Prior to CMA between 1965 and 1988 another mechanism called Credit Authorization Scheme (CAS) was the key instrument for credit control in India. CAS was being used by the RBI to regulate Bank Credits exceeding prescribed limits.
While transacting banks knowingly and unknowingly enter into various contracts some are written and formal some other are informal and unwritten. Some common contractual relationships assumed by the banks are Debtors – Creditor, Creditor – Debtor, Bailor – Bailee, Guarantor – beneficiary, Pledgor – Pledgee and Principal and Agent. These relationships need to be understood […]
Auditing is the process of examining an organization’s (or individual’s) financial records to determine if they are accurate and in accordance with any applicable rules (including accepted accounting standards), regulations, and laws. If objective of auditor is to establish fairness of the financial result it is called External Auditing, when exercise has been done with […]
Understanding the consequences of failure to comply with tax directions under Section 271. Find out more about the burden of proof and implications of concealing income.
Income Tax Rule 115 deals with situation where a person has earned income in foreign currency. This income can accrue and can be received in India or out side India, but if that income is taxable in the hands of recipient then this provision has to be applied. Now a days when we are in […]
Mostly we use term profession in association with business and try to find it’s colour from the company it keeps. Most of the times it is not necessary to differentiate business from profession, since most provisions dealing with business and profession are same, but for some purposes distinction has to be established. Section 2(36) says […]
Even after reading major sections related with TDS in detail there are some matter which needs further consideration. Some of them are discussed hereunder:- Person deducting Tax at source under section 194B has been made liable : TO PAY TAX TO THE CREDIT OF THE CENTRAL GOVERNMENT – As per rule 30 of the Income-tax […]
Uniform Customs and Practices for Documentary Credit (UCPDC600) : Standard Practice applicable to Letter of Credit The global trade value of goods exported throughout the world amounted to approximately 19 trillion U.S. dollars at current prices. Thus it is evident that Cross border trade has increased dramatically in the last 30 years and consequently there […]
Not like common form of businesses banks deals in ‘money’. It accept deposits from public at low cost and lend/invest that money back to public at higher cost. Traditionally, loans and advances account for a larger share of use of funds by the banks. As such a significant portion of bank’s income comes in the […]
Even after reading at length Income heads there are some issues which holds worth for Further consideration, some of them are being discussed here. Capital gains from long-term capital asset – Investment in a flat/house under the self-financing scheme of the City Development Authority / Housing Board – Whether to be treated as construction for […]
