Akash and Mukesh sitting in a college cafeteria after class. Akash looks worried, scrolling through his phone. Mukesh: Why so tense? Akash: I just sold some shares and mutual funds… and now I realise capital gains tax is not as simple as I thought.” Mukes smiles:“Teach me. I always get confused between STCG, LTCG, slabs, […]
Capital Gains: Basic Concepts and Tax Treatment Read More »
A cross rate is the currency exchange between two currencies where neither are the official currencies of the country in which exchange rate quote is given. It means that cross currency rate is when the currency being mentioned do not belong to domicile. Therefore, a finance Journalist in Japan will refer to EUR/GBP as the
Cross Rate Application in Business Scenarios Read More »
Capital structure refers to the mix of debt, equity, and hybrid securities that a business uses to finance its operations and growth. Debt includes loans and bonds that require repayment, while equity involves raising funds through selling shares that give investors ownership stakes. When we discuss capital structure, the focus is on achieving the optimum
Optimum Capital Structure and Capitalisation Read More »
The professor looks at the students and says, Students, case studies are excellent for understanding concepts in real life.But in corporate finance, true clarity comes only when concepts are tested with numbers. He pauses, scans the classroom, and continues, Stories help you visualize a situation, but figures help you understand the logic behind decisions. Then
Risk–Return Dynamics: A Case Study Discussion Read More »
We all know one basic rule of finance — higher risk demands higher return. But in business, risk does not come from one place. It comes in layers. Let’s know the following terms Business Risk: Base-Level Risk Business risk arises from: It exists even if the company has no debt. Risk–Return Link:A firm with high
Risk–Return Relationship in Corporate Finance Read More »
Before we delve into the computations, let us first understand the various types of house properties and how the income from each is brought to tax under the head ‘Income from House Property’. Income tax classifies the properties in three ways: Self-Occupied House Property Let Out House Property Deemed to be Let Out Property Self-Occupied
Income from House Property: Understanding Different Scenarios Read More »
Before computing Income from House Property, it is essential to clearly understand the concepts of Gross Annual Value (GAV) and Net Annual Value (NAV). These two terms form the foundation of house property taxation, and most numerical problems begin with their correct determination. If you read this blog carefully, you will be able to understand:
GAV and NAV Explained: The Foundation of House Property Income Read More »
While residential status of an individual is based on physical presence, the residential status of a company, firm and HUF depends mainly on control, management or POEM. Company POEM = place where key management & commercial decisions are made Firm / AOP / BOI Even partial control in India makes it Resident HUF Control
Residential Status vs Scope of Total Income Read More »
Foreign exchange quotation is the amount of currency that is exchanged for a unit of another currency. Foreign exchange quotations can be two types, they are: 1. Direct Quotation 2. Indirect Quotation Direct quotation: A direct quote expresses the price of one unit of foreign currency in terms of domestic currency. In other words, it
Exchange Rates: Concepts and Real-World Applications Read More »
Reserve is the term which refers to a sum or percentage of profit that a company retains or keeps aside at the end of a financial year towards meeting future contingencies that may occur. It is also used to strengthen the business. There are two types of reserves in an organisation A capital reserve is created
Provision and Reserve: Important for Accounting and Growth Read More »
