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ELEMENTS OF FINANCIAL STATEMENT:                                 In this article, we will discuss the some key basic elements of Financial Statement and its accounting treatment. Some of the key basic elements are                                                 i) Income / Revenue                                                 ii) Expenses                                                iii) Assets                                                iv) Liabilities                                                v) Equity / Capital INCOME:                            The context of income may differ on the basis of Economic, Financial, Taxation and Accounting. In the point of Accounting, Income means amount or cash received for the exchange of goods or service. Further it can be divided into direct income and Indirect Income.                Direct Income:                                  Direct income means all the income earned from the core business activity like sales income and service in

Introduction                                                           All business entities must present it's financial statements to all its stakeholders. The information provided in the financial statement must be accurate and present in a true and fare picture of the entity. For this presentation, it must account all its transactions. Since economic entities are compared to understand their financial status, there has to be uniformity in accounting. To bring that uniformity, the golden rules of accounting will help us. These rules form the very basis of passing journal entries which is the first step of accounting and book keeping.  Types of Accounts:                             Let's discuss the three types of accounts in the Financial statement.  1. Personal Account:                         Basically, a personal account of a General ledger related to people, firms, organization, association and companies. It can be divided into three sub categories:           i) Natural p

                                                                        In India the taxpayers are classified into different categories based on their type of source of income. This article is mainly for salaried people. Income tax are levied directly on the net salary of an employee irrespective of his expenses.  However, some sections are there in Income Tax Act to save salaried employees from tax burden.  The followings are the main keys for salaried employees.  1. Section 80C :                           This section is the the most commonly used section for tax savings. This section includes Public Provident Fund (PPF),  Employees Provident Fund (EPF),  equity linked savings scheme, Housing loan repayment (principle) Stamp duty and registration charges while purchasing a  residential property, Life Insurance Premium, children's tuition fee, National saving certificate, Senior citizen saving Scheme, Tax saving FD for 5 years, infrastructure bonds etc. However, this section has

                         Generally, due date for filing of Income Tax Return (ITR)  for a financial year is based on source of income of the assessee. But due to changes in Income Tax portal, the due date for all the classes of assessee extended to 31st December 2021 (Except tax audit cases)  for this year i.e, assessment year 2021-22. People are under the impression that due date is also the last date beyond which they cannot submit their ITR,  but which is not correct. We can even file ITR after the due date but before the the last date. If we are filing after the due date we lose something which is discussed as follows:               1. In case you fail to submit your ITR before the extended due date of 31st December 2021, you can still do so by 31st March 2022. But you lose your right to carry forward any loss for the current year and which cannot be e set of against current year's income. So in case, you have losses under the the head business income or capital gains or loss b

 Income Tax:                         The term Income tax refers to a type of tax that is levied by Union Government of India on the income of its citizens. Income tax is the major source of revenue for Union Government. They are using these funds for public welfare in various manner. Income Tax Return:                        By law, income tax payers are legally obligated to file their income tax returns annually to determine their tax liability. Income Tax Return comprises the all  details of  assessee, their sources of income, deductions, exemptions, advance tax paid, Tax Deducted at Source etc. There are various types of income tax returns for various types of people based on their source(s) of income. Now a days income tax return should be filed only through online. Recently, Union Government had launched a new income tax portal named   https://www.incometax.gov.in/   Filing of Income Tax Return is mandatory in following cases:                                            1. The basi

                                           COVID-19 has impacted almost all the sectors of the economy but the micro, small and medium enterprises ( MSME ) seem to be the worst affected. Various survey reports estimate the loss in revenue for this sector to the tune of 30-50 percent and given their fragile scale and vulnerable position, the damage is damn serious. The Government's helping hand through initiatives like bank guarantees, loan moratorium etc. have provided some relief but they are very far from what is actually needed on the ground level. In continuing with the reform agenda, the MSME ministry has introduced a new scheme "UDYAM" to improve access to assisted schemes. The MSME Development Act was introduced to facilitate the development and enhance the competitiveness of MSMEs. Subsequently, various enabling regulations like amendments to income tax forms, GST  concessions, banking norms, etc. were introduced to foster their growth. UDYAM means :              

                     Employee Provident Fund Organization( EPFO ) is an organization that administers Employee Provident Fund ( EPF ) and Employees' Pension Scheme        ( EPS ).                     As per EPS rules, an EPFO member who retired before 26 th Sep, 2008 could get maximum One-third of his/her pension as Lump-sum i. e, Commuted pension and remaining Two-third was paid as montly pension to an employee for his/her life time. As per current rules of EPF, an EPFO member does not have an option to receive the commutation benefit.                     The Ministry of Labour and Employment, in a notification dated 20 th Feb, 2020 has notified the restoration for pensioners under EPF scheme who have commuted part of their pension at the time of retirement. The move is expected to result in substantial increase in pension for those EPF pensioners who retired before 26 th Sep, 2008 and had opted for partial commutation of pension.  The Government says, around 6.3 lakh pensioner