A taxpayer is exempted from paying tax under the new regime if their total income does not exceed 250000. 5% tax is charged on income falling between 250001 to 500000. However in such cases, a rebate of 12500 can be availed, ultimately making the tax liability nil.

A debenture is a medium to long-term loan taken by companies to raise funds at a fixed rate of interest. The debenture holder is not given any voting rights

Equity investments are highly volatile in nature. They are always subject to market risks. There is an uncertainty about the amount of returns to be earned. It may so happen that the entire investment turns bad and losses are incurred.

Inflation refers to the increase in the general price level prevalent in the economy. It erodes the purchasing power of our money. Basically, the more inflation rises, the less our real income is.

Amount received= Principal amount + (principal amount*rate of interest*time)

Our cash inflows should be greater than the cash outflows for maintaining good financial health. A cash flow statement helps in ascertaining our total cash inflows and outflows over a particular period of time. Net Cash Flow = Total Cash Inflow - Total Cash Outflow. A positive net cash flow indicates that our total income exceeds our expenditure. Whereas, a negative net cash flow shows that we are spending more than we are able to earn. Try to be on the positive side of the cashflow statement.

Net worth is the difference between the total assets and the total liabilities of an individual. Thus, a net worth statement is required to include all assets.

Debit and credit cards are issued by financial institutions. Debit cards are linked to your savings and current account. While making a transaction using a debit card, the amount to be paid is deducted from your account. It does not allow any credit facility and carries some annual charges. A credit card, on the other hand, allows its holder to make credit transactions. The condition being that the holder repays the amount with interest and extra charges, if any.An annual fees is paid to the credit card company in order to use the credit facility offered.

To increase our income, we should try to invest in different investment avenues available. It is true that to gain more returns, one needs to take higher risks. To mitigate these risks, one can diversify their portfolio. Portfolio diversification means to spread the investments among a number of different asset classes. Diversification lessens the risk arising out of one particular investment with the security that some other investment might provide.

Net Worth is the difference between total assets and total liabilities.Consider asset as anything that puts money in your pocket and liability as anything that takes money out of your pocket. Having more money incoming depicts that you have a better net worth.

Making late payments or not being able to repay loans negatively impacts the credit score. It reduces the creditworthiness of a borrower. It also makes difficult to borrow money from financial institutions as they believe that there is higher risk of default on the part of the borrower.

A credit record is a detailed history of an individual’s borrowings and debt. A credit score shows the ability of an individual to repay a loan taken. The higher the credit score, the better is the individual’s creditworthiness.

Treasury bills would be considered a risk-free investment. They are backed by the central Government, thus the possibility of loss is negligible. It is a short-term investment, so funds are liquid and can be used in case of exigencies.

Mutual funds are investment funds which pool in funds from several investors and use it to invest in securities on behalf of those investors.The mutual fund manager is who decides which stocks to buy and which to sell. It is generally recommended for people who cannot invest the time to learn equity investing and want to play a little safe when compared to equity as the fund manager does all the research work and then transacts.

accounts are liquid but are not marketable. Liquidity refers to the ability of an asset to be easily converted into cash. Marketability of an asset refers to its capacity to be traded at any given time at a given value. Savings account is highly liquid, but remains untouched by any market fluctuations.