual account in which you can keep money to transact from. You could transfer money from your bank account to your digital wallet, which you can use as a payment method.
Why use a digital wallet, when you have UPI? Digital wallets operators such as PayTM, Amazon, Airtel etc. offer exclusive discounts for transactions using their digital wallets. You could avail those exclusive benefits by using such digital wallets.
Popular Digital Wallets in India
Internet banking, or Net Banking as known popularly is an electronic system that allows you to access your bank account and other banking services online.
Within Net Banking, there are a few ways that you can transact money.
Mobile banking is net banking, accessed through your bank’s mobile app on your Android or iOS device.
It is essentially the same thing as net banking, but it allows for some personalised features.
Cash is still a dominant payment used in India. As the use of digital payment methods are becoming more and more prevalent, Indians are getting more and more comfortable with not carrying cash.
AEPS - Aadhaar Enabled Payment System is a way Indians with Aadhaar card can do transactions. If your Aadhar card is registered with your bank account, you can start using this service.
How to use AEPS?
All you need to use AEPS is your Aadhaar card number. You’ll have to quote this number and initiate the transaction. As simple as that.
All banks in India offer debit cards when you open an account with them. You will be able to access funds in your account using this debit card. Withdrawing of funds can be done through either the same bank’s ATM or other ATMs.
When you can demonstrate that you have continuous income, the same bank will be interested in offering you a credit card too. Credit cards can also be obtained by opening a Fixed Deposit and pledging the same.
A prepaid card is an instrument that can be used just like a credit card or debit card. The only difference is that a prepaid card needs to be ‘recharged’ or loaded with money before hand.
It is not connected to your bank in any way and it provides an easy way to manage expenses especially for dependents in a family.
Banking instruments such as a cheque or DD is still very much widely used in India. They have their own benefits and use cases. Having said that, even businesses are slowly embracing digital payments for all their operations.
We are working towards bringing as much flexibility as we can in your Hubble experience. Currently we allow deposit and withdrawals through UPI.
Net banking and Digital Wallet payments are being worked on at the moment and we plan to release them any time soon.
Do you find the brand name 'Bewakoof' strange or relatable? The traditional meaning that Bewakoof means stupid has changed its course to Bewakoof meaning 'making a difference without worrying about what others think.'
This unique, trendy, and attractive brand name grabs your attention – not entirely for the name, but for how a 'Made-In-India' initiated concept was adapted and how the brand changed a 'T-shirt-making business' into a 100 crore D2C brand.
When fashion brands were busy trying to be chic and royal with expensive price tags, the fashion e-commerce startup stood out from the rest by launching quirky, uncanny, and astounding designs that resonate with Gen Z and millennials.
Prabhkiran Singh and Siddharth Munot, Civil Engineers from IIT Bombay launched Bewakoof on April 1st, 2012. April Fool's day brought the brainstormers to go for the ‘Bewakoof” domain name for their humorous designs. Headquartered in Mumbai, Maharashtra, Bewakoof was initiated with a mission of bringing style and wit into the lives of young students by its founders.
Bewakoof launched its unique and crazy fashion apparel and slowly became one of the biggest brand names in India. This leading apparel brand has become one of the most pursued fashion trends creating a new niche in the fashion world.
'Bewakoof' as a brand formulates its production and marketing strategies based on people's opinions and choices. The brand has created an interesting presence among young people by listening to its 1.7 Million social media followers for innovative concepts.
Bewakoof believes in creating trending products that people love. Its social media fan base proves how Bewakoof is making an impact with its spirit of looking at things differently. With its innovative marketing techniques, 'New Month, New Color' or 'Design of the day,' the direct-to-consumer online fashion portal has grown from INR 30,000 to INR 250 crore in just 9 years.
"A Bewakoof follows his heart," the slogan of Bewakoof binds millennials and cultivates a culture that thrives on research and origination. They always strive to create something unique, breaking all records with their best-performing collections.
Bewakoof functions on principles like honesty, affordability, and creativity. Their goal is to enable self-expression through their innovative products and to promote a guilt-free shopping experience. It is characterized by the spirit of looking at things from a different angle without conforming to societal norms.
Bewakoof is famous for its affordable range of t-shirts for both men and women, which are available in a stylish variety and premium quality. While big brands were charging thousands for the staple piece of clothing, Bewakoof offered a much better range with the lowest possible rates.
This competitive pricing immediately grasped the right attention of the millennials and made the brand stand out. The brand promoted distinctive fashion with in-house design, manufacturing, technology, data science, and marketing skills, thus improving its value proposition - affordability.
The world knows "Bewakoof" for its innovative design, reasonable prices, and direct-to-consumer model. Their products are made in India and are highly preferred by their consumers.
Bewakoof is growing and is looking forward to a sales figure of INR 2,000 crores by 2025. The much-loved brand collaborates with the nation's top celebrities to scale its marketing and advertising campaigns. It also aims to increase its subscribers to one million in the next 2 years.
Firmly believing in "Mann Ki Baat," Bewakoof thrives on a mechanism for achieving lifestyle goals. There are no fixed rules to success, and all it takes to be successful is inspiration, an idea, fruitful long-term savings, an instinct, and the power and willingness to deal with failures.
First off, congratulations on your financial success!
When you earn a salary above 50 Lakhs, you've clearly made your mark in your field. However, with this level of income comes the responsibility of paying higher taxes.
Fortunately, there are ways to maximize deductions and save on taxes, even for those in the higher tax brackets.
In this article, we'll dive into the world of elite tax savings and help you make the most of your hard-earned money.
Section 80C of the Income Tax Act is a goldmine for taxpayers in India.
You can claim deductions up to ₹1.5 Lakhs under this section, which will directly reduce your taxable income.
Some popular investment options under Section 80C include:
If you haven't already, consider investing in these instruments to claim the maximum deduction.
Health insurance premiums are essential not only for your financial security but also for saving taxes. Under Section 80D, you can claim deductions for premiums paid for yourself, your spouse, children, and parents.
The maximum deduction limit for individuals below 60 years is ₹25,000, while for senior citizens, it goes up to ₹50,000.
If you've taken a home loan, you can claim deductions on the interest paid under Section 24(b).
The maximum limit for self-occupied properties is ₹2 Lakhs, but there's no limit for let-out or deemed-to-be let-out properties.
By investing in property and utilizing these deductions, you can save a significant amount on your taxes.
If you live in a rented house and receive HRA as part of your salary, you can claim exemptions under Section 10(13A).
The exemption is the least of the following three amounts:
a. Actual HRA received
b. 50% of your salary if living in a metro city, or 40% if living in a non-metro city
c. Rent paid in excess of 10% of your salary
By paying rent and claiming HRA exemptions, you can reduce your taxable income.
The NPS is a government-backed retirement savings scheme. You can claim an additional deduction of ₹50,000 under Section 80CCD(1B) for contributions made to the NPS.
It's an excellent way to save for your future while also reducing your tax liability.
Some companies offer tax-saving benefits like Leave Travel Allowance (LTA), meal vouchers, and reimbursements for phone bills, fuel expenses, and more.
Make sure you're taking full advantage of these benefits to reduce your taxable income.
When it comes to tax planning, there's no one-size-fits-all approach. As a high-income earner, it's essential to have a personalized tax strategy to maximize your deductions.
Consider hiring a professional tax consultant to help you plan your investments and deductions.
Tax planning is a crucial aspect of managing your finances, especially when you're in the elite salary bracket. By leveraging the deductions available under various sections of the Income Tax Act and making informed investment decisions, you can minimize your tax liability and keep more of your hard-earned money.
Don't forget that tax planning is an ongoing process, and staying up-to-date with the latest tax laws and investment options is essential.
By following the tips outlined in this article and seeking professional help when needed, you'll be well on your way to maximizing deductions and enjoying elite tax savings.