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2015
  • Becoming parents is a turning point in our lives. As their guardians, it is our duty to plan for their future and invest wisely so that they receive the best possible facilities that in turn will materialize as better opportunities in a competitive world. Such a goal requires early and intricate planning, dedicated devotion to the goal and taking calculated risks sometimes to generate good returns.
  • Children’s secure future mostly depends on a strong education which becomes a foundation to find new avenues in the future and be successful. The ever increasing education cost and tuition fees have put a shadow of uncertainty on the future of your child. Here we look at some of the options of investment that can ensure their happiness and provide them with possibilities for a sound education in future.

Insure Yourself

  • Yes, insure yourself! Savings will only last for some period and may get exhausted during unavoidable circumstances, but an insurance policy of a parent is the second roof for his dependents. Such a scheme would help your child with his educational needs that would otherwise be hard to cover in the absence of insurance. Some child plans also offer a fixed amount once the child attains the age for higher education which takes care of his higher education costs.

2015

Q 1. MICR code consists of how many digits?

9 digits. (First three digits denotes city, next three digits representing the bank and the last three digits representing the bank branch).

Q 2. What is the minimum limit in RTGS system?

Rs. 2 lakhs (there is no upper limit in RTGS).

2015
  • If you have an income tax refund to claim for the assessment years 2013-14 and 2014-15, then there is a reason for you to cheer. The Central Processing Centre at Bangalore and other field formation of the Income Tax Department have been instructed to hasten the refund process for those who have a refund amount below Rs 50,000 to claim.
  • “Central Board of Direct Taxes has issued directions to its field formations to expedite the issue of pending refunds below Rs. 50,000 for assessment years 2013-14 and 2014-15 in all such cases which have not been selected for scrutiny,” states the notification issued by the Central Board of Direct Taxes on December 7, 2015.
  • A return can be selected for scrutiny during the time period extending up to the end of six months, starting the end of financial year in which the return was filed. So, if you filed your returns on July 15, 2015, then your return can be called for scrutiny up to the end of September 30, 2016, which is six months after March 31, 2016 (the financial year in which you filed returns).

2015
  • The Income tax department has initiated e-Sahyog project to reduce compliance cost for small taxpayers, wherein tax mismatch notices would be sent via emails instead of physical letters and the taxpayer can respond to the notice by logging into the income tax e-filing portal.
  • Have you changed your phone number recently? Provided the email ID of your friends, relatives or the chartered accountant while filing returns? It is about time to get your own email address and phone numbers updated in the Income Tax Department records.
  • This is because the notices sent out to taxpayers for tax mismatch, usually due to erroneous calculations and returns, would not land at your doorstep anymore. Instead the assessing officers would now be sending mismatch notices via email and notifying the same through SMS, in line with the Digital India initiative of the Government of India.

2015

Impact of Fed Rate Hike

  • It is the Central Bank of USA which is considered as the most powerful banking institution in the world. The Fedral Reserve Bank was founded by the U.S.Congress in 1913 to provide the nation with a safe, flexible and stable monetary and financial system.

What is Fed Rate ?

  • The Federal Funds Rate commonly known as ‘Fed Rate’ is “the interest rate” at which depository institutions (banks and credit unions) actively trade balances held at the Federal Reserve.
  • The sub-prime crisis in 2007 and 2008 forced the American Central Bank to reduce interest rate sharply. The Fed brought down the federal fund rate from 5.25 percent in August 2007 to a target rate between 0 and 0.25 percent by December 2008. Since, then there is no change in the interest rate.

2015

Capital Gain Exemptions

  • Real Estate Market has always been seen as an investment avenue for promising returns for many investors in the past couple of decades. It even delivered the best returns compared to other investments in the recent past. Perhaps the real estate market has been visiting a sluggish trend in last one or two years but things have hardly mattered for those who are still banking on the thought that such situation will be corrected by Government policies. There are others who rely on the market sentiments alike the stock markets. Buying a house or investing in land and then selling it at the higher price once the estate market gives a promised return is a common practice and is done by many. But are we completely aware of the taxation aspects as well?
  • The Income Tax Department has inserted certain exemption provisions for those who have a dream to buy their own house or a bigger house than the existing one. On a plain reading of the provisions relating to exemptions of the Income Tax Act, 1961 pertaining to capital gains one may conclude that the above statement is just perfect.

Financial Management