Raj's Profile
Accountant
245
points

Questions
2

Answers
18

  • Accountant Asked on June 1, 2015 in Taxes.

    Such provisions regulating the mode of accepting or taking loans or deposits and mode of repayment of certain loans and deposits are contained under section 269SS and 269T of the income tax 1961

    1 Applicability of Section 269SS and 269T

     

    1.1 Acceptance of loan:

    When we accept loan from any person, section 269SS of Income-tax Act, 1961 is attracted. Section 269SS deals with mode of acceptance of loan which states that no person shall after the date 30-6-1984 take or accept from any other person any loan or deposit otherwise than by an account payee cheque or account payee bank draft, if any of the following amount exceeds 20000.

    1. a)       Any amount of loan or deposit or the aggregate amount of loan or deposit;
    2. b)      On the date of taking loan or deposit, any amount of loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid irrespective of the fact whether re-payment has fallen due or not and
    3. c)       The amount or aggregate amount along with the amount referred to in 1 and 2.

    If any of the above bifurcated amount cross specified limit, then provisions of section 269SS become applicable. The provisions of this section shall not apply to any loan or deposit taken or accepted from or any loan or deposit taken or accepted by following.

    (i)      Government

    (ii)     Any banking company, post office saving bank or cooperative bank

    (iii)    Any corporation established by a central, state or provincial act

    (iv)    Any government company

    (v)     The person having agricultural income from the person also having agricultural income and none of them has any income chargeable to tax under the income tax act.

    1.2 For Repayment of Loan:

    Similarly when we repay loan to the person from whom it was taken then section 269T become applicable. Section 269T deals with mode of repayment of certain loans or deposits which states that:

    No Branch of a banking company or a co-operative bank and no other company of co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft in the name of the person who has made the loan or deposit if any of the following amount Rs. 20000 or more.

    • the amount of the loan or deposit together with the interest, if any payable thereon or
    • the aggregate amount of the loans or deposits held by such person with the branch of the banking
    • company or co-operative bank or as the case may be the other company or co-operative society or the
    • firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest accrued on it.
    • 780 views
    • 1 answers
    • 0 votes
  • Accountant Asked on February 9, 2015 in Banking Services.

    ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds individually on an order by order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time. ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

    National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country participating in the Scheme.

     

    Use NEFT service to transfer funds anywhere using Internet Banking

    • 1840 views
    • 3 answers
    • 1 votes
  • Accountant Asked on January 12, 2015 in Taxes.

    Yes, Absolutely you can file file income tax return , even if your income is below taxable .

    • 529 views
    • 2 answers
    • 0 votes
  • Accountant Asked on December 16, 2014 in Economics.

    here is a GRM (Gross Rent Multiplier) that compares the total rental/lease income to the value or price of the property.

    The price can run 8 to 10 times the gross income, but that can vary based on market conditions, interest rates, management, building type, quality.

    Capitalization Rate (cap rate) is a more comprehensive way of evaluation, but if the GRM is known for a building type and location, you can quickly determine a ballpark value.

    • 771 views
    • 1 answers
    • 1 votes
  • Accountant Asked on December 16, 2014 in Stocks and Bonds.

    Here are 5 reasons why the stock may come under further selling pressure:

    1) Gross refining margins have hit the lowest level since December 2009, according to a report by Bank of America Merrill Lynch. GRM is the difference between total value of petroleum products and price of crude. Higher the GRMs, higher the profit yields.

    2) In the four quarters to date, RIL’s GRM has slipped below the Singapore GRM and is down on a year-on-year basis. The Singapore crude is considered a benchmark for complex refineries. Theoretical GRM in Q4 FY12 stood at $5.2-6.5 per barrel against $9.2 per barrel in the fourth quarter of FY11 .RIL’s GRM is now at a discount to Singapore GRM of US$7.8 per barrel.
    3) Impact on PAT: Reliance Industries’ fourth quarter PAT is seen at Rs 3,690-4,260 Crore (at current Q4 theoretical GRMs), which is 21-31% lower on a basis, because of declining GRMs.

    4) Impact on earnings per share: The investment bank expects 11-21% downside to RIL’s FY13 EPS if GRM stays at 4QTD level.

    5) Impact on FY 13 earnings: A one dollar fall in gross refining margins (GRM), will impact profit after tax (PAT) by Rs 1,800 crore, Sonam Udasi, Head-Research at IDBI Capital told NDTV Profit. GRMs have started moving lower dramatically over the last 1-1.5 months and more than Q4, we are worried about FY13, he added.

    This answer accepted by Priyanka Gupta. on December 23, 2014 Earned 15 points.

    • 768 views
    • 1 answers
    • 1 votes
  • Accountant Asked on December 13, 2014 in Banking Services.

    Multi-layer logon verification:

    Your financial information is protected by a sophisticated combination of a unique Username and Password, and a one-time Security Code generated by your Online Security Device.

     Transaction verification

     When you transfer money or pay bills online, Banks prompts you for the Security Code generated by your Online Security Device. This ensures that only you can authorise payment and transfer requests

     Automatic ‘Time-out’ feature

    As a security measure, your Internet Banking session will automatically shut-down or time-out, out after a period of not being used. You should always close your Internet Banking session when you have finished.

    • 531 views
    • 1 answers
    • 1 votes
  • Accountant Asked on December 13, 2014 in Funds.

    Net asset value(NAV) is the value of a fund’s asset less the value of its liabilities per unit. NAV = (Value of Assets-Value of Liabilities)/number of units outstanding.

    • 685 views
    • 3 answers
    • 2 votes
  • Accountant Asked on December 13, 2014 in Funds.

    Margin of safety is used in break-even analysis to indicate the amount of Sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company’s sales could decrease before the company will become unprofitable.

    • 1817 views
    • 4 answers
    • 3 votes
  • Accountant Asked on December 6, 2014 in Business and Finance.

    Definition of ‘private company’ given in Section 2(68) of Companies Act 2013 has come into force w.e.f. 12.9.2013.

    Main differences in the new definition are:

    1. a) Max. number of members has been increased from 50 to 200

    b) The clause stating that ‘the company prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives’ has been deleted in the new definition.  As a result, now private companies are not allowed to accept deposits from its members and relatives of directors.    This is a significant change and will affect all private limited companies. Further, Sec.4(1)(c) of the new Act provides for Object Clause of Memorandum of Association.  It omits ‘Other Objects’.   It seems ROCs have started asking companies to amend their MoA and AoA as per new provisions which have come into force from 12.9.2013.  Circular from MCA on this is expected for clarification.

    This answer accepted by Suveer Sachdeva. on January 7, 2015 Earned 15 points.

    • 766 views
    • 2 answers
    • 2 votes
  • Accountant Asked on December 6, 2014 in Accounting.
    1.  Easy Formation: Proprietary firm is easiest and economic form to create and operate as it can be started by any person without any legal formalities. Also there is no set limit of minimum or maximum number of persons to start the business as it can be started by a single person.

      2. Better Control : As the owner is the single person so he has full control over his business. His total authority over his business gives him the power to plan, organize, co-ordinate the various activities. The sizes of such firm are generally small which also makes it better to control.

      3. Quick Decision Making : Being the only owner of the business the sole trader takes all the decisions himself. He evaluates all the opportunities available and finds the solution to problems which makes decision making quick.

      4. Flexibility in Operations : One man ownership makes it possible to bring flexibility in the operations of the business.

      5. Personal attention to customer needs : Due to the small geographical area it becomes easy for the sole proprietor deal with all its customers personally and knows their needs. Thus it makes easy for him to pay special attention to consumer needs.

      6. Creation of Employment : Proprietor firm facilitates self employment and also employment for many others. It promotes entrepreneurial skill among the individuals.

      7. Equal Distribution of Wealth : Proprietary firm is generally a small scale business. Hence there are many opportunities for individuals to start their own business enabling widespread dispersion of economic wealth.

      8.No Legal Formalities required : A proprietary firm is not required to comply with all the legal and procedural formality.

    • 694 views
    • 3 answers
    • 0 votes