There are about one and a half months left for the new year to start. Everyone's life has changed in the year 2020. The Coronavirus epidemic has seen many changes this year and we have a lot to learn. People's thinking about financial decisions has changed and the importance of health and life insurance has increased. In such a situation, we are going to tell you about some decisions or important things that you will have to take before the start of the new year. If you do not do this, you may also suffer the consequences. Let's know about them.
Do not forget to file an income tax return
In the wake of the Coronavirus epidemic, the Central Board of Direct Taxes (CBDT) had extended the deadline for filing income tax returns giving relief to taxpayers. The deadline for individual taxpayers to file income tax returns for the financial year 2019-20 has increased to 31 December 2020. Therefore, all taxpayers should file their income tax returns on time so that they do not have to pay a penalty later.
Choose new and old tax system
Finance Minister Nirmala Sitharaman gave relief to the taxpayers on the income tax front in Budget 2020. A new tax regime was announced during the budget. This arrangement is optional from the government, that is, you have the option of whether you will pay tax according to the old tax system or according to the new system this year. You have to decide this before the deadline.
It is known that under the new tax system, the tax rate has been reduced to 10% on annual income ranging from five to 7.5 lakh rupees. The rate of income tax has been reduced to 15 percent for those with an annual income ranging from Rs 7.5 lakh to Rs 10 lakh. Those earning between 10 and 12.5 lakh rupees will now be taxed at the rate of 20 percent and for those earning between Rs 12.5 lakh and Rs 15 lakh, 25 percent will be taxed. The tax rate will be 30% on income above 15 lakhs.
Check insurance policy
In the year 2020, the importance of health and gene insurance for people has increased. In the Corona period, people are more attracted to insurance. At the same time, people who had already been insured are now expanding the scope of health insurance. If you have also got insurance, then check whether it is enough or not. People living in big cities should have insurance of at least five to 10 lakh rupees. Talking about life insurance, it should be 10 to 20 times of annual income.
Think about loan refinancing
To provide financial assistance to the people during the coronavirus epidemic, the government and the central bank (RBI) had given the option of loan moratorium (installment waiver) for six months. At the same time, all banks have made the loan rates cheaper. Therefore you should think about loan refinancing. This will reduce the loan burden on you and will also save a lot of money. For this, you should ask your bank to give you a loan at a lower rate or transfer your loan to the bank where the loan is available at a cheaper rate.
Keep an eye on credit score
We always hear that banks or any financial company do not give loans if the credit score gets bad. A credit card is also not made due to poor credit scores. Credit Information Bureau India Limited (CIBIL) offers you a score between 300 and 900 marks. It is decided based on how much your previous credit card usage is, how do you keep your bank account, no check has bounced, existing loan, the existing loan without insurance, loan repayment, and how many times you have loaned Or have applied for a credit card. So keep an eye on your credit score.