What is a credit card? This is a very basic question. everyone will answer this but we don’t know much about credit cards.
How does a credit card work?
What are the advantages and disadvantages of a credit card?
People don’t know much about it.
We will learn about this in today’s article.
How a Credit Card Works?
John went to the store and bought the things you need. And when the shopkeeper asked for money, John told me to write it down on my account.
In it, the shopkeeper lends goods to John.
And on the appointed day all the bills John will have to return to the shopkeeper.
Credit cards work the same way.
We can buy up to the limit we have on the credit card we take from the bank.
And after a month you have to pay his bill.
At present, there is a huge demand for credit cards all over the world.
But this transaction is not like John’s transaction and it requires some documents to be deposited in the bank as a bit of security.
Do credit cards require proof of income?
Yes, you need to submit documents for income proof for getting a credit card. If you are a self-employed , you should be required to submit the Latest 3 months bank statement along with the ITR of the current assessment year as an income proof for Identity Your Income. On the other hand, salaried person need to provide the last 3 months salary slip and latest 3 months bank statement as proof of income To get Credit Cards.
How can I get a credit card without income proof?
Yes, you can get a credit card without income proof by taking a secured credit card against your investments such as fixed deposits. Also, you can take a credit card against the primary credit cardholder of your family member who has a good credit history.
Which Documents Required For Credit Cards?
1. Identity Proof
Anyone From Identity Proof in PAN Card, Aadhaar Card, Passport, Voter’s ID Card, Driving License, Ration Card.
Anyone From address proof in Passport, Aadhaar, Voter’s ID Card, Ration Card, Driving License, Lease/Rent Agreement, Property Documents, Utility Bills.
Anyone from income proof in Salary Slip (last 3 months), Bank Statement (last 3 months), ITR, etc.
The benefits of having a credit card
- Essential expenses like mobile bill, light bill, DTH recharge etc. and whatever you pay by credit card. This will have two benefits, one is that it will help to improve the CIBIL score and the other is up to 5% You will also get cashback.You will get your money for 45-50 days of use.
- A credit card is useful for carrying an electronic or similar large item. If it is impossible to get a loan on salary then the interest on it is very high.Credit card comes in handy at such times.Many websites also offer the option of ‘No Cost EMI’.example. Amazon, Flipcart etc
- The advantage of using a credit card is the reward points.
- Using a credit card will help increase your Sibyl score and help you get bigger loans like home loans.
- Credit cards are very useful if you have no money to pay at the hospital.
Be careful when using a credit card
- Make an auto debit payment for the credit card from the bank where you have your account so that it is paid before the due date.
- Avoid unnecessary shopping credit cards.
- Credit card information such as PIN number should not be given to anyone.
- Don’t withdraw money from a credit card
Income Tax Return (ITR) And Form No.16
Income is the reward for doing a certain job. Profit in an industry is the income of that industrialist.
In the same way, the future of every country should be better, for which the government collects some amount of tax from every citizen.This tax is called income tax.
Income Tax Return (ITR)
According to the economic policy and law of each country, everyone is required to pay income tax return.
The Income Tax Return (ITR) keeps track of how much you have earned in the current financial year. Whether it is taxable or tax free, it contains information about the amount you have earned in this financial year.
Filling ITR is not mandatory for everyone. This is only for those whose income is around Rs 5 lakh per year. They need to fill out an ITR.
If you are complying with the Income Tax Rules, you are required to file an income tax return by the date given by the Income Tax Department.
New Income Tax Portal
The Ministry of Finance is going to launch a new portal of Income tax www.incometax.gov.in on date 08 june 2021.It is believed that this new portal is state-of-the-art and has been made much easier for income tax payers.
Income Tax Return Rules
What is the income tax rules?
ITR 1 : This FORM has to be filled by those who get salary, income from pension or interest or have taken Homeloan.
ITR 2 : This form is for those whose income is in addition to salary, pension, interest, if the rent is coming from many houses, then they have to fill this form. You have to fill this form even if you have earned from lottery.
ITR 3 : This is for those who have a farm or business partnership and the source of their income is through profit salary, pension and other means from that business.
ITR 4 : This is a little different for Doctor, Lawyer, Chartered Accountant.
Also, if someone is earning income by partnering in a business, then fill this form.
ITR 4S : If your income through foreign medium and also if you have more than one house property and agricultural income is more than 5000 then you have to fill this FORM.
What is Form 16?
If the income from the salary for the financial year exceeds your employer’s basic exemption limit of Rs.
If you have declared your income to your employer from other employers, they will consider your total income for TDS deduction.
If your income is less than the basic discount limit, your employer will not deduct any TDS and this form cannot be issued to you.
If you have worked with more than one employer throughout the year, you will have more than one Form 16.
What is Form 16A?
Form 16A is also a TDS certificate. Form16 is for salary income only, Form 16A is applicable for TDS earned in addition to salary.
What Is Input Tax Credit?
GST is levied and collected at every stage of trading from manufacturer to consumer.when traders pays gst at the time of purchased it is called input tax and he collect GST at the time of sale which is called Output Tax.
At the time of paying GST to the government a trader deduct the input tax from the output tax and pays the remaining tax.This deduction of input tax is called Input Tax Credit.