Category: Articles

Income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income.

It can pay under https://www.incometax.gov.in/iec/foportal

Who is liable to pay income tax?

• Any Indian citizen aged below 60 years is liable to pay income tax if their income exceeds Rs 2.5 lakhs.
• If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he or she will have to pay taxes to the Government of India.

How to compute income tax?

       Income slabs                                                      Income tax rate (%)

1. Up to Rs 2.5 lakh                                                         Nil
2. Between Rs 2, 50,001 and Rs 5 lakh                        5%
3. Between Rs 5, 00,001 and Rs 7.5 lakh                    10%

How to pay income tax?

1. Login: Visit the official income tax department (TIN NSDL website).
2. E-payment: Click on the ‘e-payment’ section.
3. Challan number 280: Click ‘Challan 280’ to pay your due income taxes.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

In India, tax deduction at source (TDS) is a way of collecting taxes from income, dividends, or asset sales. It works by requiring the payer to deduct the tax amount before giving the remaining money to the recipient.

Advantages of TDS

• It prevents people from evading taxes.
• It ensures a steady source of revenue for the Government.
• Widened the tax collection base.
• The burden of responsibility of the Tax Collection Agencies and the Deducter are lessened.
• Automatic tax deduction makes it convenient for the taxpayer.

Disadvantages of TDS

• The great disadvantage of a direct tax is that it pinches the payer.
• Taxes may discourage people from working harder.
• The direct- taxes are thus very inconvenient to pay.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you must have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

An audit is an official check of an organization’s accounts by an independent body to ensure departments are following a documented system for recording transactions.

Importance of Audit

• It helps in the detection and prevention of errors and fraud.
• Helps in maintaining the records and verification of books of the books of accounts.
• Provides credibility to a set of financial statements.
• It helps to examine the reliability and validity of financial statements.

Types of Auditing

There are many types of auditing, some of which are given below:

• Internal Audit
• External Audit
• IRS tax Audit
• Financial Audit
• Operational Audit
• Payroll Audit
• Government Audit
• Management Audit

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

It is a government registration for MSMEs providing them with a unique Identity Number and a recognition certificate, to certify them as micro/small/medium enterprises.

What are the benefits of Udyam Registration?

• Interest rate Subsidy on Bank loans.
• Collateral free loans from banks.
• Direct tax laws rules exemption.
• NSIC performance and credit rating fees subsidy.
• International trade fair special consideration.

Who can take Udyam Registration?

It is a Zero Cost, No fee, free registration: – Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.

What is ONDC ( Open Network for Digital Commerce )?

ONDC is a government initiative to promote open networks for all aspects of the exchange of goods and services over digital networks. ONDC seeks to achieve something similar for e-commerce. It aims to “democratize” digital commerce, moving it away from platform-centric models like Amazon and Flipkart to an open network. ONDC may enable more sellers to be digitally visible. An open network will execute the transactions.

How it works?

All seller and buyer platforms will work through one open protocol and can connect through ONDC, It is designed to provide an open network, and if one has to buy a product, ONDC will show all the options of various platforms for the product, and the consumer can choose what he or she wants. The platform is called “Bharat E-market”.

What are the Advantages of E-commerce?

• Faster buying process.
• Store and product listing creation.
• Cost reduction.
• Affordable advertising and marketing.
• Flexibility for customers.
• Product and price comparison.
• Faster response to buyer/market demands.

In conclusion, we can say that with the rapid growth in e-commerce and with the introduction of ONDC in India, there will be a huge impact on India’s digital economy.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

RBI Tax saving bond is also called Wealth tax. A wealth tax is a tax on an entity’s holdings of assets. It can purchased through:- https://rbi.org.in/home.aspx

This includes the total value of;

• Personal assets including cash.
• Bank deposits.
• Real estate.
• Assets in insurance.
• Pension plans.
• Ownership of unincorporated businesses.
• Financial securities, and personal trusts.

The Bonds will be exempt from wealth tax under the Wealthtax Act, of 1957. The Bonds will be issued at par i.e. at Rs. 100.00 per cent.

What are the Advantages and Benefits of RBI Tax saving bonds?

• There is no maximum limit on Investment.
• It is suitable for lump sum investments.
• Bond tenure is 7 years.
• Tax Saving by utilizing exceptions.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you must have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

Leave encashment denotes an amount of money obtained in exchange for a period of leave not availed by an employee. An employee can take encashment of acquired leave during the period of retirement. During the maintenance of service or at the time of resigning the job, employees do it.

How leave encashment is calculated?

Calculate the amount of Leave Encashment as follows:

Divide the basic salary plus Dearness Allowance by 30. The number of days EL (Maximum 300 days) multiplies the result.

What are the Benefits of leave encashment?

The employer provides leave encashment to the employee, allowing them to monetarily benefit from leaves not taken. You should keep in mind that the leave encashment is not tax-free, however, the exemption of a certain amount has been provided by the Income Tax Department under section 10(10AA).

What is the major advantage of tax exception of leave encashment?

Leave encashment received by the employee at the time of retirement is tax-free subject to the conditions and up to the limit as specified under Sec 10 (10AA). The tax benefits are as per the Income Tax Act, 1961 and Income Tax Rules, 1962. This is one of the major advantages of the tax exception of leave encashment.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

Bookkeeping and accounting are two terms that are often used interchangeably. But both of them are different. The difference between bookkeeping ad accounting can be analysed from the below advantages and limitations:

Bookkeeping

Bookkeeping Means the recording of financial transactions and is part of the process of accounting in business and other organizations. Transactions include purchases, sales, receipts and payments.

Advantages of Bookkeeping

• Better Tax Prediction.
• Faster Business Response Time.
• Faster Financial Analysis.
• Always Compliant with the Law.
• Instant Reporting.

Limitations of Bookkeeping

• It distracts you from your purpose.
• Consistently handling your numbers could be discouraging.
• You could make a mess of your books.
• It is costly and time-consuming.

Accounting

Accounting means the process of recording financial transactions pertaining to a business. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows.

Advantages

• Maintenance of business records.
• Preparation of financial statements.
• Comparison of results.
• Decision making.
• Evidence in legal matters.
• Valuation of business.

Limitations of Accounting

• Accounting information is based on estimates.
• Accounting information may be biased.
• Recording of Fixed assets at the original cost.
• Manipulation of Accounts.
• Money as a measurement unit changes in value.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

In the situation where the covid-19 has increased, Lockdown has been declared in most places. A lot of people have lost their jobs and financial difficulties are also increasing.  To overcome this difficult situation Government of Kerala Introduced the NORKA Pravasi Bhadratha Scheme.

Who is eligible for Pravasi Bhadratha?

• Applicants are to be either members of Kudumabshree NHG or any organization formed under the aegis of Kudumbashree.
• Applicants are to be Return emigrants who have completed at least two years of employment abroad.

Three major schemes under this rehabilitation Programme:

1. Pravasi Bhadratha – PEARL

It has been proposed to implement the scheme through the Kudumbashree Mission to address the targeted group with a sustainable livelihood.

Benefits and repayment of Pravasi Bhadratha – PEARL scheme?

• Financial assistance up to 75% of the project cost or Interest-free loans up to Rs. 2 Lakhs.
• Repayment with equal instalments within two years.

2. Pravasi Bhadratha – MEGA

It has been proposed through KSIDC is envisaged to provide loans in the range of Rs. 25 lakhs to Rs. 2 crores per enterprise.

Benefits and repayment of Pravasi Bhadratha – MEGA scheme?

• Firstly, KSIDC provides loans @ interest of 8.25% to 8.75%.
• NORKA-ROOTS will provide interest incentives up to 3.25% to 3.75% for the first 4 years.

3. Pravasi Bhadratha – MICRO

This scheme is envisaged to assist returned NRKs in setting up Micro and small-scale industries. The scheme is proposed to be implemented through the branches of Kerala State Financial Enterprises.

Benefits and repayment of Pravasi Bhadratha – MICRO scheme?

• Loans up to Rs. 5 lakhs.
• Capital subsidy @ Rs. 25% of the loan component up to a maximum of Rs. 1 lakh.
• Interest subvention for initial 4 years @ 3%.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you must have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.

What are the main criteria for applying for a business loan?

• Age Limit: The applicant should be a minimum of 21 years and a maximum of 65 years.
• Income: The business should be profit-making at least for the past 2 years.
• Turnover: ₹150,000 p.a. should be the minimum annual income.

Essential documents needed for applying for a business loan?

1. Identity Proof: For a company, firm or individual- a valid Identity proof and PAN Card.
2. Address Proof: Voter ID card, Ration card, Passport, or Driving License.
3. Bank Statements: Latest Bank Statements for the last 6 months.
4. Income Documents: This should include the latest ITR along with the computation of income, balance sheet, profit and loss account for the past two years and Project report. This has to be submitted after the requisite CA certification.
5. Proof of Continuation: TR/Trade license/Establishment/Sales Tax Certificate.
6. Other Documents: Sole Proprietorship Declaration or Certified Copy of the Partnership Deed, certified true copy of the Memorandum and Articles of Association (certified by the company Director) and the Board resolution.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.