Frequently Asked Questions (FAQs)
General Finance Questions
1. What is the purpose of Rupee Basics?
Rupee Basics is designed to simplify complex financial topics and provide actionable insights for individuals, entrepreneurs, and businesses. Our content covers taxation, corporate laws, personal finance, and much more.
2. Who can benefit from this website?
Anyone looking to understand finance better, whether you’re a student, a business owner, a salaried professional, or an investor, can find valuable information here.
Taxation FAQs
3. What is GST, and who needs to register for it?
GST (Goods and Services Tax) is a comprehensive indirect tax on the supply of goods and services in India. Businesses with an annual turnover exceeding ₹20 lakhs (₹10 lakhs for certain states) or those involved in interstate trade must register for GST.
4. How can I calculate my Income Tax?
You can calculate your Income Tax using the Income Tax Slabs for the financial year. We also provide tax calculators under the “Resources” section to make this easier for you.
5. What is TDS, and why is it deducted?
TDS (Tax Deducted at Source) is a mechanism where tax is deducted at the source of income, such as salary, interest, or rent, to ensure timely collection of taxes by the government.
6. What is the difference between tax planning and tax evasion?
Tax planning involves legally reducing your tax liability by using deductions, exemptions, and investment options. Tax evasion, on the other hand, is an illegal act of avoiding taxes by misreporting income or falsifying information.
7. Can I file my Income Tax Return (ITR) on my own?
Yes, individuals can file their ITR online through the Income Tax Department’s e-filing portal. However, if your return involves complex calculations or multiple sources of income, consulting a professional is advisable.
8. What are the benefits of filing an Income Tax Return even if my income is below the taxable limit?
Filing an ITR is beneficial as it serves as proof of income, helps in processing loan applications, and may allow you to claim tax refunds for TDS deducted.
9. What is the last date to file an Income Tax Return in India?
The due date for filing an ITR for individuals is usually July 31st of the assessment year. Extensions may be announced in specific cases.
10. What are the most common deductions under Section 80C?
Under Section 80C, you can claim deductions of up to ₹1.5 lakh for investments in:
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- National Savings Certificate (NSC)
- Life Insurance Premiums
- ELSS Mutual Funds
Corporate Laws FAQs
11. What is the difference between a Private Limited Company and an LLP?
A Private Limited Company is a separate legal entity with shareholders and directors, whereas an LLP (Limited Liability Partnership) combines the benefits of a partnership and a corporate structure, with limited liability for its partners.
12. Do startups need to comply with corporate laws?
Yes, startups must comply with various laws, including company registration, annual filings, and tax compliance. We cover these topics extensively in our blogs.
Personal Finance FAQs
13. How can I start saving and investing effectively?
Start by setting financial goals, creating a budget, and choosing investment options like mutual funds, fixed deposits, or stocks based on your risk appetite. Visit our “Finance Basics” section for more guidance.
14. What is the best way to plan for retirement?
Retirement planning involves creating a diversified portfolio with long-term investments such as PPF, EPF, mutual funds, and pension plans. Begin early and review your plan periodically.
15. What is an emergency fund, and why is it important?
An emergency fund is a financial safety net to cover unexpected expenses like medical emergencies or job loss. It ensures that you don’t need to dip into your savings or investments during tough times.
16. How much of my income should I save every month?
A good rule of thumb is the 50-30-20 rule:
- 50% for necessities (rent, bills, groceries).
- 30% for discretionary spending.
- 20% for savings and investments.
17. What is the difference between mutual funds and fixed deposits?
Mutual funds are market-linked investment instruments that offer higher returns but come with risks. Fixed deposits, on the other hand, provide guaranteed returns with minimal risk. Choose based on your risk tolerance and goals.
18. How can I improve my credit score?
To improve your credit score:
- Pay EMIs and credit card bills on time.
- Avoid overutilizing your credit limit.
- Maintain a healthy mix of secured and unsecured loans.
- Regularly check your credit report for errors.
19. What is SIP, and how does it work?
A SIP (Systematic Investment Plan) allows you to invest a fixed amount in a mutual fund scheme at regular intervals. It promotes disciplined investing and helps in rupee cost averaging, reducing the impact of market volatility.
20. How do I create a budget for my personal finances?
Creating a budget involves:
- Listing all your income sources.
- Categorizing expenses into fixed (rent, bills) and variable (entertainment, dining).
- Tracking expenses and identifying areas to cut costs.
- Allocating a portion of income to savings and investments.
21. Should I focus on paying off debt or investing?
It depends on your financial situation:
- Prioritize paying off high-interest debt (like credit cards).
- If the return on investment exceeds the interest rate on your loans, you can balance both.
22. What is the difference between term insurance and life insurance?
Term insurance provides coverage for a specified term and pays the sum assured to your nominee in case of your death. Life insurance includes a savings component and pays out either on death or at maturity, making it more expensive.
Foreign Taxation FAQs
23. What is DTAA, and how does it benefit taxpayers?
DTAA (Double Taxation Avoidance Agreement) is an agreement between two countries to prevent the same income from being taxed twice. It benefits taxpayers by reducing their tax liability.
24. Do Indian citizens working abroad need to pay taxes in India?
It depends on your residential status as per the Indian Income Tax Act. NRIs (Non-Resident Indians) are taxed only on income earned or accrued in India.
Compliance FAQs
25. How can I ensure my business is compliant with all regulations?
You can ensure compliance by regularly filing taxes, maintaining accurate records, and keeping up with changes in laws. Check our “Business Compliance” section for detailed guides.
26. What are the consequences of non-compliance with GST or Income Tax laws?
Non-compliance can lead to penalties, interest on unpaid taxes, and in some cases, legal action. Staying informed and filing returns on time is essential.
Website FAQs
27. How can I subscribe to Rupee Basics?
You can subscribe to our newsletter by entering your email address in the subscription box on our homepage.
28. How can I contact Rupee Basics for a consultation or question?
Visit our “Contact Us” page and fill out the form, or email us at [your email address].