How to Use Bajaj Finance Personal Loan EMI Calculator Effectively Post Union Budget 2020?
The Union Budget 2020 didn’t come out with massive announcements as was expected by most. Given the flop show of the economy, most experts expected some stimulus measures to boost the falling demand. However, the government has announced interesting measures for taxpayers and infra investors. All that could be handy for you when you pay Bajaj Finance Personal Loan. One should attempt to reduce the loan outgo as much as possible. To fulfill this motive, you can use Bajaj Finance Personal Loan EMI Calculator. But how will you use it now that the budget is out? For that, you can take a cue from this article.
How Will the Announcement on Tax Cuts Influence Your Personal Loan?
The government has given you an option to choose from the existing and proposed one. As per the existing income tax norms, there won’t be any tax for individuals having an income of upto ₹5 lakh post all the eligible deductions. Those having taxable income above ₹5 lakh will continue to pay tax at the following slab rate -
Upto ₹2.5 Lakh - NIL
Above ₹2.5 Lakh-5 Lakh - 5%
Above ₹5 Lakh-10 Lakh - 20%
Above ₹10 Lakh - 30%
The proposed income tax rules state that there won’t be any tax for individuals earning upto ₹5 lakh a year. Also, there are multiple slabs under which the income will be taxed. Now, there are slabs of ₹5 lakh-7.5 lakh, ₹7.5 lakh-10 lakh, ₹10 lakh-12.5 lakh and ₹12.5-15 lakh and above ₹15 lakh under which the tax rate will be 10%, 15%, 20%, 25% and 30%, respectively. But there’s a twist to the new norm - you need to give up all the tax exemptions and deductions. Now that brings the game on an even keel.
Say you are earning ₹10 lakh a year and have got a 5-year loan approval of ₹12 lakh. And you want the optional tax regime. In that case, the tax liability will be ₹78,000 in a year. This means your monthly salary post tax will be ₹76,833.33 (10,00,000/12 - 6,500)
Upto 2.5 lakh - NIL
Above 2.5 lakh - 5 lakh - 5% of 2,50,000 - ₹12,500
Above 5 Lakh -7.5 Lakh - 10% of 2,50,000 - ₹25,000
Above 7.5 Lakh-10 Lakh - 15% of 2,50,000 - ₹37,500
Total Income Tax Excluding Cess - ₹75,000
Total Income Tax Include Cess - ₹78,000
So, you need to save accordingly from your income to ensure a spotless repayment track record. For that, you can use the Bajaj Finance Personal Loan EMI Calculator. The calculator will show the Equated Monthly Installment (EMI) you need to pay to the lender. Just enter the loan amount, interest rate and tenure in the calculator and you will see the indicative EMI.
Bajaj Finance provides personal loans at interest rates ranging from 10.99%-16% per annum. If you get the deal at 16%, your personal loan EMI will be ₹29,182.
How Will the Announcement on Infrastructure Help You?
The government has announced several measures for infrastructure, such as 100% tax concession to sovereign wealth funds, the launch of the 103 lakh crore national infrastructure pipeline project, infrastructure investment clearance cell. All these will not only help the sector come out of the crisis but also make some speedy gains. So, if you invest in infrastructure stocks through mutual funds, you will be up for gains. You can use the gains to prepay your personal loan and ease the interest burden.
How Will the Announcement on Tax Cuts Influence Your Personal Loan?
The government has given you an option to choose from the existing and proposed one. As per the existing income tax norms, there won’t be any tax for individuals having an income of upto ₹5 lakh post all the eligible deductions. Those having taxable income above ₹5 lakh will continue to pay tax at the following slab rate -
Upto ₹2.5 Lakh - NIL
Above ₹2.5 Lakh-5 Lakh - 5%
Above ₹5 Lakh-10 Lakh - 20%
Above ₹10 Lakh - 30%
The proposed income tax rules state that there won’t be any tax for individuals earning upto ₹5 lakh a year. Also, there are multiple slabs under which the income will be taxed. Now, there are slabs of ₹5 lakh-7.5 lakh, ₹7.5 lakh-10 lakh, ₹10 lakh-12.5 lakh and ₹12.5-15 lakh and above ₹15 lakh under which the tax rate will be 10%, 15%, 20%, 25% and 30%, respectively. But there’s a twist to the new norm - you need to give up all the tax exemptions and deductions. Now that brings the game on an even keel.
Say you are earning ₹10 lakh a year and have got a 5-year loan approval of ₹12 lakh. And you want the optional tax regime. In that case, the tax liability will be ₹78,000 in a year. This means your monthly salary post tax will be ₹76,833.33 (10,00,000/12 - 6,500)
Upto 2.5 lakh - NIL
Above 2.5 lakh - 5 lakh - 5% of 2,50,000 - ₹12,500
Above 5 Lakh -7.5 Lakh - 10% of 2,50,000 - ₹25,000
Above 7.5 Lakh-10 Lakh - 15% of 2,50,000 - ₹37,500
Total Income Tax Excluding Cess - ₹75,000
Total Income Tax Include Cess - ₹78,000
So, you need to save accordingly from your income to ensure a spotless repayment track record. For that, you can use the Bajaj Finance Personal Loan EMI Calculator. The calculator will show the Equated Monthly Installment (EMI) you need to pay to the lender. Just enter the loan amount, interest rate and tenure in the calculator and you will see the indicative EMI.
Bajaj Finance provides personal loans at interest rates ranging from 10.99%-16% per annum. If you get the deal at 16%, your personal loan EMI will be ₹29,182.
How Will the Announcement on Infrastructure Help You?
The government has announced several measures for infrastructure, such as 100% tax concession to sovereign wealth funds, the launch of the 103 lakh crore national infrastructure pipeline project, infrastructure investment clearance cell. All these will not only help the sector come out of the crisis but also make some speedy gains. So, if you invest in infrastructure stocks through mutual funds, you will be up for gains. You can use the gains to prepay your personal loan and ease the interest burden.
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