Financial Savvy

Gross Domestic Product (GDP) is a widely-used economic indicator that measures the total monetary value of all goods and services produced within a country's borders in a specific period of time. It is often considered as one of the primary measures of a country's economic performance. In this blog, we will discuss in detail how GDP of a country is calculated. The calculation of GDP involves adding up the value of all final goods and services produced within a country's borders during a specific time period, typically a year or a quarter. The calculation can be done in three different ways: the expenditure approach, the income approach, and the production approach. 1.The Expenditure Approach:  The expenditure approach calculates GDP by adding up the total expenditure on goods and services within the economy. This includes four main components:  a) Consumer Spending (C): This includes all the spending by households on goods and services, such as food, clothing

Income tax is a crucial component of a country's revenue system. It is an amount levied on the income of individuals, organizations, and entities. In India, the Income Tax Act of 1961 governs the provisions and regulations related to income tax. While paying taxes is a civic duty, there are ways to reduce the tax burden legally. In this blog, we will discuss some of the ways in which one can save income tax in India. Invest in tax-saving instruments : The government of India provides tax benefits to those who invest in specific financial instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), tax-saving mutual funds (ELSS), and Fixed Deposits (FDs) with a minimum lock-in period of five years. The amount invested in these instruments can be claimed as a deduction from taxable income under Section 80C of the Income Tax Act up to a maximum of Rs 1.5 lakh per year.                                                                                             

Introduction:- The Consumer Protection Act, 2019 is a legislation passed by the Indian Parliament to replace the previous Consumer Protection Act, 1986. The new Act came into effect from July 20, 2020. The Act aims to protect the rights and interests of consumers by providing a strong legal framework for consumer protection. The Consumer Protection Act, 2019 defines a consumer as any person who: Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment. Hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment. Uses the goods or services with the approval of the buyer or hirer or availer. In other words, a consumer is someone who purchases goods or services for personal use or consumption and not for resale or commercial purposes. The Act provides protection to consumers against unfair trade practic

GST , or Goods and Services Tax , is a comprehensive indirect tax levied on the supply of goods and services in India. It was introduced on July 1, 2017, replacing multiple indirect taxes like excise duty, service tax, and value-added tax (VAT). The implementation of GST was a significant economic reform in India, aiming to simplify the tax structure and reduce tax evasion. GST is a destination-based tax, meaning it is levied at the point of consumption or sale. The tax is collected at each stage of the supply chain, starting from the manufacturer or supplier to the end consumer. The tax is then collected and deposited with the government by the person making the supply. The GST system in India has four tax slabs, namely 5%, 12%, 18%, and 28%. The tax rates are based on the type of goods or services being supplied, and some goods and services are exempt from GST. For example, essential items like food, medical supplies, and educational services are exempt from GST. The GST system in I

The Indian Budget 2023 was announced on February 1, 2023, by the Finance Minister of India, Ms. Nirmala Sitharaman. The budget had a range of measures aimed at boosting economic growth, enhancing social welfare and providing relief to the common man. One of the most important aspects of the budget was the tax slab for the financial year 2023-24. The tax slab for the financial year 2023-24 has been modified to provide relief to the taxpayers. The new tax slab is expected to benefit the middle class and reduce their tax burden. The new tax slab has seven tax brackets instead of four, and the rates have been revised to offer relief to the taxpayers. Let's take a closer look at the new tax slab for the financial year 2023-24. Tax Slab for Individuals For individuals, the tax slab for the financial year 2023-24 is as follows: Income Range Tax Rate Up to Rs. 2.5 lakh Nil Rs. 2.5 lakh to Rs. 5 lakh 5% Rs. 5 lakh to Rs. 7.5 lakh 10% Rs. 7.5 lakh to Rs. 10 lakh 15% Rs. 10 la

Monetary policy is one of the most important tools that governments use to manage their economies. In essence, it is the process of controlling the supply of money and credit in an economy, with the aim of achieving certain economic goals, such as controlling inflation, promoting economic growth, and stabilizing financial markets. In this blog post, we will explore the basics of monetary policy, including its goals, tools, and challenges. Goals of Monetary Policy: The primary goal of monetary policy is to maintain price stability or to control inflation. Inflation can be defined as a sustained increase in the general price level of goods and services in an economy. High levels of inflation can be detrimental to economic growth, as they can lead to reduced purchasing power, decreased investment, and lower levels of consumer spending. To achieve its goal of price stability, a central bank may use various monetary policy tools, such as adjusting interest rates or manipulating the money s

Trading in the stock market can be an exciting and profitable venture, but it's important to be aware of the various charges and taxes that come with it. In India, there are several charges and taxes that investors need to be familiar with before they start trading. In this blog, we will explore these charges and taxes in detail. Brokerage Charges                                                                                                                                Brokerage charges are fees that investors pay to brokers for executing their trades. In India, brokerage charges are typically a percentage of the trade value, ranging from 0.05% to 0.5%. Some brokers also charge a fixed amount per trade. It's important to shop around and compare brokerage charges among different brokers to ensure that you are getting a fair deal. Securities Transaction Tax (STT)                                                                                                  STT is a tax that

  NSE India, or the National Stock Exchange of India, is the leading stock exchange in India and was established in 1992. It is headquartered in Mumbai, India, and is the largest exchange in the country in terms of market capitalization. Here are some key facts about NSE India: Ownership: NSE India is owned by the National Stock Exchange of India Limited, which is a public limited company. Market Capitalization: As of February 2023, the market capitalization of NSE India was over $3.5 trillion, making it the largest stock exchange in India and the eleventh largest in the world. Trading Hours: The trading hours of NSE India are from 9:15 am to 3:30 pm Indian Standard Time (IST), Monday to Friday. Index: NSE India's flagship index is the NIFTY 50, which is composed of the top 50 companies listed on the NSE India. It is considered to be one of the leading benchmark indices of the Indian stock market and reflects the overall health of the Indian economy. Products: NSE India offers trad

  BSE India, or the Bombay Stock Exchange, is the oldest stock exchange in Asia and the first in India. It was established in 1875 and is located in Mumbai, India. BSE India is a leading stock exchange in India and one of the fastest exchanges in the world with a trading speed of 6 microseconds. Here are some key facts about BSE India: Ownership: BSE India is owned by the BSE Limited, which is a public limited company. Market Capitalization: As of February 2023, the market capitalization of BSE India was over $3 trillion, making it one of the largest stock exchanges in the world. Trading Hours: The trading hours of BSE India are from 9:15 am to 3:30 pm Indian Standard Time (IST), Monday to Friday. Index: BSE India's flagship index is the S&P BSE Sensex, which is composed of 30 companies listed on the BSE India. It is considered to be the benchmark index of the Indian stock market and reflects the overall health of the Indian economy. Products: BSE India offers trading in equiti