Monenomics

DO YOUR EYES NEED A TECH BREAK?

2020-02-05T23:43:00.001+05:30

DO YOUR EYES NEED A TECH BREAK?

Follow these tips if you spend the whole day looking at a screen

People are often glued to screens these days, from mobile phones to tablets as well as television sets, laptops, and computers. Whether at home, the office, or even while traveling, it is hard to imagine life without a screen. But looking at such screens for prolonged periods of time can tire your eyes and cause vision-related problems. Some symptoms include eye pain, fatigue, blurred vision, dryness or redness in the eyes.

Here are tips on how you can avoid computer vision syndrome.

Check your glasses prescription

Ensure that the prescription is appropriate for close computer work. Glasses or contact lenses that are not of the correct power wil cause your eyes to tire easily.

Place the computer screen at least 20 inches away

Ideally, the computer screen should be between 20-40 inches away from you. If it is too close or too distant, it may cause you to sit in an awkward position.

Also, the top of your computer screen should be at or a little below eye level.

Adjust the brightness

Togglet display settings of your computer or mobile device so as to achieve a similar level of brightness as your surroundings. When your screen is very bright, you are exposed to more 'blue light'. This can harm the eyes and affect your vision.

When in the office, try to angle your monitor away from light sources and windows so that there is no light reflecting off the screen.

Rest your eyes

Your eyes will become drier the longer you spend looking at the screen. The air-conditioning isn't doing you any favors either. It's important to take frequent breaks from the screen to prevent headaches, blurry vision and dry

eyes.

Follow the 20:20:20 rule to reduce eye strain:

Every 20 minutes, look at an object about 20 feet away for 20 seconds.

If possible, walk away from your desk every hour or two, and look at a distant object through a window.

This change in focus helps to exercise and thus relax the muscles of the eye.

If your eyes are dry, consider using lubricating eye drops. These can be found at pharmacies and eye doctors' clinics.

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DISCLAIMER

The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

BUDGET 2020 - Direct Tax Highlights

2020-02-02T19:17:00.001+05:30

Finance Minister Mrs. Nirmala Sitharaman presented the Union Budget for the fiscal year 2020-21 on 1^st February 2020.

Below given are the major highlights of direct tax provisions.

1. Dividend Distribution Tax (DDT) has been abolished and companies will not be required to pay any DDT. However, the dividend amount shall be taxable in the hands of recipients as per their slab rates. This has been done to save them from the tax burden.

2. A concessional corporate tax of 15% has been extended to Power Generation Companies.

3. Tax Audit turnover threshold u/s 44AB has been increased from Rs.1 crore to Rs. 5 crores, provided the taxpayer has not done more than 5% of business transactions in cash. This has been done to give incentives to small taxpayers.

4. New tax rates for individuals – Optional and available for those who forgo exemptions/deductions available currently under different sections.

Income Slab	Existing Rate	New Tax Rate
0-2,50,000	0%	0%
2,50,000-5,00,000	5%**	5% **
5,00,000 – 7,50,000	20%	10%
7,50,000 – 10,00,000	20%	15%
10,00,000 – 12,50,000	30%	20%
12,50,000 – 15,00,000	30%	25%
> 15,00,000	30%	30%

** (Rebate available)

5. The turnover threshold for Start-up exemption has been increased from Rs. 25 crores to Rs. 100 crores and a period of 7 years relating to tax relief have been extended to 10 years.

6. Concessional tax rate @22% has been provided to Co-operative Societies without availing any exemptions and now they will not be required to pay any AMT.

7. Presently tax on ESOP received by employees of Start-up applicable at the time of exercise of the option. Now, it is deferred (i.e. 5 years or leaving the company or sale whichever is earlier).

8. Currently, under different sections (i.e. 50D, 43CA, 56) for real estate transactions, stamp duty value is considered for tax purposes if the difference between actual consideration and the stamp duty value more than by 5%. But now the same has been increased to 10%.

9. In order to put an end to tax harassment of any citizen, Taxpayer Charter has been proposed to insert as a part of Statues.

10. 100% tax concession has been allowed on interest, dividend or capital gains from Sovereign Wealth Funds on investment in infrastructure funds.

11. Concessional withholding tax rate @5% u/s 194LC (i.e. interest payment to non-residents) has been extended up to 30-June-2023.

12. Concessional withholding tax rate @5% u/s 194LD (i.e. interest on certain bonds) has been extended up to 30-June-2023 and also extended to municipal bonds with tax rate @4%.

13. Similar to Sabka Vishwas Scheme under GST, "Vivad se Vishwaas Scheme" introduced in the Income Tax Act. Under this scheme, appeals pending before different forums will be withdrawn if the taxpayer pays disputed tax amount on or before 31-Mar-2020 and in that scenario no interest or penalty will be charged.

Further, this scheme shall be made available till 30-June-2020 provided the taxpayer has to pay an additional amount over and above disputed tax.

14. There is a proposal to amend the Income Tax Act to allow faceless appeals against tax orders similar to faceless assessment.

15. The time limit to avail additional Rs.1.50 lakhs deduction towards interest on affordable housing loans has been extended up to 31-Mar-2021.

16. It has been proposed to introduce a new process for the instant allotment of PAN on the basis of Aadhaar.

17. There is a proposal to simplify the ITR forms which will pre-fill the details of the donee to avail deduction u/s 80G.

18. The government has proposed that there shall be no manual submission of application by Charitable Institutions for registration/approval under the Income Tax Act and provisional registration number shall be issued with validity up to 3 years.

19. The tax holiday period for developers of affordable housing schemes has been extended by another 1 year.

Download Budget Speech of Finance Minister

Download Budget Speech of Finance Minister:

DISCLAIMER

Make an Invoice easily for free

2019-12-31T16:34:00.000+05:30

Use Technology and Get free Professional Invoice

When you have a business, we must issue an invoice in Excel. But sometimes we have no knowledge of even creating it. Luckily, we have created a complete guide for you where we will teach you to make this type of document.

Excel Invoice:

The Microsoft Office Excel program provides us with endless pre-designed templates of excellent quality and digital resources that make our work easier. Especially, when you don't have much mastery in this tool.

Nowadays, one of the most requested categories by Excel users is the creation of personalized invoices for your business. This tax document will undoubtedly give your business a much more professional look.

Fortunately, we will show you the correct procedure to prepare an invoice in Excel. Pay close attention!

Step by step to make an Excel invoice

Open Excel interface

First, you must open the Excel program. In our case, we will be using the version of Office 2013. If you use the same, you will get the same interface as our capture.

However, if you do not use it, you may be able to observe some changes. Don't worry, it's nothing from the other world! The procedure is relatively the same.

In the search box type the word invoice

Next, you need to filter the invoice templates we need in the search engine, which are available in the version of Excel you use.

Select the invoice format you like best and fit your business

One of the great advantages that Excel has is that it gives us a variety of types of templates. All with different characteristics. Therefore, you must choose the one that best suits the needs and requirements of your venture.

We have selected the simplest of all: “ Invoice ”.

Click on the invoice format you chose

If you have already chosen your type of invoice, then it is the perfect time to click on the selected format and then click on the new dialog box that will appear on the screen and immediately click on “ Create ”

As we show below:

Open the excel invoice format selected in the program

Once, you have already clicked on the " Create " button, the Excel invoice format you have selected will automatically be displayed.

Of course, this file will come with predesigned information that you can edit and place your business data.

Start editing company data

If you want to place your company's data on the invoice, then you must locate the "company configuration" tab, which is located at the bottom of the invoice. In this way, you can correctly add your business information.

Important: Fill in each of the boxes that appear.

Instantly, you can see how these data are reflected in the invoice you are making.

Add the representative company logo

If you want to get a professional invoice for your business, yes or yes, you will have to add the logo that represents your business. This emblem will be the face of your company in front of customers when it comes to charging your services or products.

To add a logo, you will have to right-click on the “replace logo” tab. Next, a dialog box will appear, again click on the “replace image” option. Then, select the folder where you have the image stored.

Replace the currency format

Remember that, this Excel spreadsheet is predesigned and by default, it comes in the configuration in Euros. However, making a change is extremely easy.

First, you will have to go to the “ Number ” group, which is in the ribbon at the top of the screen (we have indicated you with a red circle where you have to go) select the currency of your country.

Keep in mind that, for all changes to be applied, you will have to place yourself in each cell where you want to make the changes by choosing the corresponding currency.

Best of all, you can use this Excel invoice format several times with different customers.

If you want to use this document again, but for another person, you will only have to change the information contained in the invoice relating to the previous customer

Important data about the Excel Invoice

If you want to have a copy of each one of the invoices issued, it is advisable to download the original template and store the new version with the name of “copy”, and on top of this last one, you make the editions that you might require.

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DISCLAIMER The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Tax Planning Tips to Reduce Your Income Tax on House Property Income

2019-12-30T17:34:00.001+05:30

If you have more than 2 house property, it might be difficult for you to plan your tax on your income from house property in such a manner that you can reduce your tax liability.

Because people don't know that even if their property is self-occupied, they are still liable to income tax. For example, if you have three house property, your one property out of three shall be deemed to be let out property and accordingly, you will be liable to pay tax.

Earlier as per the provisions of Section 24 of Income Tax 1961, if you had two-self-occupied property, you had to consider one house property out of two as deemed let out and accordingly, you had to calculate income tax accordingly on that deemed let out property.

Let us do Tax Planning for House Property Income

Suppose you have three houses -HP 1, HP 2 and HP 3. Now you have to plan which house property is to be deemed as let-out property because as per Finance Act 2019, out of three property, one property has to be deemed to be let out property mandatorily.

LET US MOVE AHEAD

Income under the head of House Property for A.Y. 2020-21

Particulars	HP 1	HP 2	HP 3
Market Value(MV) Per annum	5,00,000	5,60,000	5,30,000
Fair Rent(FR) Per annum	5,75,000	4,75,000	5,80,000
Standard Rent(SR) Per annum	5,50,000	5,70,000	5,75,000
Gross Annual Value=Lower( Higher(MV,FR), Standard Rent)	5,50,000	5,60,000	5,75,000
Less: Muncipal Taxes Paid by owner	56,000	50,000	20,000
Net Annual Value(NAV)	4,94,000	5,10,000	5,55,000
Less: 30% of NAV	1,48,200	1,53,000	1,66,500
Less: Interest on Borrowed Capital	Nil	55,000	1,75,000
Income from House Property	3,45,800	3,02,000	2,13,500

Now you can treat any of the above two houses as self-occupied house property

Option 1: HP 1 and HP 2 are taken as Self Occupied Property

If HP 1 and HP 2 are taken as Self Occupied Property, the income from house property shall be-

Particulars	Amount
HP 1 (Self Occupied Property)	Nil
HP 2 (Interest deduction restricted to INR 30,000)	(30,000)
HP 3 Deemed Let Out	2,13,500
Income from House Property	1,83,500

Option 2: HP 1 and HP 3 are taken as Self Occupied Property,

If HP 1 and HP 3 are taken as Self Occupied Property, the income from house property shall be-

Particulars	Amount
HP 1 (Self Occupied Property)	Nil
HP 2 (Deemed Let Out)	3,02,000
HP 3 (Self Occupied Property)	(1,75,000)
Income from House Property	1,27,000

Option 3: HP 2 and HP 3 are taken as Self Occupied Property

If HP 2 and HP 3 are taken as Self Occupied Property, the income from house property shall be-

Particulars		Amount
HP 1 (Deemed Let Out)		3,45,800
HP 2 (Interest deduction restricted to INR 30,000)	(30,000)
HP 3 (Self Occupied Property)	(1,75,000)
(Total Interest deduction restricted to INR 2,00,000)		(2,00,000)
Income from House Property		1,45,800

Since Option 2 is most beneficial, so you must choose HP 1 & HP 3 as your self occupied property and HP 2 as your let-out property. Considering this tax planning, your tax liability shall be INR 1,27,000 WHICH IS LOWEST

Assumption

In the case of HP 2 Loan is taken for repairing purpose and in the case of HP 2, the loan is taken for acquiring a new house property

This tax planning has been done taking into consideration the provisions of the Income Tax Act, 1961 applicable to AY 2020-21

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DISCLAIMER The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

4 Tips to increase your money in 2020

2019-12-22T20:25:00.000+05:30

I know all of you are interested in increasing your wealth. But I can give you a guarantee that 95% of them are not gonna meet that new year resolution. Please don't mind but you can also be somewhere in the crowd of that 95 % of people who are not going to meet their new year resolution. I know you aren't feeling good now and curious to know the reason for that.

Don't worry. I will help you achieve your new year resolution. But first of all, make your new year resolution that I am gonna increase my wealth this year at a higher rate than the previous year. I hope you have made that resolution. I have presumed that now. So taking you forward, I am sharing with you my personal guidance on how you are gonna meet your resolution.

4 Tips that will help you increase your wealth

1. Your skill can be your Panacea

In 2019, have you gained a new skill? If it is big No. LEARN IT NOW. Every skill has its own worth. Please remember that no skill means that you are NOT upgrading yourself. It is also quite possible you would be fired from your job just because you are downgrading yourself in a turbulent environment which is changing every second. Start to learn a new skill now immediately and GET PROMOTION with SALARY HIKE.

2. Be good in tax planning

Every year we pay taxes to the government which we can save easily with good tax planning. For example, you have made an investment in the units of Equity Oriented Fund and assumed you don't know that you can claim its deduction from your income while paying tax. So just because of a lack of knowledge, you are paying extra taxes to the government and reducing your own wealth. I am not telling you to save tax illegally but do proper tax planning.

3.Invest in good portfolios

Have you kept your money idle in a savings bank account in 2019? The biggest mistake you have done if you have done so. Keeping your money in a savings bank account is NOT gonna help you increase your wealth because inflation is eating the value of your money every day. Invest it now somewhere where you can achieve a return higher than the inflation rate like equity, mutual fund, etc considering your risk appetite, goal, and your needs.

4. Do something extraordinary

We know that your 9 to 5 job is not gonna help you achieve your future goals. So do something different and monetize that. You can start, for example, blogging in the niche in which you are an expert. Learn new things that others are doing and making money but do something side by side to your routine job. I know you must be thinking about how it can be done with a job. But believe me, learn time management. it will make you happen that.

What you have taken from reading?

I hope after reading this you are determined to learn new skills. Be aware of tax planning and I know that now for 2020 you are gonna plan and save your tax. Don't forget that while making an investment, putting all eggs in one basket can be risky. and at last, do something side by side to your regular job with good time management.

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DISCLAIMER- The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

What is Demat account and how it works?

2019-12-19T23:15:00.000+05:30

Why should there be a Demat account?

As per SEBI guidelines, shares cannot be sold or bought in any form except Demat. Therefore, if you want to buy or sell stocks from the stock market then you must have a Demat account. SEBI Notification with respect to this matter can be seen on the SEBI Website

How does it work?

There is a T+2 Concept of transferring the shares into the Demat account. When you buy a share, the broker credits the shares in the Demat account with it and it appears in the details of your holding. If you trade through an internet-based platform, you can view your holdings online. Specifically, the broker credits the shares at T + 2, which is after the trading day + 2 days. If you want to know more about T+2 Concept, go to the NSE website

When you sell shares, you have to give delivery instructions to your broker, in which you have to fill in the details of the stock sold. The stock gets debited in your account and you receive the money for the shares sold.

If you pay through the internet, debit of shares and credit of amount starts appearing automatically in your account. It is a very secure way of doing the transaction online. Many brokers are providing this service to their customers in this digital world.

There are two depositories in India - National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), which hold shares in digital form through various depository participants. Depository Participants are treated as an agent of the depositories who collect shares from the investors and store them with depositories in digital form. Every Demat account has a 16 digit account number which is assigned by the Depository Participants.

Benefits of opening a Demat account

There is no problem with holding shares in physical forms. There is no dilemma and in this, you can also buy and sell a share. There is no stamp duty on the transfer. No transfer deed is required.

You can also visit these sites of NSDL and CDSL https://nsdl.co.in/ and http://www.cdslindia.com/.

Please keep these things in mind before opening an account

An account where one can hold shares and is protected electronically is called a Demat account.

If you want to buy or sell shares from the stock market in India, a Demat account is mandatory.

Apart from this, if you want to apply your shares to the Initial Public Offering (IPO), then you must have a Demat account.

There are two depositories in India, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), by which shares are held by various depository participants.

The depository has security like shares, debentures, bonds, government securities, mutual fund units, etc in digital form. Depository participants are intermediaries between investors and depositories. To avail of any service from the depository, the investor needs a depository participant.

Charges of physical security into Demat form vary from institution to institution and also depends on how the account is held and the amount to be transferred. Account opening fees, annual maintenance fees, transactions or brokerage charges are some of the charges which are included in the Demat account.

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DISCLAIMER The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Have you received your Income Tax Refund from Income Tax Department?

2019-12-18T00:41:00.000+05:30

Always fill correct Bank details in your return so that you don't face refund issues.

We as taxpayers always think that getting a refund from the Income Tax Department is painful. But in actual, it is not so. The government of India is very helpful for taxpayers and is always at your disposal. But we do some mistakes on account of which we face trouble in getting I-T Refund. So on this information platform, I am providing you solution to your refund issues.

Have you got an income tax refund?

All of you must be filing the Income Tax Return for the financial year 2019-20 on time on or before 31st July 2020 if you are an individual person.

The timely filing of income tax returns is right. But have you got an income tax refund?

If you have not yet received an income tax refund, it may be due to incorrect details of your savings bank account.

There may be more reasons for non-payment of the income tax refunds, but there is no need to worry, as it often happens with people.

A few years ago income tax refunds were sent through checks and directly to your bank account.

But in today's time, the income tax refund is credited directly to your bank account.

Through this article, we are going to give you an income tax return refund and related information.

When do you get an income tax refund?

When you have paid more tax than your income, you are entitled to an income tax refund. When your tax liability is less than the tax paid, the amount of tax you have deposited more is refunded. You pay more tax when you earn income from more than one place.

The income tax refund is done at the end of the year. You will get an income tax refund if -

The advance tax paid on the basis of self-assessment is more than your tax liability.
Invested in investment instruments that have tax exemption from investing and which have not been previously reported.

How to get an income tax refund

When you pay more tax than the amount you are required to pay tax, you are entitled to get refund from the Income Tax Department.

Getting a tax refund is a simple process. Refunds are deposited directly into the given bank account at the time of filing the tax.

How to claim for the income tax refund?

You can file an online income tax return. For this, you have to go to the website of ITR and log in.

For filing income tax returns, give details of all your investments in Form 16. Such as term insurance premium, payment of house rent, mutual fund, FD, NSC, PPF, SCSS, ELSS, NPS, etc., and give information about the investment also.

Children's tuition fees and money paid in home loan EMIs also attract tax exemption under Section 80C of the Income Tax Act.

At the time of filing ITR, you have to produce proof of all the investments made by you. If you are unable to produce proof of investment, you will have to pay additional taxes.

If you forget to submit proof of investment, you can fill in Form 30.

Form 30 is a type of request that your case is looked into so that the extra tax you have paid can be refunded.

An income tax refund must be claimed before the end of any financial year.

How to track income tax refund?

You can get back the additional tax deposited in the registered bank account through ECS transfer.

You can also receive income tax directly through RTGS or NEFT to your registered bank account.

You can track income tax refunds through the NSDL-TIN website. You can track it by going to the website, clicking on 'Tax Refund Status' or through the Income Tax Department website.

You will have to enter the PAN number and assessment year for tax refund information.

You can check the status of income tax refund through the following steps -

To check the status of income tax refunds, visit the website www..incometaxindia.gov.in or www.tin-nsdl.com.
Go to the "Tax Refund Status" tab and give your PAN number and assessment year pain.
If your refund has been processed, in this tab you will get a message stating the date of refund, mode of payment, reference number, and status.
If you have not received the refund, here you will see the message "Refund Unpaid". This may be due to incorrect account information.
In this case, you will have to verify your bank account details and then submit them.

What to do if the income tax refund is not received on time?

The income tax return form is verified by the authorities concerned.

If you do not get a refund even after several days of filing returns ie 3-4 months after the July 31 limit of any assessment year, it means that your tax refund has not been verified.

You can get information by contacting the Centralized Processing Center (CPC) of the Income Tax Department on 1800 4250 0025 or 080-2650 0025 to find out the reason for the delay in refunds.

If you do not get the refund on time, then every month 0.5% interest is paid on the expected refund amount.

This interest is paid only if the refund is delayed by the Income Tax Department. If the refund is not received on time due to any incorrect information given by you, interest is not received.

Thank you for staying to the end. For further information, you can refer to the Tax Guru Episode telecasted on CNBC Awaz. Video credit goes to the Tax Guru.

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What is E-PAN Card | Pan Card Status | pan card online | Know Everything Here

2019-12-18T00:01:00.002+05:30

What is an e-PAN card? Know all about it here

Your bank account number may be closed or changed, or you may have more than one bank account, but the PAN card number remains the same for a lifetime.

This cannot be changed. Its usefulness can be ascertained from this.

PAN card's full name is Permanent Account Number. It is issued by the Income Tax Department. It consists of 10 alphanumeric numbers.

Through this, the government can track any type of financial transaction. It is helpful in financial transactions.

Every working person must have a PAN card. The main use of the PAN card is in the form of income tax, opening a new account, receiving monthly payments during the job, and a letter of introduction.

If you do not have a PAN card, you may face a variety of problems while conducting financial transactions.

Recently, in the direction of the Central Government, the Reserve Bank of India has also made it mandatory to link the PAN card with the Aadhaar card. Along with this, the e-PAN card has also been issued.

Through this article, we are going to give you complete information about the e-PAN card.

What is an e-PAN card?

The Income Tax Department has issued an e-PAN card for the purpose of easing the procedures related to PAN cards and making PAN cards available to the individual taxpayers in a short time.

It is a type of digital card that can be obtained through online medium. This card helps the Income Tax Department to track financial transactions and payment of tax.

It also helps in reducing corruption through it. E-PAN card facility is available for individual applicants and taxpayers who have Aadhaar cards

How to apply for the e-PAN card?

This facility helps taxpayers paying income tax for the first time to get an instant electronic PAN card.

You can apply for the e-PAN card by visiting the website. This facility has been introduced free of charge for a fixed time, but keep in mind that only those people who are paying tax for the first time and do not have a PAN card can apply for it.

Those who already have a PAN card cannot apply for it.

You can apply for the e-PAN card in the following way -

To apply for the e-PAN card, first of all, visit the website UTIITSL.
On the home page of UTIITSL, you will get the option of PAN card service, click on it.
Click on apply for PAN card. Here you can choose the option of hard copy of PAN card ie both physical PAN card and e-PAN card or only e-PAN card.
Fill the details of your Aadhaar card number and other personal information.
Verify the information and click Submit.
Submit the scan copy of the Aadhaar card as ID proof.
Submit a scanned copy of your signature. Its size should be as follows.

The resolution should be 200 dpi.
The size is 10 KB.
The dimension should be 2 cm * 4.5 cm.
The file must be in JPEG format.

After this, the application process was completed. Now you will get the enrollment number on e-mail and mobile.
After this, when your e-PAN card is generated, you will receive information through e-mail and SMS.
You can find out the status of your e-PAN card by using the enrollment number.

Eligibility for e-PAN card

The same person can apply for an e-PAN card, which fulfills the following eligibility criteria -

You are a resident of India.
Be an individual taxpayer and not a member of the HUF.
PAN card should not be there.
The person should have an Aadhaar card.
Your mobile number should be linked to Aadhaar number and all information about Aadhar card should be updated.

How to know the status of the e-PAN card?

The card is usually issued within 15 days after applying for a PAN card. You can get information about this by tracking the status of the PAN card. You can use the 15-digit enrollment number found during the application.

To know the status of the PAN card, you have to visit the website of NSDL or UTI. Here you can track the status as well as improve the PAN card or update it. You can also get the status of your PAN card by SMS or by calling the landline number.

How to download an e-pan card online?

You can download the e-PAN card by visiting the website of NSDL and UTI.

E-PAN card download from NSDL portal -

Go to the website and log in by entering the enrollment number and captcha and provide your details and click on download e-PAN card.

You can also download the e-PAN card by following your date of birth and instructions.

E-PAN card download from UTIITSL portal

Go to UTIITSL's website.
Click on e-PAN download.
Follow the guidelines and fill in the required information.

After this, you can download the e-PAN card.

Thank You to stay till the end.

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DISCLAIMER: The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Did You Know that You are not Financially Literate

2019-11-27T23:36:00.001+05:30

Last day I met with some of my school friends. They were discussing something about investment schemes being provided in India by Insurance Companies. They all were happy thinking that they will be crorepati after their retirement if they start to invest now through annuity investment every year.

But when I had interaction with them on this topic and asked how you would be crorepati unless you understand the key difference between Insurance and Investment.

They said, "There is no difference between Investment and Insurance because in both the case we shall be getting a lump sum amount after a specified period of time."

At that point they had mistake having not known that difference between those two terms as I have mentioned above.

This is just one factor that people are not understanding. Despite this, there are many more things to learn which tell you that you are not financially literate.

Lets us learn one by one those factors which will tell you that you are not financially literate.

So let's go.......

You are continuously increasing your saving bank account

On the basis of data taken from the RBI official website, it is found that from 1980-81 to 2018-19, the total saving account deposit with commercial banks has tremendously INCREASED from ₹ 10,937 Crore to ₹ 40,31,177 Crore.

You can cross-check this data taken from the RBI website. Link is this CLICK HERE

This is the blunder we have been doing since 1980-81 in India. This is the reason we can say we are not financially literate.

Let's understand what is the problem in this.

In India, total inflation is 3.4% which is almost equal to the interest rate that we receive on our saving bank account

Source of inflation rate: https://www.imf.org/external/datamapper/profile/IND/WEO

Now suppose the cost of a smartphone is ₹ 10,000 in India. So considering the inflating rate, the cost of the smartphone shall be much higher in comparison to today's price and today saving account deposits with presently available interest rates shall not be capable to buy that smartphone.

In short, the value of our money which we have put in saving bank account is drastically falling. It is basic interest rate is not higher than the inflation rate.

Not maintaining reasonable liquidity and not making wise investments as well

Do not save money on a rainy day or for a medical emergency or for any reason motivated by fear. You have insurance for that. And this is the thing that we generally do. Save money so that money can work for you by earning interest! Always remember one of the core principles of prosperity is "Money works for You!" Penny is a wonderful servant and an awesome master

Living in this culture is a challenge and a blessing. One of the blessings is that we have created an economic system whereby anyone can become rich and financially independent, which can be defined as the situation in which a person's money is earning so much money for them that the person will never have to work for money to pay his living expenses.

In our culture, there is a caste system that decides the fate of a child before its birth. Today, in India, anyone with average intelligence and physical health can obtain financial resources and invest out of them in such a way that the money makes money for that investor.

If the investor contributes systematically to their savings plan for a specified period of time, the interest compounded on that savings principle alone can earn a lifetime salary, salary, commission, or contract fee. There are many options that help you obtain compound interest and one of them is mutual fund investment.

It is reported that Albert Einstein once said that "compound interest is the greatest force in the universe."

We should hold financial assets to the extent that we don't have to go to earn another penny and continue to live at our current level until we are 100 years old.

If you have not already done so, I ask you to ask a question, "How do I make money for myself?"

Lack of Knowledge of investing in the stock market (wisely)

Investing in the stock market can make money work more efficiently for me than the money invested in the so-called safe way. The traditional view is that investing in the stock market is very risky for the average person so do not believe it! The rate of return is much higher than the nominal rate of interest paid on passbook saving accounts, money market accounts, or treasury bills.

Media is given great attention to people who make and lose big fortunes in the stock market. Less media attention is paid to those who just continue quietly, month after month, year after year, to create financial assets that ultimately equate to financial independence.

If you haven't already done so, start reading and talking to people and do everything you can to become financially literate - to understand how our economic system works and you can do it for yourself. How can work Information is readily available. You can start by reading the financial section of your newspaper if you do not know how to initiate it. You can read the "Economics Times". You can watch "ET Now or NDTV Profit" on Friday nights. Bookstores are full of books that can help you get started. (An excellent book that I enjoyed and recommends A Random Walk Down Wall Street: Talk about stock markets which popularized the random walk hypothesis!)

Do you know people who invest in the stock market with good results? If yes, ask them how they got started. Ask them how to invest. Stock Exchanges like NSE, BSE often offer introductory courses on investment for a nominal registration fee. If your employer offers a savings and investment plan, talk to the benefits coordinator and find everything that can tell you about the benefits available there.

A word of caution: Do not trust everything a financial service professional can tell you. Get many opinions. Many financial services professionals are honest individuals who are following their own bliss and who are sincerely committed to the interests of their customers. However, few, to pay the minimum balance of their month's credit card bill try to ensure that you decide to use the services of a financial professional, you will need many interviews and a lot of cosmetics before choosing one.

Conclusion

Don't save money in saving bank account for a long period because inflation will reduce the value of your money. Keep investing in a good portfolio so that you can get a good return income from that. Keep getting a good knowledge of the stock market from various sources to increase your knowledge.

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Disclaimer

The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document; however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author nor the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Ind AS 40 | Indian Accounting Standard-Investment Property | Summary

2019-11-26T18:10:00.000+05:30

Do you think that there is only one standard which is applicable to Property Plant and Equipment: IND AS 16 Property, Plant and Equipment.

The answer is No. Aren't you Surprised?

On one hand, it’s 100% true that you are required to apply IND AS 16 for most of your long-term tangible assets, but it’s not the hard and fast rule for long term assets. In this article, I am going to try to prove this myth wrong.

Except for IND AS 16, we have a few other Indian accounting standards which are arranging the long term assets. IND AS 40 Investment Property is one of them.

In today’s article, you’ll be going to learn:

What the investment property stands for,
How you should account for it at initial accounting and subsequently,
You’ll also be learning that the fair value model is NOT going to be the same as the revaluation model, and

I hope you’ll enjoy it!

Accounting for IND AS 40: Investment Property

Are you ready? Let's Go!

The accounting for IND AS 40 Investment Property is VERY identical to that of IND AS 16 (Property, Plant and Equipment),

EXCEPT

that IND AS 40 revaluations (both positive and negative) will always go to the profit and loss statement (not revaluation reserve)

AND

there is no depreciation allowance if revaluations are carried out every year.

DONE!

Any remaining seconds should be spent on learning the classifications and rules of IND AS 40 Investment Property.

Now, let’s take the route of Rajni style as per Professor Kapleshwar Bhalla

IND AS 40 Investment Property: Objective

IND AS 40 Investment Property prescribes lays down the accounting treatment and disclosure with respect to investment property.

But the question arises, what is an investment property?

The investment property is now no doubt a land, a building (or a part of it), or both, if they are held for the following specific purposes:

To earn rentals income;
For the capital appreciation of property; or
Both.

Here, In this standard, the strong impact is given on purpose. If you are holding a building or land for any of the following objectives, then it can never be classified as an investment property:

For production or supply of goods or services as per your business model,
For administrative purposes in office premises, or
For sale in the ordinary course of business.

If you’re using your building or land for the first 2 purposes, then you should without any doubt apply IND AS 16; and the standard IND AS 2 Inventories when you are using them for the sale in the ordinary course of business.

Some Examples of investment property

So, what can be classified as investment property?

Here are a couple of examples:

The land is held as an investment for a long-term capital gain, or for future "not ascertained use" (i.e. you don’t know yet how you are going to use it in the future).
However, if you buy a land or building and you intend to build some cinema hall for your own business purposes sometime in the future period, then this land is NOT called as an investment property.
A building that is owned by the entity and leased out under operating leases. This includes a building that is still vacant, but you are going to plan to lease it out.
Any property that you are actually getting constructed or developed for future use as an investment property.

Be careful here again, because when you are constructing a building for some customers in your ordinary course of business, this is NOT an investment property, but you should apply IND AS 115 Revenue from Contracts with Customers.

When investment property should be Recognized

The rules for recognizing investment property are going to be the same as stated in IND AS 16 for property, plant, and equipment, i.e. you should recognize an investment property as an asset only if two conditions are met:

It is most likely probable that future economic benefits associated with the asset will flow to the entity; and
The cost of the asset can be measured reliably.

How investment property initially should be measured

As per Ind AS 40, Investment property shall be initially measured at cost, including the transaction cost.

The cost of investment property includes:

purchase price and
directly attributable expenditure, such as legal fees or professional fees, property taxes, etc.

You should NOT include:

Operating losses that you incur before planned possession is achieved, and
Abnormal waste of material, labor or other resources incurred on construction
Deferred Payment for investment Property should be recorded at present value which is equivalent to the cash price of the property
Start-up expenses. However, if these start-up expenses are directly attributable to the item of investment property, then you can include them. General Startup expenses are not included in the cost of Investment Property

Let me just mention that actually, you can classify assets held under finance lease as an investment property and in this case, it’s initial cost is calculated in accordance with IND AS 17.

Subsequent measurement of investment property

After initial recognizing the investment property, you have two choices available for measuring your investment property.

Once you make your choice, you should stick to it and measure all of your investment property using the same model.

Option 1: Fair value model

Under the fair value model, an investment property is always carried at fair value at the reporting date.

The fair value is determined in accordance with the standard IND AS 113 Fair Value Measurement.
Any gain or loss arising from re-measurement to fair value shall be recognized in profit or loss statement.

It is possible that the fair value cannot be measured reliably after initial recognition. This can happen in absolutely very rare cases (e.g. active marked ceases to exist) and in this case, IND AS 40 prescribes :

To measure at cost, if investment property has not yet completed and is under construction; or
To measure using the cost model, if the investment property has completed.

Option 2: Cost model

The second alternative for subsequent measurement of investment property is a cost model.

Here, IND AS 40 does not describe it in detail but refers to the standard IND AS 16 Property, Plant and Equipment. It means you need to take the same methodology which is adopted in IND AS 16.

Switching the models of Measurement

Can you actually switch from a fair value model to a cost model or vice versa from the cost model to a fair value model?

The answer is YES, but only if the change results in the financial statements providing better, more reliable information about the company’s financial position, results, and other events.

What does it mean in practice?

There are high chances or it is most likely probable that Switching from the cost model to a fair value model would probably meet the condition and therefore, you can do it whenever you’re sure that you’ll be able to ascertain the fair value regularly and the fair value model fits better manner.

However, the opposite change – switch from fair value model to cost model – is highly unlikely that financial statements will provide you more reliable presentation. Therefore, it is advisable you should not really switch it, and if – rarely and for good reasons.

Transfers from investment property to business usage

When we speak about the transfer, we mean the change in classification of investment property, for example, you classify a building previously held as investment property under IND AS 40 to property, plant, and equipment under IND AS 16.

The transfer is possible, but only when there’s a change in use or change in the purpose of holding asset:

You start renting out the property that you previously used as your factory (transfer to investment property from property, plant, and equipment under IND AS 16)

You stop renting out the building and start using it for manufacturing goods to supply in the ordinary course of business.

You held land for the undefined purpose and recently, you decided to construct in the ordinary course of your real estate business (transfer from investment property to inventories).

So, what shall be the accounting treatment in this case?

It depends on the type of transfer and the accounting choice for your investment property.

If you opted to account for your investment property at the cost model, then there’s no problem with the transfers, you simply continue with what you did (i.e., WDV value of assets shall be the cost of the investment property.

However, if you picked up a fair value model, then it’s a bit more complex:

When you transfer to an investment property, then the deemed cost is a fair value at the date of transfer. The difference between assets carrying amount and its fair value shall be treated in the same manner as revaluations under IND AS 16.

When you transfer from investment property to property plant and equipment, then the deemed cost shall also be also fair value at the date of transfer.

Derecognition of investment property

The derecognition rules (=when you can remove your investment property from your book of accounts) in IND AS 40 is very similar to the rules given in IND AS 16.

You can derecognize your investment property in the following two circumstances: On disposal, or When the investment property is permanently withdrawn from use and no future economic benefits are expected from its usage.

You need to calculate gain or loss on disposal as a difference between:

Net disposal proceeds, and
Asset’s carrying amount.

Gain or loss on disposal shall be recognized in profit or loss.

Disclosures

IND AS 40 Investment property lays down a lot of disclosures to be presented in the financial statements, including the description of the selected model, how the fair value was calculated, what the classification criteria for investment property are, movements in investment property during the reporting period.

Ind AS 1 | Presentation of Financial Statement | Summary

2019-11-26T00:27:00.000+05:30

IND AS 1 Presentation of Financial Statements is a basis of the whole IND AS reporting, as it provides a framework for the presentation of financial statements, guidelines for their format and least requirements for their content.

Ind AS 1 | Financial Statements

The main purpose of the financial statements is to provide financial information so that users of financial statements can take an economic decision using the financial statement. It provides the financial health of an entity in terms of financial positions, operating profitability and cash flow position.

When we say The complete set of financial statements compliant with Ind AS, we mean:

a balance sheet as at the end of the period + Comparative of Prior Period
a profit and loss statement for the period + Comparative of Prior Period
statement of other comprehensive income(OCI) for the period + Comparative of Prior Period
a statement of changes in equity(SOCE) for the period
a statement of cash flows for the period + Comparative of Prior Period
notes and other explanatory information + Comparative of Prior Period

If because of the transition provision of Ind AS 101, "First Time Adoption of Indian Accounting Standards", some accounting policy is being applied retrospectively, then also a Balance sheet as at the beginning of the earliest comparative period shall be presented in which cumulative retrospective adjustment shall be adjusted.

IND AS 1 explains the general characteristics of financial statements, such as fair presentation and compliance with IND AS, the accrual basis of accounting going concern, materiality, the regularity of reporting, comparative information, aggregation, offsetting, and consistency of presentation.

Structure and Content

Every component of the financial statements shall include the name of the reporting entity, the information whether the financial statements are of an individual entity or a consolidated, the period covered and date of the reporting entity, the level of rounding and the presentation currency (thousands, millions, crores…).

IND AS 1 prescribes the minimum content to be shown in the financial statements. So let’s look at it in detail.

Balance Sheets

Before important amendments of IND AS 1, this statement was simply called “balance sheet”, however, it was renamed under IFRS. This can be one of the Carve-Outs because we still call it a balance-sheet

IND AS 1 requires the presentation of classified statements of financial position where current assets or liabilities are classified based on the operating cycle of the business. Basically, the asset or liability is current when it is expected to be recovered or settled within 12 months or its operating cycle after the reporting period.

With regard to a minimum content, the following line items shall be presented:

ASSETS	EQUITY AND LIABILITIES
Property, plant, and equipment	Issued capital and reserves attributable to owners of the parent
Investment property
Intangible assets	Non-controlling interests
Financial assets	Financial Liabilities
Investments accounted for using the equity method	Provisions
Biological assets
Inventories
Trade and other receivables	Trade and other payables
Cash and cash equivalents
Totals of assets in accordance with IFRS 5 Non-current assets Held for Sale and Discontinued Operations	Totals of liabilities in accordance with IFRS 5 Non-current assets Held for Sale and Discontinued Operations
Current tax assets	Current tax liabilities
Deferred tax assets	Deferred tax liabilities

Further sub-classifications of the line items can be disclosed either directly in the Balance Sheet or in the relevant notes, such as categorization of property, plant, and equipment into different classes, on basis of similarity. Also, some information having any relation to the share capital, reserves and a few others shall be included in the balance sheet, the statement of changes in equity or in the notes.

IND AS 1 as notified by the Ministry of Corporate affairs prescribes the precise format of the statement of financial position as mentioned in Division II of Schedule III to the Companies Act 2013.

Statement of Comprehensive Income

The statement of comprehensive income has 2 basic elements:

Profit or loss for the period: here, all items of income and expenses must be recognized.
Other comprehensive income (OCI): Its items can be those that are recognized directly to equity or reserves, such as changes in revaluation surplus, gains or losses from the subsequent measurement of available-for-sale financial assets, etc.

As a least, the statement of comprehensive income must contain the following items:

PROFIT OR LOSS
Revenue
Gains and losses arising from the derecognition of financial assets at amortized cost
Finance costs
Share of the profit or loss of associates and joint ventures accounted for using the equity method
Tax expense
Post-tax profit/gain or loss of operations or assets in accordance with IFRS 5 (Non-current assets Held for Sale and Discontinued Operations)
Profit or loss

OTHER COMPREHENSIVE INCOME (OCI)
Each component of other comprehensive income classified by nature
Share of the other comprehensive income of associates and joint ventures accounted for using the equity method
Total comprehensive income

As per Carve-Out, Ind AS 1 provides you an option to prepare one single statement of profit loss in which you are not required to prepare OCI statement separately, or prepare both the statement separately.

As per Indian GAAP, IND AS 1 prohibits to report any transaction or item which is an extraordinary item.

Profit or loss for the period, as well as total comprehensive income, shall be allocated to Non-Controlling Interest and controlling entity in such a manner that the income is;

attributable to non-controlling interests and
attributable to owners of the parent.

The entity might choose to classify expenses recognized in profit or loss for the period by their nature or by their function.

IND AS 1 requires to disclose certain items separately, either in the notes or in the statement of profit or loss. These items are as follows:

disposals of investments, discontinuing operations,
disposals of property, plant, and equipment,
restructuring of activities and reversals of related provisions,
write-downs of inventories and property,
plant and equipment, their reversals,
litigation settlements and
other reversals of provisions.

Statement of Changes in Equity

As a least, the statement of changes in equity should contain the following items:

total comprehensive income for the period, showing separately amounts which is attributable to owners of the parent and to non-controlling interests
the effect of a retrospective application for each component of equity (if applicable)
the reconciliation between the carrying amount at the beginning and the end of the period for each element of equity. Here, the following changes shall be disclosed separately:
- those resulting from profit or loss
- resulting from other comprehensive income
- resulting from transactions with owners (contributions, distributions, and changes in ownership)

Notes to the Financial Statements

The notes are meant to be that document that accompanies the bifurcation of items of financial statements listed above. They should also provide additional information which is not contained in the figures of items of the balance sheet, profit or loss statement, the basis of preparing the financial statements and some additional information that might be material to the users of financial statements.

IND AS 1 set that the notes shall contain a statement of compliance with Ind AS, a summary of significant accounting policies applied, supporting information for the numbers presented in the financial statements and other disclosures.

Reference

1.) Statement of Indian Accounting Standards(Ind AS) issued by the Ministry of Corporate Affairs(MCA)

2.) Knowledge material of the Institute of Chartered Accountants of India

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DISCLAIMER

Ind AS 2 | Indian Accounting Standard | Inventories | Summary

2019-11-25T22:39:00.001+05:30

Overview

Ind AS 2 | When we say what is inventories, we mean those goods which are sold in the ordinary course of business. If your business is of supplying computers, the computer unit can be inventory for you because you are selling it in the ordinary course of business.

Types of Inventory

You can bifurcate inventory into THREE categories:

Raw Material: These are in the form of materials and supplies to be consumed in the production process or in the rendering of services
Work-in-Progress: These are in the process of production for such sale
Finished Goods: These are held for sale in the ordinary course of business.

Now don't tell me you are not aware of these terms. But if you are still not able to understand the meaning of the above words, go to google and search. 😂😂😂

Measurement of Inventories

Always recognized at the lower of cost and net realizable value

Cost: It comprises of

All costs of purchase: It is comprised of the purchase price, Import duties or other taxes, transport cost, and other directly attributable costs.
Cost of conversion: It consists of direct material, direct labor, other direct costs, and overhead costs
Direct costs: These are incurred in bringing the inventories to their present location and condition.

Abnormal cost, storage cost, administrative overheads, selling costs are excluded from the cost of inventories.

Net realizable value= It is equal to selling prices less expected cost to sell.

Allocation of cost to by-products

When one production process is producing more than one product simultaneously, it results in by-products

For example- Molasses is a byproduct of refining sugar, Sawdust is a byproduct of the lumber industry, and feathers are a byproduct of poultry processing, and many more...

When the costs of conversion of each product are not separately identifiable, they are allocated on some rational basis. Sales prices at the separation stage of each product can be a rational basis for allocating the inseparable cost of conversion.

When by-products are immaterial, they are measured at a net realizable value and this is deducted from the cost of the main product

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DISCLAIMER

Ind AS 115 | Service Concession Arrangements | Accounting Treatment

2019-11-25T18:40:00.000+05:30

About Service Concession Arrangements

Ind AS 115 | Such types of arrangements involve the construction of infrastructure used to provide public services. It also involves operating and maintaining that infrastructure for a specified period of time.

It is also called the "Build-operate-transfer" or "Public-to-Private" service concession arrangement.

It is of the public service nature because it has some involvement of infrastructure which is used by the general public. It can be bridges, roads, national highways, etc.

Accounting Principles

Treatment of the operator's rights over the infrastructure

Infrastructure under this arrangement shall not be recognized as Property-Plant-and- Equipment (PPE). It is because this type of arrangement does not give the right to control the use of the public service infrastructure to the operator.

But yes, the operator has access to operate the infrastructure to provide the public service on behalf of the granter in accordance with the terms specified in the contract.

Recognition and Measurement

As we know that the operator is acting as a service provider, he shall recognize revenue in accordance with Indian Accounting Standard (Ind AS) 115.

Oh yes, if the operator is performing more than one service under a single contract, the consideration received from the customer shall be allocated based on the fair value of the services provided.

Consideration given by the granter to the operator

The granter can provide the operator with the consideration which shall be recognized at fair value.

The consideration may be:

Right to a financial asset: It can be an unconditional right to receive cash or another financial asset from or at the direction of the granter for the construction services.

Right to an intangible asset: It is a right to charge users of the public service. It is an unconditional right because it is based on the usage of the service of infrastructure.

Contractual Obligation to restore the infrastructure to a specified level of serviceability

Borrowing costs incurred by the operator

Unless the consideration is a right to intangible assets, the borrowing cost incurred after the construction phase is over shall be expensed off in the profit and loss statement of the operator.

But do remember, borrowing cost attributable to the arrangement shall be capitalized during the construction phase of the arrangement

Recognition of Financial Asset and Intangible Asset

To recognize the financial assets, an entity is required to apply Ind AS 32, Ind AS 107, and Ind AS 109.

On the other hand, in the case of recognizing an intangible asset, one has to apply Ind AS 38 for guidance on measuring intangible assets acquired in exchange for a non-monetary asset or assets.

Such consideration received from granter in exchange for a non-monetary asset shall be treated as government grant as defined in Ind AS 20.

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DISCLAIMER

Hyperinflation | What is hyperinflation and how it affects an economy

2019-11-21T20:54:00.000+05:30

What is inflation How does this harm the economy?

You might have heard about Venezuela in the economic news coming in newspapers or on TV channels. There, suddenly the price of goods increased and the purchasing power of the currency decreased. Because of this, unemployment and poverty are increasing there. The government there failed to deal with this situation and people had to choose a route of escape due to the problem.

But have you ever wondered how it happened, what factors are responsible for it, etc?

This situation as such is called hyperinflation.

Through this article, we are going to inform you about the cause of this situation, its effects, etc.

What is hyperinflation?

Inflation arises as a result of the continuing price increase. It occurs when the prices of goods and services rise at a very high rate.

In this situation, prices can increase by about 50% per month due to increased demand and decreased supply.

If inflation is not controlled in a timely manner, the increase in the prices of goods and services can go beyond the control of the government.

In this situation, the ability to purchase money is reduced. For example, if a city had sugar for Rs 100 before, but during inflation, it may cost between Rs 1000 and Rs 2000. It usually occurs when a country is going through war or economic turmoil.

Due to inflation

When the government of a country starts printing excess currency and using it in the economy, the situation of inflation starts. This increases the money supply in the economy, increases prices and results in inflation. When inflation gets out of control, common people also start buying more and more goods. When the government completely fails to take appropriate measures and measure it, the situation takes the form of hyperinflation.

The government starts printing more money instead of reducing the money supply. With more money in the market, demand for goods and services increases and prices are constantly increasing due to lack of timely supply. A situation arises when the prices of goods and services go up by 50% per month.

Excessive demand and low supply increase inflation. There are two major reasons for this -

Excessive supply of money - Inflation occurs when the money supply increases significantly compared to the value of goods and services in the economy. A big reason for this can also be the debt burden of a country. When a country has high debt and the revenue from taxes is not enough, it can decide to print more currency. But if excess money reaches the market, then a situation of inflation can occur. For example, during the First World War in the 1920s, Germany began printing more currency. The government also printed government bonds. This increased the money supply in the economy as well as increased government debt and by the end of the war, the inflation rate in Germany had reached 20.9% per day.[source: internet]

Temporary fiscal policy - When the government completely fails to control inflation, a situation of inflation occurs. All government expenses are financed through taxation, lending, etc. The government relies on taxation to meet most of its expenses. Sometimes governments choose to borrow money from banks for infrastructure development etc. If the government continues to run short of funds, it can choose an alternative way of maximizing revenue by issuing more currency, but if it is not dependent on economic growth, the probability of inflation increases. Therefore, a temporary fiscal policy is also a major cause of inflation.

Effects of inflation

In the event of inflation, the price of the currency decreases. The foreign exchange market of the country is affected by the decrease in the price of money because the increase in the money supply increases the price of foreign goods and services.

Due to the economic outbreak, people start migrating to other countries because of the fluctuations in the value of the currency. This greatly affects foreign trade. The corporates refuse to do business.

Domestic companies shut down their operations due to an increase in prices, which leads to an increase in unemployment.

Losing the value of local currency makes bankers and lenders bankrupt. People may face a food supply crisis if there is a prolonged inflationary situation. This causes a shortage of food items in the country. The government's revenue runs out etc.

How to obtain data to understand India situation

There is a government website that issues the statistics data on a timely basis. That website is run by the Government of India. Here you will get CPI Index, IPP Index, inflation rate, economic census and other data related to the measurement of India's growth and economy.

Website: http://www.mospi.gov.in/

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Personal finance | Does inflation kill your money?- A Detailed analysis of why Inflation a Financial Evil

2019-11-21T10:47:00.000+05:30

How does inflation destroy your money?

Inflation a Financial Evil | Inflation (inflation) has a great impact on our lives. Increasing inflation reduces the value of our money and our savings do not work. So through this article, I am going to tell you how inflation kills our money.

What is inflation?

The rise in prices of goods and services over time is called inflation. Due to rising inflation, your savings are of little importance. Inflation reduces the value (money value) of the money you have saved and invested. This reduces your purchasing power. This can be understood through an example like - if you earn 6.5 % from a FIXED DEPOSIT in a year and the inflation rate is 4%, then you earn only 2.5 % in real terms. It is also called the actual rate of return. The 6.5 % return you get from a FIXED DEPOSIT is called the nominal rate of return. You can understand inflation in such a way that ten thousand rupees of 1982 today is equal to approx. ₹ 552.

You are only living in confusion, there is no benefit.

Suppose you invested 2 lakh rupees in FIXED DEPOSIT in a bank, which provide returns at the rate of 7% per year and the prices of goods and services are also increasing at the rate of 7% per annum. In this case, your invested amount will increase, but it will not benefit you, because inflation has also increased at the same rate with your amount. You can use the rule of 72 to find out how long it will take for your money to double.

In this, you have to divide 72 by x ie 72 / x, here x = rate of return from the investment. If you are getting a 6% interest on your investment, then 72/6 = 12 years. Meaning at this rate it will take 12 years for your money to double.

Now suppose 12 years ago that you invested Rs 1 lakh, which has become two lakh rupees. Earlier, the items which you could buy for one lakh rupees have now become two lakhs due to inflation, so what did you gain? Meaning the increase in money just confuses you. Therefore, we can understand that it is decided by the increase and decrease in the value of goods and services that your earned money will provide you benefit or the situation will remain the same.

Inflation making you poor

Suppose you get a 6% return on your investment and average inflation is 8% over a 15-year period. If you look at this that then you will find that even after investment you have become poor instead of becoming rich. Your money was reduced compared to inflation. This is often the case with people that they believe that our money is increasing and will become richer in the coming years, but the opposite happens. Therefore, while investing, inflation should always be kept in mind and based on this, the estimated return should be fixed.

Is one crore rupees enough for retirement?

Suppose you invested in equity growth mutual funds through SIP, keeping in mind your retirement. At present, you are 30 years old and you want one crore rupees at the age of 55 at the time of retirement. According to you, you will get a return at an estimated rate of 9% and you invest ten thousand rupees per month. In this situation, if you calculate with a SIP calculator, you will get Rs 1.12 crore from it. But keeping in mind the effect of inflation, you will get only 45 lakh rupees. In this way, you see how much your money is reduced by inflation.

Make an investment that can reduce the impact of inflation

The first rule of investment is to invest based on the risk profile. Risk and return in investment are only two things. If there is more risk, there will also be more chances of higher returns. Generally, general investment prefers to invest in an option that has less risk even if it has lower returns.

General investors usually invest in PPF, FD, NSC, Senior Citizen Saving Scheme (SCSS) or post office schemes. Assuming average inflation is 5%. FDs give around 6.25–7% a year. PPF and NSC are currently offering 7.9%, SCSS 8.6% and Post Office deposits 7-7.7%.

This kind of investment can not beat inflation.

If you are an aggressive investor and consider equity mutual funds or tax-saving mutual funds such as an ELSS or equity-linked savings scheme, you will find that equity mutual funds can give 8-12% returns in a year. Inflation will not have much impact on the returns received and your money will increase compared to before.

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Rule of 72 Proof | Double Your Income | This is How You will Double or Four Times Your Money, Note the Formula

2019-11-20T22:59:00.000+05:30

Rule of 72 | Everyone wants to know how long his money will be doubled or tripled. But due to a lack of knowledge of some easy rules, people are not able to do this simple task. In such a situation, it is important to note down this simple rule and whenever you deposit money, you should know how many days it will increase. Here we are telling you the formula of doubled, tripled and fourfold income

First, know the formula for doubling the money

The formula of Rule of 72 works to find out if the money is doubled. This is an exact formula. Under this formula, when you deposit money or invest, you know how much interest will be received. You have to divide 72 by this interest or return. The number that will come after this, your money will double in that number of days.

To understand this, suppose that if you have deposited your money somewhere and it gets 8% interest annually. In this case, divide 72 by 8 under Rule 72. After dividing it, a number of 72/8 = 9 will be found. In this way, your money will double or double in 9 years.

But due to a lack of knowledge of some easy rules, people are not able to do this simple task. In such a situation, it is important to note down this simple rule and whenever you deposit money, you should know how many days it will increase. Here we are telling you the formula of doubled, tripled and fourfold.

Formula to tell when the money will triple

Rule of Mathematics-114 will tell you when your money will be triple ie (doubled or tripled). Under this formula, you will have to divide 114 by the interest rate or return to be received. After those numbers of the period, what you get will be three times your money. For example, if you have invested 8% per annum, then in 114/8 = 14.25 years, your money will triple.

Rule telling when the money will be four times

This is called Rule-144. Rule -144 will tell you when your money will be four times (quadruple or four times). If you have deposited money at 8% per annum, then divide 144 by 8. In this case, you will get 18, which means that your money will double in 18 years.

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Christmas Day 2019 | 5 Christmas Gift Ideas Available for You at Very Low Price

2019-11-15T20:38:00.000+05:30

Christmas Day 2019 | Christmas is a festival celebrated in most countries of the world. This festival is celebrated in memory of a saint who gave to the people of this world the message of humanity which has a belief in prayer and forgiveness. The saint is an angel, an angel of God, the only son of God. Santa's Festival gives Happiness to the people of our society. Christmas is an important festival for those who believe in Christianity and a big day for those who love humanity, love for humanity and awaken humanity. This festival of Christmas is celebrated with great pomp on 25 December every year in India as well as in most countries of the world.

The right way to celebrate Christmas

Since Christmas is a big festival, its preparations are also big. Santa, Christmas tree, greeting cards, and gifts to be distributed are the main elements of this festival. As soon as the Christmas festival comes, people are seen growing excited about it. People send cards or any gift to their friends and family and send their best wishes to them. Due to this practice of taking and giving cards as Christmas Card Day is celebrated on 9 December every year.

However, now is the digital age. That is why people send photos or images of Christmas cards online and congratulate people for this festival. On this day people share their Christmas status with friends and relatives on social media. Adorned with lights and welt and timid people pray to Jesus in the churches. In many places, Christmas, processions, processions, etc. are also taken out.

Christmas tree

Christmas tree is very important on Christmas Day. It is a Douglas, Balsam or fur tree which is well decorated on Christmas Day. It is said that in ancient times Egyptians, Chinese and Hibur people first started this tradition. He believed that decorating these plants in the houses removes negative powers in the house. However, the modern Christmas tree originated in Germany. Where this tree is considered a symbol of heaven.

Santa Claus

On Christmas, the children wait for Santa Claus. Because Santa gives gifts to children. It is believed that the practice of Santa Claus started in the fourth or fifth century by Saint Nicholas. He was a pastor of Asia Minor. He was very much in love with children and sailors. Actually, they wanted to see the poor and the rich happy on Christmas and New Year's Day. Many stories and stories related to them are heard.

Importance of Christmas festival in Christianity

It is indeed a big festival for the Christian people. They celebrate this day as the birthday of Jesus, his deity. So it is a very holy day for them. Jesus is the originator of Christianity. Jesus was born in the days of Herod the king. Because Herod died in 4 BCE. Therefore it can be said that he was born in the fourth BC. The Bible, a sacred book of Christianity, elaborates on his teachings and his biography. 15 days before Christmas, people of Christian society start preparing for it.

Christmas day message

The Christmas festival is a symbol of peace and goodwill. Christmas also gives a message of peace. Since Jesus is described as a messenger of peace in the Bible. He always said in the statements- Peace be with you. No peace is possible without peace. Hatred, conflict, violence, and war, etc. have no place within religion.

Christmas festival in India

Although two and a half percent of Christian people live in India, this festival is celebrated with great pomp here. There are some popular churches especially in Goa, where Christmas is celebrated with great fervor and enthusiasm. Most of these churches were established during British and Portuguese rule in India. Some of the major churches in India include St. Joseph's Cathedral, and the Paddock Church in Andhra Pradesh, St. Cathedral, Church of St. Francis of Assisi and Basilica and Born Jesus of Goa, St. John's Church in Wilderness, etc.

5 Christmas Gift Ideas Available for You at Very Low Price

On this occasion, we are always confused about what gift we can give to our loved ones at a reasonable price. Although price doest not matter for our loved ones, it is also necessary to remember that you have not borne with silver spoons. It is also important that you take care of your pocket along with your loved ones.

So let's go to check out some Christmas gifts at a reasonable price......

Gift Idea 1 | The purple tree Cast Iron Reindeer Shaped Tealight Holder

Tealights are a special alternative available for dedicated candles. They are also perfect for lighting and for heating scented oil at Christmas eve. There is no doubt Tealights may be set afloat on the water for the purpose of decoration which gives a magnificent look. Because of their small size and lightweight, multiple tealights are often burned simultaneously. Tealight in Iron Reindeer Shape is amazing. It is also not costly that it burns your pocket. I can't stop myself to buy this for someone.

If you want to buy, you can buy it from the Amazon website.

Go to Amazon Website to Buy- Click Here

Gift Idea 2 | Merry Christmas Hat Cap for Christmas / Xmas Party Celebration

This photo of Hat suits people on Christmas day. It gives them good luck. It will increase the spirit of celebration of your loved ones. The red color of this hat gives the feeling we are celebrating with enthusiasm and zealous. I have seen people giving this hat to their relatives as a gift to make them feel that today is Christmas.

If you are thinking to give this hat to your relative, you have the right drive. A big thumbs up from my side.

Go to Amazon Website to Buy- Click Here

Gift Idea 3 | Rolling Nature Christmas Tree

This tree can infuse happiness in the life of your loved ones. This tree is securely housed in a pot that is made of high-grade plastic and this looks really attractive in its shade of red.

This beautiful Christmas tree is an evergreen and fast-growing tree. It has a conical shape. A fascinating indoor houseplant is a must-have for all houses and offices or you can gift it on any occasion especially on Christmas eve. It is very attractive with its golden-green color and emits a lemon scent.

Go to Amazon Website to Buy- Click Here

Gift Idea 4 | Chocolate with Cute Teddy Bear Hamper - Best Gift Christmas for Her or Him - Assorted Chocolate Gift

Who does not like Chocolate? Especially girls. Over and above a teddy bear with those chocolates. What a mix combo. No one can deny this gift to accept. This is not only giving your loved ones a beautiful smile but they are also not going to forget you and your gift. So what to think. Go and check out.

Go to Amazon Website to Buy- Click Here

Gift Idea 5 | Home Made Smooth Fragrant Pillar Candles with Red Colour

If you and your caring loved ones like candles and they want to enlighten their lives with the light of truth on the eve of Christmas, homemade smooth fragrant pillar candles can be the best gift for you. It will not only give you and your relatives a ray of hope of truth but also you will be bringing a smile on the face which Jesus wants from you on the day of Christmas.

Go to Amazon Website to Buy- Click Here

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e, #Cheap Gifts, #Best Cheap Christmas Gifts 2019 - Inexpensive Christmas, #The ultimate 2019 holiday gift guide, # Christmas Gifts: Best Christmas Gift Ideas for Friends & Family

Income Tax | Place of Effective Management in India – A Detailed Analysis | Resident Company

2019-11-12T19:58:00.001+05:30

A company shall have a tax liability in India if it is a resident or non-resident in India.

If the company is non-resident, tax is payable only in that case when its income arises or received or deemed to be arisen or received in India.

But now suppose the company is resident in India. In that case, you are supposed to pay tax in India whether income arises or received or deemed to be arisen or received in India or not. In short, the company shall have to pay tax in every case if the income is taxable in India.

But to determine its residency, it is necessary that the Place of Effective Management (POEM) should be in India. POEM of a company shall help the company understand if it should pay tax in India.

It is applicable to all foreign company whether incorporated in the USA, UK or any other country.

Let's move forward to determine whether your company is required to pay tax in India or not.

How to determine the place of effective management of the company

With effect from the assessment year, 2017-18 a company would be resident in India in a previous year

if it is an Indian company
its place of effective management in that year is in India

Guiding principles for the determination of place of effective management of a company other than an Indian company

Place of effective management is an internationally recognized test determination of residence of a company incorporated in a foreign jurisdiction.

Any determination of the poem will depend upon the facts and circumstances of a given case.

Before determining whether the company has POEM in India, It is necessary to determine whether THE COMPANY has an ACTIVE BUSINESS in INDIA.

To determine active business in India there are some criteria which given as below

Criteria are as follows

If passive income in India is not less than 50% of its total income
Not less than 50% of its total assets are situated in India
Not less than 50% of the total number of employees are situated in India or are resident in India
The payroll expenses incurred on such employees is not less than 50% of its total payroll expenditure

Now based on the criteria as mentioned above we are able to determine whether the company has an active business in India. So let's find out whether the company has effective management in India.

Let's go..................

If the active business of a company is outside India and the Majority of the board meetings are held outside India, it will be presumed that the company has effective management outside India.

The points to be noted which is very important that if the board of directors is not the decision making authorities but Indian parent or resident, POEM shall be in India

What about the case in which the company has an active business in India | How to determine the POEM in that case

In case the company not engaged in active business outside India, guidelines provide a two-stage process for determination of poem in case of companies engaged in active business in India

The first stage is identifying the person who actually makes the key management and commercial decisions for the conduct of the company as a whole
The second stage is to determine the place where these decisions are in fact being made

It's very important to note the decision made by the shareholders on matters which are reserved for shareholder decision under the company, are not relevant for the determination of a company's place of effective management.

However, the shareholders' involvement can in certain situations turn into that effective management. This may happen through a formal arrangement by way of shareholder agreement or may also happen by way of actual conduct.

Day to day routine operational decisions undertaken by junior and middle management shall not be relevant for the purpose of the determination of the poem.

If the above factors are not able to determine the poem of a company, the final guidelines provide that following secondary factors may be considered

Place where the mean and substantial activity of the company is carried out
Place where accounting records of a company are kept.

The focus to determine the place of effective management should be on all the points mentioned above.

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DISCLAIMER

Saving Income Tax: Save Your Income Tax in a Legal Manner

2019-11-11T12:32:00.000+05:30

Saving Income Tax | There are many ways to save income tax. There is no tax on certain types of income. Also, you can save tax by making some kind of expenses or investments.

You can divide income tax saving methods into 5 parts.

Income on which you do not have to pay tax (Exempt Income)
Tax benefits under Section 80C
Health insurance and health checkup under section 80D
Special Tax Benefit for Senior Citizen
Other Tax Benefit

Saving Income Tax | Income on which you do not have to pay any tax (Exempt Income)

#1.) Standard deduction up to Rs. 50,000 (Rs. 50,000)

If you get a salary, then you can get a tax benefit of Rs 50,000 per year like this. You do not need to provide any proof.

Even if you are a senior citizen and get a pension, you can still take advantage of Standard Deduction.

But if you are self-employed, then you will not get any tax benefit.

#2.) Payment from Sukanya Samridhi Account

Any payment received from an account opened in accordance with the Sukanya Samridhi Account Rules, 2014, made under the Government Saving Bank Act,1873, shall not be included in the total income of the assessee.

#3.) Educational Scholarships

The scholarships granted to meet the cost of education would be exempt from tax in the hands of the recipient irrespective of the amount or source of scholarship.

#4.) Specified Income of a Sikkimese Individual

The following income is exempt which accrue or arise to a Sikkimese individual, would be exempt from Income Tax-

Income from any source in the State of Sikkim; or
Income by way of dividend or interest on securities.

However, this exemption will not available to a Sikkimese woman who, on or after 1st April 2008, marries a non-Sikkimese individual.

#5.) Interest on PPF / EPF / Tax-Free Bond

No tax is to be paid on interest received on PPF, EPF or tax-free bonds.

#6.) If you work and get HRA, then tax benefit (HRA) on house rent allowance

If you do a job, then you probably already know a lot about it.

HRA is a part of your salary. You can learn about this by reading your salary slip.

The tax benefit on HRA is found under Section 10 (13A) and Rule 2A of the Income Tax Act.

Note that the entire HRA is not tax-free. Some parts are exempted.

Let us see how it is calculated that you will get the tax liability.

First, find out these three numbers.

House Rent Allowance (HRA or House Rent Allowance)
Rent - 10% of Basic Salary (Rent - 10% of basic salary)
40% of Basic Salary. If you are staying in a metro city (Delhi, Mumbai, Chennai, and Kolkata), 50% of Basic Salary.

You get tax benefits on the lowest among these three numbers.

You can also save tax on the rent of the house

#7.) Leave Travel Allowance (LTA)

You can also take this only if you get a salary and you get LTA in your salary.

If you travel with your family in the country, then that cost will be tax-free for you. This means some part of LTA (equal to your expenses) becomes tax-free.

Note that you can take advantage of LTA only 2 times in a block period of 4 years.

#8.) Exemption in respect of Commuted Pension

If you are receiving a pension from your employer, it is not taxable fully. Despite this, the assessee can avail deduction to the extent as given below.

If you have a government job, your commuted pension is fully exempt;
If you don't have a government job, your deduction shall be as given below

If the employee is in receipt of gratuity: - Exemption=1/3rd of the amount of pension which he would have received had he commuted the whole of the amount
If the employee is not in receipt of gratuity: - Exemption=1/2 of the amount of pension which he would have received had he commuted the whole of the amount

#9.) Exemption in respect of Gratuity

If you are receiving a Gratuity from your employer, it is not taxable fully. Despite this, the assessee can avail deduction to the extent as given below.

If you have a government job, your Gratuity is fully exempt;
If you don't have a government job, your deduction shall be as given below

If the employee is covered by the Payment of Gratuity Act, 1972: - Exemption=the least of the following; 1. 20,00,000; 2. Actually received the amount of Gratuity; 3. 15days' salary based on last drawn salary for each completed year of service or part thereof in excess of 6 months
If the employee is not covered by the Payment of Gratuity Act, 1972: - Exemption=the least of the following; 1. 20,00,000; 2. Actually received the amount of Gratuity; 3. Half month's salary (based on the last 10 months' average salary immediately preceding the month of retirement or death) for each completed year of service.

Saving Income Tax | The premium for Health Insurance and Preventive Health Check (Section 80D) (Health Insurance and Health Check-up)

Rs 25,000 per year for the health insurance premium and health check-up for yourself, spouse and children. If you or your spouse is over 60 years, then this limit is Rs 50,000.

25,000 for health check and health insurance premiums for parents and this Rs. 25000 shall increase to Rs. 50,000 in case your parents are senior citizens.

For the welfare purpose, if senior citizens are unable to get health insurance coverage, deduction of up to Rs. 50,000 would be allowed in respect of any payment made on account of medical expenditure in respect of such person.

Saving Income Tax | Interest on Savings Bank Account (Interest Income on Savings Bank Account) (Section 80 TTA)

You do not have to pay tax on interest up to Rs 10,000 on a savings account. Interest on Savings Accounts exempts up to Rs. 10,000 per financial year

If you have collected more than Rs 10,000 interest in all the savings accounts in a financial year, then you will have to pay tax on the additional interest as per your tax bracket.

This lies only on savings accounts opened in a bank, co-operative bank or post office.

Note that the tax benefit under this section is only on the interest received on savings accounts. There is no exemption under Section 80TTA on the interest of fixed deposits.

If you are over 60 years of age (Senior Citizen), then you cannot avail benefits under Section 80TTA. This is because senior citizens get more tax benefits under Section 80TTB.

Saving Income Tax | Interest up to Rs 50,000 for Senior Citizens (Section 80 TTB)

The tax benefit under this section is only for senior citizens or senior citizens.

People below 60 years of age cannot avail Section 80TTB.

You get a tax benefit on a savings account or fixed deposits up to Rs 50,000 interest. Interest on Savings Account and Fixed Deposit exempt up to Rs. 50,000 per financial year for senior citizens

If you have received more than Rs 50,000 interest, then you will have to pay tax according to your tax bracket on the additional interest.

This is applicable only on savings accounts or fixed deposits opened in a bank, co-operative bank or post office.

If you have invested in a fixed deposit or debenture of a company, you will not get any tax benefit on its interest.

Saving Income Tax | Gift up to Rs 50,000 per year

You do not have to pay tax on gifts up to Rs 50,000 per year.

If you get a gift of more than Rs 50,000, then you have to pay tax on the additional amount according to your tax bracket.

There will be no limit of Rs 50,000 per year on you in these three cases:

If you have received this gift from a close relative.
Got it at the time of marriage.
It is inherited after one's death.

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DISCLAIMER

The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based upon this document. Under no circumstance, the author nor the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Ind AS 7 | Cash Flow Statement | Summary

2019-11-06T23:33:00.001+05:30

Ind AS 7 describes the application of Indian Accounting Standard on the preparation of Cash Flow Statement

Before I show you a perfectly clean starting point for your cash flow preparations, I will take you to dive into Ind AS 7 Statement of Cash Flows and see how Ind AS wants us to present cash.

If you are ignoring an accrual principle of accounting, you are doing wrong. The basic rule of accounting we should always follow!!

The Statement of Cash Flow is an exception to the concept of accrual. That is the truth. Without ignoring the accrual concept of accounting you can not create a cash flow statement. Because of this reason, the statement of cash flows can be the only statement ignoring an accrual basis and totally based on a CASH basis.

Since we follow the accrual concept in accounting, it is quite possible that there is some non-cash transaction in the accounts that should be eliminated while preparing a cash flow statement.

The process of eliminating non-cash transactions may, no doubt, give you the headaches because the numbers do not match or balance always.

Why Ind AS 7??

The cash flow statement gives the entity the ability to understand the exact source of cash generation. It is really as simple as that.

In reality, many investors explore the statement of cash flows right after looking to profit figures, because they sometimes feel that the profit could be manipulated by some non-cash transactions, such as various provisions, fair value adjustments, etc.

However, all prefer cash whether it is the company itself or investor because it shows not only HOW MUCH CASH the company is going to generate over the year, but also where the cash was generated.

Has the company increased its sales and generated cash by operating activities?
Has the company sold some of its property and generated cash by investing activities?
Or Has the company taken new loans and generated cash by financing activities?

This information is provided in the statement of cash flows which classifies cash flows during the period from operating activities, investing activities and financing activities.

Ind AS 7 | What comprises cash and cash equivalents?

As we know that the statement of cash flows shows you the movement in cash and cash equivalents. So we must be aware of what is cash and cash equivalents.

Cash comprises cash on hand (e.g. petty cash balance) and demand deposits (e.g. Saving or current bank accounts).

Cash equivalents are short-term and highly liquid investments that are easily convertible into cash and which are subject to an insignificant risk of changes in value.

Here, the investment which is of nature of short term maturity (from 1 to 3 months) would qualify for cash equivalent – for example, state treasury note, short term govt. bond. However, most shares and other equity instruments are excluded from cash equivalents.

Kindly note that the movements between cash and cash equivalents are a very important part of cash management and this is why these are not shown in the operating, financing or investing part of the statement of cash flows. So if your company buys an investment asset with a short maturity date, then this movement is not shown at all(it always appears in such a manner that the cash and cash equivalents have not moved at all).

Ind AS 7 | How the statement of cash flows shall be presented?

Ind AS 7 states that the statement of cash flows shall always report cash flows during the period classified by operating, investing and financing activities.

Before we’ll take a look at each part, let me also add that the statement of cash flows should also contain the final reconciliation in which you summarize the overall movement in cash and cash equivalents (corresponding with your balance sheet) as shown in this picture:

In the notes to the financial statements, an entity shall disclose the components of cash and cash equivalents.

Ind AS 7 | Operating activities

Operating activities are the principal revenue-generating activities of the entity which are done in the ordinary course of business and other activities which are neither investing nor financing activities.

This part is probably the most important because it shows the ability of the entity to generate cash by its own activities in the ordinary course of business, rather than by external financing or making investments.

Cash flows from operating activities result from the primary revenue-generating activities of each entity and therefore, there might be differences between different entities.

For example, the manufacturing company would report the receipt of interest income from the acquired company as a financing activity, but the bank or investment company would report similar interest income as an operating activity based on its specific purpose.

However, cash flow from operating activities generally result in those from those activities which are of the nature of profit-making and the examples are of the operating activities are:

Cash received from the sale of goods and the rendering of services in the ordinary course of business;
Cash received of the nature royalties income, fees or commissions and other revenue ;
Cash payments made to suppliers for goods and services received in the ordinary course of business;
Cash payments to and on behalf of employees in the ordinary course of business;
Cash received and cash payments made by an insurance entity for premiums and claims, annuities and other policy benefits in the ordinary course of business;
Cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities; and
cash receipts and payments from contracts held for dealing or trading purposes in the ordinary course of business.

The direct and indirect method

A company has two option to prepare the cash flow statement from operating activities:

Direct method: In this case, you are required to show major classes of gross cash receipts and gross cash payments; or
Indirect method: here, you can start with the profit or loss before tax and then you can adjust it for the effect of:

changes in Working capital over the period (inventories, operating receivables, payables);
Items which are of Non-cash nature (depreciation or amortization expenses of fixed assets, revaluation gain on revaluation of fixed assets, etc.);
Items that are connected or linked with investing or financing activities.

The direct method can provide you more understandable information that is not disclosed under the indirect method. However, in reality, the indirect method is far more preferred in comparison to the direct method because it’s easy to get the information based on your accounting records.

IndAS 7 | Investing activities

Investing activities are those activities in which the long term assets are acquired and disposed of and other investments that don't come in definition of cash equivalents.

Examples of cash flows which are classified into investing activities are:

Cash payments made to acquire tangible and long term assets (including capitalized development costs and self-constructed PPE);
Cash received from the sales of tangible, intangibles and other long-term assets;
Cash payments made to acquire and cash received from the sales of financial instrument which are of the nature of equity or debt of other entities and interests in joint ventures (but that is not for trading or dealing purposes);
Cash advances and loans given to other parties, and cash received from their repayment (other than advances and loans made by a financial institution – these would go to operating activities);
Cash payments for and cash received from various derivative contracts except when the contracts are held for dealing or trading purposes or the payments are classified as financing activities.

Ind AS 7 | Financing activities

Financing activities are those activities that result in changes in the composition and size of the contributed equity capital and borrowed capital of the entity.

Examples of cash flows which are arising from financing activities are:

Cash received from issuing shares or other equity instruments;
Cash payments made to owners to acquire or redeem the entity’s shares;
Cash received from issuing debentures, loans, notes, bonds, mortgages and other short-term or long-term borrowings;
Cash repayments of amounts borrowed from other entities; and
Cash payments made by a lessee for the purpose of reduction of the outstanding liability relating to a finance lease.

Ind AS 7 | Reporting cash flows from investing and financing activities

Only GROSS cash flows are reported in the investing and financing activities, so no netting off is done.

So, It means that it is not possible to present the cash paid to acquire some tangible assets and cash received from the sale of some other fixed tangible assets in one line – instead, you must show these cash flows separately in 2 lines.

However, Ind AS 7 gives you two exceptions where you actually can present net:

Cash receipts and payments on behalf of customers when the cash flows show off the activities of the customer rather than those of the entity. For example, some real estate companies can collect rents from tenants of the property and pay them over to the real property owners.
Cash receipts and payments for those items in which the turnover is very quick, the amounts are very large, and the maturities are very short. For example, changes in principal amounts relating to credit card customers.
Also, financial institutions can also report certain transactions on a net basis.

Ind AS 7 | Other issues

Foreign currency

When there are foreign currency cash flows of the entity, then you need to translate them to your functional currency by applying the exchange rate which is in force at the date of the cash flow.

However, you need to be careful at the closing, because unrealized year-end foreign exchange gains or losses are NOT cash flows at all. If they have any relation to your cash or cash equivalents, then you should present these amounts in a separate line in the final reconciliation.

Interest and dividends

Cash flows from interest income and dividends income received and paid shall be presented separately and consistently from one period to another period. But do remember that don't forget to understand the ordinary course of business

Taxes on income

Basically, cash flows that are arising from income taxes are also classified as cash flows from operating activities.

But if these taxes are specifically identifiable with financing or investing activities, then you should report your cash flows from taxes in these parts.

Investments

When you are holding some investments in subsidiaries, associates and joint ventures, then reporting cash flows to and from these investments really depends on the accounting method you are using.

When you apply equity or cost method in your accounting, then you should include only the cash flows between yourself and the investee into the cash flow statement (dividends or advances).

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Personal Financial Planning | How To Start Your 2020 Financial Planning

2019-11-02T23:09:00.004+05:30

Start Your 2020 Financial Planning | As we are all along towards the last couple of months of 2019, it is natural that you begin your goals and resolution at the start of the year. As per an article was written on the forbes.com website, a Mass-mutual survey conducted last year has found that 28% of Americans said they planned to make financial resolutions for 2019. Of those resolutions, putting money into relation (35%), hold a budget (34%) and paying down version card debt (24%) were in the company of the most popular resolutions. However, such goals are usually dropped and not long into the upcoming year.

Don't permit to the upcoming holiday shopping festival blinking your financial goals for the upcoming year 2020, especially as e-retailers, for example, Amazon, Flipkart, etc. shall be pushing going on the consumer to pay an amount vis--vis New Year festival eve in the argument for added discounts in this area purchases. As per the supplementary source is taken from Forbes website, the National Retail Federation had published a description which states that consumers are conventional to spend 3.8% to 4.2% more during this year's holiday shopping than they did in 2018. This estimate is equal to consumer spending taking place to on $731 billion collectively on the summit of the last two months of the year. Carrying holiday debt into the totaling year can put you in a tougher financial tilt.

To stay as regards track of your added year final and be financially sealed and adroitly-off in the coming year, it's vital that you begin measuring your goals now hence that you can begin off vis--vis the right track and avoid quitting a few weeks into January. Before the holiday hurry, take these few easy steps to set a distinct financial aspire and agree to in yourself to prosper in 2020.

Personal Financial Planning | Evaluate your current financial shape

Considering your financial goal for the year 2020, it is very much required that you evaluate your financial shape. Here shape means your financial condition. i.e., how much debt you have, your current net worth, what is your income source in the upcoming year, etc, so that proper planning can successfully be executed. If you don't evaluate as such then your financial goal is not going to succeed in 2020.

For example, if you have high debt in the current year, your priority should be paying off that debt in the upcoming financial year. And if your bank account is not capable enough to bear your three-month expenses, recommend making that priority too for your unforeseen situations in 2020.

Personal Financial Planning | Pick your important two financial goals

While planning at the starting may put you in the mindset to conquer all your goals, start focusing upon and bond one or two goals. Financial goals may tend to lie into one of the following four categories: debt pay-off, emergency savings, rushed-/medium-term investing and long-term/retirement investing. By focusing upon just one or two goals, you'll be able to take the steps needed to declare yes triumph.

Personal Financial Planning | Find the right drive.

It is an important thing that if you are lacking in one or two-goal, make that your priority. Finding the right purpose will be the key to your financial planning once you hit roadblocks. Whether it's treating yourself to a little splurge or telling your community nearly your milestones, have the funds for a ruling a habit.

If it is difficult for you to find the right drive or motivation for your financial goal, keep searching automated ways to keep your self motivated. For that purpose, you can start withdrawing money from your investment on a weekly basis or from your savings account and set it and forget it.

Financial planning can be terrifying, but it doesn't let to be a compulsion. Taking little steps and getting an early start will support you conquer every financial goal you lack to get compliance of 2020.

The recommendation provided here is not investment, tax or financial advice. You should consult following a licensed professional for advice on the order of your specific business.

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Personal Financial Planning | DISCLAIMER

The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however, it should not be perceived as professional or legal advice. The reader should consult a professional before making any decision based on this blog. Under no circumstance, the author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Saving Bank Account: The Best Banks to Open Saving Accounts in India

2019-10-23T21:10:00.002+05:30

Before moving ahead, you must answer yourself why need saving bank account and what is the importance of that for you?

A simple short answer to this question is: Protecting your money. Keeping your money at home will not serve any purpose or you will not get any interest.

Also, after the demonetization campaign, it is advisable to put a small portion of your savings in a bank account anyway.

Therefore, you can easily transfer and reinvest deposits in savings bank account according to your financial objectives.

Points to be considered before selecting any bank for opening a SAVING BANK account

Security: To protect your hard-earned money.
Interest: To earn a fixed interest rate on the amount deposited.
Simplicity: This is probably the simplest way to invest your money and earn a definite return in it.
Automatic payment: You can give standing instructions for automatic payment of bills and auto debit for certain transactions in a hassle free manner.
Net-banking facilities: These days banks provide online banking facilities where you can easily transfer funds when needed.

Best banks to OPEN A SAVING BANK ACCOUNT in India:

The list given below for opening a saving bank account in India has been selected based on various factors which are necessary for every person who is thinking to open a bank account.

The factors, which are taken into consideration before selecting the following list, consist of Interest Rate, Security level in a bank to protect the entitlement to the money of account of the account holders, Easy accessibility to bank services, Network level of banks, Centralization of Banks, Customer support services, Technology adoption, Banking Process simplicity, staff support etc.

So Here is list which you must be desiring for your information needs. For further details, you can go to the official website of the banks.

State Bank of India or SBI
Axis Bank
Kotak Mahindra Bank
Yes Bank
Punjab National Bank or PNB
Bank of India
HDFC bank
ICICI Bank
Canara Bank
Union Bank
IndusInd Bank

The above banks generally gives on an average 3% to 4% interest on saving bank account. So Interest rate is not the good factor to compare the level of banks for comparison purposes. The important point for consideration is that Kotak Mahindra Bank's 811-Zero balance account is generally giving around 6% interest on saving bank to open more saving bank account.

The network level of all of the above banks is of world class. Yes, There can be some problems in some branch of the above banks, but overall all are same. Differences in the bank services depend on the place of the branch. Generally in urban areas, banking facilities are better in comparison to rural branches.

The most important factor which you can consider for opening a saving bank account is maintenance of minimum balance of saving bank account. Because if you don't maintain that level, the banks start to charge you for non-maintenance of minimum saving bank account balance.

Let us have a look on minimum balance requirement and non maintenance charges of some banks:

Savings Account	Minimum Balance Requirement	Non Maintenance Charge
SBI Savings Plus Account	Metro and Urban locations Rs. 3,000 Semi-urban locations Rs. 2,000 Rural locations Rs. 1,000	Metro and Urban Locations Max. Rs 15 Semi Urban Locations Max. Rs 12 Rural Locations Max. Rs 10
Kotak Mahindra Bank Edge Savings Account	Rs. 10,000	Maximum Rs 500
IndusInd Bank Privilege Savings Account	Category A Branches Rs. 10,000 Category B Branches Rs. 10,000 Category C Branches Rs. 5,000	NMC will be 5% of the balance Shortfall (subject to minimum of Rs 100 & maximum of Rs 500 per month)
ICICI Bank Regular Savings Account	Metro and Urban locations Rs. 10,000 Semi-urban locations Rs. 5,000 Rural locations Rs. 2,000 Gramin locations Rs. 1,000	Metro/ Urban/ Semi-Urban/ Rural locations Rs. 100 + 5% of the shortfall in required MAB Gramin locations: 5% of the shortfall in required MAB
HDFC Bank Regular Savings Account	Metro / Urban branches Rs.10,000 Semi-Urban Branches Rs.5,000 Rural Branches Rs.2,500 or Fixed Deposit of Rs. 10,000 for minimum 1 year 1 day period	Metro and Urban Locations Up to Rs 600 Semi Urban Locations Up to Rs 300 Rural Locations Up to Rs 450
Punjab National Bank Savings Deposit (General) Account	Metro / Urban / Semi Urban branches Rs.2,000 Rural Branches Rs. 1,000	From Rs. 25 to Rs. 250 as per the location, category and deficit in QAB** as per brackets in Rs.100s
Yes Bank Savings Advantage Account	Rs 10,000	Up to Rs 500 per month

** QAB is the average of the all the closing day balance of a bank account in a given quarter

Now I think you are in a better position to take your decision to open your saving account. What you need to remember before you take your decision:

"Your money is your convenience to choose your bank for account opening. "

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DISCLAIMER

The information provided in this article is for general informational purposes only. All efforts have been made to provide accurate information in this document, however it should not be perceived as a professional or legal advice. Reader should consult a professional before making any decision based upon this document. Under no circumstance author or the publisher shall have any liability to you for any loss or damage of any kind incurred as a result of the use of this information.

Secondary Source: Website of above banks and of RBI websites.

Ind AS 38 : Summary of Identification and Recognition of Intangible Assets in Financial Reporting

2019-10-22T17:22:00.000+05:30

Many companies are increasing big cost on intangible assets because of future economic benefits.

For example, companies pay salaries to software develops who are developing some sort of programme or a web based application.

Well, we have understood but how would we treat these costs in accounting?

It does not feel good treatment in accounting of above transaction if we put all salaries of these developers in profit or loss when they are incurred, because the company will be going to benefit from these expenses in the upcoming future.

One of the most frequent audit issues that I have faced during my auditing job was the dilemma:

Intangible asset or expense?

So let us go. In this article, you’ll be going to find the short snapshot of the main rules in INDAS 38 Intangible assets.

What assets are covered by INDAS 38?

This standard INDAS 38 shows the methods for accounting for all intangible assets except for the intangible assets covered by another standard.

What is excluded? Here you go:

Deferred tax assets – covered by INDAS 12 Income Taxes,
Goodwill – covered by INDAS 103 Business Combinations,
Intangible assets held for sale – covered by INDAS 105 Non-Current Assets Held For Sale and Discontinued Operations,
Financial assets – covered by INDAS 32 Financial Instruments: Presentation and IFRS 9 Financial Instruments,
Expenditures for development and extraction of minerals, oils, natural gas and other non-regenerative resources, etc.

What is an intangible asset?

An intangible asset is an identifiable untouchable and non-monetary asset which does not physical substance.

That’s the definition from INDAS 38, .

People can interpret the above definition in many different manner, just as they need and therefore, INDAS 38 contains a very good and clear guidance on how to apply it.

When can we identify an intangible asset?

Sometimes it can happen that your item is meeting all the criteria and has all characteristics of an intangible asset, but you still are not able to recognize it in your financial statements.

The reason for above as such could be that your item does not meet the identification and recognition criteria.

You can recognize an intangible asset only when:

Future economic benefits from the asset are probable;
Cost can be measured reliably.

When an entity generates the asset internally…

When you are purchasing an item from someone else, it’s relatively easy to determine whether it’s an intangible asset or an expense.

Also, it’s more likely that the recognition criteria shall be met.

But, what about that situation when the entity is actually developing intangible assets itself?

Well, this area is really very complicated and tricky and that’s why INDAS 38 offers specific guidance for internally generated intangible assets.

Research

Research is investigating a fact that you undertake to obtain some information, knowledge or an understanding.

For example, you are analyzing different alternatives for your new designed software product.

Or, you are examining the competitive products on the market, researching their features and trying to identifying their weaknesses in order to design better product in comparison to you competitor.

You are NOT allowed to capitalize any expenditure pertaining to research activity.

You need to charge it in profit or loss as expense as it is incurred.

And, let me warn you, that yes, all feasibility studies, evaluating whether the project is feasible or not, ARE research activity and required to be EXPENSED in profit or loss.

Yes,even in that case when you have incurred huge money for that activity.

This applies to both internal research and research conducted by the external provider, too.

Development

Development is usually done after the research phase.

At the development phase, you are actually planning or designing the new products, materials, processes, etc. – BEFORE the initiation of commercial production or use.

It is important to differentiate development and research, because yes, you CAN DEFINITELY CAPITALIZE the expenditures for the development phase.

But it’s not that simple.

You have to satisfy 6 criteria before you can capitalize these expenditures on development phase.

If you are preparing yourself for CA Final exam, then the great mnemonic to memorize these 6 criteria is PIRATE:

Probable future economic benefits,
Intention to complete and use or sell the asset,
Resources adequate and available to complete and use or sell the asset,
Ability to use or sell the asset,
Technical feasibility,
Expenditures can be reliably measured.

Thank you very much to that unknown genius, to invent this mnemonic, I have used it at my own CA Final exam and it worked well!

You can capitalize the development expenditures only when all of the 6 criteria are satisfied – not before that.

Also, you can capitalize it prospectively only.

Just as an example, let’s suppose that you have incurred Rs. 5 000 for development in September 20X1 and further Rs 10 000 in October 20X1.

If you are satisfying all the 6 conditions in October 20X1, you can capitalize only Rs. 10 000 incurred in October. Expenditure of Rs. 5 000 from September must be charged to profit or loss.

Goodwill

Internally generated goodwill is NEVER capitalized.

You can only recognize the goodwill acquired at business combination, but that’s the different story to tell (INDAS 103).

Other internally generated intangible assets

Maybe you must have developed some other intangible assets, like brands, title, trademark, copyright or similar.

INDAS 38 prohibits TO CAPITALIZE these assets if generated internally, because it’s hard to measure their cost reliably.

Measurement of intangible assets initially?

The initial measurement of an intangible asset depends on how you have acquired the asset.

I have provided the summary version it in the following table:

How acquired?	How initially measured?
Separate purchase	Cost – see below
Internally generated	Directly attributable costs incurred after the asset first meet 6 PIRATE criteria – see above
As a part of business combination	Fair value at the acquisition date
By a government grant	Fair value or nominal amount + directly attributable expenditure
Within exchange of assets	Fair value; if not possible, then carrying amount of asset given up

Cost of separately acquired intangible asset

Cost of a separately acquired intangible asset consists of (INDAS 38):

Its purchase price, plus import duties and non-refundable taxes, less discounts and rebates,

Any directly attributable costs of preparing the asset for its intended use.

What about the subsequent measurement?

Intangible assets are subsequently measured in a manner as property, plant and equipment in IND AS 16.

You can chose from 2 models of measuring cost:

Cost model: The intangible asset is carried at its cost less accumulated amortization less any accumulated impairment loss.
Revaluation model: The intangible asset is recorded at its fair value at the revaluation date less accumulated amortization less any accumulated impairment loss.

Point to be noted that the revaluation model is not applied very frequently for intangible assets because it is difficult to identity an active market – which is rare.

And, you cannot apply the revaluation model for brands, mastheads, patents, trademarks and similar assets.

The reason is that these assets are very related to the user of intangible assets and very specific and unique and there’s no active market available.

I am not going to deal with journal entries of amortization and revaluations, because they are almost the same as in case of property, plant and equipment.

Amortization and useful life

Similarly as in case of property, plant and equipment, amortization is the allocation of depreciable amount of an intangible asset over its useful life.

Here, you need to take decision about:

How much the intangible asset to amortize, or what the depreciable amount is (cost – residual value),
How long the intangible asset to amortize, or what’s the asset’s useful life, and
How the intangible asset to amortize, or what amortization method you apply.

However, there’s one very specific about the amortization – it is the useful life of intangible assets acquired from others.

It is possible that Intangibles can have:

Finite useful life: In this case you can estimate the life of the asset up front, for example some License, or
Indefinite useful life: There is no foreseeable limit to period over which the asset will generate cash flows, for example goodwill.

When you have an intangible asset with indefinite useful life, you do NOT need to amortize it.

Instead, you need to revise the asset’s useful life at the end of each financial year and require to identify the indicators of impairment.

Derecognization of intangible assets?

You should derecognize the intangible asset either:

When you dispose the asset, or
When no more future economic benefits are expected to be availed from the asset

The gain or loss on derecognition of intangibles assets is calculated as:

Net disposal proceeds, less
Asset’s carrying amount

Gain or loss are always recognized in profit or loss.

Taxes on Mutual Funds in India

2019-10-21T22:41:00.001+05:30

Taxes on Mutual Fund: Introduction

The government has given many options to the sector to encourage equity markets. Under Section 10 (38) of the Income Tax Act, exemption of long term capital gains arising from the sale of equity shares in a company or unit of equity oriented fund is provided.

An equity-oriented fund is one where an amount is invested by way of equity shares in domestic companies, to the extent of not exceeding 65% of the total income of such fund and by a scheme of mutual funds specified under clause Is installed under (23D). However, capital taxes arising from long term capital asset on the transfer of listed securities with effect from AI (2019-20) will exceed @ 10% to 100,000 / - but on the satisfaction of the following conditions: -

In the case of equity shares, securities transaction tax has been paid on both acquisition and transfer and
In a case where long-term capital assets are in the nature of a unit of an equity-oriented fund, the transaction tax of securities has been paid on transfer.

However, long-term capital gains will be calculated without any impact on the inflation index in terms of cost of acquisition and improvement, if any, and in the case of a non-resident, the benefit of calculating capital gains in a foreign currency will not be allowed.

Benefits of Grand Fathering Rule

Investments made on or before January 31, 2018, are grand, the cost of acquisition will be considered higher in respect of such investments made up to January 31, 2018: -

1.) The actual cost of acquisition of such investment and

2.) Lower of

FMV of such asset
FVC received due to being transferred or will be the highest price quoted on the recognized stock exchange on January 31, 2018.

Taxes on Mutual Fund | Conclusion

Now as the time for filing tax returns is getting closer, it will be compulsory to calculate the tax according to the latest rules put in place by the government, according to which equity shares and equity-oriented funds have become taxable above the threshold. Are you correctly calculating capital gains arising from equity?

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DISCLAIMER

Future Trading: Hedging the Investment from Market Volatility

2019-10-20T18:00:00.000+05:30

Future Trading | Many of the investors of our society might have not heard this word Hedging. I can bet you that they do not have knowledge about the benefits of Hedging or if they have they must have not tried that in their actual trading practices. Sometimes people say "Hedging" is similar to the word "Speculation". But they are wrong. Hedging is good practice to save money from going in loss. In short, Hedging is a tool to save your investment from loosing it value.

So I shall take you that level of understanding where you will understand how hedging can save you and your money

So let us start the word Hedging...

What is Hedging?

Hedging refers to taking two contrary positions on an underlying asset to protect yourself from price volatility and risk.

Suppose you are a merchant who sells jewelry in the market. You have received an order to sell by the end of May. Now for selling jewelry, he has to buy gold from a dealer and make jewelry and sell it by the end of the month of May. Now suppose at the end of May, gold prices go down. In this case, the merchant will suffer loss in the inventory value if he buys gold today.

To hedge this, the merchant buys the derivative contract on commodity derivative exchange to sell the equal quantity of gold. Now suppose today the price of gold is Rs. 35,000 per 10 gm. Now you buy 2-kilo gold for Rs. 70 Lakhs and on the same day he sells a future contract for around the same sum.

Now assume if by the end of May gold price per 10 gm falls to Rs. 30,000. So were he not hedged himself, he would have incurred a loss of Rs. 5000 per 10 gm.

In the case of hedging the volatility of gold price, the loss of Rs. 5000 per 10 gm on the spot market would be compensated by a gain on the futures market ( where he sold).

Practicality of application of Hedging in real world

In practical life, hedging involves cost and only those entities who have experienced treasury can hedge themselves.

Generally, these entities hedge gold either on the over-the-counter market dominated by banks or commodity exchanges like MCX. In the recent period, NSE and BSE have also launched gold derivatives.

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Monenomics

DO YOUR EYES NEED A TECH BREAK?

DO YOUR EYES NEED A TECH BREAK?

Check your glasses prescription

Place the computer screen at least 20 inches away

Adjust the brightness

Rest your eyes

DISCLAIMER

BUDGET 2020 - Direct Tax Highlights

Finance Minister Mrs. Nirmala Sitharaman presented the Union Budget for the fiscal year 2020-21 on 1st February 2020.

Below given are the major highlights of direct tax provisions.

Download Budget Speech of Finance Minister

Make an Invoice easily for free

Use Technology and Get free Professional Invoice

Excel Invoice:

Step by step to make an Excel invoice

Open Excel interface

In the search box type the word invoice

Select the invoice format you like best and fit your business

Click on the invoice format you chose

Open the excel invoice format selected in the program

Start editing company data

Add the representative company logo

Replace the currency format

Important data about the Excel Invoice

Tax Planning Tips to Reduce Your Income Tax on House Property Income

Let us do Tax Planning for House Property Income

Income under the head of House Property for A.Y. 2020-21

Option 1: HP 1 and HP 2 are taken as Self Occupied Property

Option 2: HP 1 and HP 3 are taken as Self Occupied Property,

Option 3: HP 2 and HP 3 are taken as Self Occupied Property

Assumption

4 Tips to increase your money in 2020

4 Tips that will help you increase your wealth

1. Your skill can be your Panacea

2. Be good in tax planning

3.Invest in good portfolios

4. Do something extraordinary

What you have taken from reading?

What is Demat account and how it works?

Why should there be a Demat account?

How does it work?

Benefits of opening a Demat account

Please keep these things in mind before opening an account

Have you received your Income Tax Refund from Income Tax Department?

Have you got an income tax refund?

When do you get an income tax refund?

How to get an income tax refund

How to claim for the income tax refund?

How to track income tax refund?

What to do if the income tax refund is not received on time?

What is E-PAN Card | Pan Card Status | pan card online | Know Everything Here

What is an e-PAN card? Know all about it here

What is an e-PAN card?

How to apply for the e-PAN card?

Eligibility for e-PAN card

How to know the status of the e-PAN card?

How to download an e-pan card online?

Did You Know that You are not Financially Literate

You are continuously increasing your saving bank account

Not maintaining reasonable liquidity and not making wise investments as well

Lack of Knowledge of investing in the stock market (wisely)

Conclusion

Disclaimer

Ind AS 40 | Indian Accounting Standard-Investment Property | Summary

Accounting for IND AS 40: Investment Property

IND AS 40 Investment Property: Objective

Some Examples of investment property

When investment property should be Recognized

How investment property initially should be measured

Subsequent measurement of investment property

Switching the models of Measurement

Transfers from investment property to business usage

Derecognition of investment property

Disclosures

Ind AS 1 | Presentation of Financial Statement | Summary

Ind AS 1 | Financial Statements

Structure and Content

Balance Sheets

Statement of Comprehensive Income

Finance Minister Mrs. Nirmala Sitharaman presented the Union Budget for the fiscal year 2020-21 on 1^st February 2020.