UPI transactions new rule from April 1:

 

Any Unified Payments Interface (UPI) transactions of more than Rs 2,000 made vis prepaid payment instruments (PPI) like online wallets or pre-loaded gift cards, etc, will carry an interchange fee of up to 1.1 percent from April 1, 2023.The interchange fee is typically associated with card payments and is levied to cover the costs of accepting, processing and authorizing transactions.

Will customers be charges for UPI payments?

No. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account-based UPI payment (i.e., normal UPI payments). 

The move is said to be aimed at increasing revenue for banks and payment service providers, who are reportedly been struggling with the high cost of UPI transaction.  

- CA Neha Vora

Difference between Savings & Investing

 

• Most of us think Savings & Investing are the same thing. While the terms are often used interchangeably by many, but they are different.

 1. The difference between your monthly income       & your expenses is what constitutes as your           "Savings".

 2. When you multiply the money, you save by putting it in various investment classes such as Stocks ,Bonds, Mutual Funds, Gold, PPF, NPS or Real Estate, you are creating wealth by " Investing".

A] Benefits of Savings:

     1. Savings help you to meet short term goals such as going on a vacation or buying a gadget.

     2. Savings can be in the form of cash or in a bank account with very little or no risk involved having nominal rate of return.

     3. With Savings, you can meet your emergency needs by creating an emergency fund which helps you  at the time of an emergency.

B] Benefits of Investment:

    1. Savings invested in various assets categories earn you a substantial profit.

    2. Investing money helps you meet long term goals like buying a house.

    3.When you invest, there are some risks involved like fluctuating interest rates or other economic conditions that can lead to losses.

    4.  Investing money has the potential for profits that increase your net worth & help to buy wealth over time.

C] Advantages of Investment:

    1. Money kept in a safety vault though safe, but it does not guarantee you adequate returns to beat  inflation.

    2. Money invested in products like Stocks, MF etc. is subject to risk but has the potential to grow                over time.

    3. The aim of any investment is to beat inflation because with inflation the value of money decreases over time.

Hence, when you invest your aim should be to earn a return that is greater than the rate of inflation.

- CA Neha Vora

Consequences of non-linkage of Adhar PAN till 31st March 2023

 

1] CBDT has mandated all taxpayers to link their Adhar with PAN by March 31,2023. As per section 139AA of Income Tax Act 1961, every person eligible to obtain an Aadhar & has PAN must link their Adhar with their PAN by March 31,2023.

2] If taxpayer fails to link Adhar with their PAN by March 31,2023, then their PAN number will become inoperative. Taxpayers who have not yet linked their Adhar with their PAN can do so by paying a late fee of Rs 1,000/

3] Consequences of non-linkage of Adhar PAN till 31st March 2023:

a) Taxpayer PAN will become inoperative until linked with Adhar

b) TDS/TCS deduction will attract a higher rate applicable, since PAN has become inoperative 

c) Investors will not be able to carry out any transaction in NSE or BSE.

d) Assesses will not be able to do banking transaction such as booking of Fixed Deposit above Rs 50,000/- depositing cash above Rs. 50,000/- & obtaining a new Debit/ Credit Card.

e) Investors will not be able to Invest or Redeem their Mutual Funds.

f) Assesses will not be able to purchase any foreign currency beyond Rs. 50,000/-.

g) Taxpayers cannot file ITR or claim ITR refund with inoperative PAN. Pending returns will not be processed & pending refunds will not be issued to inoperative PAN. TDS/TCS credit will not appear in Form 26AS & TDS/TCS certificate will not be available. Taxpayers will be unable to submit 15G/15H declarations for Nil TDS.

- CA Neha Vora

3 Key Things to keep in mind when budgeting your Finances

1. Track your expenses: To create an effective budget, you need to know how much you are currently spending each month. Start by tracking your expenses for a few months to get a sense of where your money is going. You can use a spreadsheet, a budgeting app, or a pen and paper to track your expenses.

2. Set realistic goals: When creating a budget, it’s important to set realistic goals that you can stick to. Be honest with yourself about how much you can afford to spend on different categories, such as housing, transportation, food, and entertainment. Make sure to leave some room for unexpected expenses, such as car repairs or medical bills.

3. Review and adjust regularly: Your budget is not set in stone. It’s important to review your budget regularly and make adjustments as needed. For example, if you find that you are consistently overspending in one category, you may need to adjust your budget to reduce your spending in that area. Similarly, if you receive a raise or bonus, you may want to adjust your budget to allocate more money towards savings or debt repayment.

These are just a few key things to keep in mind when budgeting your finances. With a little effort and discipline, you can create a budget that helps you achieve your financial goals.

-CA Neha Vora