Category Archives: Management

Corporate Tax Planning

There are two certainties in this world: Death & Tax.Unavoidable circumstances. Reduce it. How to do that? Understand Tax Laws and apply. Why to understand and how to apply? Illustrations [in individuals].  Give money to spouse and spouse should purchase/construct house property they can use which for self-purpose to avoid provisions of Sec.27.

 Transfer of house property to son’s wife or minor grand child(son’s son) without adequate consideration would attract provisions of Sec. 64.Because sec. 27 does not cover these two transfers (only spouse and minor child(not being a married daughter) covers. So, if the property is under self-occupation, then the nail income will be the club.

Transfer it satisfies income yielding assets. Create income-yielding assets from income of assets transferred the to spouse. Using spouse in a sister concern of the entity where the assesses has the substantial interest would help to avoid clubbing.

SCOPE: Not only corporate entities, but all come under the purview of CTP (contrary to the common belief). Knowledge of taxation is an unimportant ingredient in any financial decision making. In tax planning, direct tax laws are the most crucial input. The Income Tax Act is the prime field of study in this context.

The interpretation process and demonstration of application would equip us with the art of getting into other legislations. It would take the holistic approach wherever necessary to comprehend decision situations involving knowledge of multiple pieces of legislation.

Stages in taxing statute:

  1. Chargeability: By express enactment, can not infer
  2. Assessment: Quantifying chargeability
  3. Collection: TDS, Advance tax, Self-assessment tax (under IT Act )

Rules of interpretation:

A. LITERAL RULE: ordinary, natural and grammatical meaning:

If the provision is free from ambiguity, we must ascribe plain meaning to the words used without impeding subtracting anything from the words. If a narrow interpretation emerges, which cannot serve the manifest purpose of the act, then a broad meaning can ascribe. (Ex. Sec. 173 (1) of the Companies Act, 1956: The nature of the concern or interest of the director or manager of a company in the subject-matter of the proposed motion discloses. Here we cannot confine the interest only to monetary interest alone.)

B.GOLDEN RULE: Rule of reasonable construction: If application of literal rule yields absurd result by which object sought to achieve would defeat, words changes to produce sensible meaning. It should not be guesswork.

C.MISCHIEF RULE/ RULE OFBENEFICIAL CONSTRUCTION: suppress the mischief and advance the remedy. The earlier mischief for which the earlier law provided none solution and the true intent of the present legislation with its remedy to the mischief.

D.RULE OF HARMONIOUS CONSTRUCTION

When two or more provisions of the cat conflict with each other, they have to understand in such a manner that all have to satisfy. [Ex. Sec. 210 (date of balance sheet shall not precede the date of meeting by over six months) and 166(1)(gap between two AGMs should not be over 15 months)]

E.EJUSDEM GENERIS: of the same kind or species

If there is a plain conflict between two provisions, the special one prevails. General words following specific words have to draw their colour from the specific words [You can keep dogs, cats, cows, buffaloes and other animals (not a lion)]. If the particular words used exhaust the whole genus, then the general words can cover a larger genus.

INTERNAL AIDS TOINTERPRETATION OF STATUTE:

  1. Long title is a part of the act (short title only identifies the act)
  2.  Preamble: scope, object and purpose of the act, but can not override the plain words of the act.
  3. Heading and title of a chapter: preamble to the sections
  4. Marginal notes: In India, they can refer to.
  5. Definitional sections / cause illustrations are not part of the section, but definitely a part of the act. But they cannot expand or curtail the ambit of the section.
  6. Proviso: The exception to the section.
  7. Explanations to read in harmony with the main section and clarifies its meaning
  8. Schedules: to read together with the act. If they are in conflict with the act, actprevails.

EXTERNAL AIDS TOINTERPRETATION OF STATUTE:

  1. Earlier acts, historical settings
  2.  Dictionary meaning
  3. Foreign decisions

FUNDAMENTAL:

  1. Act, Ordinance, Rules
  2. Structure of an Act – Chapter, Sections, Sub-sections, Clauses, Sub-clauses, Provisos, Illustration, etc.
  3. Deductions, Allowances, Rebates, Relief, Exemption, etc.
  4. Benevolent circular – Binding force of a circular
  5. Heads of Income & Sources of Income, GTI, Total Income
  6. Reason to believe v. Reason to Suspect
  7. Application of mind
  8. Principle of unjust enrichment

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Laptop Buying Decisions

It has been for many years. Use had to content with an older operating system Windows XP. On one occasion, he and his parents decide to have the brand new laptop that has Windows 8 I built into it. There are many new anticipations and hopes that are attached with the purchasing of a new computer and that too, it should have the newer operating system a pretty excited stuff indeed and the way it can be imagined of cannot be described in wildest possible imagination.

I was using a pretty old operating system, which is almost 12 years of previous and for this, the tendency of it to utilize the additional newer phenomena in an operating system like that of Vista and subsequently the windows 7. Then, came Windows 8 and with it brings the newness in the era of operating system evolution. There are many critics of the way this operating system has been modulated into a completely different arena. Change is not always the best source alternative, one as to try to find the best possible way for it. It creates working under the hood and how one can perform the textbook with the changing scenario of it.

In the morning, Daddy told me to reach the capital city today so that. We could be evaluating and purchasing the desktop replacement that should work in a proper and unambiguous manner so that it simply as well as multi tasking jobs can be comprehended. In the morning there are few super fast express trains are running from this sea city to capital city and the benefit of going with superfast express is that it will not be stopping in the intermittent stations and for this the boring attached with journey time will be reduced considerably.

This is the most enduring aspect of positive thinking when someone plans for a quick trip in order to reach and make shopping. Tickets are purchased and it took hardly sometime as the row in the ticket counter is very steep. It is an express train and this the length of the ticket counter is not so long and this gives us relief and this ticket received quickly and we are then entering into the platform. The designated train would be at the fifth platform.

We slowly walked there as our journey would be hardly one hour and we reached at the end of training to sit there. Plenty of seats are available and for this we did not have to worry too much about it. We choose the seats that where the sunlight would not be falling straight toward it, so that this can be a good excuse to avoid the straight sunlight. In the mean time, summer is receding and the incoming of the rainy season making the entire atmosphere more and more comprehensible and wonderful.

Though there could be time when one can feel the brunt of stiff summer season like heat rounding you when there would not be rain for some days. It is getting warmer and inside iron cover of training the situation is more difficult to start with. We have detected the proper seating space and then switched on the fans and sit there comfortably and waiting for the running of trains.

We are very excited to buy a new desktop replacement and for this the natural anticipations and other forms of expectations comes cropping into mind in many forms and it is time to hold all these anticipations in one such secure place inside of mind and for this a dedicated and simple inline thinking is the order of the day. We discussed about many positives that can be originated from all these discussions.

Prior to buying, there has been extensive investigation on which laptop to buy and what are the basic ingredients that need to be there inside of a desktop replacement. It can be a great analytical mind to purchase a sufficiently fantastic laptop that can cater to all your requirements. The ugly side of online search is that most times while searching you could hardly find most information that you are searching for and this one has to be very intuitive with an analytic mind to find the relevant information in sufficiently clear cut approach.

It is always better to have offline note of all the information that you have extracted so far and this one needs t be well versed with the altered aspect of technological sides. Take a look at all these information about how much RAM and other aspects of hard drives and graphic processor that can utilize different parameters for the betterment of graphical user interface. Now with the introduction of hardware acceleration technologies with most of the applications and web browsers, it has been inevitable in the majority of cases is that, one has to see whether the proper graphic processor is there inside laptop or not.

With the use of all these interesting modern technologies, one can see the real acceleration of web browser and particularly the way internet explorer behaves and shows the speed that has been amazing and for this I have eagerly waited for the buying of Windows 8. It is a dream to have the nice operating system that can have the most probable use of all your most probable and wonderful application management and the charm windows has been a very interesting concept to begin with.

There has been many anticipations that has been beginning to create the dreams and that can have many more clear and lucid descriptions of it and also in this manner one can receive and obtain a serious overview of one such prospective of all these technical jargons that has many times imparted the opposite side of anticipation. There should be many more newly introduced technologies that are indeed the real treat of the situation when one thinks of decision making. In the mean time, the long siren signifies that the train would be about to be started and it would be within a space of an hour it would be reaching the destination soon.

The train began slowly as It slowly moving out from station and reaching toward the outer and then it would be taking the necessary speed and we were waiting for that moment when the train would be taking its appropriate speed as inside of it the temperature is on the higher side. With the increase of speed of the train there would be winds flowing towards us and that could give the sincere coolness. After crossing the outer, the superfast express gained it’s plentiful required speed and the way it runs simply astounding and a treat to watch and enjoy the actual speed of this train.

In the mean time, one prosperous man of age of almost 22 years, reached inside of training and he sat in almost of set of three persons. He wore a shirt which hardly fits to him and for this he had to manage it through some part of his body still visible, even if he wore it in half hazard manner. He had been behaving strangely as suddenly after some moments he opened his small mobile and then add the ear piece into it.

Now, he listened to some music and tapping his feet into it in the praise of it, and in between he was shouting loudly about the songs and that makes the atmosphere most bring to sustain and understand as in these stiff situation one can hardly bear the large sound emerging out from trains, and now the additions of that bulky person’s weird sound emerging out from his tone.

He was unaware of all these developments as he was wearing the ear pieces and for this he could understand the sounds emerging out from it. In the mean time with his loud voice he was making the sound pollutions and that was bad for us as he was really making huge shots there. Everyone staring at him, but no one is saying a word to him and all are surprised with his attitudes. After almost 15 minutes that bulky person comes out from the train as it reached his destination. He was shouting same while going down from the train surprised with it though. He was completely unaware of this situation, and this has been a huge embarrassment for him though he was not aware of it.

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