Blog Page 314

15 Small Business Ideas with low investment of Rs.50000

Shitanshu Kapadia
-
0
15 Small Business Ideas with low investment of Rs.50000

Small business ideas

Which are small business ideas that can be started with a low investment of Rs.50000? Here is a list of 15 profitable small businesses that can be started with low investment.

Starting a business is a tough job especially when you have no money or less money. However, if you have a passion and entrepreneurial skills explore the small business ideas list given below which are low investment and easy to start.

All these business ideas are easy to start and require minimum legal procedure and documentation.

15 Small Business Ideas with low investment of Rs.50000

Tuition Class

The first small business ideas with low cost is a tuition class. You have to be expert in subjects which you are planning taught. If you are inexperience in this field you should start with lower standard class. The first step is deciding the place of tuition, fee structure and time of tuition class. The second step is making necessary arrangement of creating infrastructure such as blackboard, seating arrangement etc. Next is marketing your class in local media via hoarding or newspapers. You should focus on achieving a good result for the students.

If you select a rented property for opening a tuition class, you can start this business with a corpus of Rs.50000 or less. You need to take trade license and pay taxes on the revenue generated from a tuition class.

Tea & Cold Drink Store

Tea & cold drink stall is a small scale business option. This business can be started easily with a small investment. You just need a small place, raw materials for making tea and manpower. The place plays an important role here. It is recommended to open a tea stall nearby office area or at a market place. If you have a provision of additional capital you can plan to serve different types of tea with taste.

Overall Tea & Cold drink stall can be open with an initial capital of Rs.30000 – Rs.40000. You need to take a trade license as well as FSSAI approval.

Also Read – 15 Best Startup Ideas for 2019

Tiffin Services

Tiffin Services is one of the best food business ideas with low investment. This business can be started even from home. In big cities, good tiffin service providers are less. If you can make tasty and healthy food in the economical range your chance of getting success in this business is very high. To start this business you will need a good cook, menu and raw material for making food items.  You will also need a delivery boy who can deliver tiffin prepared by you. In most of the cases, tiffin service is started without a license. However, it is mandatory to take the FSSAI license before starting this business. You can start this business with an initial capital of Rs.25000.

Chocolate Making

Chocolate Making is one of the top home-based business ideas. To start chocolate making first you need to learn various recipes for making chocolates. You can use books or youtube channel for this. Once you are aware of the process procure raw materials such as cream, milk powder, flavors, chocolate making mold, etc.

After procurement of raw material start experimenting on making chocolates. Once you are confident you can start a chocolate-making business. Initially, you need to work hard on marketing your business. You can do a direct contract with a provision store or shopping mall for keeping your chocolates. This business can be started with an initial capital of Rs.25000. As it is a food-based business you need FSSAI license.

Cooking Class

Cooking class is next on the list of small business ideas. It is a home-based business and suitable for women. To open a cooking class you need to be expert in culinary skills. You can start cooking class at home or in a rented shop. It is recommended to start specialized courses such as Punjabi, South Indian, Chinese food, etc. At an initial stage, you need to work hard for marketing your class.

English Coaching class

English coaching classes is next on the list. English is a globally accepted language and demand for English in terms of speaking and writing is increasing. If you are expert in the English language including grammar you can plan to start English coaching class. In addition to English coaching, you can start a class of IELTS and TOFEL. The demand for these courses is very high. To start this business, you first need to arrange for rented or own place. The place should be nearby school (preferably). You can start this business with an initial investment of Rs.50000.

Ice Dish and Soda Shop

Ice dish or soda shop is among one of the most lucrative business options. In this business, you need to sell an ice dish and soda of various flavors. You will need an ice dish maker and soda maker machine and raw material such as ice, dry fruit, syrup, etc. You will need approximately Rs.30000 to Rs.40000 to start this business at a rented place. You will need a trade license and FSSAI approval for starting Ice dish and soda shop. You may need additional manpower for various miscellaneous tasks.

Insurance Agent

One of the simplest and no investment business is becoming an Insurance agent. It is a part-time profession as well as a full-time business option. You need to take an insurance agency of various companies to become an insurance agent. Your main task is to meet people and convince them to purchase an insurance policy from you. You can sell general insurance policies such as car insurance, home insurance, two-wheeler insurance along with life insurance policy. You will get a commission on every insurance policy sold by you. It is a zero investment business. However, once you are successful you can start your own office.

Multilevel Marketing

One of the most popular and preferred business is multilevel marketing or network marketing. It is a passive income generation idea. There are multiple MLM network marketing companies operating all over the world. You just need to register to any trustworthy company and start marketing product and services to make money. You will be earning commission income as well as royalty income in the long run. Investment required for this business is very low. However, you need to do a lot of hard work to get success in this business.

 Candle making business

Candles are widely used for religious activities as well as decorative items. If you have expertise in making exclusive scented candles you can start handmade candles business. You will need raw material such as wax, colors, dyes, packing material and candle making machine. Before starting this business identify vendors dealing in candle business. Carry out market survey and prepare a plan for promotion.

Investment required for candle making business is very low. However, it is a volume business. You need to focus on achieving high volume. You will need a trade license as well as a pollution certificate for starting a candle making business.

Pickle Making business 

Pickle making is a home-based business opportunity. Traditionally pickles were made at home. But, nowadays we have a trend to use readymade pickle from the market. Apart from local usage packed pickles are also exported to the outside countries. Thus it can turn out to be a lucrative business option.

Before starting this business, you need to learn the process of making pickle. The entire process of making pickle is tedious and time-consuming. You will need raw material such as mango, carrot, lemon, onion, spice, and preservatives. At an initial stage, you can go for handmade pickle, but if your volume is growing you can purchase pickle making machine. Make sure to take utmost care while adding preservative and designing leak-proof packing. You can sell pickle to local grocery shop or at home. You will need FSSAI license to start pickle making business. 

Agarbatti Making business 

Agarbatti (incense stick) is a thin wooden stick covered with a substance that produces very good smell while burning. This stick is widely used for worshiping God as well as during condolence ceremonies for spreading positive energy. The industry of Agarbatti making is growing at a faster pace. If you are keen to start the business you can explore agarbatti making. You will need Agarbatti powder, wood powder, stick and perfumery compounds as raw material and machine for making incense stick. You will also need manpower for packing and distribution.

Disposable Dish and Glass Making Business

Disposable dish and plats are used widely at various events for serving food items. Disposable dish and glass have a very good market. So, starting a disposable dish and glass business make sense. You can sell these dishes locally or in the export market. You will need thermocol, die, dish making machine and other chemicals for making disposable dish and glass. Investment required for this business is moderate.

Cotton Buds Manufacturing

Cotton ear buds manufacturing is a lucrative business opportunity. This business requires raw material such as cotton, sticks, absorbent material, and packing material. You will need cotton buds making machine, which can be manually or auto control. You need to avail a trade license and GST number while starting this business.

Potato Chips Making

A potato chip is one of the most popular and ready to eat food item. Potato chip and banana chips have a very good market all over. To start this business, you will need raw material such as potato, oil, spices and packing material. You can make potato chips manually or you can purchase chips making machine. You will also need space as well as labor for bulk manufacturing. You need to tie up with vendors and grocery shops for selling your potato chips. As it is a food business you will need an FSSAI certificate along with trade license. For small scale business, you will need capital of Rs.50000. Once your business is established you can invest more money.

What is HUF? How to Save Tax via HUF?

Shitanshu Kapadia
-
4
What is HUF? How to Save Tax via HUF?

HUF stands for Hindu Undivided Family. HUF can be formed by Hindus, Jains, Buddhist and Sikh Families in India. As per Income Tax rules, HUF is a separate tax entity/unit. You can enjoy additional tax benefits as a family by forming HUF. If you are keen to know more about Hindu Undivided Family, continue reading this post till the end. You will learn about what is HUF? & How to form HUF for saving tax?  

HUF India

What is HUF? 

HUF is a separate tax entity/unit called as Hindu Undivided Family. The family members of Hindu family (Indian citizen) can come together and form an entity called as Hindu Undivided Family. The main member of the family is known as Karta of Hindu Undivided Family.  

The main objective here is to get a tax benefit as a family. In the case of the Hindu undivided family, a separate PAN card and bank account are required. The income accumulated in this account is known as the joint income of the family. This joint income does not levy any tax liability on the individual family member. The tax liability will be collectively imposed on family members. A separate return is required to file for this arrangement. 

It is a legal way to save tax as a family. So, if you are interested to form Hindu Undivided Family follow the process given below.

How to form HUF? 

By default, HUF get formulated at the time of marriage. However, you need to formalize it by making a proper deed. The deed can be created at any time after marriage. It is not necessary to have children to form Hindu Undivided Family.  

#1 Create Deed 

The first step is to create a deed for HUF. The deed is executed on Rs.100 stamp paper. The deed is nothing but a declaration made by the eldest male member of the family known as Karta. This declaration is made in the presence of two witness. 

The deed also mentions the name of family member’s including adults and minors covered under HUF. It also contains a source of fund gift received for forming HUF. The name of HUF is also fixed at the time of formation. It is generally the name of Karta followed by HUF. Suppose the name of Karta is XYZ, the name of his HUF would be XYZ HUF. The copy of a deed to be notarized by an advocate. You need to pay a nominal fee for getting document notarized.  

The main family member of family “Karta” is can govern all transactions of HUF accounts on behalf of other family members.  

#2 Apply for PAN card 

You need to apply for separate PAN card after creating a deed. You can do that by filing a separate application using Form 49A. This form can be filed online as well as offline. 

You are required to furnish documents such as residence proof, copy of Karta’s Aadhaar Card, copy of Karta’s voter ID or passport copy. If all documents are in order HUF’s PAN card will be allocated in 21 days.  

#3 Open Bank Account as HUF 

Once PAN number is allocated Karta needs to open a separate bank account for HUF. The bank will ask the PAN card number as well as deed copy while opening an account. Once an account is opened all transaction of HUF needs to be done via this account. 

You also need to make square stamp mentioning the name of HUF. This stamp to be used while doing all HUF’s transactions.

How to Save Tax via HUF?

Here is a list of avenues of saving tax via HUF.

(1) Life Insurance Premium

As per provision of Income-tax Act, HUF can make life insurance premium payment for the individual covered under its umbrella. The amount paid via this method can be claimed for tax benefits under section 80C. The maximum tax exemption availed under section 80C via this method is 1.5 Lakh.

(2) Owning house

HUF can own property as a unit. This property could be ancestral property or self-purchased policy. If a property is owned by HUF, the ownership is equally divided among all family members. The property can be sold after the agreement of every family members. New members that get added in the family will automatically get rights to the property.

Owning property like this is one of the best ways to save tax on multiple properties. You must be aware that as per current income tax law if you own more than one property you need to declare one property as self-occupied and second as deemed let out or rented property. This means you need to pay tax on deemed let-out or rented property. If the same property is owned by HUF the entire liability of paying tax lies with them.

Let’s try to understand this via example. Suppose Mr.XYZ gets a property as an inheritance. The income via this property in terms of rent is 2.5 Lakh per year. If Mr.XYZ holds this property individually entire rent income will be considered as income of Mr.XYZ and he need to pay tax according to applicable tax slab. Mr.XYZ decide to form HUF with his wife. Under this case, the tax liability of a rented income of 2.5 Lakh per year would fall under HUF.

(3) Investments 

HUF can make investments in tax-saving deposits and equity-linked saving scheme to earn tax benefits. However, they cannot open a PPF account.  The maximum tax benefit availed here would be 1.5 Lakh under section 80C. 

(4) Health Insurance                                                                               

As per section 80D, you can also claim a deduction of Rs.25000 per year on the premium paid for health insurance for your family members. The same limit is applicable to HUF if payment is made via their account.

(5) Salary Payment 

Salary payment can be made by HUF to the family members for their contribution to its functioning. The expense incurred for the salary will be deducted to calculate HUF’s tax liability.

Advantage & Disadvantage of HUF 

Advantages

  • A separate legal entity which is taxed separately. It will allow you to save more tax.
  • The newborn child will automatically become a member of this unit without any formalities.
  • Gift amount collected up to a worth of Rs.50000 via this entity will be tax-free.
  • Corpus can be used for investment in tax-free investment instruments.
  • An adopted child can also become member of this entity.

Disadvantages

  • Equal rights is assigned to every family member irrespective of their contribution.
  • Once HUF is formed income tax return is required to be filed every year without fail till partition.
  • Partition is difficult exercise. All family member should be agree and corpus should be equally distributed.

Conclusion –

Like every other scheme, HUF has its own advantage and disadvantages. One should look at all legal and tax-saving aspects before forming HUF.

Top Forex Card in India 2025 – Review

Shitanshu Kapadia
-
0
Top Forex Card in India 2025 – Review

A Forex Card is secured and the best ways to carry foreign currency abroad for making payments. A forex card is also known as a travel card or prepaid travel card. It supports multiple foreign currencies.

Before traveling abroad you need to complete various tasks such as finding the best airline, completing hotel booking and deciding places to visit. Apart from these you also need to take the headache of foreign currency exchange for cash conversion. It is a time-consuming process and it can be done at specific places only. If you want to avoid this you can make use of forex cards. Forex card is card loaded with foreign currency that can be used as a credit card for making payment of abroad. You can swipe this card or wave it for making payment. You can also use this card for withdrawing money from ATM. It is a safe and most convenient way to carry money on your international travel.

Forex cards are offered by most of the banks, money changers, and travel companies. It is really difficult to find out the best forex card for your travel need. To help you here is a list of Top Forex Cards in India 2022.

Top Forex Cards

How Forex Card Works?

You need to approach bank or money changer for buying forex card. At the time of buying this card, it will be preloaded with a specific currency. Suppose you are planning a trip to Canada, then your card will be loaded with Canadian dollar (CAD) as a currency. If it is a multicurrency card you can load multiple currencies. The loading of the card will be done at the prevailing exchange rate.

You need to pay a one-time activation fee while using the first time. You can use this card abroad by waving a card or swiping at PoS machine and money will be deducted from the card. This card can also be used to withdraw money from the ATM. However, you need to pay a fee for the withdrawal of money from ATM. This card also provides a facility of reloading additional money online. You just need to transfer funds from the bank account to forex card issuer and you are done.

Note – The maximum amount that can be loaded in this card is $2.5 lakh per annum.

Also Read – 10 Best Credit Cards in India To Save Money 2019 – Latest Review

Types of Forex Card

There are two types of forex card available in the market.

  • Single currency card

Single Currency card as the name suggests it can be loaded with a single currency. If you are traveling abroad where you will be visiting only a single country you can opt for this card.

A single currency card is offered by limited banks and money changers. The charges applicable on this card for using it in other currency is higher.

  • Multi-currency card

A multi-currency card can be loaded with multiple currencies such as USD, AUD, CAD, GBP, etc. If you are a frequent traveler and visiting multiple countries, you can opt for this card.

You can stay protected with fluctuation of multiple currency rates as the exchange rate is locked and at the time of loading/reloading.

Benefits of Forex Card

There are multiple benefits of using forex cards. Few of them are given below.

  • You will get better exchange rates compared to local money changer while loading currencies in the card. The exchange rates are locked at the time of loading/reloading so you will get benefits of exchange rate fluctuations.
  • This type of card is safe to carry and comes with chip and PIN-based protection. In case the card is lost it can be blocked and balance can be frozen. Few cards come with insurance facility for the stolen cases.
  • Forex cards offer the facility to carry multiple currencies in the single card. You can load up to 23 different currencies in a single card.
  • Forex cards are accepted worldwide. These cards are even cheaper compared to the use of credit card and debit cards. You can also use these cards for ATM withdrawal.
  • Money management will be better by using this card as all transaction details are available at a single place. If you carry cash, you need to place manual efforts for keeping transaction records.
  • You need not to waste time for visiting money changers for currency exchange.

Let’s explore the list of top forex card by banks and other

Top Forex Card in India by Banks

#1 HDFC Multi Currency ForexPlus Cards

HDFC Multi Currency ForexPlus is one of the best forex cards available in the market. You can load up to 22 different currencies under single card. It also allows you to shuffle fund between two different currencies. It is contactless card with complimentary insurance coverage and concierge services. Key features of this card are given below.

  • You can load up to 22 different currencies in the single card.
  • Contactless card with security.
  • Online currency management.
  • Emergency Cash Delivery assistance option.
  • Protection against foreign exchange rate fluctuation.
  • Complimentary insurance up to 5 lakh for skimming and counterfeiting.

Rate & Fees

Issuance Fee – Rs.500 plus GST

Reload Fee – Rs.75 plus GST

Cross currency charges – 2% 

#2 Axis Bank Multi Currency Forex Card

Axis bank multi-currency forex card is one of the best forex cards. It is a prepaid card that can be loaded up to 16 different currencies. It is contactless NFC card. You can use this card for multiple trips. Key features and benefits of Axis bank multi-currency card are given below.

  • This card can be loaded with 16 different currencies.
  • You can encash your funds once you are returned.
  • Exchange rates are locked to protect you from currency fluctuations.
  • Emergency assistance including cash delivery.
  • Insurance coverage up to 1.5 Lakh.
  • Account with axis bank is not required to avail this card.

Rate & Fees

Issuance Fee – Rs.300 + GST

Reload Fee – Rs.100 + GST

Cross Currency Charges – 3.5% 

#3 Indusind Bank Multi Currency Forex Card

Indusind Bank Multi Currency Card is popular card for frequent international travelers. This card can be loaded with 14 different currencies. Zero foreign markup rates and online processing are positive parts of this card. Key features of Indusind Bank Multi Currency Forex Card are given below.

  • Fast online process with minimum paperwork.
  • Forex Card with zero currency conversation charges.
  • 24×7 forex rate booking services.
  • Worldwide acceptance of card.
  • Get 2 Free ATM withdrawal per currency per month.

Rate & Fees

Issuance Fee – Rs.150 + GST

Reload Fee – Rs.100 + GST

Cross Currency Charges – 3.5% 

Most Popular Forex Card in India by Fintech and Travel Companies

#1 Niyo Forex Card

Niyo Global Card is one of the best and most popular forex card in India by leading Fintech Company. This card is issued in association with DCB Bank. The best part here is entire card can be managed by mobile application. Niyo Global card gives you hassle free travel experience. Key features of Niyo Global Forex Card are given below.

  • Niyo is rupee denominated prepaid debit card.
  • You can lock Niyo card if it is not in use.
  • Transaction at actual exchange rates.
  • Niyo Travel card can be used in India as well as abroad.
  • No Forex markup charges across the world.
  • App based transaction control.
  • 24×7 Whatsapp priority service.

Rate & Fees

No Joining Fees and Renewal Fees

No charges of loading card

ATM withdrawal free

No Foreign markup charges

#2 Thomos Cook Forex Card 

Thomos Cook a famous travel company also provides forex card services. You can use this card for making payment while you are travelling abroad. You can also make use of this card for sending money abroad. Key features of Thomos Cook Forex Card are given below.

  • Option to load card with 9 different currencies.
  • Chip and Pin protected secure card.
  • Independent card not linked to your bank account.
  • Insurance coverage up to $10000.
  • Dedicated toll free customer support service.
  • Online portal to check balance, statement and blocking card.

Rate & Fees

Issuance Fee – Rs.150 + GST

Reload Fee – Rs.100 + GST

Points to consider while opting for forex cards.

You should consider the following points while opting for forex card.

  • A number of currencies supported by the card.
  • Applicable fee and exchange rates.
  • ATM withdrawal charges.
  • Ease of loading and reloading of card.
  • Look at daily limit on the usage of card.
  • Strong customer support by card issuer.

Best Business Loans in India for Small Businesses

Shitanshu Kapadia
-
0
Best Business Loans in India for Small Businesses

Business loans have become an essential element for any small or big business. Whether you are an established entrepreneur or growing business professional, you will need money for every stage of business. Starting from working capital management to business expansion you can use business loans for funding your business. There are numbers for banks, venture capitalist, financial institutions and online websites that offers business loans. So, it becomes essential to know about business loan types, benefits and drawbacks before opting for business loans for your business. In this post, I will share best business loans in India for small businesses.

business loans

Types of Business Loans

#1 Term Loans

Terms loans are broadly classified into two types – secured loan and unsecured loans. If loans are given against collateral it is known as secured loans. The collateral could be property, shares, fixed deposit, land or machinery. If a loan is given without any collateral it is known as unsecured loans. You need to pay a higher interest rate for the unsecured loans.

Term loans are also identified by the tenure. If the tenure of the loan is for 3 years it is known as a short term loan. If the tenure of the loan is 10 to 15 years it is known as long term loan.

#2 Bank Overdraft

Bank overdraft facility is offered by the bank as well as online lenders. In this facility, you can withdraw money up to specified limit set by bank or lender. This facility allows you to withdraw money even if your account balance is low. The additional amount withdrawn from the account is known as a business loan (Bank overdraft). The interest will be charged on the overdraft amount.

#3 Bill Discounting

Bill discounting is a facility provided by the bank on the large purchase orders received by the businessmen. In this arrangement, seller get a loan up to amount mentioned in the sales invoice. The bank will check authenticity of the transaction such as invoice, delivery challan etc. Bill discounting is a very good option for financing working capital.

#4 Loan against property

Loan against property is loan given against residential or commercial property. It is one of the very good option to raise capital for business expansion. You need to submit original documents of property to avail this loan. The amount of loan will be decided by bank and it is usually based on market value of property.

#5 Unsecured Business Loans

Unsecured business loans is most popular loan option for the small businesses nowadays. You can avail this loan without collateral. This loan is generally given to person with higher credit score. This loan can be used for business expansion, project financing and equipment financing.

#6 Government Loan Schemes for small business

The government of India has launched special loan schemes such as MUDRA and PSB loans for the small businesses. Mudra stands for Micro Unit Development and Refinance agency. Mudra aims to offer low-cost financing to small organization, startup and new entrepreneurs. PSB provides term loan or working capital loan to the MSME. You can get business loan up to 5 Crore via PSB. They claim to give loan approval in 59 minutes.

#7 Finance from other private financers & Lenders

You can also use option to get finance from local private financer and lenders. There are many private financer that offers business loan or personal loans. The private finance option is risky in nature. The interest rate is very high in this option.

#8 Online Business Loans

One of the most convenient and hassle free way to get finance is via online websites. There are multiple websites and apps that offers online business loan option. Quick loan sanction and paperless operation are main advantage of this option.

Also Read – 20 Types of Loans in India

Best Business Loans in India for Small Businesses

1 SME Loan SBI

SME Loan is specially designed for small and medium enterprise. Under SME loan SBI offers wide range of products to the business owners. These loans can be secured as well as unsecured. SME smart score is one of the most simplified financing option offered by SBI. It is term loan provided for working capital requirement or acquisition of fixed assets. The maximum loan offered under SME smart score for manufacturing unit is 50 Lakhs and trade services is 25 Lakhs.

2 Insta Overdraft ICICI

Insta Overdraft is online overdraft facility provided by ICICI bank. You can avail this loan for the working capital requirement. The maximum overdraft limit under this loan would be 15 Lakh. Nil collateral requirement, minimum documentation, online process and no prepayment charges are advantages of Insta Overdraft by ICICI.

3 Business Loans HDFC Bank

HDFC bank offers wide range of business loan options. Competitive interest rates, transparent operation and fast disbursal are advantages of HDFC business loans. The business should have minimum turnover of 40 Lakh. The business should be profit making for previous two years to apply for this loan. The maximum loan offered under this scheme is 50 Lakh without collateral.

4 PSB Loans in 59 Minute

PSB Loans is 59 minute is business loan offered by the government. You will get in principal approval of business loan in 59 minutes using this platform. You need to provide income tax returns and bank statements of past six months to avail this loan. The maximum loan offered under this scheme is 5 Crore. It is an exclusive loan option for the MSME. The online process and quick loan approval are advantages of this option.

5 MUDRA

MUDRA is institution setup by the government to provide funding to micro and small enterprise for the credit needs below 10 Lakh. Mudra loans are classified in three types namely business installment loans for working capital, Vehicle loans and Business loans group loans for overdraft facility. As loan is baked by the government applicable interest rate is low.

Points to consider before availing business loan

You should consider following points while opting for business loans.

  1. Interest Rate on which loan is offered
  2. Applicable fees for process of loan
  3. Features and Benefits offered
  4. Prepayment charges
  5. Documentation required
  6. Time required for the disbursal of loan
1...313314315...467Page 314 of 467