Tax Exemptions As Per Income Tax Act 1961

Every income is taxable under income tax law, whether it is received in cash or in kind, whether it is capital or revenue income, but still some incomes are given exemption from tax. Income-tax Act contains  a number of provisions which exclude various kind of incomes from the purview of taxation. The incomes enumerated below are exempt from tax Agricultural …

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What Is Portfolio In Finance?

In finance, a portfolio is a collection of investments held by an individual or an institution. Many types of investment opportunities are available in the market which make people and institutions invest there money in different types of investments at one point of time, this collection of investment is called as finance portfolio. Owning a portfolio of assets is part …

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Income Tax Act In India

Income Tax is a tax imposed by the government of India on every one who earns in India whether they are resident of India or not. If an individual stays in India for 182 days or more in a year, he is treated as resident in that year regardless of his citizenship. This tax is levied under Income tax Act …

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What Is Option (In Finance)?

In finance, an option is a derivative financial instrument that establishes a contract between two parties to buy or sell an asset at a set price before a given date. The option depends on some other assets for its value as it gets value from the stock or the index. For this reason, options are also called derivatives. Options are …

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What Does HMRC Stands For?

HMRC stands for Her Majesty’s Revenue and Customs. It is a non ministerial department of the British Government. It was formed on the 18th April 2005, formed by the merger of Inland Revenue and HM Customs and Excise. HMRC is primarily responsible for the collection of taxes, it ensures the correct tax is paid at the right time. HMRC is …

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What is Pegging(Peg) In Finance?

Pegging is a method which is used to fix the values relative to assets of stable value to increase market stability. It is most commonly done in Foreign Exchange for currency pegging in which a government fixes the exchange rate of its own currency to the currency of another country which is viewed as reliable and highly stable. Most countries …

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Macro Hedge Vs Micro Hedge

Macro Hedge is an investment method designed to reduce or eliminate economic risk of an entire entity or portfolio. It involves making investment in a such a way that will offset the risk of an asset, or a group of assets, in a portfolio. Macro investors are investors that have investment interest in international markets. They can use a macro …

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What Are Zero Coupon Bonds?

Zero coupon bond are issued at lower price than its face value and the principal value is repaid to the holders on the time maturity of bonds. Zero coupon bonds are also known as discount bonds or accrual bond as these are purchased at a large discount on the face value. It does not make periodic interest(coupon) payments to the …

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What Are Input Tax And Output Tax

What is Input Tax? Input Tax is an Indirect tax such as VAT(Value added tax) levied on capital goods used directly in the process of manufacturing such as raw materials, spare parts, services etc., which a business consumes in its operations. Input tax is the tax paid on purchase of goods or services by a registered dealer(with HMRC) in course …

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Define IPO And Explain How It Works

IPO(Initial Public Offering) new shares offered to the public in the Primary market. When a company decides to raise capital, they often by selling shares of stock to public and the initial sale of a company’s stock is known as Initial Public Offering in the stock market. Companies offering IPO are not necessarily new company’s, sometimes companies which have been …

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What Is Gearing In Finance?

GEARING is the proportion of the capital employed in a company that is financed by lenders rather than shareholders. In simple terms, explains how a company finances its operations either through lenders or through shareholders. Gearing is basically defined as the ratio between a company’s borrowing (debt) and owner’s equity (i.e. shareholder’s fund). It is synonym to the word financial …

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Series 24 Exam – General Securities Principal License

Several licenses are required to work in the financial-planning and financial services industry. The Series 24 exam is given to those seeking license in a managerial position.  The Series 24 license is formally known as the General Securities Principal license and is a securities license required by the FINRA (Financial Industry Regulation Authority) or a finance professional to be qualified …

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Telegraphic Transfer (TT) – A Mean To Transfer Funds Via Wire/Cable

Telegraphic Transfer or Telex Transfer a banking term commonly called “T/T, is an electronic method of fund transfer in which funds are transferred via telegraph or cable. Although these days the telegraph is not used for the transfer. Still the practice of transferring money is known by the same name. It has been a means of communication between financial institutions …

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HNI/HNWI – Define High Net Worth Individual Or Investors

High net worth individual (HNWI or HNI) are generally rich or wealthy people with more money and assets, traditionally these people were called as millionaires or billionaires but these days the term high net-worth individuals is used by the financial services to denote an individual with high net worth. High net worth ,means your Credit worthiness ,as Banks or other …

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Arbitrage – Strategy To Make Fast Money

Arbitrage is a financial transaction that makes an immediate profit without any risk. Arbitragers take advantage of different rates, prices or conditions between different markets. Arbitragers make profit by exploiting price differences of identical or similar financial instruments. Trading foreign exchange is a kind of arbitrage where no risk involve where arbitragers buy at lower price and sell it at …

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