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Among the different investment options you have in front of you, buying a property (investing in real estate) and investing in PPF are two popular avenues. Here we compare between these two kinds of investments to decide which one is better than the other and for what reasons you must choose one or the other. Real estate investment Real estate investment means buying a property. In this investment option, you buy land or property. Some kinds of properties cost you money on a regular basis to hold them. A vacant parcel of land invites taxes to be paid. For buying and maintaining a property you must spend the money out of your pocket dissolving your earnings and savings or you must take a loan. In some cases the property purchase can become unaffordable when the cost is too high. Some real estate investments can generate cash. For example, we can make a mention about the rental houses, apartment buildings or strip mall. In such cases, the tenants are going to send you checks which you can use to pay off the loan and expenses and keep the rest as profit. Section 84 lets you claim exemptions on the interest paid on home loans. Section 80 C lets you claim tax benefits on repaying the principal amount. The maximum tax saving limit is 1.5 lakh per annum. The short term gains from property is taxed on par with regular income. The long term capital gains are taxed depending on your income and marital status. Depreciation is the largest tax deduction available to you from real estate investment. PPF (<keyword id="114852" type="ORGANIZATION" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword>) Investment Upon your invested amount, the PPF scheme gives 8% interest. The interest is compounded on an annual basis. You can choose to invest anywhere between Rs. 500 or Rs. 1.5 lakh per year. The investment per year can also be made in several installments or in one lump sum cash. The minimum amount payable to open a PPF account is Rs. 100. The minimum amount required in your account to operate it is Rs. 500. The maturity period of a PPF account is 15 years. You can choose to extend this for five more years after the maturity period. A PPF account cannot be closed before 15 years. Starting from the 7th year of opening the account, you can withdraw cash if you want. Loan facility is also made available from the 3rd year of opening the account. PPF investment is considered under Section 80C of the Income Tax Act of India for tax exemption. This investment is considered under Exempt, Exempt, Exempt tax basket. The tax benefit is for a maximum amount of Rs. 1.5 lakhs per financial year. You can also claim a tax deduction for the PPF accounts of your spouse and children. Choosing between the two While considering which one is a better form of investment among PPF and real estate, you need to also consider your priorities and expectations from the investment. All real estate properties do not escalate in value. The interest out of PPF though might seem less cannot be underestimated given the long period of investing in this vehicle. However, if flexibility, and liquidity are your expectations, real estate is a better option as you can sell it whenever you want. If you want a risk free investment, PPF can be a good option.

Comparision between Real Estate Vs PPF -- which is better for investment?

Around 97% of people above 18 years of age across metropolitan cities, Tier-2 and Tier-3 towns either have a savings or a current account and mere 3% of the people invested in commercial properties. 
 
This was revealed in an ET Wealth Retail Investors’ &amp; Consumers’ Survey (OICS) 2015 report, which was launched by MoS Finance Jayant Sinha while he unveiled a new website of ET Wealth. 
 
The survey further stated that 53% of them preferred to invest in an apartment or an independent house/plot and 55% of them had taken home loans. 
 
This survey by ETW-RICS profiled 10,000 consumers in a bid to help product managers and marketers in the BFSI and consumer segments understand their target customers in a better way. 
 
The survey stated that 87% of the respondents, who were spread across metropolitan cities, Tier-2 and Tier-3 towns, owned one or more of the investment products such as chit funds, bonds, PPF, mutual funds, shares, bank and company fixed deposits. 
 
Interestingly, 49% of the respondents regarded insurance as an investment product and claimed to have bought insurance for investment purposes only. 
 
“This is an excellent initiative to educate people on savings,” said Sinha. 
 
In a dynamic economy, changing consumer trends and habits do not get captured to enable marketers to take appropriate product decisions. 
 
(Image: Indiatimes)

97% people above 18 years have a savings account; only 3% invest in realty: Survey

<keyword id="19955368" type="General" weightage="100" keywordseo="budget-2024" source="keywords">Budget 2024</keyword>, which is set to be presented on July 22nd, is set to accelerate the growth of <keyword id="20459350" type="General" weightage="20" keywordseo="Indian-stock-markets" source="keywords">Indian stock markets</keyword> by as much as 20%, a recent survey by <keyword id="19897999" type="General" weightage="20" keywordseo="Bloomberg" source="keywords" meta.keywordsubtype="org" meta.entityname="Bloomberg" meta.hostid="261" meta.entityid="Bloomberg">Bloomberg</keyword> noted. While some respondents hope that the <keyword id="20983733" type="General" weightage="20" keywordseo="NSE-Nifty50" source="keywords">NSE Nifty50</keyword>, which is currently trading at 24,273.35 points, might reach 26,000 points by the end of this year, others estimate the index to inch up even higher. The budget is likely to boost consumer spending, accelerate consumption, and support infrastructure development, noted half of the 24 experts Bloomberg surveyed. Data by Bloomberg Intelligence predicted that the estimated earnings per share (EPS) of companies on the MSCI India Index is set to rise by 15.6% on year basis, for the calendar year 2024. In contrast, Chinese firms are expected to grow at about 10%. One-fourth of surveyed analysts noted that pushing capital expenditure would be the government's top priority, while the other half thought the focus would be on boosting consumer demand. Naturally, analysts see potential growth in consumer discretionary stocks in the months to come, followed by financial services. <h2>Focus on Women, Capex</h2>Many are expecting the government to raise the standard deduction threshold from the current Rs 50,000 to Rs 1,00,000. The government is also thinking of raising the limits of the <keyword id="19930663" type="General" weightage="20" keywordseo="Public-Provident-Fund" source="keywords">Public Provident Fund</keyword> (PPF) from Rs 15,000 to Rs 25,000. As per Ashwajit Singh, Founder and Managing Director of IPE Global, "the budget is expected to be tilted towards adopting a strategy for the underprivileged, youth, farmers, and women. The budget is expected to reflect the government’s tried and tested formula of ‘guarantees’ by opting for income transfer policies and spending more on welfare schemes in government campaigns in India. Allocations for existing schemes such as 'Housing for All’, MGNREGA, and health insurance for these sections of society are likely to increase while new schemes may be introduced". According to Badal Yagnik, CEO of Colliers India, the real estate segment is optimistic regarding this budget: "Housing, infrastructure development, sustainability, and digitization will remain at the core of the budget, which will go a long way in supporting real estate growth across segments in the long term. EV infrastructure, renewable energy, and green financing will continue to remain in focus, creating a strong base for a sustainable future. Incentivization of green buildings through minimum alternate tax or tax breaks similar to the infrastructure sector will be particularly beneficial. Meanwhile, retail investors are calling for additional rationalizing of the capital gains tax structure. The Union Budget 2024–25 should explore initiatives to boost greater retail engagement in REITs and InvITs". Anooshka Soham Bathwal, founder of Dhanvesttor, a financial management platform, expects that the government's focus is likely to keep driving the increased participation of women in the workforce in the upcoming full budget, where it can attain the same by incentivising higher education for women. "To promote entrepreneurship, the government can introduce special benefits for the businesses started by women. Further steps towards a stable policy environment and ease of doing business are also desirable. Incentives on tax, funding, and growth for women-centric organizations can help to further attain the inclusive growth objective of government". Bathwal also emphasized that the budget should promote entrepreneurs and the country's startup system. "Entrepreneurs are advocating for additional tax breaks for investors and promoters to attract more domestic capital. As India progresses towards becoming a global hub for entrepreneurship and innovation, fostering both technological and process innovations is crucial. Significant improvements in ongoing training and skill upgrades are vital, particularly given the rapid growth in Tier 2 and Tier 3 markets. Additionally, the government needs to address the credit challenges faced by SMEs", she continued Also read <a href="https://www.businessinsider.in/budget/budget-2024-heres-what-indias-elderlies-want/articleshow/111486023.cms" data-type="tilCustomLink">Budget 2024: FM might delight India's senior citizens this time around</a> <a href="https://www.businessinsider.in/finance/union-budget-2024-25-when-will-it-be-presented-what-to-expect-and-more/articleshow/111014203.cms" data-type="tilCustomLink">Union budget 2024-25 : When will it be presented, what to expect and more</a>

Budget 2024 to fuel stock markets: Bloomberg Survey

Currently, one-third of India's population reside in cities and it is estimated to go up to 50 per cent by 2030. There is a steady rise in the number of households with a shift towards nuclear families and increased urbanisation. The 66 per cent young population - below 35 years of age, are emerging as young millennial borrowers of home-loans. It is also true that home-loans market is driven by young borrowers within the age group of 26-35 years - about 25 per cent and also by people in the age group of 36-45 years - about 28 per cent. These are all active home-loan audience and jointly account for 53 per cent of annual originations. The average ticket size of a home-loan of young borrowers has continued to increase over the last 5 years, with a CAGR of 6.2 per cent. The ticket size continues to increase more for women than men. The cumulative active home-loan base of these borrowers has seen continuous growth over the last 3 years at a CAGR of 3.5 per cent. These young borrowers have been the reason for change in the home-loan market. Within the affordable segment, volume growth in home-loans of Rs 15-35 lakh, over the last 4-5 years, indicate shifting preferences of buyers towards higher ticket sizes. Rural Housing demand for mid-range and higher ticket sizes has continued to increase over the last 5 years too. Share of annual originations (volume) of Rs 35-75 lakh ticket size has increased by 4 per cent in the last 5 years. Share of annual originations of Rs 75 lakh plus ticket size has increased from 0.37 per cent to 0.87 per cent in the last 5 years. Share of annual originations of Rs 15 lakh ticket size has declined over the last 5 years, largely due to falling demand for very small ticket size segment of Rs 2 lakh. The dearth of disposable income has been a deterrent factor for salaried class towards taking home-loan and buying real-estate. Since the input cost in real-estate has increased the rates, the salaried class is left with no other option but to approach for home-loans from financial institutions. Interestingly, the tenure of repayment of home-loan is fluctuating between 11-30 years. There is also a deterrent factor for salaried class in home-loans and EMIs. The EMIs are no more supportive since the financial institutions first draw larger part of interest in the EMIs and principal component is kept less in more than first 50 per cent of the EMIs. As the EMIs near completion, the interest component becomes negligible and principal component is much higher. Even if the buyer has the provision of pre-payment of home-loan, he ends up paying the larger portion of principal amount rather than saving on the interest. Further, the financial institutions also levy heavy fees on pre-closure of loans. In case the buyer opts for higher tenure for loan repayment, it then makes it difficult for the buyer to invest in second property. One question that has been asked frequently is - "If the principal and interest amount are predefined, why the EMIs can't have equal amount throughout the tenure." Coming to tax benefit, repayment of principal amount in a home-loan qualifies for deduction under section 80C, which has an upper limit of Rs 1.50 lakh per annum. Since the same section - 80C, accounts a number of other investments including PF, PPF and life insurance policies etc, it becomes impossible for a buyer to take advantage of any benefit out of this section. Buyers are looking forward to increase in this limit in Union Budget-2022 since this limit has not been increased in last many years. On the tax benefit for interest payment, since under section 20(b) of the Income Tax Act, there is a cap of Rs 2 lakh per annum on the interest part of the home-loan, home-loans being larger in size, the buyers are unable to take much benefit of the same too. To extend tax benefit to the buyers the government has also added few sub-sections 80EE, 80EEA under the Income Tax Act but the volume of loan is not allowing buyers to gain desired additional benefits out of these sub-sections. What perhaps needed in the Union <keyword id="10547300" type="General" weightage="20" keywordseo="Budget-2022" source="Orion">Budget 2022</keyword> is to bring dynamic changes in the income-tax slabs and increase the rebates under section 80C, 80EE, 80EEA and 24(b) of the Income Tax Act. One of the greatest philanthropists <keyword id="310500" type="General" weightage="20" keywordseo="andrew-carnegie" source="Orion">Andrew Carnegie</keyword> said - "Ninety percent of all millionaires become so through owning real-estate." Andrew Carnegie is one of the five people who built America, the other four being Cornelius Vanderbilt, John D. Rockefeller, J.P. Morgan, and <keyword id="6629386" type="General" weightage="20" keywordseo="henry-ford" source="Orion">Henry Ford</keyword>. Harv Eker, an author and businessman, known for his theories on wealth and motivation said - "Don't wait to buy 'real-estate', buy real-estate and wait". These two statements said all about owning real-estate and what it could mean to a buyer. Globally, investment in real-estate is directly related to the future of a buyer and also growth of the economy, and so be in India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/budget-2022-could-consider-levying-tds/tcs-on-crypto-trading-make-it-reportable-in-sft/articleshow/88943733.cms">Budget 2022 could consider levying TDS/TCS on crypto trading, make it reportable in SFT</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/570-job-openings-at-indian-oil-corporation-for-freshers-who-havent-graduated-yet/articleshow/88948126.cms">There are 570 job openings at Indian Oil Corporation for freshers who haven’t graduated yet</a>

Budget 2022: Expectations for hike in tax deduction on home loans

We live in a fast changing world which has made it necessary for everyone to be financially adept to learn ways of saving in order to generate additional income. However, planning and executing a financial plan needs to stay up with the economic realities of the times. Here are some financial practices that can ensure your financial wellbeing. <cmsannotation type="cmsannotation" annotationid="1. Invest early" comment="subhead" text="1. Invest early">1. Invest early</cmsannotation> The foundation of a good financial plan is saving. However, to build on this, one needs to diligently invest as early in life as possible. It can start with simple low-risk instruments but should a good investor who gets comfortable always upgrade to high-yield instruments soon. Starting at a young age also ensures that one is confident of taking advantage of better opportunities by the time one starts making bonuses and increments in their professional life. Those who start late tend to make costly mistakes than the former. Equities is possibly the best investment class that there is for retail investors. They offer good results and tend to move with greater economic trends like inflation and much more, to offer extra income at the end of the cycle. While real estate investments are a necessity for most people, parallel equity investments too have turned into a norm, taking over from bank deposits and gold. <cmsannotation type="cmsannotation" annotationid="2. Diversify your portfolio" comment="subhead" text="2. Diversify your portfolio">2. Diversify your portfolio</cmsannotation> Ensure that there is always a good mix of long-term and short-term investments. While long-term instruments like index-linked passive funds can provide good yields and are more secure, short-term investments in other forms of mutual funds can help improve the liquidity of one’s portfolio. Trading individually too can be much more rewarding and accessible since they do not involve the fees that mutual funds do. However, it also tends to take up a lot of time and effort. However, online trading has made it much simpler and real-time. Trading platforms like<a href="https://binomo.com/en/promo/l88?a=da7c9a65ffbc&amp;ac=222&amp;sa=businessinsider222"> Binomo</a> make it hassle-free for investors to monitor their portfolio with alerts and advanced tools. <keyword id="13184181" type="General" weightage="20" keywordseo="ftt-on-binomo" source="Orion">FTT on Binomo</keyword> gives results on a short-term basis involving a 60 second to 60 minute time frame to make a forecast. It is one of the rare platforms that allow users to practice before venturing into real time trading with a Demo account. The investors can access their accounts 24x7. Funds always stay safe during any transaction as it uses SSL protocol to ensure that all data is encrypted. <cmsannotation type="cmsannotation" annotationid="3. Create a safety net" comment="subhead" text="3. Create a safety net">3. Create a safety net</cmsannotation> A good financial plan should not bet against the odds, but should be sturdy enough to survive them. This form of security net can be provided by insurance. One should also plan against many things that could go wrong with term insurance, health insurance, critical illness insurance and personal accident insurance. While the payouts might weigh in on the annual budgets, they can come in handy when things go wrong. <cmsannotation type="cmsannotation" annotationid="4. Plan for tax" comment="subhead" text="4. Plan for tax">4. Plan for tax</cmsannotation> A good investment provides good results after tax. Since tax tends to be an after-thought for most investors, their income might be slashed after an IT filing or a demand. To avoid untowards surprises, account for tax in every investment and manage the diversity based on the same. The tax department tends to be benign on long-term investments in equity too, so include a good mix of such instruments in your portfolio to ensure your results beat the markets and taxation alike. Make sure you include instruments that provide for tax deduction under Section 80C and Section 80D - like life insurance premium, ULIPs, PPF, EPF, health insurance and more. <cmsannotation type="cmsannotation" annotationid="5. Have a good retirement plan" comment="subhead" text="5. Have a good retirement plan">5. Have a good retirement plan</cmsannotation> For the last few generations, buying or building a home is the best retirement plan especially for those with pension payouts. However, very few who have started working in the 90s and after have the luxury. Most private sector jobs do not offer pensions, and even those who offer such might not account for much due to inflation, and can only work as a supplementary income. An equities-based additional income can offer the cushion against time, for those who have to retire or intend to retire early. Most investment advice hence comes back to equities and while investing one must be wary of frauds in the process. <a href="https://binomo.com/en/promo/l88?a=da7c9a65ffbc&amp;ac=222&amp;sa=businessinsider222">Binomo</a> is a category “A” member of the <keyword id="1182831" type="General" weightage="20" keywordseo="financial-commission" source="Orion">Financial Commission</keyword> which makes it reliable and also guarantees transparency in services. It also has a Compensation Fund in place which offers protection up to €20,000 per case, if a member refuses to follow a Financial Commission judgement, in case of an issue. The platform is present in 133 countries and also offers training and financial knowledge for beginners. Disclaimer:This content is created by Times Group's Mediawire on behalf of Dolphin Corp. Operations with over-the-counter (OTC) financial instruments are associated with significant risks. Before trading on the platform, one needs to analyse their financial capabilities.

Five financial management tips to avoid common pitfalls

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZCSK96M9&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0BXZCSK96M9&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;POPUPPN=2&amp;POPUPIID=2C0BF1F054I25">REUTERS/Luke MacGregor/File Photo</a>Sir Philip Green.</div></div></div>Retail billionaire Sir Philip Green has reportedly upped his offer to settle the BHS pensions black hole after the regulator launched a legal attempt to claw back cash from the tycoon.<a href="http://www.bbc.co.uk/news/business-37868802">The BBC reports</a> that Sir Philip is keen to reach a deal to resolve the collapsed department store's pension problems within weeks.As a result, he has upped his offer to solve the funding shortfall from £250 million ($311 million) to £300 million.Sir Philip Green bought BHS in 2000 for £200 million and his family took over £300 million in dividends out of the business shortly afterward. He <a href="http://uk.businessinsider.com/bhs-inquiry-cornhill-capital-say-dominic-chappell-bid-was-a-bit-of-a-punt-2016-5">sold it for £1 in 2015</a> and the department store <a href="http://uk.businessinsider.com/bhs-in-administration-11000-jobs-risk-2016-4">collapsed into administration in April of this year</a>. BHS had been struggling for years and a government report into its collapse <a href="http://uk.businessinsider.com/bhs-inquiry-mps-report-accuses-sir-philip-green-and-dominic-chappell-of-systematic-plunder-2016-7">blamed under-investment and excessive dividend payouts for sending it into a downward spiral.</a>BHS's 20,000 member pension scheme had <a href="http://uk.businessinsider.com/bhs-inquiry-hundreds-of-zombie-pension-schemes-in-the-uk-2016-5">an estimated funding shortfall of £275 million when the chain collapsed</a> and that number has risen. MPs and the regulator have repeatedly called on Sir Philip, <a href="http://www.forbes.com/profile/philip-cristina-green/">who is worth £4.1 billion according to Forbes</a>, to meet that shortfall.Sir Philip has said he would "sort" the problem but The Pensions Regulator (TPR) was reportedly unhappy with his offer of a plan that would involve a £250 million donation. TPR on Thursday <a href="http://uk.businessinsider.com/sir-philip-green-pensions-regulator-bhs-dominic-2016-11">launched an enforcement action against Sir Philip and Dominic Chappell, who bought the chain from Sir Philip.</a>The BBC reports that Sir Philip has now increased his offer in a bid to reach a quick solution to the problem. Enforcement actions often drag on for years in the courts.Sir Philip's plan would involve buying out members of the pension scheme - giving them a lump sum now instead of accruing future payments. He says his plan would stop the scheme entering the so-called "Pensions lifeboat" - the state-backed Pensions Protection Fund (PPF), which gives a lower payout to retirees.Sir Philip said in a statement on Thursday: "I have provided the Regulator with what I believe to be a credible and substantial proposal, with evidence and bank confirmation of cash availability, which would prevent the scheme from entering the Pension Protection Fund. This is in order to achieve a better outcome for the BHS pensioners."MPs feel Sir Philip, who also owns chains like Topshop and Dorothy Perkins, is prevaricating. <a href="http://uk.businessinsider.com/sir-philip-green-knighthood-debate-bhs-mp-vote-2016-10">A non-binding motion to strip Sir Philip of his knighthood was unanimously supported in a recent House of Commons vote.</a> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-billionaires-sell-penthouses-faster-tricks-tips-2016-10">The real estate tricks billionaires use to sell their penthouses faster and for more money</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="VycG0yMjE69omwf5-yxWoSA5EDyVrymY" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Sir Philip Green is willing to pay £300 million to make the BHS pension problem go away

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://www.gettyimages.co.uk/license/494032763">Mark Thompson/Getty Images</a>Sir Phillip Green.</div></div></div>After the <a href="http://uk.businessinsider.com/bhs-in-administration-11000-jobs-risk-2016-4">collapse into administration of 88-year-old High Street stalwart BHS earlier this week</a>, people are trying to figure out who is to blame for a disaster that has left 11,000 jobs at risk.Most fingers in the press and in Parliament are pointing squarely at two people: Sir Philip Green and Dominic Chappell.<h2>The 'unacceptable face of capitalism'</h2>First, Sir Philip. Green is the billionaire boss of Arcadia, the retail chain that owns Topshop and Dorothy Perkins. Green bought BHS for £200 million in 2000 and reaped more than £400 million in dividends from the retailer as it ran up a £571 million pension plan deficit and debts of £1.3 billion. Then, last year, he sold the underperforming stores for just £1 to Retail Acquisitions, a company set up to do the job.In a blistering piece over the weekend, <a href="http://www.dailymail.co.uk/news/article-3510128/A-100m-floating-gin-palace-pension-scandal-scupper-Sir-Topshop-Philip-Green-faces-calls-stripped-knighthood-buys-yacht-BHS-teeters-brink-bankruptcy.html">the Mail on Sunday pointed out that Sir Philip is now taking delivery of his third luxury yacht</a>, estimated to be worth hundreds of millions - just as 11,000 people now face losing their jobs.<a href="http://www.telegraph.co.uk/business/2016/04/25/sir-philip-green-attacked-over-bhs-collapse/">Tory MP Richard Fuller called Green the "unacceptable face of capitalism" in a commons debate</a> and Green is facing calls from Labour MP John Mann to <a href="http://www.theguardian.com/business/2016/apr/26/bhs-collapse-sir-philip-green-must-repay-400m-pounds-or-lose-knighthood">give up his Knighthood unless he pays back the £400 million in dividends he took out of BHS</a>, according to the Guardian. The huge pension deficit and debt BHS ran up is in part what has sent it under.If Green could afford to pay himself, his family, and other shareholders so handsomely, why couldn't he adequately look after the BHS pension scheme and the business?When questioned by the Guardian over BHS' finances as far back as 2003, Green told the paper: "You don't know what the f*** you are reading. And nor does this Ian Griffiths [the former City editor and qualified auditor investigating the accounts]. You want to f****** sack him. You haven't got a f****** clue. Do you want some lessons? Get in your car, come to my f****** office... You can't read, you people. You shouldn't be allowed to write f****** newspapers." (<a href="http://www.theguardian.com/business/2003/mar/04/supermarkets">The full transcript of conversations is here and is definitely worth reading.</a>)MPs are now set to question Green over the pension black hole. <a href="http://www.reuters.com/article/bhs-philip-green-parliament-idUSL5N17T5VB">The Work and Pensions Committee on Tuesday launched an investigation into the impact of BHS's failure on the Pension Protection </a><a href="http://www.reuters.com/article/bhs-philip-green-parliament-idUSL5N17T5VB">Fund (PPF)</a>, a state-sponsored fund that will now have to pick up the pieces and cover for BHS' underfunded pension scheme.Arcadia Group, Sir Philip's company, was not immediately available for comment.<h2>The ex-racing driver and bankrupt</h2>But Sir Philip Green is not the only one facing criticism for BHS' collapse. Pressure is mounting in the press on Dominic Chappell to explain his financial stewardship of BHS.Chappell, a former racing driver who has twice been declared bankrupt, headed the group that bought BHS for £1 last year. <a href="http://www.thetimes.co.uk/edition/business/bhs-board-divided-over-1-5m-loan-to-chappell-kf8wf2d3b">The Times on Wednesday claims</a> that at least one board member objected to a £1.5 million loan made by BHS to a company linked to Chappell's father. The loan was then used to pay off the £1.3 million mortgage on Chappell's father's house, the Times alleges.The same report also says there were "a number of rows at board level over how the proceeds of various property disposals were handled," with BHS CEO Darren Topp leading objections to Retail Acquisitions taking a share of the proceeds.<a href="http://www.theguardian.com/business/2016/apr/26/bhs-owner-dominic-chappell-moved-funds-out-of-troubled-retailer">The Guardian</a> and <a href="http://www.bbc.co.uk/news/business-36146161">the BBC</a> are drawing attention to the movement of £1.5 million out of BHS last week by Chappell to an entity called BHS Sweden, apparently unconnected to BHS. The money was returned when the payment was discovered, minus £50,000 apparently for foreign exchange costs.BHS paid more than £25 million to Retail Acquisitions, the vehicle that bought it for £1, in the 13 months leading up to its collapse, <a href="http://www.theguardian.com/business/2016/apr/25/bhs-owner-retail-acquisitions-25m-administration">according to the Guardian</a>. Retail Acquisitions is 90% owned by Chappell.<a href="https://next.ft.com/content/58f44436-0bcc-11e6-b0f1-61f222853ff3">The Financial Times</a> says Chappell was paid £1.5 million in salary and other fees during his tenure of the group. He told the FT that this is "in line [with] any executive director at a major retailer," and said he paid £800,000 in professional and legal fees to undertake the acquisition, meaning his net gain was only £700,000.For his part, Chappell has said <a href="http://www.itv.com/news/update/2016-04-25/bhs-owner-insists-no-one-to-blame-for-collapse/">"no one is to blame" for the collapse of BHS</a>. However, <a href="https://next.ft.com/content/58f44436-0bcc-11e6-b0f1-61f222853ff3">other reports suggest he blames Sir Philip Green for leaving it in the state it was in.</a>Chappell was not immediately available for comment when contacted by BI over LinkedIn.MPs are now calling for a full inquiry into the collapse of BHS. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/property-brothers-what-tricky-real-estate-code-words-really-mean-2016-4">Be sure to learn the actual meaning of these real estate 'code words' before looking for a new place</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="pwMHIzMzE6ScSRLxmN5b0zjEe3_Nvmgy" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

There's huge pressure on 2 former owners of collapsed BHS who made millions from the business

With <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> growth of 7.3%, in 2014-15, India’s economy is firmly on the path of economic revival. India is the brightest spot on the global map, with GDP Growth expected to rise to 7.9% in 2017-18. India is well positioned to withstand near-term global headwinds and the high volatility in global financial markets due to reduced external vulnerabilities, a strengthening domestic business and investment cycle, and a supportive policy environment. Most recently, even the IMF has maintained its GDP growth projection of 7.3% in 2015-16 and 7.5% in 2016-17, even as it cut projections for overall global output. 
	 The transition from a state of crisis of confidence in 2013 to a bright spot in 2015 is not by chance but by design. The past few months in particular, have seen even renewed energy from the Government to enforce key reforms, and revive industrial sentiment. Going forward, the upcoming Budget Session of <keyword id="6354721" type="ORGANIZATION" weightage="20" keywordseo="parliament">Parliament</keyword> will be very important in the current scheme of things, to create short &amp; medium term wins. 
	 
	Boosting Savings in India 
	 
	Most importantly, there is a need to boost savings in the economy to enhance the inherent economic strength of the financial sector. It will be worthwhile to adopt of the structural GEAR (Growth, Efficiency, Attractiveness, Reach) approach, as elaborated below, to augment the savings rate in the economy: 
	 
	Enhance economic growth to increase per capita incomes: Towards this end, it will be important to increase disposable incomes by relaxing personal income tax slabs to INR 5 lakh from the current level of INR 2.5 lakh – this could be a one-time correction and this could thereafter be linked to inflation and reviewed every three years. This will provide an immediate thrust to household incomes, part of which will be diverted to financial savings. 
	 
	Focus on efficiency in financial transactions: Use of plastic currency and e-transactions (via internet/mobile) will not only improve ease of transactions but also enhance saving propensity among citizens. Every 1% reduction in currency in circulation is likely to add 0.4% to the savings rate. More importantly, this could also help in curbing the flow of black money. 
	 
	Make financial savings attractive: Financial savings must be promoted by improving tax incentives. One of the enabling measures for this will be to enhance 80C limits to INR 3,00,000 from current level of INR 1,50,000 – this will also deepen the mutual fund and equity markets. Secondly there is a need to increase inflation adjusted post tax returns for bank deposits, by reducing lock in period eligible for tax rebate to 1 year from 5 years; and enhancing the threshold for mandatory TDS on interest income to INR 50,000 a year from the current level of INR 10,000. It will also be useful to roll back TDS on Recurring Deposits to encourage wider adoption, as this is a product that promotes the habit of regular saving. Further, pension products like EPF and PPF continue to enjoy ‘EEE’ tax status whereas the National Pension Scheme (NPS) are subject to ‘EET’, which involves tax obligation at the withdrawal stage. To create a level playing field and prevent cannibalization, NPS needs to get ‘EEE’ tax status to make it more attractive. 
	 
	Expand financial reach: The Government could consider converting India Post into Postal Bank of India, a full-fledged Payments and SAVINGS bank, to leverage its rural penetration for greater financial inclusion. Internationally, there are a few countries which have tapped the postal institution for extending financial inclusion. 
	 
	Next Generation of Reforms 
	 
	For 2016, I believe India’s top priorities should include passage of GST, rationalizing direct taxes further, tax sops for Start Ups and introducing key structural reforms in terms of real estate, labor and MSMEs. The farm sector too needs significant focus on irrigation and technological support. 
	 
	With the global economy expected to remain mired in volatility in 2016, strengthening the domestic economy will also help to ring-fence India against global headwinds. While micro measures will help, the Banking &amp; Finance sector also needs the next generation of reforms. I am hopeful that economic clairvoyance will triumph over political myopia in 2016 and GST will see the light of the day. The Bankruptcy Bill will also turn out to be a game changer for spurring economic activity and confidence. This Budget presents a Golden Chance to usher in Fiscal Measures to make 2016 India’s Year. 
	 
	The article has been authored by Rana Kapoor, managing director and CEO of YES Bank and chairman of YES Institute.

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There's huge pressure on 2 former owners of collapsed BHS who made millions from the business

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