Tips to save IPO listing gains tax!
In the years 2023 and 2024, many IPOs brought huge earnings for the investors. But tax also has to be paid on this! What is the tax rule on booking listing gains from IPO? How can tax liability on listing gains be reduced? How will the tax be calculated on selling IPO shares?
Whether it is for purchasing a home, a car, or furthering one’s education, credit is a part of life for many Indians today. With college costs increasing year after year, particularly for higher education courses, many students are forced to take out education loans. Education loans operate on the fundamental idea of “study now, pay later,” which is a deferred payment arrangement.
SBI Bank pioneered the concept of study loans in India in 1995, and since then, numerous banks have begun giving student loans. From 2001 onwards, the Indian banking sector began offering education loans. Currently, most of India’s banks, both public and private, offer both education and vocational loans to students pursuing a regular degree and postgraduate courses at recognised universities in India and abroad.
Fast forward to the present time, you might have read the various capturing advertisement from large private banks and government banks as well, for instance: “The Bank offers instant approval of education loan of up to Rs 1 crore.” Sometimes for the loan providers, such advertisement is just an excellent effort to fulfill numerous aspiring students’ dreams. Still, for you, if you are planning to take an education loan, you must first consider few factors into account. Let’s understand what are these factors entail while taking education loans:
Does your dream job exist?
It is easier to daydream sometimes rather than facing reality. For instance, a second degree may not necessarily convert into improved work opportunities. Choosing the appropriate course is crucial. Before availing of an education loan, you should concentrate on studies with a high probability of employment.
Due to the increased employment chances for people studying science, technology, engineering, and mathematics (STEM) in other nations, these are the top choices for students applying abroad and seeking study loans. It would be best to research the field you are sure you would be fulfilled in and find the job that fits your passion, goals, and objectives.
Do you have your salary expectation rightly placed in reality?
Apply for an education loan in an amount equal to your future salary. However, this may not always be the case as it can be challenging given the current pandemic situation. But thorough, in-depth research of your study course can aid you to understand the prospects of your salary for the future.
On the cautious side, take no more than the maximum amount provided, regardless of repayment capabilities. Otherwise, the remaining balance will be forced to be paid by your co-applicant or co-signer on loan.
Are you inspired by getting that instant loan due to its availability?
Enrolling in a course just because your selected school has a relationship with a financial institution that makes loans easy to obtain is a no-no. Numerous institutes have tie-ups with banks yet provide education of below-average quality; therefore, do not be swayed by these financial benefits. Choose an institute and a course that fit your interests and abilities. Assume the role of a student initially and then a borrower.
Endnote
Don’t add a debt to your already existing education loan. Some students take out an education loan to fund their graduation and then use the top-up loan option to fund their post-graduate studies. This is primarily considered an inexperienced personal finance blunder; why would you want to increase your financial burden? Proceed incrementally, one loan at a time to fulfil your dreams.