INTRODUCTION
Any profit earned from the sale of a capital asset is referred to as capital gain. The profit that is received is classified as income. As a result, a tax has to be paid on the income obtained. Capital gains tax is the type of tax that is paid, and it can be long or short term. Long-term and short-term profits are taxed at a rate of ten percent and fifteen percent, respectively.
The gain on the transfer of a capital asset is taxed under the heading "Capital Gains." "Short Term Capital Gains" and "Long Term Capital Gains" are two types of capital gains income.
MEANING OF CAPITAL GAINS
Profits or profits resulting from the transfer of a capital asset are referred to as "Capital Gains" and are taxed under the "Capital Gains" heading.
Only once an investment is sold are capital gains taxes owed.
Only "capital assets," such as stocks, bonds, jewels, coin collections, and real estate, are subject to capital gains taxes.
Profits from assets held for more than a year are taxed as long-term gains.
Short-term profits are taxed at the same rate as long-term gains. Except for the very wealthy, this is greater than the tax on long-term gains.
MEANING OF CAPITAL ASSESTS
A capital asset is defined as:
(a) Any type of property possessed by an assessee, whether or not related to the assessee's business or profession.
(b) Any securities held by a FII that has invested in them in line with the rules. The SEBI Act of 1992 spawned a set of rules.
The following elements, however, are not included in the definition of "capital asset":
(I) any stock-in-trade, consumable goods, or raw materials retained for the purposes of his business or profession (other than securities referred to in (b) above)
(II) personal effects, or transportable property (including clothing and accessories). furnishings) retained for the taxpayer's or any member of his family's personal use. He is reliant on him, yet he excludes—
(a) jewellery
(b) archaeological collections
(c) drawings
(d) paintings
(e) sculptures
(f) any work of art.
(III) Agricultural Land in India, not being a land situated
(IV) 61/2 per cent Gold Bonds,1977 or 7 per cent Gold Bonds, 1980 or National Defence Gold Bonds, 1980 issued by the Central Government;
(V) Special Bearer Bonds, 1991
(VI) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or deposit certificates issued under the Gold Monetisation Scheme, 2016.
EXAMPLE:
Mr. Kapoor is a property dealer. He purchased a flat for resale. The flat was purchased in January, 2019 for Rs. 84,00,000 and sold in April, 2020 for Rs. 90,00,000. In this case Mr. Kapoor is dealing in properties in his normal business. Hence, flat purchased by him would form part of stock-in-trade of the business. . In other words, for Mr. Kapoor flat is not a capital asset and, hence, gain of Rs. 6,00,000 arising on account of sale of flat will be charged to tax as business income and not as capital gain.
MEANING OF LONG-TERM CAPITAL ASSEST AND SHORT-TERM CAPITA
PROJECT – DATA PRESENTATION ON 5 MUTUAL FUNDSMF.docxYashleenkaur10
1. MIRAE ASSET LARGE CAP FUND - GROWTH: The investment objective of the scheme is to generate long term capital appreciation by capitalizing on potential investment opportunities by predominantly investing in equities of large cap companies.
Fund has 98.35% investment in Indian stocks of which 67.78% is in large cap stocks, 11.61% is in mid cap stocks, 4% in small cap stocks. Investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for possibility of moderate losses in their investments.
Launch date – 04-Apr-2008
Min SIP amount - ₹1000
Min investment amount (one time- first time) - ₹5000
Min investment amount (additional purchase) - ₹1000
Type: Open Ended Fund. You can invest any time in this fund.
2. NIPPON INDIA US EQUITY OPPORTIUNITES FUND - GROWTH: To provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on recognized stock exchanges in the US and the secondary objective is to generate consistent returns by investing in debt and money market securities in India.
Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other Equity funds. At the same time, these investors should also be ready for possibility of moderate to high losses in their investments even though overall market is performing better.
Launch date – 23-Jul-2015
Min SIP amount - ₹100
Min investment amount (one time- first time) - ₹100
Min investment amount (additional purchase) - ₹100
Type: Open Ended Fund. You can invest any time in this fund
3. PGIM INDIA MIDCAP OPPORTIUNITES FUND - GROWTH: The primary objective of the Scheme is to achieve long-term capital appreciation by predominantly investing in equity & equity related instruments of mid cap companies. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee/ indicate any returns.
Fund has 96.38% investment in Indian stocks of which 8.33% is in large cap stocks, 53.85% is in mid cap stocks, 24.34% in small cap stocks. Investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for possibility of moderate losses in their investments.
Launch date – 02-Dec-2013
Min SIP amount - ₹1000
Min investment amount (one time- first time) - ₹5000
Min investment amount (additional purchase) - ₹1000
Type: Open Ended Fund. You can invest any time in this fund
4. SBI BLUE CHIP FUND - GROWTH: To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks (as specified by SEBI/AMFI from time to time).
Fund has 98% investment in Indian stocks of which 71.32% is in large cap stocks, 9.12% is in mid cap stocks, 1.36% in small cap stocks. Investors
THE CHORUS (2004)
Director: Christophe Barratier
Clément Mathieu, professeur de musique aux manières douces et au chômage, est embauché comme maître de maison à l'internat du Fond de l'Etang pour enfants en difficulté
À partir du moment où Clément franchit les portes de l'école, il peut sentir les ennuis, dont une grande partie est perpétrée par le directeur répressif Rachin, qui croit que les châtiments corporels sont le seul moyen de garder les garçons en ligne.
Clément préfère une approche scolaire beaucoup plus bienveillante et il initie ses petits élèves à la magie du chant.
PROJECT ON FUNDAMENTALS OF ENTREPRENURSHIP ASSIGNMENT.docxYashleenkaur10
The document discusses personality traits and entrepreneurship. It analyzes research on personality characteristics of entrepreneurs from India and other countries. The research found that traits like internal locus of control, ambiguity tolerance, self-confidence, and innovativeness were important for entrepreneurs. Additionally, family history and education also impacted entrepreneurial tendencies. The document also discusses the importance of social entrepreneurship and how certain personality traits like agreeableness and openness can positively impact social entrepreneurship. Overall, the document analyzes different studies on the relationship between personality traits and entrepreneurial ambitions and intentions.
TUNNELING V/s AGENCY EFFECT: A CASE STUDY OF ENRON & SATYAMpptxYashleenkaur10
An agency problem involves the functioning of a typical Principal- Agent relationship. The problem here is ensuring that the agent acts in the principal’s interest, rather than his own. The agency problem occurs due to the fact that the agent has better knowledge of the facts of a given transaction as opposed to the principal and thus the principal has no assurance that the agent’s actions were indeed in his best interest.
There are 3 basic types of agency problems
1. The first problem is a conflict between the owners of a firm and the hired managers.
2. The second type of problem is the conflict between the controlling owners of a firm who hold majority and the non- controlling, minority shareholders.3. The third type of agency problem is the conflict between owners of the firm and third transacting parties such as creditors, customers and other employees.
Enron is known as the one of the largest fraud scandals in the United States history.
Enron corporation was an American energy, commodities, and services company based in Houston , Texas.
Enron formed in 1985 by Kenneth Lay.
During 1985, it bought the smaller and less diversified Houston natural gas company.
The company initially named itself “HNG/inter North Inc., however was later renamed to “Enron”.
Satyam Company Services Ltd. was incorporated on June 24, 1987
Promoters holding of the shares in 1992 was 18.78%
Main business of the company was IT related fields and it came into prominence after Y2K problem
In 1991, it was in a rented house having 10 Engineers.
Company was listed in Bombay Stock Exchange in 1992
company bags its first fortune 500 client John Deere & Co
Revenue crossed $2 Billion -2008
Listing in NASDAQ, USA- 1999
Listed on New York Stock Exchange- 2001
The financial crises of 2007 – 2008 was years in making (between year 2000- 2006).
The financial crises was primarily caused by deregulation in the financial industry. This began years earlier with cheap credit and no proper lending standards that fuelled a housing bubble.
There was a significant growth in lending the money for housing property as rate of interest were very low.
Earlier the banks use to lend it to Prime borrowers only over the time as the demands for housing property loans increased they started to lend it to sub prime borrowers.
They believed that housing prices would continuously rise and hence the borrowers lack of creditworthiness a lack on inadequacy of equity would not be a problem in recovering loan.
MBS ( Mortgage backed securities)- Loans were securitised by banks into MBS, a group of mortgage loans.
These were then further grouped into CDS (Collateralised debt obligations- is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset.)
A CDO would have different several MBS in it.
Dr. Sukumar has made significant progress by opening 21 labs from only one that he inherited from his father, and he has an expansion plan in the works.
His chain of laboratories is ranked among the top three in the country, with six labs that are accredited and equipped with cutting-edge equipment.
The lab with revenue of Rs.75 crore is among top three pathological labs in India with Atlantic (Rs.77 crore) and Pacific (Rs.55 crore).
There are about 20,000 to 100,000 standalone labs engaged in routine pathological business in India,
His six labs have been accredited nationally whereas many large hospitals have not even thought of accreditation.
The bar coding and automated registration of patients do not allow any identity mix-ups. Even routine tests are conducted with highly sophisticated systems.
Technical expertise enables them to carry out 1650 variety of tests.
Same day reports are available for samples reaching by 3 p.m. and by 7 a.m. next day for samples from 500 collection centers located across the country.
In 1995, Dr. Sukumar acquired his father Dey's laboratory.
The lab was located in Delhi and performed a wide range of pathological and clinical examinations.
The firm's founder/vision leader's serves as a road map and direction for the organization.
As a result, when Dr. Sukumar acquired the lab from his father, he already had a vision for his company.
Dr. Sukumar's objective at the time of his inheritance was to develop a one-lab enterprise into a network of pathology labs spanning the length and breadth of the country
. And, as a result, outlining what the organization wished to become in the long ru
Incorporated in 2006, Barbeque Nation Restaurants is one of the leading casual dining restaurant chains in India.
It offers the best quality of food offerings, ambiance, and services to customers.
It also owns and operates Toscano Restaurants and UBQ by Barbeque Nation that caters to the delivery segment.
The first Barbeque Nation Restaurant was established in 2008 and as of November 30, 2019, the network has been steadily grown to 138 Barbeque Nation Restaurants in 73 cities in India and 7 International Barbeque Nation Restaurants in 3 countries outside India.
The company has recently diversified into another brand "Red Apple" which operates 10 Italian restaurants in 2 cities of India i.e. Bengaluru and Chennai.
The company’s delivery business has grown from Rs 26.09 crore in fiscal ended March 2020 to Rs 37.89 crore during the eight months ended Nov. 30.
Promoter shareholding in Barbeque Nation will decline from 47.8% pre-issue to 38.1% after the IPO.
One of India's fastest-growing restaurant brands.
Diversified offerings for both vegetarian and non-vegetarians.
Experienced promoters and managers team.
Healthy financial position with a proven track record of revenue growth
To make prepayment/repayment of all or a part of the company's outstanding borrowings availed on a consolidated basis.
To meet general corporate purposes.
Barbeque Nation used Rs 54.6 crore as capital expenditure to expand and open new restaurants, and Rs 75 crore towards prepayment or repayment of all or a portion of certain outstanding borrowings of the company on a consolidated basis. Before the IPO, Barbeque Nation has raised Rs 202 crore by allocating 40.58 lakh equity shares at Rs 500 apiece to 15 anchor investors.
The company’s business has recovered to 84.2% of the pre-pandemic level at the end of November 2020. It, however, suffered a Rs 100-crore loss during the period
Barbeque Nation competes with listed peers such as Specialty Restaurants in the dining segment, while some of its quick-servicing rivals are Westlife Development Ltd., Jubilant Food works Ltd. and Burger King.
The Covid-19 pandemic as well as the government’s measures to reduce the spread of virus have had a substantial impact on the restaurant operations and the timing of how long the pandemic and the related government measures will last is still uncertain. Deterioration in the performance of, or its relationships with, third-party delivery aggregators (online restaurant aggregators), may
KYC, AML, CFT & BANK OBLIGATION UNDER PMLA 2002Yashleenkaur10
KYC enables banks to know/understand their customers and their financial dealings to be able to serve them better and prudently manage the risks of Money Laundering and Financing of Terrorism.
What KYC means?
Making reasonable efforts to determine the true identity and beneficial ownership of accounts
Sources of funds.
Nature of customers’ business.
What constitutes reasonable account activity?
Who your customer’s customer are?
What KYC does not mean?
Denial of Service to the Common Person.
Intrusive Behavior.
Use of information for cross selling.
Harassment of customers- threatening to close down the accounts arbitrarily.
KYC/Customer due diligence is an on-going process for prudent banking practices, therefore the banks are encouraged to:
Set up a compliance unit with a full time Head.
Put in place a system to monitor the accounts and transactions on a regular basis.
Update customer information and records at reasonable intervals.
Maintain proper records of customer identifications and clearly indicate, in writing.
Monitor and check unusually large cash transactions, especially those which are out of character/ inconsistent with the history
KYC/Customer due diligence is an on-going process for prudent banking practices, therefore the banks are encouraged to:
Set up a compliance unit with a full time Head.
Put in place a system to monitor the accounts and transactions on a regular basis.
Update customer information and records at reasonable intervals.
Maintain proper records of customer identifications and clearly indicate, in writing.
Monitor and check unusually large cash transactions, especially those which are out of character/ inconsistent with the history
PROJECT – DATA PRESENTATION ON 5 MUTUAL FUNDSMF.docxYashleenkaur10
1. MIRAE ASSET LARGE CAP FUND - GROWTH: The investment objective of the scheme is to generate long term capital appreciation by capitalizing on potential investment opportunities by predominantly investing in equities of large cap companies.
Fund has 98.35% investment in Indian stocks of which 67.78% is in large cap stocks, 11.61% is in mid cap stocks, 4% in small cap stocks. Investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for possibility of moderate losses in their investments.
Launch date – 04-Apr-2008
Min SIP amount - ₹1000
Min investment amount (one time- first time) - ₹5000
Min investment amount (additional purchase) - ₹1000
Type: Open Ended Fund. You can invest any time in this fund.
2. NIPPON INDIA US EQUITY OPPORTIUNITES FUND - GROWTH: To provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on recognized stock exchanges in the US and the secondary objective is to generate consistent returns by investing in debt and money market securities in India.
Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other Equity funds. At the same time, these investors should also be ready for possibility of moderate to high losses in their investments even though overall market is performing better.
Launch date – 23-Jul-2015
Min SIP amount - ₹100
Min investment amount (one time- first time) - ₹100
Min investment amount (additional purchase) - ₹100
Type: Open Ended Fund. You can invest any time in this fund
3. PGIM INDIA MIDCAP OPPORTIUNITES FUND - GROWTH: The primary objective of the Scheme is to achieve long-term capital appreciation by predominantly investing in equity & equity related instruments of mid cap companies. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee/ indicate any returns.
Fund has 96.38% investment in Indian stocks of which 8.33% is in large cap stocks, 53.85% is in mid cap stocks, 24.34% in small cap stocks. Investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for possibility of moderate losses in their investments.
Launch date – 02-Dec-2013
Min SIP amount - ₹1000
Min investment amount (one time- first time) - ₹5000
Min investment amount (additional purchase) - ₹1000
Type: Open Ended Fund. You can invest any time in this fund
4. SBI BLUE CHIP FUND - GROWTH: To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks (as specified by SEBI/AMFI from time to time).
Fund has 98% investment in Indian stocks of which 71.32% is in large cap stocks, 9.12% is in mid cap stocks, 1.36% in small cap stocks. Investors
THE CHORUS (2004)
Director: Christophe Barratier
Clément Mathieu, professeur de musique aux manières douces et au chômage, est embauché comme maître de maison à l'internat du Fond de l'Etang pour enfants en difficulté
À partir du moment où Clément franchit les portes de l'école, il peut sentir les ennuis, dont une grande partie est perpétrée par le directeur répressif Rachin, qui croit que les châtiments corporels sont le seul moyen de garder les garçons en ligne.
Clément préfère une approche scolaire beaucoup plus bienveillante et il initie ses petits élèves à la magie du chant.
PROJECT ON FUNDAMENTALS OF ENTREPRENURSHIP ASSIGNMENT.docxYashleenkaur10
The document discusses personality traits and entrepreneurship. It analyzes research on personality characteristics of entrepreneurs from India and other countries. The research found that traits like internal locus of control, ambiguity tolerance, self-confidence, and innovativeness were important for entrepreneurs. Additionally, family history and education also impacted entrepreneurial tendencies. The document also discusses the importance of social entrepreneurship and how certain personality traits like agreeableness and openness can positively impact social entrepreneurship. Overall, the document analyzes different studies on the relationship between personality traits and entrepreneurial ambitions and intentions.
TUNNELING V/s AGENCY EFFECT: A CASE STUDY OF ENRON & SATYAMpptxYashleenkaur10
An agency problem involves the functioning of a typical Principal- Agent relationship. The problem here is ensuring that the agent acts in the principal’s interest, rather than his own. The agency problem occurs due to the fact that the agent has better knowledge of the facts of a given transaction as opposed to the principal and thus the principal has no assurance that the agent’s actions were indeed in his best interest.
There are 3 basic types of agency problems
1. The first problem is a conflict between the owners of a firm and the hired managers.
2. The second type of problem is the conflict between the controlling owners of a firm who hold majority and the non- controlling, minority shareholders.3. The third type of agency problem is the conflict between owners of the firm and third transacting parties such as creditors, customers and other employees.
Enron is known as the one of the largest fraud scandals in the United States history.
Enron corporation was an American energy, commodities, and services company based in Houston , Texas.
Enron formed in 1985 by Kenneth Lay.
During 1985, it bought the smaller and less diversified Houston natural gas company.
The company initially named itself “HNG/inter North Inc., however was later renamed to “Enron”.
Satyam Company Services Ltd. was incorporated on June 24, 1987
Promoters holding of the shares in 1992 was 18.78%
Main business of the company was IT related fields and it came into prominence after Y2K problem
In 1991, it was in a rented house having 10 Engineers.
Company was listed in Bombay Stock Exchange in 1992
company bags its first fortune 500 client John Deere & Co
Revenue crossed $2 Billion -2008
Listing in NASDAQ, USA- 1999
Listed on New York Stock Exchange- 2001
The financial crises of 2007 – 2008 was years in making (between year 2000- 2006).
The financial crises was primarily caused by deregulation in the financial industry. This began years earlier with cheap credit and no proper lending standards that fuelled a housing bubble.
There was a significant growth in lending the money for housing property as rate of interest were very low.
Earlier the banks use to lend it to Prime borrowers only over the time as the demands for housing property loans increased they started to lend it to sub prime borrowers.
They believed that housing prices would continuously rise and hence the borrowers lack of creditworthiness a lack on inadequacy of equity would not be a problem in recovering loan.
MBS ( Mortgage backed securities)- Loans were securitised by banks into MBS, a group of mortgage loans.
These were then further grouped into CDS (Collateralised debt obligations- is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset.)
A CDO would have different several MBS in it.
Dr. Sukumar has made significant progress by opening 21 labs from only one that he inherited from his father, and he has an expansion plan in the works.
His chain of laboratories is ranked among the top three in the country, with six labs that are accredited and equipped with cutting-edge equipment.
The lab with revenue of Rs.75 crore is among top three pathological labs in India with Atlantic (Rs.77 crore) and Pacific (Rs.55 crore).
There are about 20,000 to 100,000 standalone labs engaged in routine pathological business in India,
His six labs have been accredited nationally whereas many large hospitals have not even thought of accreditation.
The bar coding and automated registration of patients do not allow any identity mix-ups. Even routine tests are conducted with highly sophisticated systems.
Technical expertise enables them to carry out 1650 variety of tests.
Same day reports are available for samples reaching by 3 p.m. and by 7 a.m. next day for samples from 500 collection centers located across the country.
In 1995, Dr. Sukumar acquired his father Dey's laboratory.
The lab was located in Delhi and performed a wide range of pathological and clinical examinations.
The firm's founder/vision leader's serves as a road map and direction for the organization.
As a result, when Dr. Sukumar acquired the lab from his father, he already had a vision for his company.
Dr. Sukumar's objective at the time of his inheritance was to develop a one-lab enterprise into a network of pathology labs spanning the length and breadth of the country
. And, as a result, outlining what the organization wished to become in the long ru
Incorporated in 2006, Barbeque Nation Restaurants is one of the leading casual dining restaurant chains in India.
It offers the best quality of food offerings, ambiance, and services to customers.
It also owns and operates Toscano Restaurants and UBQ by Barbeque Nation that caters to the delivery segment.
The first Barbeque Nation Restaurant was established in 2008 and as of November 30, 2019, the network has been steadily grown to 138 Barbeque Nation Restaurants in 73 cities in India and 7 International Barbeque Nation Restaurants in 3 countries outside India.
The company has recently diversified into another brand "Red Apple" which operates 10 Italian restaurants in 2 cities of India i.e. Bengaluru and Chennai.
The company’s delivery business has grown from Rs 26.09 crore in fiscal ended March 2020 to Rs 37.89 crore during the eight months ended Nov. 30.
Promoter shareholding in Barbeque Nation will decline from 47.8% pre-issue to 38.1% after the IPO.
One of India's fastest-growing restaurant brands.
Diversified offerings for both vegetarian and non-vegetarians.
Experienced promoters and managers team.
Healthy financial position with a proven track record of revenue growth
To make prepayment/repayment of all or a part of the company's outstanding borrowings availed on a consolidated basis.
To meet general corporate purposes.
Barbeque Nation used Rs 54.6 crore as capital expenditure to expand and open new restaurants, and Rs 75 crore towards prepayment or repayment of all or a portion of certain outstanding borrowings of the company on a consolidated basis. Before the IPO, Barbeque Nation has raised Rs 202 crore by allocating 40.58 lakh equity shares at Rs 500 apiece to 15 anchor investors.
The company’s business has recovered to 84.2% of the pre-pandemic level at the end of November 2020. It, however, suffered a Rs 100-crore loss during the period
Barbeque Nation competes with listed peers such as Specialty Restaurants in the dining segment, while some of its quick-servicing rivals are Westlife Development Ltd., Jubilant Food works Ltd. and Burger King.
The Covid-19 pandemic as well as the government’s measures to reduce the spread of virus have had a substantial impact on the restaurant operations and the timing of how long the pandemic and the related government measures will last is still uncertain. Deterioration in the performance of, or its relationships with, third-party delivery aggregators (online restaurant aggregators), may
KYC, AML, CFT & BANK OBLIGATION UNDER PMLA 2002Yashleenkaur10
KYC enables banks to know/understand their customers and their financial dealings to be able to serve them better and prudently manage the risks of Money Laundering and Financing of Terrorism.
What KYC means?
Making reasonable efforts to determine the true identity and beneficial ownership of accounts
Sources of funds.
Nature of customers’ business.
What constitutes reasonable account activity?
Who your customer’s customer are?
What KYC does not mean?
Denial of Service to the Common Person.
Intrusive Behavior.
Use of information for cross selling.
Harassment of customers- threatening to close down the accounts arbitrarily.
KYC/Customer due diligence is an on-going process for prudent banking practices, therefore the banks are encouraged to:
Set up a compliance unit with a full time Head.
Put in place a system to monitor the accounts and transactions on a regular basis.
Update customer information and records at reasonable intervals.
Maintain proper records of customer identifications and clearly indicate, in writing.
Monitor and check unusually large cash transactions, especially those which are out of character/ inconsistent with the history
KYC/Customer due diligence is an on-going process for prudent banking practices, therefore the banks are encouraged to:
Set up a compliance unit with a full time Head.
Put in place a system to monitor the accounts and transactions on a regular basis.
Update customer information and records at reasonable intervals.
Maintain proper records of customer identifications and clearly indicate, in writing.
Monitor and check unusually large cash transactions, especially those which are out of character/ inconsistent with the history
Britannia to give seed funding, training, more to aspiring women entrepreneurs, homemakers for starting up.
Britannia has also teamed up with Google to offer all participants access to a digital business training programme that includes many classes to assist them gain the skills they need to run and grow their enterprises.
The third season of their start-up competition for prospective women entrepreneurs, particularly homemakers, was launched on Wednesday. Britannia would provide up to 10,000 top participants with online mentorship lectures from industry leaders on how to start and scale businesses. Candidates' ideas will be reviewed based on predetermined criteria, and a shortlisted candidate list will be published within 60 days after the contest's conclusion. One of the most significant aspects of our relationship with Google was ensuring that all participants have access to the digital skilling materials.
In addition to the initial funding, we're looking into how we can make relevant knowledge and know-how more accessible to women who want to pursue their entrepreneurial dreams, » Subramanyam stated. «There are an increasing number of women who desire to start their own business. At the contest's inauguration, Vinay Subramanyam, Vice-President, Britannia Industries, remarked, "77 percent of the women we went out to spoke about technology being a critical facilitator in terms of breaking barriers of how to be an entrepreneur." According to the survey, 62% of women want to start their own business, but a lack of time owing to household duties is a barrier for 73% of respondents. Lack of guidance was a problem for 53% of respondents, while insufficient funding was a problem for 50%.
« I had no choice but to sell all of my belongings in order to start the business. There are far more instances of women entrepreneurs today than there were previously, and as a result, there is a cultural receptivity to women in business that did not exist previously. However, there is still a long way to go, and I'm not sure if the next decade will be enough for women to be big enough, » remarked Shubhra Chadha, Co-founder of Chumbak Designs, during a Britannia webinar held before to the contest's introduction.
Debt and equity are the two important sources of finance for the firms. Basically, capital structure of the firm revolves around the judicious mix of the debt and equity. Upon Debt and equity mix much research has been done and many have designed the capital structure in a very different manner.
Capital structure theory can be said as the manner in which a company or organization finance its economic activities. Basically, capital structure of a firm is the combination of equity and debt. It is a very important decision for every organization or business house. This decision revolves around a question “How to make an optimal capital’s structure for the firm?” and what are the factors that influence the decision. Because the capital structure decision ultimately affects the management, investors and lenders. So, it becomes very crucial for the firms. Earlier many researchers have made investigation on the capital structure determinants but still there are loopholes to be filled up. The theory of Capital Structure began with the phenomenal work made by Modigliani and Miller (1958, 1963). It stirred the academic world to pour more thoughts into that and many interesting works came out.
Capital structure refers to the way a firm chooses to finance its assets and investments through some combination of equity, debt, or internal funds. It is in the best interests of a company to find the optimal ratio of debt to equity to reduce their risk of insolvency, continue to be successful and ultimately remain or to become profitable.
DETERMINANTS OF CAPITAL STRUCTURE:
The capital structure of a concern depends upon a large number of factors such as leverage or trading on equity, growth of the company, nature and size of business, the idea of retaining control, flexibility of capital structure, requirements of investors, cost of floatation of new securities, timing of issue, corporate tax rate and the legal requirements. It is not possible to rank hem because all such factors are of different important and the influence of individual factors of a firm change over a period of time.
1. Financial Leverage or Trading on Equity: Financial leverage is one of the important considerations in planning the capital structure of a company. One common method of examining the impact of leverage is to analyse the relationship between Earnings Per Share (EPS) and EBIT. The companies with high level of leverage can make profitable use of the high degree of leverage to increase return on the shareholders' equity.
2. Growth and Stability of Sales: The capital structure of a firm is highly influenced by the growth and stability of its sales. If the sales of a firm are expected to remain fairly stable, it can raise a higher level of debt. Stability of sales ensures that the firm will not face any difficulty in meeting its fixed commitments of interest payment and repayments of debt. Similarly, the rate of growth in sales also affects the capital structure decision.
3. Cost o
This document discusses corporate social responsibilities (CSR). It provides several definitions and explanations of CSR. CSR is defined as a process by which companies manage their relationships with stakeholders to have a positive social impact. It involves using business strategies and processes to integrate economic, environmental and social objectives. CSR goes beyond legal obligations and involves voluntarily improving communities and society. Companies are expected to consider how their actions affect others and the environment. The document outlines the various dimensions of CSR including economic, legal, ethical, philanthropic and environmental responsibilities. It discusses the role of CSR in India including relevant laws and examples of CSR programs implemented by major Indian companies.
WHAT TRIGGERS CONSUMER BUYING BEHAVIOUR. PPT.pptxYashleenkaur10
To identify key reasons and what causes that set off impetuous purchasing actions.
To gain consensus on key to be included in a survey for research for what causes impulsive buying behaviour among customers.
The aim is to examine some of the factors affecting impulsive buying behaviour of consumers in the market. It also aims to verify the interrelationship between these factors and impulsive buying behaviour
The survey will take account various respondents from Ludhiana.
The appropriate size would be 400.
However, this sample size includes people of every age group.
Here, an assumption is made that people of working age group are the ones who have the ability and capacity to visit supermarkets or make any kind of purchases.
Therefore, out of 400, only 50 %, i.e. 200 respondents are considered a representative sample size.
Two variables namely :
Dependent Variable i.e. consumer’s impulse buying behaviour.
Independent variables i.e. promotional approaches, store environment, window display, income level and credit card.
The goal of this research is to get an insight into the impulsive buying behaviour of consumers while they are in supermarkets and the factors that affect or trigger those impulses
Keeping in mind the findings of this, marketers and retail outlet/supermarket owners can actually capitalize on this phenomenon of impulsive buying behaviour and make consumers spend more than they intended to
Birth- 1934, at Kasauli, Himachal Pradesh
His publishes /work
Awards
An example of situational irony
A conversation between two characters
How tactfully they hides their disability
Reality made him feel deceived
The narrator
The girl
The fellow passenger
From Rohana to Saharanpur
The man was already aboard when the girl stepped on the train at Rohana. She was escorted by her parents who advised her to not talk to strangers. As she entered she did not even notice the narrator who was pretending to be sighted.
He gradually found enough courage to start a conversation. She was going till Saharanpur where she would be received by her aunt. She enquired the same from the narrator who told her about his visit to Dehradun and Mussoorie.
She sighed as she also loved the hilly tracts of Mussoorie in October. The narrator described the beauty of the hills, rain and flowers as the conversation continued. Pretending to be sighted, he asked the girl to describe the scene outside the train.
She quickly retorted that he should have to look outside himself. He praised her by claiming that her face was interesting. She smiled at the words as she was bored by the usual compliments about her pretty looks.
She claimed that she did not like long train journeys and was glad that her station was arriving soon. The narrator, however, was heartbroken as he wanted the journey with the girl to never end.
Soon the station arrived and as the girl prepared to exit, the narrator had a whiff of the fragrance she was wearing. He was intoxicated and perversely tried to touch her hair, but the girl said her goodbye and disembarked before he could. The new passenger entered and the narrator sat back in his seat, heartbroken and disappointed.
From Saharanpur to Dehradun.
Dejected, the narrator pushed himself toward the window again. The new passenger was a male and he did not realize the narrator’s lack of vision, much like the girl.
He broke the ice and offered his consolation for not being as pretty as the last passenger (the girl). The narrator stuck to his assessment and called her interesting. He asked about her hair but the man said he did not notice her hair.
However, the man dedicated another compliment to her by saying that she was very pretty with beautiful eyes, even though she was blind. This revelation surprised the narrator who thought about the futility of his attempts to hide his blindness in front of another blind person.
The short story “The Eyes Have It”, is an excellent example of situational Irony.
Ironically the author employs two blind people as his main characters, yet neither knows that the other is blind.
The author does not realize that the girl sitting next to him is also blind, even after listening to her parent’s advice and instructions to their daughter.
Hoping to keep her from realizing that he is blind, the author describes the scenery outside from his memories.
To continue the ruse, he tells the girl that an interesting face.
The narrator ends up
Capital restructuring aims to reduce the cost of capital and maximize the shareholders wealth.
Capital Structure Here the Capital Structure is worked out i.e., the capital required, raising of the capital, debt-equity ratio, issue of shares and debentures, working capital, fixed capital requirements, etc.
Determination of optimum capital structure conforming to legal requirements. – Getting consent of controller of Capital issues for capitalization of reserves by way of issuing bonus shares. – Here the Capital Structure is worked out i.e., the capital required, raising of the capital, debt-equity ratio, issue of shares and debentures, working capital, fixed capital requirements
Air Transport
Road Transport
Railway Transport
Sea Transport
Economical over short distances.
Average operational flexibility
High maintenance cost for both vehicles and infrastructure.
Low investment.
Uneconomical for long distances.
The movement of passengers and cargo by aircraft such as airplanes and helicopters
Using air transport for international trade is the quickest way to ensure product delivery and distribution. It is also the safest methods of transport, and you could export or import a variety of goods through this mode.
Useful for transporting costly and light- weight consignments.
C&F Agents.
Its more suitable for transportation of perishable goods.
Documents required for air transport – Commercial invoice, Airway Bill (AWB), Performa invoice, Bill of lading, Generic Certificate of Origin, Packing list, Inspection certificate
Digital marketing encompasses all marketing efforts that use an electronic device or internet.
Businesses leverage, digital channels such as search engines, social media, e-mail and other websites to connect with current and prospective customers
This is the process of optimizing your website to "rank" higher in search engine results pages, thereby increasing the amount of organic (or free) traffic your website receives. The channels that benefit from SEO include websites, blogs, and infographics.
Pay Per Click (PPC)
PPC is a method of driving traffic to your website by paying a publisher every time your ad is clicked. One of the most common types of PPC is Google Ads, which allows you to pay for top slots on Google's search engine results pages at a price "per click" of the links you place. Other channels where you can use PPC include:
Paid ads on Facebook:Here, users can pay to customize a video, image post, or slideshow, which Facebook
will publish to the newsfeeds of people who match your business's audience
Twitter Ads campaigns: Here, users can pay to place a series of posts or profile badges to the news feeds of a specific audience, all dedicated to accomplish a specific goal for your business. This goal can be website traffic, more Twitter followers, tweet engagement, or even app downloads.
Sponsored Messages on LinkedIn: Here, users can pay to send messages directly to specific LinkedIn users based on their industry and background.
Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action
AFFILIATE MARKETING
It a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts
Mental or moral strength to venture, persevere, and withstand danger, fear, or difficulty.
Courage gives you the ability to put aside your fear of failure and take the first steps.
Courage also helps us to act against those who threaten, or who act in a bad way
A promise or firm decision to do something.
Making a commitment involves dedicating yourself to something, like a person or a cause. Before you make a commitment, think carefully. A commitment obligates you to do something.
Britannia to give seed funding, training, more to aspiring women entrepreneurs, homemakers for starting up.
Britannia has also teamed up with Google to offer all participants access to a digital business training programme that includes many classes to assist them gain the skills they need to run and grow their enterprises.
The third season of their start-up competition for prospective women entrepreneurs, particularly homemakers, was launched on Wednesday. Britannia would provide up to 10,000 top participants with online mentorship lectures from industry leaders on how to start and scale businesses. Candidates' ideas will be reviewed based on predetermined criteria, and a shortlisted candidate list will be published within 60 days after the contest's conclusion. One of the most significant aspects of our relationship with Google was ensuring that all participants have access to the digital skilling materials.
In addition to the initial funding, we're looking into how we can make relevant knowledge and know-how more accessible to women who want to pursue their entrepreneurial dreams, » Subramanyam stated. «There are an increasing number of women who desire to start their own business. At the contest's inauguration, Vinay Subramanyam, Vice-President, Britannia Industries, remarked, "77 percent of the women we went out to spoke about technology being a critical facilitator in terms of breaking barriers of how to be an entrepreneur." According to the survey, 62% of women want to start their own business, but a lack of time owing to household duties is a barrier for 73% of respondents. Lack of guidance was a problem for 53% of respondents, while insufficient funding was a problem for 50%.
« I had no choice but to sell all of my belongings in order to start the business. There are far more instances of women entrepreneurs today than there were previously, and as a result, there is a cultural receptivity to women in business that did not exist previously. However, there is still a long way to go, and I'm not sure if the next decade will be enough for women to be big enough, » remarked Shubhra Chadha, Co-founder of Chumbak Designs, during a Britannia webinar held before to the contest's introduction.
Debt and equity are the two important sources of finance for the firms. Basically, capital structure of the firm revolves around the judicious mix of the debt and equity. Upon Debt and equity mix much research has been done and many have designed the capital structure in a very different manner.
Capital structure theory can be said as the manner in which a company or organization finance its economic activities. Basically, capital structure of a firm is the combination of equity and debt. It is a very important decision for every organization or business house. This decision revolves around a question “How to make an optimal capital’s structure for the firm?” and what are the factors that influence the decision. Because the capital structure decision ultimately affects the management, investors and lenders. So, it becomes very crucial for the firms. Earlier many researchers have made investigation on the capital structure determinants but still there are loopholes to be filled up. The theory of Capital Structure began with the phenomenal work made by Modigliani and Miller (1958, 1963). It stirred the academic world to pour more thoughts into that and many interesting works came out.
Capital structure refers to the way a firm chooses to finance its assets and investments through some combination of equity, debt, or internal funds. It is in the best interests of a company to find the optimal ratio of debt to equity to reduce their risk of insolvency, continue to be successful and ultimately remain or to become profitable.
DETERMINANTS OF CAPITAL STRUCTURE:
The capital structure of a concern depends upon a large number of factors such as leverage or trading on equity, growth of the company, nature and size of business, the idea of retaining control, flexibility of capital structure, requirements of investors, cost of floatation of new securities, timing of issue, corporate tax rate and the legal requirements. It is not possible to rank hem because all such factors are of different important and the influence of individual factors of a firm change over a period of time.
1. Financial Leverage or Trading on Equity: Financial leverage is one of the important considerations in planning the capital structure of a company. One common method of examining the impact of leverage is to analyse the relationship between Earnings Per Share (EPS) and EBIT. The companies with high level of leverage can make profitable use of the high degree of leverage to increase return on the shareholders' equity.
2. Growth and Stability of Sales: The capital structure of a firm is highly influenced by the growth and stability of its sales. If the sales of a firm are expected to remain fairly stable, it can raise a higher level of debt. Stability of sales ensures that the firm will not face any difficulty in meeting its fixed commitments of interest payment and repayments of debt. Similarly, the rate of growth in sales also affects the capital structure decision.
3. Cost o
This document discusses corporate social responsibilities (CSR). It provides several definitions and explanations of CSR. CSR is defined as a process by which companies manage their relationships with stakeholders to have a positive social impact. It involves using business strategies and processes to integrate economic, environmental and social objectives. CSR goes beyond legal obligations and involves voluntarily improving communities and society. Companies are expected to consider how their actions affect others and the environment. The document outlines the various dimensions of CSR including economic, legal, ethical, philanthropic and environmental responsibilities. It discusses the role of CSR in India including relevant laws and examples of CSR programs implemented by major Indian companies.
WHAT TRIGGERS CONSUMER BUYING BEHAVIOUR. PPT.pptxYashleenkaur10
To identify key reasons and what causes that set off impetuous purchasing actions.
To gain consensus on key to be included in a survey for research for what causes impulsive buying behaviour among customers.
The aim is to examine some of the factors affecting impulsive buying behaviour of consumers in the market. It also aims to verify the interrelationship between these factors and impulsive buying behaviour
The survey will take account various respondents from Ludhiana.
The appropriate size would be 400.
However, this sample size includes people of every age group.
Here, an assumption is made that people of working age group are the ones who have the ability and capacity to visit supermarkets or make any kind of purchases.
Therefore, out of 400, only 50 %, i.e. 200 respondents are considered a representative sample size.
Two variables namely :
Dependent Variable i.e. consumer’s impulse buying behaviour.
Independent variables i.e. promotional approaches, store environment, window display, income level and credit card.
The goal of this research is to get an insight into the impulsive buying behaviour of consumers while they are in supermarkets and the factors that affect or trigger those impulses
Keeping in mind the findings of this, marketers and retail outlet/supermarket owners can actually capitalize on this phenomenon of impulsive buying behaviour and make consumers spend more than they intended to
Birth- 1934, at Kasauli, Himachal Pradesh
His publishes /work
Awards
An example of situational irony
A conversation between two characters
How tactfully they hides their disability
Reality made him feel deceived
The narrator
The girl
The fellow passenger
From Rohana to Saharanpur
The man was already aboard when the girl stepped on the train at Rohana. She was escorted by her parents who advised her to not talk to strangers. As she entered she did not even notice the narrator who was pretending to be sighted.
He gradually found enough courage to start a conversation. She was going till Saharanpur where she would be received by her aunt. She enquired the same from the narrator who told her about his visit to Dehradun and Mussoorie.
She sighed as she also loved the hilly tracts of Mussoorie in October. The narrator described the beauty of the hills, rain and flowers as the conversation continued. Pretending to be sighted, he asked the girl to describe the scene outside the train.
She quickly retorted that he should have to look outside himself. He praised her by claiming that her face was interesting. She smiled at the words as she was bored by the usual compliments about her pretty looks.
She claimed that she did not like long train journeys and was glad that her station was arriving soon. The narrator, however, was heartbroken as he wanted the journey with the girl to never end.
Soon the station arrived and as the girl prepared to exit, the narrator had a whiff of the fragrance she was wearing. He was intoxicated and perversely tried to touch her hair, but the girl said her goodbye and disembarked before he could. The new passenger entered and the narrator sat back in his seat, heartbroken and disappointed.
From Saharanpur to Dehradun.
Dejected, the narrator pushed himself toward the window again. The new passenger was a male and he did not realize the narrator’s lack of vision, much like the girl.
He broke the ice and offered his consolation for not being as pretty as the last passenger (the girl). The narrator stuck to his assessment and called her interesting. He asked about her hair but the man said he did not notice her hair.
However, the man dedicated another compliment to her by saying that she was very pretty with beautiful eyes, even though she was blind. This revelation surprised the narrator who thought about the futility of his attempts to hide his blindness in front of another blind person.
The short story “The Eyes Have It”, is an excellent example of situational Irony.
Ironically the author employs two blind people as his main characters, yet neither knows that the other is blind.
The author does not realize that the girl sitting next to him is also blind, even after listening to her parent’s advice and instructions to their daughter.
Hoping to keep her from realizing that he is blind, the author describes the scenery outside from his memories.
To continue the ruse, he tells the girl that an interesting face.
The narrator ends up
Capital restructuring aims to reduce the cost of capital and maximize the shareholders wealth.
Capital Structure Here the Capital Structure is worked out i.e., the capital required, raising of the capital, debt-equity ratio, issue of shares and debentures, working capital, fixed capital requirements, etc.
Determination of optimum capital structure conforming to legal requirements. – Getting consent of controller of Capital issues for capitalization of reserves by way of issuing bonus shares. – Here the Capital Structure is worked out i.e., the capital required, raising of the capital, debt-equity ratio, issue of shares and debentures, working capital, fixed capital requirements
Air Transport
Road Transport
Railway Transport
Sea Transport
Economical over short distances.
Average operational flexibility
High maintenance cost for both vehicles and infrastructure.
Low investment.
Uneconomical for long distances.
The movement of passengers and cargo by aircraft such as airplanes and helicopters
Using air transport for international trade is the quickest way to ensure product delivery and distribution. It is also the safest methods of transport, and you could export or import a variety of goods through this mode.
Useful for transporting costly and light- weight consignments.
C&F Agents.
Its more suitable for transportation of perishable goods.
Documents required for air transport – Commercial invoice, Airway Bill (AWB), Performa invoice, Bill of lading, Generic Certificate of Origin, Packing list, Inspection certificate
Digital marketing encompasses all marketing efforts that use an electronic device or internet.
Businesses leverage, digital channels such as search engines, social media, e-mail and other websites to connect with current and prospective customers
This is the process of optimizing your website to "rank" higher in search engine results pages, thereby increasing the amount of organic (or free) traffic your website receives. The channels that benefit from SEO include websites, blogs, and infographics.
Pay Per Click (PPC)
PPC is a method of driving traffic to your website by paying a publisher every time your ad is clicked. One of the most common types of PPC is Google Ads, which allows you to pay for top slots on Google's search engine results pages at a price "per click" of the links you place. Other channels where you can use PPC include:
Paid ads on Facebook:Here, users can pay to customize a video, image post, or slideshow, which Facebook
will publish to the newsfeeds of people who match your business's audience
Twitter Ads campaigns: Here, users can pay to place a series of posts or profile badges to the news feeds of a specific audience, all dedicated to accomplish a specific goal for your business. This goal can be website traffic, more Twitter followers, tweet engagement, or even app downloads.
Sponsored Messages on LinkedIn: Here, users can pay to send messages directly to specific LinkedIn users based on their industry and background.
Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action
AFFILIATE MARKETING
It a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts
Mental or moral strength to venture, persevere, and withstand danger, fear, or difficulty.
Courage gives you the ability to put aside your fear of failure and take the first steps.
Courage also helps us to act against those who threaten, or who act in a bad way
A promise or firm decision to do something.
Making a commitment involves dedicating yourself to something, like a person or a cause. Before you make a commitment, think carefully. A commitment obligates you to do something.
1. CAPITAL GAIN PROVISIONS FOR
COMPANIES
INTRODUCTION
Any profit earned from the sale of a capital asset is referred to as capital gain. The profit
that is received is classified as income. As a result, a tax has to be paid on the income
obtained. Capital gains tax is the type of tax that is paid, and it can be long or short term.
Long-term and short-term profits are taxed at a rate of ten percent and fifteen percent,
respectively.
The gain on the transfer of a capital asset is taxed under the heading "Capital Gains." "Short
Term Capital Gains" and "Long Term Capital Gains" are two types of capital gains income.
MEANING OF CAPITAL GAINS
Profits or profits resulting from the transfer of a capital asset are referred to as "Capital
Gains" and are taxed under the "Capital Gains" heading.
Only once an investment is sold are capital gains taxes owed.
Only "capital assets," such as stocks, bonds, jewels, coin collections, and real estate,
are subject to capital gains taxes.
Profits from assets held for more than a year are taxed as long-term gains.
Short-term profits are taxed at the same rate as long-term gains. Except for the very
wealthy, this is greater than the tax on long-term gains.
MEANING OF CAPITAL ASSESTS
A capital asset is defined as:
(a) Any type of property possessed by an assessee, whether or not related to the assessee's
business or profession.
(b) Any securities held by a FII that has invested in them in line with the rules. The SEBI Act
of 1992 spawned a set of rules.
The following elements, however, are not included in the definition of "capital asset":
(I) any stock-in-trade, consumable goods, or raw materials retained for the
purposes of his business or profession (other than securities referred to in (b)
above)
(II) personal effects, or transportable property (including clothing and accessories).
furnishings) retained for the taxpayer's or any member of his family's personal
use. He is reliant on him, yet he excludes—
(a) jewellery
(b) archaeological collections
2. (c) drawings
(d) paintings
(e) sculptures
(f) any work of art.
(III) Agricultural Land in India, not being a land situated
(IV) 61/2 per cent Gold Bonds,1977 or 7 per cent Gold Bonds, 1980 or National
Defence Gold Bonds, 1980 issued by the Central Government;
(V) Special Bearer Bonds, 1991
(VI) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or deposit
certificates issued under the Gold Monetisation Scheme, 2016.
EXAMPLE:
Mr. Kapoor is a property dealer. He purchased a flat for resale. The flat was purchased in
January, 2019 for Rs. 84,00,000 and sold in April, 2020 for Rs. 90,00,000. In this case Mr.
Kapoor is dealing in properties in his normal business. Hence, flat purchased by him
would form part of stock-in-trade of the business. . In other words, for Mr. Kapoor flat is
not a capital asset and, hence, gain of Rs. 6,00,000 arising on account of sale of flat will
be charged to tax as business income and not as capital gain.
MEANING OF LONG-TERM CAPITAL ASSEST AND SHORT-TERM CAPITAL ASSEST.
LONG – TERM CAPITAL ASSEST SHORT TERM CAPITAL ASSEST
NOTE:
Following points should be kept in mind:
The property that qualifies as a capital asset may or may not be related to the
taxpayer's company or profession. A bus used to convey passengers by a person in the
passenger transportation company, for example, is a capital asset.
Any securities held by a Foreign Institutional Investor that has made an investment in
such a company. securities in compliance with the Securities and Exchange
Commission's laws As a result, securities issued under the Board of India Act, 1992 will
always be classified as capital assets. It is not possible to regard it as a stock-in-trade.
3. Any capital asset held by the taxpayer for a
period of more than 36 months immediately
preceding the date of its transfer will be
treated as long-term capital asset.
Any capital asset held by the taxpayer for a
period of not more than 36 months
immediately preceding the date of its
transfer will be treated as short-term
capital asset.
In case individuals own an asset for a duration
of more than 36 months, the asset is a long-
term capital asset. Debt-oriented mutual
funds, jewellery, etc., that are held for a
duration of more than 36 months will come
under this category and there is no 24-month
reduction period under such circumstances.
In case assets are held for a duration of 36
months or less, it can be defined as a short-
term capital asset. However, for immovable
assets such as house property, building, and
land, the duration has been reduced from
36 months to 24 months.
The below-mentioned assets are considered
as long-term assets if they are held for a
duration of more than 12 months:
Zero coupon bonds (not dependent on
whether they are quoted or not)
Unit Trust of India (UTI) units (not
dependent on whether they are quoted or
not)
Equity-based mutual funds units (not
dependent on whether they are quoted or
not)
Securities that are listed on a stock
exchange that is recognized in India.
Examples of such securities are
government securities, bonds, and
debentures.
Preference shares or equities that are
held in a company that is listed on a stock
exchange that is recognized in India.
Therefore, if an individual wish to sell a land
or house after holding it for a duration of
24 months, the profit that the individual
makes from it comes under long term
capital gain.
In case the property has been inherited or
given as a gift, the amount of time the
property was held by the previous owner is
also considered when determining whether
the property can be considered as a short-
term capital asset or a long-term capital
asset.
4. EXAMPLE:
Mr. Vipul is a salaried employee. In the month
of July, 2017, he purchases a piece of land and
sold the same in January 2021. In this case
land is a capital asset for Mr. Vipul and it was
sold in the Assessment Year 2021-22. He
purchased land in July, 2017 and sold it in
January 2021, i.e. after holding it for a period
of more than 24 months. Hence land will be
treated as long-term capital asset.
EXAMPLE:
Mr. Raj is a salaried employee. In the
month of April, 2019, he purchased a
piece of land and sold the same in
December, 2020. In this case land is a
capital asset for Mr. Raj. He purchased
land in April, 2019 and sold it in
December, 2020, i.e., after holding it for
a period of less than 24 months. Hence,
land will be treated as short-term
capital asset.
MEANING OF SHORT-TERM CAPITAL GAINS AND LONG-TERM CAPITAL GAINS.
Gain arising on transfer of short-term capital asset is termed as short-term capital gain
and gain arising on transfer of long-term capital asset is termed as long-term capital
gain. However, there are few exceptions to this rule like gain on depreciable asset is
always taxed as short-term capital gain.
REASON FOR BIFURCATION OF CAPITAL GAINS INTO LONG TERMAND SHORT-TERM
GAINS:
The taxability of capital gains depends on the nature of gain, i.e., whether short-term or
long-term. Hence, to determine the taxability, capital gains are classified into short-term
capital gain and long-term capital gain. In other words, the tax rates for long-term
capital gain and short-term capital gain are different.
COMPUTATION OF LONG-TERM CAPITAL GAINS:
Long-term capital gain arising on account of transfer of long-term capital asset will be
computed as follows:
PARTICULARS RS/-
Full value of consideration (i.e., Sales consideration of asset) XXXXX
Less: Expenditure incurred wholly and exclusively in connection
with transfer of capital asset (E.g., brokerage, commission,
advertisement expenses, etc.).
(XXXXX)
Net sale consideration XXXXX
Less: Indexed cost of acquisition (*) (XXXXX)
Less: Indexed cost of improvement if any (*) (XXXXX)
Long term capital gains XXXXX
(*) Indexation is a process by which the cost of acquisition is adjusted against
inflationary rise in the value of asset. For this purpose, Central Government has notified
cost inflation index. The benefit of indexation is available only to long-term capital
5. assets. For computation of indexed cost of acquisition following factors are to be
considered:
Year of acquisition/improvement.
Year of transfer.
Cost inflation index of the year of acquisition/improvement
Cost inflation index of the year of transfer
Indexed cost of acquisition is computed with the help of following formula:
Cost of acquisition × Cost inflation index of the year of transfer of capital asset /Cost
inflation index of the year of acquisition = not in short term
Indexed cost of improvement is computed with the help of following formula:
Cost of improvement × Cost inflation index of the year of transfer of capital asset = not
in short term Cost inflation index of the year of improvement
THE CENTRAL GOVERNMENT HAS NOTIFIED THE FOLLOWING COST INFLATION INDEXES:
-
S.NO FINANCIAL YEAR COST INFLATION INDEX
1 2001-02 100
2 2002-03 105
3 2003-04 109
4 2004-05 113
5 2005-06 117
6 2006-07 122
7 2007-08 129
8 2008-09 137
9 2009-10 148
10 2010-11 167
11 2011-12 184
12 2012-13 200
13 2013-14 220
14 2014-15 240
15 2015-16 254
16 2016-17 264
17 2017-18 272
18 2018-19 280
19 2019-20 289
20 2020-21 301
6. EXAMPLE:
Mr. Raja purchased a piece of land in May, 2005 for Rs. 84,000 and sold the same in
April, 2020 for Rs. 10,10,000 (brokerage Rs. 10,000). What will be the taxable capital
gain in the hands of Mr. Raja? Computation of capital gain will be as follows:
PARTICULARS Rs/-
Full value of consideration (i.e., Sales consideration of asset) 10,10,000
Less: Expenditure incurred wholly and exclusively in connection with
transfer of capital asset (brokerage)
10,000
Net sale consideration 10,00,000
Less: Indexed cost of acquisition (*) 2,16,103
Less: Indexed cost of improvement, if any NIL
Less: Indexed cost of improvement, if any 7,83,897
(*) The cost inflation index notified for the year 2005-06 is 117 and for the year 2020-21
is 301. Hence, the indexed cost of acquisition, i.e.,
the inflated cost of acquisition will be computed as follows: Cost of acquisition × Cost
inflation index of the year of transfer of capital asset Cost inflation index of the year of
acquisition Rs. 84,000 × 301 = Rs. 2,16,103 117
COMPUTATION OF SHORT-TERM CAPITAL GAINS:
The below-mentioned procedure must be followed by individuals in order to
calculate short term capital gains:
o First, the individual must consider the full value of the property.
o Next, the below-mentioned points must be deducted:
Expenses that have been incurred for the improvement of the
property.
The expenses incurred for acquiring the property.
Any expenses that have been incurred for the transfer of the
property.
o The amount that is calculated after the deduction is the short-term capital gain.
The formula for the calculation of short-term capital gain is the full value
consideration minus the expenses that have incurred for the transfer minus the cost
for improving and acquiring the property.
EXAMPLE
Given below is an example of how short-term Capital Gains is calculated:
Assumptions:
Price the house was sold for= Rs.55 lakh
7. Expenses for brokerage, commissions etc= Rs.30,000
Net sale consideration=Rs.54,70,000
Price the house was bought for= Rs.35 lakh
Amount spend for the improvement of house= Rs.3 lakh
Gross short-term Capital Gain=Rs.16,70,000
Tax exemptions under Sections 54, 54B, 54D, 54EC, 54ED, 54F, 54G=Nil
Net short-term Capital Gain=Rs.16,70,000
Short Term Capital Gains: 30% of Rs.16,70,000= Rs.5,01.000
ADJUSTMENTOF LTCG AGAINST THE BASIC EXEMPTION LIMIT
Basic exemption limit means the level of income up to which a person is not required to
pay any tax. The basic exemption limit applicable in case of an individual for the financial
year 2020-21 is as follows:
For resident individual of the age of 80 years or above, the exemption limit is Rs.
5,00,000.
For resident individual of the age of 60 years or above but below 80 years, the
exemption limit is Rs. 3,00,000.
For resident individual of the age of below 60 years, the exemption limit is Rs.
2,50,000.
For non-resident individual, irrespective of the age of the individual, the
exemption limit is Rs. 2,50,000.
For HUF, the exemption limit is Rs. 2,50,000.
ADJUSTMENTOF LTCG AGAINSTTHE BASIC EXEMPTION LIMIT
[As amended by Finance Act, 2021] on the residential status of the individual (i.e.,
resident or non-resident). The provisions in this regard are as follows:
Only a resident individual/HUF can adjust the exemption limit against LTCG.
Thus, a non-resident individual and non-resident HUF cannot adjust the
exemption limit against LTCG.
A resident individual can adjust the LTCG but such adjustment is possible only
after making adjustment of other income.
8. In other words, first income other than LTCG is to be adjusted against the
exemption limit and then the remaining limit (if any) can be adjusted against
LTCG.
DEDUCTIONS UNDER SECTIONS 80C TO 80U AND LTCG
No deduction under sections 80C to 80U is allowed from long-term capital gains.