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Facts You Should Know about Income Tax and PAN Card

Facts You Should Know about Income Tax and PAN Card
Income Tax and PAN Card Info What is meant by Income Tax? A percentage of income earned by an individual or a company (complying to Indian laws) is paid in the form of tax to the government. This is called Income Tax. This comes under Income Tax Act constituted by Parliament of India. Department of income tax operates under Department of Revenue, Ministry of Finance, Government of India. This is responsible for checking and collecting tax. Where should I pay Income Tax? Income tax should be paid to the I.T deparment. This is called income tax filing which is done at the end of July every year. What is the period for which a person’s income is taken into account for purpose of Income Tax? The income earned from April 1st to March 31st is considered for calculating income tax. This period is called a financial year. For example April 1, 2015 to March 31, 2016 is a financial year. This is also called previous year. What is an assessment year? The 12 month period that comes after the previous year is called an assessment year. This is the period to file income tax return for the previous year. For example, for the financial year 2015-16, the assessment year is 2016-17. During this period, a person files his return for the income earned in the previous year. How to file income-tax returns online What is PAN Number or Permanent Acount Number? PAN is a ten digit number issued by the Income Tax deparment. It also serves as a valid identity proof for an Indian citizen. PAN number is demanded at many places now-a-days. When you file income tax returns When you open a bank account or Demat account It is useful in applying telephone connection and credit card When you want to register for service tax and sales tax When you buy or sell a vehicle When you deposit or withdraw money to the tune of Rs.50,000 in the bank or post office, PAN is a must If you want to invest in mutual funds If you are buying a property worth more than 5 Lakhs When you exchange large volume of foreign currency (over and above Rs.25,000), you need to submit your PAN CARD. Even when you buy GOLD , giving your PAN number has become mandatory after the DEMONETIZATION EFFORTS taken by the government recently on November 8, 2016. PAN card Dont’s… Same person having more than one PAN card is an offence. You have to submit any one card to the income tax department and update your info. You can be charged a fine of upto Rs.10,000 if you are found to have more than one PAN card. If somebody puts the PAN card to mis-use he might be fined and subject to imprisonment too. You can view your PAN card details in their website. If you apply for PAN card through private agents, kindly check whether your details are updated in the government website. Issue of PAN card PAN card issuing has been made very simple. You will be asked to fill up  FORM 49-A and attach your address proof (Aadhar card or Ration card). The form can be downloaded from the following addresses online: www.tin-nsdl.com http://www.incometaxindia.gov.in/Pages/form-pan.aspx Also you get these forms issued by the IT PAN and TIN service centres. Having a PAN card doesn’t mean that you have to pay Income Tax. It is to facilitate people to pay Income Tax when their income levels warrants for paying tax. A Complete Tutorial on Financial Markets and...
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Types of Accounting Information

Types of Accounting Information
Types of accounting information may be classified into four categories: Operating information Financial accounting information Management accounting information and Cost accounting information 1. Operating Information: This is the kind of  information which is required to conduct the day-to-day activities. Examples of operating information are: Amount of wages paid and payable to employees Information about the stock of finished goods available for sale and Each one’s cost and selling price Information about amounts owed to and owing by the business enterprise Information about stock of raw materials, spare parts and accessories and so on. By far, the largest quantity of accounting information provides the raw data (input) for financial accounting, management accounting and cost accounting.    Spend Wisely   The Ultimate Startup Guide for Entrepreneurs   2. Financial Accounting: Financial accounting information is meant both for owners and managers and also for the use of individuals and agencies external to the business. This accounting is concerned with the recording of transactions for a business enterprise and the periodic preparation of various reports from such records. The records may be for general purpose or for a special purpose.   Focus on the Long Term    3. Management Accounting: Management accounting makes use of  both historical and estimated data in assisting management in daily operations and in planning for future operations. It deals with specific problems that is faced by enterprise managers at various organizational levels. The management accountant is often concerned with finding alternative courses of action and then helping to select the best one. For e.g. The accountant may help the finance manager in preparing plans for future financing or may help the sales manager in deciding the selling price to be fixed on a new product by providing suitable data.     Generally management accounting information is used in three important management functions: Control Co-ordination and Planning 4. Marginal costing is an important technique of management accounting which provides multi dimensional information that helps in  decision making.   Specialised Accounting Fields A number of specialized fields in accounting also have evolved besides financial accounting. Management accounting and cost accounting are the result of rapid technological advances and enhanced economic growth. The most important among them are explained below:   1. Tax Accounting: Tax accounting is all about the filing of tax returns and the consideration of the tax implications of proposed business transactions or alternative courses of action. Accountants specializing in this branch of accounting are familiar with the tax laws affecting their employer or clients and are up to date on administrative regulations and court decisions on tax cases.     2. International Accounting: This accounting is concerned with the special issues associated with the international trade of multinational business organizations or MNC’s. Accountants specializing in this area must be familiar with the influences that custom, law and taxation of various countries bring to bear on international operations and accounting principles.   3.Social Responsibility Accounting: This branch is the newest field of accounting and is the most difficult to describe. Social responsibility accounting is so called because it not only measures the economic effects of business decisions but also their social effects, which have previously been considered to be immeasurable. Social accounting is also known as social accounting and auditing, social and environmental accounting, corporate social reporting, corporate social responsibility reporting, non-financial reporting or accounting.   Benefits of Social Accounting   4. Inflation Accounting: Inflation accounting is a term describing a range of accounting models designed to correct problems arising from historical cost accounting in the presence of highinflation and hyperinflation. Inflation accounting is used in countries experiencing high inflation or hyperinflation.   5. Human Resources Accounting: Human resource accounting is the process...
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What is Accounting Cycle

What is Accounting Cycle
What is Accounting Cycle Financial statements have to be produced accurately at the end of the accounting period for tax purposes. An accounting period may be a month, a quarter of a year, or a whole year. The accounting cycle is the series of steps that take place in order to produce  financial statements. A term that describes the steps when processing transactions (analyzing, journalizing, posting, preparing trial balances, adjusting, preparing financial statements) in a manual accounting system. Today many of the steps occur simultaneously when using accounting software. Loading… Following are the steps that complete an accounting cycle: Identify the transaction. This transaction could be the revenue from the sale of a product or a payment to another business for services. Analyze the transaction and how it is related to the accounting balance sheet. For example, determine which accounts are affected by the transaction and how they are affected. Record the transaction to a journal such as a sales journal.  Journals are kept in chronological order and may be updated continuously, daily, or however often it is necessary. Record the transaction to the general ledger. Take all of your entries and categorize them by the account. Perform a trial balance. Debits and credits need to be equal at the end of an accounting cycle, so calculate the entries to ensure they match. Prepare adjustments. Just because entries are recognized, does not mean the work has been performed. Revenue can only be recognized when the work has been completed, so adjust the entries accordingly. Perform trial balance with adjustments. Take the adjustments from Step 6 and prepare a trial balance. If the debits and credits do not match, then you need to adjust them to make sure they do match. Prepare financial statements. From the adjusted trial balance, these corrected balances are used to prepare the financial statements. Close the accounts in preparation of the next accounting cycle. Revenues and expenses need to be closed out, which means they need to have zero balances. Balances are moved to the next cycle. Watch This Video for a Clear Understanding of Accounting Cycle: Use CC (closed captions) Button for Subtitles. Some Important Accounting Terms: Account A record in the general ledger that is used to collect and store similar information. For example, a company will have a Cash account in which every transaction involving cash is recorded. A company selling merchandise on credit will record these sales in a Sales account and in an Accounts Receivable account.   Accounting Department Part of a company’s administration that is responsible for preparing the financial statements, maintaining the general ledger, paying bills, billing customers, payroll, cost accounting, financial analysis, and more. The head of the accounting department often has the title of controller.   Accounting Equation Assets = Liabilities + Owner’s Equity. For a corporation the equation is Assets = Liabilities + Stockholders’ Equity. For a nonprofit organization the accounting equation is Assets = Liabilities + Net Assets. Because of double-entry accounting this equation should be in balance at all times. The accounting equation is expressed in the financial statement known as the balance sheet. Accounts Payable This current liability account will show the amount a company owes for items or services purchased on credit and for which there was not a promissory note. This account is often referred to as trade payables (as opposed to notes payable, interest payable, etc.)   Accounts Receivable A current asset resulting from selling goods or services on credit (on account). Invoice terms such as (a) net 30 days or (b) 2/10, n/30 signify that a sale was made on account and was not a cash sale.   Adjusting Entries Journal entries usually...
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Functions of A Finance Manager

Functions of A Finance Manager
The Key Functions of A Finance Manager Finance manager is one of the important role-players in the domain of finance function. He must have a complete know-how on the areas of #accounting, finance, economics and #management. His position calls for judicious capability and analytical approach to solve various problems related to finance. A person who deals with finance related activities may be called finance manager. “Focus on a few key objectives … I only have three things to do. I have to choose the right people, allocate the right number of dollars, and transmit ideas from one division to another with the speed of light. So I’m really in the business of being the gatekeeper and the transmitter of ideas.” – Jack Welch Finance manager performs the following major functions: Forecasting Financial Requirements It is the principal function of the Finance Manager where he is required to estimate the financial obligations of the business concern. He should evaluate how much finances are required to procure fixed assets and forecast the amount needed to meet the working capital requirements in future. Learn MBA-Level Finance and Make an Extra $10,000 a Year Learn All the Finance You Need to Succeed in your MBA (or, just take this course and skip the MBA altogether)!   10 Ways to Become Financially Stable Acquiring Necessary Capital The next step of a finance manager is to focus on how the finance is deployed and where it will be available.  The Beginner’s Guide to Budgeting Investment Decision Best investment alternatives have to be considered to assure reasonable and stable return from the investment. He must be competent in the field of capital budgeting techniques to govern the effective utilization of investment. The finance manager must attach more importance to the principles of safety, liquidity and profitability while investing capital. 9 Personal Finance Milestones Everyone Should Reach Before 30  Cash Management Cash management plays a major role in the area of finance because proper cash management also helps to meet the short-term liquidity position of the concern. 10 Steps to Financial Freedom – A Course in Personal Finance Get a clear, complete guide to debt pay, retirement, and investment complete with editable excel sheets for your plan.    5 Ways to Combine Finances with Your Spouse Interrelation with Other Departments Finance manager handles various functional departments such as marketing, production, personnel, system, research, development, etc. He must maintain a good rapport with all the functional departments of the business organization. “Rule No. 1 : Never lose money. Rule No. 2 : Never forget Rule No. 1.” ― Warren Buffett Follow ManagementGuru Net’s board FINANCIAL MANAGEMENT on...
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Need a Business Idea? BI #1

Need a Business Idea? BI #1
Best New #Business Ideas for 2015 – Accountant Create a flier outlining your services. Before you do that, you need to know what those services will be. Do you want to simply do bookkeeping for a small business? A more involved level of #accounting would be do actually work up balance sheets, income statements, and other financial reports on a monthly, quarterly, and/or annual basis, depending on the needs of the business. Other specializations can include tax accounting, a huge area of potential work. Many business owners don’t mind keeping their own day-to-day bookkeeping records but would rather get professional help with their taxes. Most small businesses don’t have a full-time accountant, so the task of record keeping often falls to the business owner. A highly organized, trustworthy, part-time bookkeeper can really alleviate the stress of sorting through receipts and tax returns. You’ll most likely only need to put in one or two days a month for each client, depending on how many sales and expenses they have. Knowledge of QuickBooks is a plus, but not necessarily a requirement for, this side business. And if you don’t already have a relevant degree, you can take bookkeeping classes at a local community college. You can also become a certified bookkeeper through organizations like the National Association of Certified Professional Bookkeepers. Curated from Need a Business Idea? Here are 55 It’s the year of the entrepreneur. Thanks, in part, to social media, crowdfunding and alternative lending options, and the constant evolution of technology, it’s a great time to start a business. Attractive #Business Ideas for Accountants Some of the most important business ideas for accountants are given as under. Bookkeeping: Bookkeeping is a lucrative business alternative for accountants. Both and small business firms require to maintain updated bookkeeping. With the availability of various software and computers equipped with the latest technology, bookkeeping has become easier than before. Accountants can engage themselves educational bookkeeping, this kind of business venture require both experience and education which the accountants usually have. Payroll Service: Payroll service which is a subsidiary of bookkeeping service is a very good business idea for accountants. #Payroll services are necessary for most of the companies, and accountants can engage themselves into this kind of service which will help them earn good profits. #Tax preparation: Tax preparation service can prove to be a very fruitful business idea for the accountants, for this kind of business grows very easily and appeals to numerous clients. Accountants taking tax preparation service as a business plan means that both individuals and firms will act as...
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