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Showing posts from April, 2025

Taxation Meaning and How It Affects Your Salary

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Taxation is an integral component of any nation's economic framework, serving as a crucial mechanism for revenue generation to finance public goods and services. Understanding the meaning of taxation is vital for both individual taxpayers and businesses. In a broad sense, taxation refers to the compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. Failure to pay tax, or evading taxation, is punishable by law. For individual taxpayers in India, taxation primarily impacts their income through direct taxes like Income Tax and deductions such as Tax Deducted at Source (TDS). TDS, another significant term to understand alongside taxation, is a means of collecting income tax in India. TDS is deducted from payments like salary, interest received, commission received, among others. Understanding Taxation and Its Impact on Salary When you receive your salary, the amount credited to your ba...

NSC Interest Rate Trends Over the Years: What Investors Need to Know

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The National Savings Certificate (NSC) is one of India's traditional postal saving schemes, facilitated through the national saving certificate post office network across the country. Known for its fixed income and low risk, the NSC attracts many conservative investors seeking stable returns. A critical factor influencing investor decisions is the NSC interest rate, which has varied over the years in response to economic policies, inflation, and market dynamics. This article explores the trends in NSC interest rates and discusses what investors need to know before investing in this scheme. Historical Trends of NSC Interest Rates From its inception, the NSC was designed as a savings tool for small to medium investors. The interest rates on these certificates are typically aligned with the Government of India's policies to encourage savings while considering broader economic indicators. 1. 1990s to Early 2000s: During the 1990s, India faced economic liberalization and reform. Th...

Employer Contribution To Pf: Is It Deducted From Your Salary?

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The Employee Provident Fund (EPF) is a highly beneficial scheme instituted by the Indian government to ensure financial security for employees after their retirement. It mandates both employee and employer to make contributions to the employee’s provident fund, which offers a secure form of investment. However, many employees are often unclear about whether the employer's contribution is deducted from their salary or not. This article delves into the mechanics of employer contributions to PF, shedding light on the EPF interest rate, and clarifies common misconceptions.  Understanding the EPF Structure In simple terms, the EPF is a retirement benefits scheme available to all salaried employees across India, governed by the EPFO (Employees' Provident Fund Organisation). The aim is to ensure every employee has a financial cushion post-retirement. Each month, a certain percentage of an employee’s basic salary and dearness allowance is contributed to the EPF account. Both the employ...