Bank Theory

Home Loans & Financial Calculations - Bank Theory Additional Reading Material on Home Loans & Financial Tools Author: Suman Biswas (Bank Theory) 1. Mortgage Advice Mortgage advice helps borrowers choose the right home loan product based on income, credit score, and future financial goals. Advisors assess repayment capacity, suggest fixed or floating interest rates, and analyze risk appetite. 2. Home Information Packs (HIPs) HIPs include vital documents like Energy Performance Certificates, property title documents, and local authority searches. They ensure transparency for buyers in property deals. 3. Time Value of Money (TVM) TVM is a key concept in finance, indicating that a sum of money today is worth more than the same sum in the future due to earning capacity. This is the basis for discounting and compounding calculations. Formulas: Future Value (FV) = PV × (1 + r) n Present Value (PV) = FV / (1 + r) n 4. ...

Tax Planning - Bank Theory Tax Planning 1. Classification of Tax Structure in India India follows a dual tax structure comprising: Direct Taxes (e.g., Income Tax, Corporate Tax) Indirect Taxes (e.g., GST, Excise, Customs Duty) 2. Financial Year, Assessment Year & Previous Year Financial Year (FY): Period from 1st April to 31st March when income is earned. Assessment Year (AY): The year following the Financial Year when the income is assessed and taxed. Previous Year: Same as Financial Year – the year in which income is earned. 3. Residential Status The residential status determines the scope of taxable income. It is categorized into: Resident and Ordinarily Resident (ROR) Resident but Not Ordinarily Resident (RNOR) Non-Resident (NR) 4. Important Terms Gross Total Income: Aggregate income before deductions. ...