Dr. Sujit Dutta

Alternative Minimum Tax

Alternative Minimum Tax (AMT) and AMT Credit Adjustment – A Conceptual Overview

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Alternative Minimum Tax (AMT), introduced for non-corporate taxpayers to address disparities in tax payments and prevent individuals from significantly reducing their tax liability through tax benefits. The AMT includes a provision for the carry forward of the AMT credit, which allows taxpayers to use the excess amount paid as AMT against their regular tax liability […]

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Minimum Alternate Tax (MAT): Concept and Practical Application

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Minimum Alternate Tax (MAT) is an important provision under the Income Tax Act, 1961, designed to ensure that taxpayers with substantial income do not avoid tax liability by claiming various deductions and exemptions. However, students often face confusion regarding its applicability, computation, and differences. To build conceptual clarity, case-based learning can be highly effective. By

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Tax rates for Indian Domestic Companies—Normal vs Concessional Regime

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Under the Income Tax Act, 1961, domestic companies in India have the option to be taxed either under the normal provisions or under concessional tax regimes such as Section 115BAA of Income Tax Act and Section 115BAB. Under the normal provisions, the applicable tax rate depends on the company’s turnover. Companies with turnover up to

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Understand ITR: Choosing the Right Form for Filing Income Tax

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Filing the correct Income Tax Return (ITR) form is a crucial responsibility for taxpayers. However, many people—especially students and first-time filers—often get confused about which ITR form applies to their specific situation. This blog aims to simplify that confusion by providing a clear guide on ITR form numbers and their practical applicability, helping students and

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Understanding Transaction and Translation Risk Adjustments in Financial Statements

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Translation Exposure: The translation exposure is also called accounting exposure or balance sheet exposure. Translation risk is based on assets, equities, liabilities on the Balance Sheet in foreign currency to domestic currency.  Strictly speaking. There is no actual gain or loss seen here. Transaction Exposure: A firm may have some contractually fixed payments and receipts

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Understanding Operating Risk Adjustments in Financial Statements

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A firm dealing with foreign exchange may be exposed to foreign currency exposures. The exposure is the result of possession of assets and liabilities and transactions denominated ‘in foreign currency. When exchange rate fluctuates, assets, liabilities, revenues, expenses that have been expressed in foreign currency will result in either foreign exchange gain or loss. A

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Financing through the International Debt Market

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International capital markets refer to financial markets that facilitate the buying and selling of financial instruments such as equities, bonds, and derivatives across national borders. There are two main ways that someone accesses the capital markets—either as debt or equity. Companies may raise debt (ECB, Eurobond), equity (ADR, GDR), or hybrid securities (FCCB) depending on

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NPV and IRR

NPV and IRR in Capital Investment and Financing Decisions

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Net Present Value (NPV) and Internal Rate of Return (IRR) are two fundamental tools used to evaluate a project’s profitability. NPV is an absolute measure of the difference between the present value of cash inflows and the present value of cash outflows over a specific period of time. It considers the time value of money, which

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Retirement benefits under income from salary

A Conceptual Overview of Retirement Benefits under the Head “Income from Salary”

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During employment, many employees tend to focus mainly on their monthly take-home salary. However, an equally important aspect of compensation lies in retirement benefits such as Provident Fund (PF), Gratuity, Pension, Commuted Pension, and Leave Encashment. Under the provisions of the Income Tax Act, these benefits are taxed under the head “Income from Salary”, though

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