Why is provision for depreciation not an expense Provision for depreciation is not considered as an expense but rather as a gradual reduction in the value of an asset over its useful life. Unlike immediate expensing, depreciation allows for the allocation of an asset’s cost over time. To visit- https://www.mca.gov.in/ Depreciation represents the decrease in… Read More »
If toll tax is added to car hire bill on which amount TDS will be deducted Yes, you are correct. TDS is not applicable on toll tax as it is not considered as income. Therefore, when toll tax is included in a car hire bill, TDS will not be deducted on it. TDS is only… Read More »
Introduction Taxpayers in India often seek ways to reduce their taxable income through various exemptions and deductions provided under the Income Tax Act. One such provision is Section 80TTA, which offers tax benefits on interest income earned from savings accounts. This article provides an in-depth explanation of the 80TTA exemption, covering its definition, benefits, usage,… Read More »
Introduction Filing an Income Tax Return (ITR) is a crucial financial responsibility for individuals and businesses alike. Many people perceive it as a tedious task, but it offers significant benefits that go beyond mere compliance. Whether you are a salaried employee, a business owner, or a freelancer, filing your ITR can help in financial planning,… Read More »
Filing income tax returns Filing income tax returns is mandatory for several reasons: Legal Requirement The law mandates individuals and entities to file income tax returns within the specified due dates. Failure to comply with this requirement may result in penalties and legal consequences. Income Assessment Filing tax return allows the tax authorities to… Read More »
Introduction Saving for retirement is a crucial financial goal, and the Indian government provides various tax-saving options to encourage individuals to plan for their future. Two of the most popular pension schemes in India are the National Pension System (NPS) and the Employees’ Provident Fund (EPF). Under Section 80C of the Income Tax Act, individuals… Read More »
What is Tax Avoidance? Tax avoidance involves legally structuring one’s financial affairs to reduce tax liabilities while staying within the law. It involves using various strategies and methods to take advantage of deductions, credits, exemptions, and other provisions in the tax code to reduce the amount of taxes owed. Characteristics of Tax Avoidance: Legal… Read More »
What is advance tax Advance tax is the taxes paid in advance on the estimated income of the current financial year. It is a way of paying tax on an ongoing basis rather than waiting until the end of the year. In India, individuals and businesses require to pay advance taxes if their tax liability… Read More »
Working Capital vs Operating Expenses Working capital and operating expenses are two different financial concepts in accounting that represent different aspects of a company’s financial performance. For more information to visit:https://www.mca.gov.in Working-capital represents the amount of money that a company has available to cover its day-to-day operations and short-term obligations. It is a crucial metric… Read More »
Elements of Bookkeeping Website Link Elements of bookkeeping system: It also known as the double-entry accounting system, is a method of documenting financial transactions that involves recording each transaction in two separate accounts. The system consists of four elements: Assets: Assets are resources owned or controlled by a business that hold monetary value. Examples include cash,… Read More »