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.

Inflation erodes the purchasing power of money. To withstand inflation, the growth in our money should be higher than the rate of growth in inflation. Inflation rate in India was 4.54% in 2019 i.e. the goods were priced 4.54% higher than what they used to be worth in 2018.

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.

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.

Insurance is a means to secure oneself from financial losses. The person availing the service is called the insured, and the entity that provides the insurance is known as the insurer. The insured has to make periodical payments called premium over a fixed period of time to receive a lump sum amount at the end of the maturity period or when the claim is made. There are different kinds of insurance: Life Insurance, Health Insurance, Auto Insurance, etc. Although, in case of life insurance, the loss is not financial in nature, but the insurance claim received by the beneficiaries, specially if received upon the death of a close one, can be of great financial help if they were dependent on the deceased.

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.

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.

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

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

The total amount withdrawn at the end of three years= ₹56375.

Principal amount for the next two years= ₹56375+₹15000= ₹71375.

Interest Payment for 2 years = 7138

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.

EMI, or Equated Monthly Instalments, is an amount paid by a borrower against a loan taken. The principal amount of the loan is divided into fixed, smaller parts over several months to facilitate ease of payment. By the end of the period, the borrower pays back the principal amount along with some interest on it.

A tax rate of 10% is applicable on LTCG (Long-term Capital Gains) earned on the sale of equity shares and equity-oriented mutual funds.

IPO, or Initial Public Offering is a process by which a private company can go public. It refers to the first sale of shares by the said company to the public. It increases the capital raising opportunities for the company. Additionally, it helps in generating publicity of the company among the people.

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.

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