Resolving Non-Performing Loans: One Time Settlement (OTS)
One Time Settlement (OTS) is a legal contract between a financial institution (bank) and its borrower to resolve a Non-Performing Loan (NPL) at a reduced amount. This arrangement benefits both parties: the bank reduces its bad loans, and the borrower eliminates associated legal and financial issues. After successfully completing an OTS, the bank improves its…
Non Banking Financial Companies (NBFC)
Non Banking Financial Companies (NBFC): A Detailed Overview A Non-Banking Financial Company (NBFC) is a financial institution that provides various banking services without holding a full banking licence. Unlike traditional banks, NBFCs are restricted from accepting demand deposits, such as savings accounts and checks, from the public. These entities, also known as Non-Banking Financial Institutions…
Employees State Insurance (ESI)
Definition and Scope Employees State Insurance (ESI) is a health insurance scheme instituted by the Government of India to provide medical and financial assistance to Indian workers. This comprehensive scheme offers various benefits, including medical aid, disability compensation, maternity support, and other related services, thus ensuring social security for employees. As mandated by the ESI…
GST Registration: Process, Eligibility, & Required Documents for Online Application
GST registration is a procedure where a taxpayer registers under the Goods and Services Tax (GST) regime. Post-registration, businesses receive a unique 15-digit Goods and Services Tax Identification Number (GSTIN) assigned by the central government. This identification number is essential for all tax-related transactions. Additionally, you can verify the GST number to access complete business…
LTCG Taxes Surge 2.9 Times Without Indexation on Properties Purchased Post-2010: Study
A recent report reveals that holding properties for longer periods results in higher taxes, whether or not indexation is applied. However, with indexation, the taxes are relatively higher. The 2024 budget has eliminated indexation from capital gains tax calculations. A study evaluated this change, finding that taxes would significantly rise on average. By simulating tax…
Beginners Guide to Loan Against Property (LAP)
When considering financial transactions involving pledging property as collateral to secure a loan, it’s crucial to grasp the concept of ‘Loan Against Property’ (LAP). In this arrangement, the borrower offers their property as security for the loan, while still maintaining ownership and possession throughout the repayment period. The Concept of Loan Against Property A Loan…
Understanding Section 13(2) and 13(4) of the SARFAESI Act: A Comprehensive Guide
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is pivotal legislation that authorizes banks and financial institutions to reclaim dues from delinquent borrowers. Key provisions, specifically Sections 13(2) and 13(4), delineate the procedures for enforcing security interests. This guide will delve into these sections, elucidating their ramifications…