Professional Loan for Doctors
Loan Amount
Up to ₹30 Lakhs
Credit Criteria
Tailored to your unique needs
Loan Tenure
Flexible repayment in 1 to 4 years
HOW IT WORKS
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BENEFITS
Our business loans for doctors in India are created to cater to the unique needs of medical professionals. Not only is the doctor’s loan interest rate among the most competitive in India, but the credit underwriting is also customized to your specific needs. Some of the benefits of Doctor Loan include
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ELIGIBILITY
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Tax Computation – 2 regimes
India’s Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman, on February 1, 2020 tabled the Union Budget for the FY 2020-21 in the Lok Sabha. She announced a new income tax regime in addition to the existing one, to provide relief to individual taxpayers.
However, this new regime is optional and the taxpayers can choose between the old and the new, basis their suitability. The new regime has foregone certain deductions and exemptions. The tax rates have been reduced, but taxpayers will have to forego exemptions when choosing the new tax regime.
Let us take a look at the tax rates of individuals whose age is less than 60 years under both the regimes:
| Income tax slabs | Tax rate (Old Regime) | Tax rate (New Regime) |
| Up to 2.5 lakhs | Nil | Nil |
| 2.5-5 lakhs | 5% | 5% |
| 5-7.5 lakhs | 20% | 10% |
| 7.5-10 lakhs | 20% | 15% |
| 10-12.5 lakhs | 30% | 20% |
| 12.5-15 lakhs | 30% | 25% |
| Above 15 lakhs | 30% | 30% |
From the above table, it is evident that the tax rates are lower in the new regime than the old regime. But, there is a list of exemptions and deductions that has to be conceded by the taxpayers. This list includes but is not limited to the following:
i) Leave Travel Allowance (LTA)
ii) Conveyance
iii) House Rent Allowance (HRA)
iv) Uniform Allowance
v) Helper allowance
vi) Professional tax
vii) Standard deduction
viii) Other special allowances [Section 10(14)]
ix) Interest on housing loan (Section 24) on self occupied property
x) Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
Savings calculation based on income
| PARTICULARS | Old Tax Regime(Rs.) |
| Gross Income | 15,00,000 |
| Less: Deductions- | |
| U/S 80C (Investment in PPF) | 1,50,000 |
| U/S 80D (Medical Insurance – Self, spouse, children) | 25,000 |
| U/S 80TTA (Interest Income from Savings account on a bank) | 10,000 |
| Taxable Income | 13,15,000 |
| TAX ON TAXABLE INCOME (OLD TAX SLAB) | (Rs.) | (Rs.) |
| At normal rate, on the income of Rs. 13,15,000: | ||
| Up to 2.5 lakhs | Nil | |
| 2.5-5 lakhs @5% | 12,500 | |
| 5-7.5 lakhs @20% | 50,000 | |
| 7.5-10 lakhs @20% | 50,000 | |
| 10-12.5 lakhs @30% | 75,000 | |
| 12.5-13.15 lakhs @30% | 19,500 | |
| Total | 2,07,000 | |
| Add: Cess @4% on Rs. 2,07,000 | 8,280 | |
| Tax Liability | 2,15,280 |
From the above illustration, it is evident that taxpayers can reduce their taxable income by investing in tax saving instruments such as Provident Fund, Medical Insurance, etc. that appear as deductions under section 80C to 80U of the Income Tax Act, 1961.
| PARTICULARS | New Tax Regime (Rs.) |
| Gross Income | 15,00,000 |
| Less: Deductions | Nil |
| Taxable Income | 15,00,000 |
| TAX ON TAXABLE INCOME (NEW TAX SLAB) | (Rs.) | (Rs.) |
| At normal rate, on the income of Rs. 15,00,000: | ||
| Up to 2.5 lakhs | Nil | |
| 2.5-5 lakhs @5% | 12,500 | |
| 5-7.5 lakhs @10% | 25,000 | |
| 7.5-10 lakhs @15% | 37,500 | |
| 10-12.5 lakhs @20% | 50,000 | |
| 12.5-15 lakhs @25% | 62,500 | |
| Total | 1,87,500 | |
| Add: Cess @4% on Rs. 1,87,500 | 7,500 | |
| Tax Liability | 1,95,000 |
From the above illustration, having regard to the income level and the deductions being claimed by the taxpayer, it is possible that taxpayers can save money because of the low tax rates of the new regime, however the same needs to be evaluated on a case-to-case basis.
Tax rates under both the regimes for senior citizens
Tax rates for individuals whose age is 60 years or more but less than 80 years (Senior citizens):
| Income tax slabs | Tax rate (Old Regime) | Tax rate (New Regime) |
| Up to 2.5 lakhs | Nil | Nil |
| 2.5-3 lakhs | Nil | 5% |
| 3-5 lakhs | 5% | 5% |
| 5-7.5 lakhs | 20% | 10% |
| 7.5-10 lakhs | 20% | 15% |
| 10-12.5 lakhs | 30% | 20% |
| 12.5-15 lakhs | 30% | 25% |
| Above 15 lakhs | 30% | 30% |
Tax rates for individuals whose age is 80 years or more (Super senior citizens):
| Income tax slabs | Tax rate (Old Regime) | Tax rate (New Regime) |
| Up to 2.5 lakhs | Nil | Nil |
| 2.5-5 lakhs | Nil | 5% |
| 5-7.5 lakhs | 20% | 10% |
| 7.5-10 lakhs | 20% | 15% |
| 10-12.5 lakhs | 30% | 20% |
| 12.5-15 lakhs | 30% | 25% |
| Above 15 lakhs | 30% | 30% |
The Government has offered two types of regimes for tax computations for individuals– the old and the new system. The taxpayers should scrutinize and study both systems before opting for one. They should take into consideration their salaries, expenditures, savings, etc to select the system that is suitable for them.
Disclaimer: This blog post is based on the provisions of the Finance Act,2020 as passed by the Parliament. Any subsequent notifications have not been factored into this post.
5 reasons to pay EMIs/Credit Card payments on time
7 TIPS TO SAVE MONEY WHILE MANAGING PERSONAL FINANCES
In today’s world, saving money is of the utmost importance. If you are stressed about how to save money, then you are not the only one in this regard. Financial planning sounds easier than to practice. Even though it may be more exciting to spend money, you should try to practice saving for contingencies, as the future cannot be predicted and is uncertain.
Why is saving money essential?
Saving money can help you to become financially independent, providing you with security in the face of emergencies. Financial planning is necessary to set aside money for the family’s needs, such as the education of children, marriage expenses, healthcare expenses, planning for significant life events, retirement, etc. Saving money is an effective financial practice and a lifestyle choice with several proven benefits.
7 tips to save money
Though there are several ways to save money, you could consider implementing these seven tips:
- Awareness: Being aware is one of the most critical factors. If you are aware of your finances and spending habits, you will be able to consciously set more money aside.
- Prepare a budget: Begin by identifying your fixed and flexible expenses. This will help you evaluate how much of your corpus is depleted by unnecessary expenditure. After this, you can prepare a budget on a weekly or monthly basis by setting expenditure limits. This will help you pay your bills while simultaneously creating a pool of savings. You can make a budget on a weekly or monthly basis (based on your preference) with spending limits clearly defined. This budget may help you in saving extra money and restricting unnecessary expenditures.
- Curb the spendthrift in you: Many people aren’t always conscious of how lavishly they spend money on unimportant things. Tracking expenses will help you maintain a close vigil on expenses and keep the spendthrift within under control.
- Create an emergency fund: While facing emergencies, financial support in the form of insurance or loans may not be immediately available or they may not cover the need of the hour. At such times, savings come in handy to address the contingency. Therefore, make sure you set aside a fund for unforeseen expenses.
- Sell things you no longer use: There are many things we buy, and after some time, do not use any more. These items can be sold to generate funds.
- Savings calculator: Various types of savings calculators can be found online. These can be used to calculate the amount one can save over a given period of time. Using these calculators could encourage the habit of saving.
- Switch to a personal finance money management app: Spends tracking and budgeting can be made easy with personal finance management apps. Walnut is one of the most loved and rated apps in the market with over 10 million downloads. Use this app to unlock the financial planner in you.
It is necessary to save money, as it provides security, financial independence, and reduces stress. Get started on your journey of personal financial planning to achieve peace of mind and money in the bank for when you need it.
