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 […]
TDS: An Overview of Understanding Compliance Read More »
Cross-border payments play a key role in international business. To facilitate dealing in foreign exchange, a bank in India may maintain banks with abroad. Similarly, some foreign banks may maintain accounts with banks in India. A brief description about these accounts is important to understand exchange dealings. Nostro, Vostro, and Loro accounts form the foundation
Dealing in Foreign Exchange through Nostro, Vostro and Loro Read More »
Stam duty value is the value adopted by the Stamp Valuation Authority (SVA) to levy stamp duty on the registration of properties as guidance value to determine the undervaluation of land or buildings, if any, in the sale agreement. Stamp duty valuation is Important for the seller under income tax laws. Under Section 50C, if
Stamp Duty Value vs Actual Sale Price: Which One Governs Capital Gains Tax? Read More »
The composition levy is an alternative method of levy of tax designed for small taxpayers. The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. It allows small businesses to: All persons registered under the Composition Scheme shall file Form GSTR-4 every quarter through the GST
Regular or Composition? Understanding the Right GST Option Read More »
GST reconciliation refers to the act of comparing the GST returns filled by the taxpayer with the financial records of the business. It’s a crucial process for businesses to ensure accuracy and compliance. GSTR-9C is a form for annual GST reconciliation statement filed by applicable taxpayers. Every registered person whose aggregate turnover during a financial year
Understanding Key GST Returns and the Reconciliation Process Read More »
Chandrakant asked: Sir, Tell something about rebate u/s 87A Professor said: Rebate is a tax benefit provided to middle to low-income earners. It is provided only to resident individuals, earning income within 10% slab rate. Rs. 60,000 rebate is allowed for income within Rs. 12 lakh under the new regime and Rs. 12,500 for income
Rebate, Marginal Relief, Surcharge and Tax Liability in Tax Management Read More »
Capital gains do not always lead to tax liability. Long-term capital gains tax liability can be significantly reduced if one understands the exemption provisions properly. Sections 54, 54EC and 54F of the Income-tax Act provide valuable relief to taxpayers who transfer long-term capital assets and would otherwise be required to pay substantial tax. Let us
Sections 54, 54EC and 54F: Relief from LTCG Tax Read More »
In theory, a given currency should carry the same price in different locations/markets. However, market inefficiencies resulting from communication difficulties may result in different prices emerging in different locations at the same time. Arbitrage, takes advantage of these inefficiencies to the benefit of a trader. The process of buying goods/currency in one market and selling
Arbitrage Learning in Business Strategy Read More »
Share capital is the most popular and convenient source of long term finance for companies. The organizations utilise multiple types of issues to raise public funds from the capital market. The IPOs and FPOs are one of those issues through which a company issue (sell-off) financial securities like equity shares for the investors to subscribe.
Tax Treatment of Share Transactions in Income Tax Read More »
The students were settling into the Corporate Finance class, some eagerly taking the front seats while many quietly occupied the back benches. The room buzzed with low conversations as notebooks and laptops came out. The professor stood calmly in front of the smart board, glanced around the classroom, and smiled. He wrote a few key
Equity or Debt? Understanding Financial Breakeven and Indifference Point Read More »
