Investment analysis in bank deposits in India
To this day, most Indian households swear by bank deposits and Public Provident Funds (PPFs). Our parents still wax lyrical about these two investments. They are like family heirlooms, passed down generations. The numbers bear this point, too. As per the Reserve Bank of India, over 48 per cent of Indian household’s financial investments lie in bank deposits and PPF as of March 31, 2023and 41% of the household savings as of March 2022
Business Valuation
Business Valuation involves determining the worth of a business enterprise or its ownership interest. Valuations serve various purposes –
Valuation for Financial Transactions: Such as buying or selling businesses, branches, licensing, franchise agreements, employee stock ownership plans, and partner/shareholder buy-ins or buyouts.
A Comparison of IFRS, US GAAP and Indian GAAP
GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), and Indian Accounting Standards (Ind AS) are three different sets of accounting standards used by companies and organizations around the world to prepare and present their financial statements. Each of these standards has its own specific rules and guidelines for accounting and reporting.
Section 73 of the CGST Act: Demand and Recovery of Tax
The Goods and Services Tax (GST) Act has revolutionized the Indian tax system by unifying various indirect taxes under one umbrella. The Central Goods and Services Tax (CGST) Act plays a crucial role in ensuring the smooth implementation and administration of GST. Sections 73 and 74 of the CGST Act deal with the demand for tax from taxpayers. Understanding these sections is essential for both taxpayers and tax authorities to ensure compliance and avoid any legal complications.
The Imperative of Financial Strategy in India’s Startup Ecosystem
Chartered Accountants are indispensable partners in the journey of startup success in India. Their expertise in financial strategy, compliance, taxation, and audit services provides startups with the necessary tools to navigate challenges and unlock their full potential. By engaging the services of experienced CAs, startups can lay a strong foundation for sustainable growth and prosperity in India’s dynamic business environment.
Residential Status
Taxation rules in India vary quite significantly for NRIs as compared to those applicable to resident Indians. It is crucial to understand the taxation provisions applicable to NRIs as specified in the Income-tax Act, 1961, to avoid the risk of double taxation when one is earning income in India as well as in other countries. Understanding the tax policies applicable to NRIs helps one determine his/her residential status and avail the tax benefits accordingly. Thus, an NRI must have clarity on each and every aspect of taxation applicable to him/her in India.
Advance Tax
Advance tax is the income tax which is paid by the taxpayer in advance instead of making a lump sum payment at the end of the financial year.
It is basically the tax which you pay as you earn. The taxpayer has to pay the amount in instalments as per the due date given by the income tax department.
Advantages of Private Limited Company
Registering a private limited company offers several advantages such as limited liability protection, distinct legal status, enhanced credibility with external parties, potential tax benefits like those provided by NRI tax advisors in India, and easier access to capital. Despite the initial cost associated with incorporation, the benefits typically surpass the expenses, particularly as the business evolves beyond the initial startup phase. It is essential for business owners to grasp these advantages to make informed decisions about whether adopting a limited company structure aligns with the needs and goals of their enterprise.