Finance & Tax
Hedging: A Tool to Manage Foreign Currency Risk
Students, suppose you are working in the treasury department of an MNC. Your company enters…
Understanding Purchasing Power Parity (PPP) in Foreign Exchange Transactions
Purchasing power parity (PPP) is an economic theory of exchange rate determination. It states that…
Alternative Minimum Tax (AMT) and AMT Credit Adjustment – A Conceptual Overview
Alternative Minimum Tax (AMT), introduced for non-corporate taxpayers to address disparities in tax payments and…
Minimum Alternate Tax (MAT): Concept and Practical Application
Minimum Alternate Tax (MAT) is an important provision under the Income Tax Act, 1961, designed…
Tax rates for Indian Domestic Companies—Normal vs Concessional Regime
Under the Income Tax Act, 1961, domestic companies in India have the option to be…
Understand ITR: Choosing the Right Form for Filing Income Tax
Filing the correct Income Tax Return (ITR) form is a crucial responsibility for taxpayers. However,…
Understanding Transaction and Translation Risk Adjustments in Financial Statements
Translation Exposure: The translation exposure is also called accounting exposure or balance sheet exposure. Translation…
Understanding Operating Risk Adjustments in Financial Statements
A firm dealing with foreign exchange may be exposed to foreign currency exposures. The exposure…
Financing through the International Equity Market
Depository Receipt (DR) is used as means in the international capital market to raise fund…
Financing through the International Debt Market
International capital markets refer to financial markets that facilitate the buying and selling of financial…
NPV and IRR in Capital Investment and Financing Decisions
Net Present Value (NPV) and Internal Rate of Return (IRR) are two fundamental tools used…
A Conceptual Overview of Retirement Benefits under the Head “Income from Salary”
During employment, many employees tend to focus mainly on their monthly take-home salary. However, an…
Discounted Cash Flow and Present Value in Investment Decisions
Present Value (PV) and Discounted Cash Flow (DCF) are terms we frequently hear in the…
Allowances and Perquisites under Income from Salary
When you receive your first appointment letter, you will often find several components listed in…
Profit is Not Cash: Understanding the Real Cash Flow in a Business
Accounting Standard AS 3 and its converged version Ind AS 7, which is aligned with…
Understanding CAPM in the World of Returns and Wealth Building
The Capital Asset Pricing Model (CAPM) is an equation that describes the relationship between the…
Letter of Credit (LC) in International Transactions
A letter of credit is essentially a financial document issued by a bank that guarantees…
Understanding Accrual and Cash Basis of Accounting under PGBP
Accrual Basis of accounting is a fundamental accounting assumption for the preparation and presentation of…
Cost of Capital and EVA: Tools for Strategic Financial Decisions
Cost of Capital is the minimum rate of return or profit a company must earn….
PGBP vs Book Profit – Including Cash Disallowance –Section 40A (3)
Section 43B of the Income Tax Act provides a list of expenses can be claimed as…
The Value of the Firm: Relevance of Debt–Equity Mix
Why do investors buy shares of a company? Ans: For dividend For capital appreciation For…
TDS on Salary and Consequences of Non-Compliance
Good morning, students. This is my second class on TDS, because in our previous session…
TDS: An Overview of Understanding Compliance
The bell had just rung, but Mohit and Mrinmoy were still seated, flipping through their…
Dealing in Foreign Exchange through Nostro, Vostro and Loro
Cross-border payments play a key role in international business. To facilitate dealing in foreign exchange,…
Stamp Duty Value vs Actual Sale Price: Which One Governs Capital Gains Tax?
Stam duty value is the value adopted by the Stamp Valuation Authority (SVA) to levy…
Regular or Composition? Understanding the Right GST Option
The composition levy is an alternative method of levy of tax designed for small taxpayers….
Understanding Key GST Returns and the Reconciliation Process
GST reconciliation refers to the act of comparing the GST returns filled by the taxpayer with…
Rebate, Marginal Relief, Surcharge and Tax Liability in Tax Management
Chandrakant asked: Sir, Tell something about rebate u/s 87A Professor said: Rebate is a tax…
Sections 54, 54EC and 54F: Relief from LTCG Tax
Capital gains do not always lead to tax liability. Long-term capital gains tax liability can…
Arbitrage Learning in Business Strategy
In theory, a given currency should carry the same price in different locations/markets. However, market…
Tax Treatment of Share Transactions in Income Tax
Share capital is the most popular and convenient source of long term finance for companies….
Equity or Debt? Understanding Financial Breakeven and Indifference Point
The students were settling into the Corporate Finance class, some eagerly taking the front seats…
Capital Gains: Basic Concepts and Tax Treatment
Akash and Mukesh sitting in a college cafeteria after class. Akash looks worried, scrolling through…
Cross Rate Application in Business Scenarios
A cross rate is the currency exchange between two currencies where neither are the official…
Optimum Capital Structure and Capitalisation
Capital structure refers to the mix of debt, equity, and hybrid securities that a business…
Risk–Return Dynamics: A Case Study Discussion
The professor looks at the students and says, Students, case studies are excellent for understanding…
Risk–Return Relationship in Corporate Finance
We all know one basic rule of finance — higher risk demands higher return. But…
Income from House Property: Understanding Different Scenarios
Before we delve into the computations, let us first understand the various types of house…
GAV and NAV Explained: The Foundation of House Property Income
Before computing Income from House Property, it is essential to clearly understand the concepts of…
Residential Status vs Scope of Total Income
While residential status of an individual is based on physical presence, the residential status of…
Exchange Rates: Concepts and Real-World Applications
Foreign exchange quotation is the amount of currency that is exchanged for a unit of…
Provision and Reserve: Important for Accounting and Growth
Reserve is the term which refers to a sum or percentage of profit that a…
Magic figure of Residential Status
The magic figures of the number of days used to determine residential status under the…
Understanding Direct Tax Compliance: A High-Level View
Direct tax is something that every earning individual faces in life. Even if you are…
Understanding Leverage: Risk behind Business Decisions
The classroom was unusually quiet today. Students sat alert, notebooks open, eyes fixed on the…
Different Forms of International Business through the BOP Framework
International Business (IB) refers to the exchange of goods, services, capital across national borders and…
Balance of Payments (BOP) through Cross-Border Financial Transactions
The balance of payments (BOP) summarizes the economic transactions of an economy with the rest…
Understand Forex Basics in the Global Financial World
Whenever business activities are restricted within a country, transactions are conducted in a single domestic…
International Business through the Lens of International Finance
I recently attended a session where the speaker began an insightful discussion on the forms…
Sources of Finance: A Classroom Moment
The professor walked into the class, smiled at the students, and asked: Before we move…