Tax refers to a mandatory contribution of a person towards the country's revenue, which is imposed by the government (central or state) on the income or wealth of the persons or included in the cost of goods, services or transactions. Every assessee wants the tax liability to be minimum and for this, he/she can take recourse to tax planning through which tax burden can be reduced to a minimum, by using legitimate ways and means. Tax planning is often misconstrued with tax management, which … [Read more...]

Fundamental Analysis studies all those factors which have an impact on the stock price of the company in future, such as financial statement, management process, industry, etc. It analyzes the intrinsic value of the firm to identify whether the stock is under-priced or over-priced. On the other hand, technical analysis uses past charts, patterns and trends to forecast the price movements of the entity in the coming time. Stock prices change every minute, and so every investor is keen to know … [Read more...]

Most of the people have no idea about the income on which tax is levied and due to which they face trouble in ascertaining their taxable income and filing their return. As per the Income Tax Act, a person can earn income from different sources and these sources, are categorised as heads of incomes. In the context of income tax, the terms gross total income and total income are often used, wherein gross total income is the aggregate of income calculated under the five heads. On the other hand, … [Read more...]

According to the Income Tax Act, income earned by a person in a financial year is taxable in the following financial year. So, the financial year in which the person has received income is called as the Previous Year. On the other hand, the financial year in which the tax liability on the income of the person is assessed is known as Assessment Year. We all know that the Calendar Year commences on the 1st of January and ends on 31st of December every year. But, the calendar year has no … [Read more...]

In the business world, crowdfunding has evolved as one of the fastest growing industry, which aimed at changing the way in which entrepreneurs raise money and also the mindset of people to invest their money in established companies only. Traditional fundraising for a business project or venture encompasses pitching a few investors, banks or venture capitalists for a hefty sum. But in crowdfunding, the 'crowd' funds the idea or project, through an online platform, i.e. internet is used to … [Read more...]

Internal Economies of scale is a result of endogenous determinants, i.e. the reasons which are internal to the firm. On the contrary, External economies of scale occur on account of exogenous determinants, i.e. the reasons which are external to the firm. The Long-run Average Cost (LAC) curve has a U-shape, due to the returns to scale, i.e. economies and diseconomies of scale. Economies of scale imply the corresponding savings in the cost of production achieved by the rise in the level of … [Read more...]

Credit history of a person has a great impact on his/her financial profile, as it is used by banks, utility companies, employers, landlords etc. to determine the creditworthiness. So, it is important for one to be aware of his/her credit report and credit score, compiled by the credit reporting agencies, also known as credit bureaus. A credit report is a document which reflects the history of credit behaviour of a person. Based on the information on the credit report, a three digit number is … [Read more...]

When high net worth individuals or firms invest in the companies which are privately held or not listed on any stock exchange, is called Private Equity. On the other hand, Hedge fund implies a type of mutual fund that pools money of various high net worth individuals or firms into a variety of financial instruments, to generate good returns, with the help of different strategies and techniques. Both private equity and hedge fund are the forms of an investment fund that approach accredited … [Read more...]

ELSS is an open-ended equity mutual fund that not only provides tax saving but also gives an opportunity to the investor to grow money. Conversely, PPF refers to a type of Provident fund, which can be opened by any salaried or non-salaried person to park their money so as to reduce the tax burden. One of the major concerns of all the taxpayers is to reduce the tax liability as much as possible. And for this purpose, they take recourse of various deductions under the Income-tax Act, 1961. … [Read more...]

Divestiture or commonly called as divestment is the process of selling off a part or division of the company to another company or creating a separate company. Divestiture can take the form of the spin-off, split-off, split-up, sell-off, equity carve-out, etc. Of these forms, the two commonly juxtaposed forms of divestiture are spin-off and split-off. Spin-off refers to the business division, which becomes an independent undertaking, after separation from the parent company. On the contrary, … [Read more...]