Have you ever wondered why banks say yes to one person’s loan application and shake their heads at another? Well, one of the key ingredients in this mystery is a credit score! When you hear loan approval, credit cards, or anything else related to borrowing money, do you have any idea what a credit score or CIBIL score is? Why is it that banks and financial institutions take it seriously before approving a loan? And most importantly, what does it have to do with you? Don’t worry; there’s nothing to lose in understanding what your credit score says about your financial life, even if you are not planning to take a personal loan or a car loan. But to start with, here’s a little guide on the credit profile and why it is important CREDIT SCORE A credit score is a 3-digit number that shows your ability to pay back a loan based on the borrower’s credit history. In layman’s terms, a credit score is your financial reputation. Say, for instance, one friend pays all...
Have you ever looked at your salary slip and wondered why someone stole your money before crediting it to your account? Or have you checked your bank account and wondered why the interest you earned was less than you expected? One common explanation for such deductions is TDS – Tax Deducted at Source TDS is a common part of India’s income-tax system, but many people do not understand what it means. Some people think that TDS is additional tax, while others are puzzled by the whole idea of tax deduction before income. In short, TDS means that tax is deducted at the time certain income is paid/credited to a person, instead of waiting till the end of the financial year to calculate and deduct the tax. In this article, let us understand what TDS means, why it is deducted, where you can find it, what is Form 16 all about and what happens if more TDS is deducted than your actual tax liability. What Is TDS? One look at the name and we get a rough idea about the concept. For some i...