Dr. Sujit Dutta

Allowances and perquisites

Allowances and Perquisites under Income from Salary

Leave a Comment / Indian Direct Tax /

When you receive your first appointment letter, you will often find several components listed in your salary structure—basic pay, allowances, perquisites, reimbursements, and other benefits. For many fresh professionals, the terms “allowances” and “perquisites” can be confusing. It is important not to overlook these terms. Understanding them properly helps you interpret your salary structure, estimate

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Understanding CAPM in the World of Returns and Wealth Building

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The Capital Asset Pricing Model (CAPM) is an equation that describes the relationship between the expected return of an investment and its risk. CAPM quantifies investment risk through beta, allowing investors to compare the volatility of an asset to the market. If you need to clear your concept of CAPM, let’s go through this classroom

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Understanding Accrual and Cash Basis of Accounting under PGBP

1 Comment / Indian Direct Tax /

Accrual Basis of accounting is a fundamental accounting assumption for the preparation and presentation of financial statements as per Accounting Standard (AS) 1, disclosure of Accounting Policies. Additionally, Section 128 of the Companies Act,2013 requires maintenance of books of accounts by Companies on the Accrual Basis. Many businesses prefer to use cash accounting because the

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Cost of capital and EVA

Cost of Capital and EVA: Tools for Strategic Financial Decisions

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Cost of Capital is the minimum rate of return or profit a company must earn.  It is extremely important to investors and analysts. It’s the cost of obtaining funds, whether through equity or debt and includes the returns expected by shareholders and the interest expenses on debt. Companies look for the optimal mix of financing that provides adequate funding and minimizes the

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PGBP vs Book Profit

PGBP vs Book Profit – Including Cash Disallowance –Section 40A (3)

1 Comment / Indian Direct Tax /

Section 43B of the Income Tax Act provides a list of expenses can be claimed as deductions from business income only in the year of actual payment and not in the year when the liability to pay such expenses is incurred. Section 40A (3) disallows tax deductions on expenses above Rs. 10,000 made in cash in a

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TDS on Salary and Consequences of Non-Compliance

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Good morning, students. This is my second class on TDS, because in our previous session some important questions remained unanswered. Today, we shall clarify them properly. He looked around the class and paused thoughtfully and asked Sweta… what is your question Sweta:Sir, in a company we make payments to contractors, suppliers, transporters and employees. We

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TDS compliance

TDS: An Overview of Understanding Compliance

2 Comments / Indian Direct Tax /

The bell had just rung, but Mohit and Mrinmoy were still seated, flipping through their notes. The topic for the day was Direct Tax Compliance, and both of them looked slightly unsettled. Mohit leaned towards Mrinmoy and whispered: I understand income tax theory, but in a manufacturing company interview, they won’t ask definitions. They’ll ask

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