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The value of shares in the stock market is influenced by a variety of factors ranging from macroeconomic conditions to company-specific variables. Understanding these factors can help investors make informed decisions. Here are some key elements that impact sh...

The intrinsic value of equity stock is a critical concept in finance, used to determine what a stock is truly worth based on its expected future cash flows. This value is calculated using various models, of which the Dividend Discount Model and the Earnings Ca...

The Relative Valuation Approach is a method used to determine the value of an asset by comparing it with the prices of similar assets. Unlike intrinsic valuation, which focuses on the fundamental worth of an asset based on its future cash flows, relative valua...

Introduction Stock prices are influenced by a variety of factors which can be categorized into: Fundamental Factors: These include the economic, financial, and other tangible aspects influencing a company's actual business performance. Technical Factors: Th...

Behavioral finance is a field of study that combines psychological theories with conventional economics to provide explanations for why people make irrational financial decisions. It explores how cognitive biases, emotions, and other psychological factors affe...

Income from House Property Income from house property is a significant category under income tax law, specifically dealt with under Section 22 of the Income-tax Act. This section charges tax on the annual value of any property comprising of buildings or lands ...

The determination of the annual value of a property, which is essential for computing the income from house property, involves the following steps: Determination of Gross Annual Value (GAV): Gross Annual Value is the potential annual rent a property can fe...

Deemed Ownership is a concept in tax law that applies to situations where a person is considered to be the owner of a property for tax purposes, even though they may not hold the legal title to the property. This concept is significant because it determines wh...

(i) There are two deductions from annual value. They are: 30% of NAV; and Interest on borrowed capital Deductions provided under Section 24 are exhaustive. 1. 30% of NAV is allowed as deduction under Section 24(a) (a) This is a flat deduction and is allo...

Example Calculation Suppose the Gross Annual Value (GAV) of a property is ₹3,00,000. Municipal taxes paid during the year amount to ₹30,000. The property owner is entitled to a deduction for interest on borrowed capital of ₹50,000. GAV = ₹3,00,000 Less: Mun...

Business The term "business" is defined under section 2(13) to include any trade, commerce, manufacture, or any adventure or concern in the nature of trade, commerce, or manufacture. It implies that business activities involve a continuous exercise of an activ...

Salary meaning and Chargeability The Income Tax Act, 1961, under Sections 15-17, deals with the taxation of income under the head "Salaries." Salary refers to the remuneration received by or accruing to an individual periodically for services rendered as a res...

Understanding Allowances Under Section 10 of the Income Tax Act, 1961 Allowances are a fixed amount of cash or benefits regularly given to salaried employees in addition to their salary. These allowances are meant to cover specific needs related to the employe...

When your employer offers additional benefits or advantages alongside your basic salary or wage, these are referred to as perquisites in the context of income tax. Perquisites are not to be confused with reimbursements, which are payments made to cover specifi...

Provident Fund A Provident Fund scheme is designed to provide substantial financial benefits to employees upon their retirement. Under this scheme, a specific amount is deducted from the employee's salary as their contribution to the fund. Typically, the emplo...

Section 17(3) - Profits in Lieu of Salary Section 17(3) of the Income Tax Act, 1961, deals with the concept of "Profits in Lieu of Salary." It refers to any payments made to an employee by their employer that are beyond the regular salary or wages. These payme...

Deductions from Gross Salary under Section 16 of the Income-tax Act, 1961 Overview Section 16 of the Income-tax Act, 1961, provides specific deductions that reduce an individual's gross salary income, thereby lowering their taxable income. These deductions are...

Retirement and Taxation in India Retirement is a significant life event, symbolizing the transition from a working career to a life of leisure. It’s a phase eagerly anticipated by many, offering a well-deserved respite from work. However, this transition requi...

Computation of Taxable Salary The computation of taxable salary involves aggregating various components of salary, subtracting eligible exemptions, and applying deductions as per the provisions of the Income Tax Act. Below is the step-by-step process to calcul...

The Indian taxation system has evolved significantly over the centuries, shaped by various socio-economic and political factors. The foundation of modern income tax in India can be traced back to the British era, specifically in 1860, when Sir James Wilson int...