Hundi Discounting

Hundies were also traditionally used to finance the movement of agricultural produce. Hundies were, like Bill of Exchange, drawn and payable at sight (Darshani Hundi) or payable after a stipulated period mentioned in the Hundi (Muddati Hundi) and were used to raise money, remit funds and finance inland trade.

These Hundies were even got discounted with the commercial banks on the basis of the creditworthiness of indigenous bankers. However, with the development of organised financial markets over the years, and the spread of commercial banking, the role of the indigenous bankers in the financial system diminished in importance and Hundies too gradually started losing their status as the principal instrument of credit and were replaced by Bill of Exchange in the present form.

Hundi is nothing but Bills of Exchange.

Whenever the seller sells the goods on credit under bill of exchange (Hundi), he will send hundi to his buyer for its acceptance.

Once the goods are dispatched and all the conditions are under Hundi are fullfilled, the required documents alongwith Hundi is submitted to the bank for its discounting. Banker after deducting his discounting charges will credit the account of seller.

Seller raises>Gets accepted from buyer>Seller get is Discounted from banker.  

Clarifications on taxabliity of salary

The common people who earns his livehood by the way of employment requires to pay tax on his earning, hence it is very important to them to understand the tax implications on salary by given below case laws:

TAXABLE

ESOP: Conversion of warrants into equity shares under scheme ,benefit extended to assessee by virtue of employment hence difference between price of shares at time of exercise of option and predetermined price is liable to tax as perquisite u/s. 17(2)(iiia). Refer, Tripti Sharma (Smt.), (2010) 1 ITR 471.

Club: Club membership expenses should considered as perquisites. Refer, CIT v Wipro Systems, 325 ITR 234.

Tips: Payment of banquet and restaurant tips to the employees of assessee in its capacity as employer constitutes salary with in the meaning of section 15 read with section 17 (3) . Refer, CIT v ITC Ltd, 59 DTR 312/ 243 CTR 114 (Delhi) (High Court).

Repairs of House Property: Expenditure on repair of residential accommodation occupied by employee is perquisite Rule 3. Scott R. Bayman v. CIT, 76 DTR 113 (Delhi)(High Court).

NOT TAXALBE

Interest free Rental deposit:  Interest free security deposit given for employee residence on rent is  not a perquisite. Refer, CIT V Vijay Singh, 323 ITR 446.  Same also confirmed in the case of  CIT v. Shankar Krishnan, 207 Taxman 233 (Bom) (High Court).

Uniform Allowance: Attire Allowance is exempt. Refer, CIT v Micro Land Limited, 323 ITR 670 Kar.

Restrictive Payment: 

In the case of CIT vs. A. K. Khosla, 39 DTR 82 (Mad.), it was held that Non compete fee received by assessee from the employer company on his retirement for not to take up any employment is a capital receipt and it can not come under the term “profits in lieu of salary”. Section 17(3)(iii) inserted by Finance Act 2001, w.e.f. 1st April 2002, is prospective and applicable only to Asst. Year 2002-03 onwards.

  

Voluntary Retirement: It was held that amounts up to five lakhs of rupees received on voluntary retirement entitled to exemption u/s. 10(10C). Amount in excess of five lakhs of rupees was entitled to relief u/s. 89. Refer, Koodathil Kallyatan Ambujakshan, (2009) 309 ITR 113.

Transport: Pick-up and drop facility to employees between the specified points is not a perquisite. Refer, WNS Global Services (P) Ltd., 33 SOT 445.

Tax on perquisite: Tax borne by employer on perqusite of Employees would constitute Non Monetary Benefits and as such same is exempted u/s 10 (10CC). Refer, Tranocean Discover LLC v ACIT, 6 taxmann.com 18 - Delhi – ITAT.  Same had also confirmed in the case of Mitsubishi Corporation v CIT, 200 Taxman 372 and Isaco Sakai v. Jt. CIT, 49 SOT 154 (Delhi)(Trib.).  

School Fees: Assessee school was providing free educational facilities to wards of teachers / staff members and cost of education was less than Rs 1000 per month per child, assessee was entitled to benefit of proviso to rule (3) ( 5) and consequently , could not be treated as assessee in default. Refer, CIT v Delhi Public School, 203 Taxman 81/ 63 DTR 325 (Delhi) (High Court).

  

Key-man Insurance: Surrender value cannot be taxed as profit in lieu of salary.( 2(24(xi), 56 ). Refer, CIT v.Rjan Nanda, 249 CTR 141/69 DTR 250 (Delhi) (High Court).

  

 CLARIFICATIONS

LTA: There is no need to verify LTA details. Refer, CIT V Larsen & Toubro Limited, 313 ITR 1 SC.

Value of Accommodation: Salary for purpose of valuation of perquisite value of accommodation is based on Annual salary from one or two or more employers. Refer, Pratim B Mekerjea V ACIT, ITA Nos. 2628  MUM / 2005 dated 17-2-2010.

Discounted Loan: Where loan was granted by an employer at rate of interest less than lending rate of State Bank of India, such a loan is to be regarded as a concessional loan and consequently, value of perquisite thereon is to be calculated. Refer, All India Punjab National Bank Officer’s Association vs. Chairman-cum-Managing Director, Punjab, 190 Taxman 221 (MP).

MP Remuneration: Remunerations received by the MLAs and MPs cannot be taxed under the head income from salary but can only be taxed under the head income from other sources. Refer, M. Venkata Subbaiah vs. ITO, 47 DTR 403 (Visakha)(Trib.).

Courtesy taxbymanish@yahoo.com at http://taxbymanish.blogspot.in.

Banks helping in Money laundering

 How Banks have been converting Black Money via Money Laundering

* Accept huge amounts of cash and invest it in insurance products and gold.
* Open an account to route the cash into various investment schemes of the bank.
* Do it even without the mandatory PAN card or adhering to the KYC norms laid down by RBI.
* Split the money into tranches to get it into the banking system without being detected.
* Use “benami” accounts to facilitate the conversion of black money.
* Use accounts of other customers to channelize the black money into the system for a fee.
* Get demand drafts made for the client either from their own banks or from other banks to facilitate investment without it showing up in the client’s account.
* Keep the identity of the investor/depositor secret.
* Open multiple accounts and close them at will to facilitate the investment of black money.
* Invest black money in multiple instruments in the names of different individuals, not necessarily drawn from among the family.
* Allot lockers for the safekeeping of the illegitimate cash, including special large size lockers to accommodate crores of hard cash.
* Personally come to the residence of the client to take the black money deal forward and collect the cash, even bring along counting machine.
* Use provisions like Form 60 to deposit the illegitimate cash into the account to route it into investment.
* Help the client to transfer black money abroad through NRE (Non-Resident External)/NRO (Non-Resident Ordinary) account; transfer the money telegraphically or through means other than regular banking procedures.

http://www.firstpost.com/business/here-is-how-cobrapost-alleges-private-banks-laundered-money-660547.html

Trace a number in a range

Lookup a number in a range.
 Trace a number in a number in a table range.

An array formula can help. (Raise your hand if you don't know how to enter an array formula.)

The formula used
{=OFFSET($B$2,MATCH($D2,VALUE(LEFT($B$2:$B$10,FIND(" ",$B$2:$B$10)-1)),1)-1,0)}
can also be written as:
{=INDEX($B$2:$B$10, MATCH($D2,VALUE(LEFT($B$2:$B$10,FIND(" ",$B$2:$B$10)-1)),1))}

If min and max numbers of all number range always have 2 digits then the formula can be shorten by replacing FIND(" ",$B$2:$B$10)-1 with number 2:
{=OFFSET($B$2,MATCH($D2,VALUE(LEFT($B$2:$B$10,2)),1)-1,0)}
or
{=INDEX($B$2:$B$10, MATCH($D2,VALUE(LEFT($B$2:$B$10,2)),1))}
 

Attached Images

  

 Courtesy: ANHN

Location Australia

http://www.vbforums.com/showthread.php?534120-Excel-Formula-Number-within-range..-Resolved-and-then-some

 

Charity status for Education

Education is no more a charity, it is a big business. Despite earning huge income, most educational institutions enjoy tax exemption since they are registered as charitable trust.
 
Dear Finance Minister,
This is not regarding your budget. It is about a big tax avoidance scam that is not a scam simply because it has the sanction of the law of the land. You have also made it clear that tax evaders are being sent notices and they better declare incomes and pay tax. But what do we do about tax laws that allow tax avoidance or evasion it really does not matter. What matters is the country is being taken for a ride.
 
Most educational institutions are registered as “charitable trusts” in our country and because of this all their income is exempt from tax. What a noble idea indeed Sirji! May be this was fine at the time of independence. In that era there were mad people who were running educational institutes as a patriotic duty.
 
Things have changed beyond recognition since then. Now education is a big business. Many politicians have jumped on this bandwagon because it is a great vehicle to grab land free or at throw away prices all over the country. Many private institutes and even universities have sprung up which are covertly or overtly backed by politicians of all hues. This is an admirable quality amongst your clan, you fight with each other constantly, ostensibly for the good of the country and we the unfortunate citizens, but when a money making opportunity arises you close ranks.
 
As I understand that an institution is charitable only as long as it is doing charity of some kind. Educational institutes that charge huge fees and run professional courses and do this with a clear motive of profits, have no business to be called ‘charitable’. There are institutions that make crores of rupees by conducting entrance examinations and sale of prospectus. Is this charity?  Should this income not be taxed?
 
It would be interesting to see what percentage of fees collected by such institutes is spent on academics! In one institute I was told the ratio of payment to faculty to total income was about 2%! What happened to the balance? What charitable things were done? No student gets concession in fees, there are no freeships for poor students either. And best of all many of these institutes are big borrowers, borrowing money from banks to build buildings and to buy computers and books as required by AICTEA.
 
Now one hears some of these fantastic temples of education do not pay salaries to their employees on time. In Pune I have heard that Sinhgad Institute and Indira Institutes fall under this category. IIPM is a classic case, it does not pay salaries on time, and it even has courage to pay one year’s arrears to their visiting faculties by issuing11 post dated cheques to be deposited at the rate of one cheque per month! And unfortunately we have professors who are willing to go through this humiliation! The faculty and staff have no guts to protest as they fear loss of arrears plus loss of job. This is nothing but exploitation. And Mr Minister the majority of the staff in such institutes may be women! So forget your “Nirbhaya Fund”, how about protecting women who are getting exploited in this organized trade called education?
 
One reason for thriving of such institutions is the craze for a degree among Indians. That a degree increases the price of a bridegroom in marriage is a proven fact. As a matter of fact many of my students have accepted this and some have even said that we come all the way to Pune and spend so much money because it is an investment that delivers manifold returns once we sell ourselves in the marriage markets!
 
Sir, this is nothing but money making and profit making business. Schools also are no exception. A play group in a school for two-three year olds who go to school for three-four hours only charges Rs30,000 per year! On the other hand there are government-aided schools where fees are not revised for 25 or more years! Girls irrespective of their parents’ economic status are provided free education in Maharashtra. These girls are dropped to school in chauffer-driven high-end cars! Undergraduate aided colleges charge laughable fees. The students don’t attend classes in college which suits the professors who are overpaid after the Sixth Pay Commission bonanza with no evaluation of performance and guarantee of no punishment for non-performance! These same students attend private coaching classes and pay 10 times more fees to attend them! Many professors in aided colleges actually put in more hours as visiting faculty and were reportedly making more money than their salary. This is an open secret. They are actually not allowed to do this, but then who cares?
 
So Sir, a humble request education is no more a charity, it is a business that only needs political patronage, which is available in plenty at a cost of course. Please plug this loophole in your taxation policy. And please make sure that the tax is imposed retrospectively, something that you are so fond of! Here is perfect opportunity to do that, which may actually get you even many votes from those who have suffered for years, so it is even politically winnable in an election year!
 

Prof Anil Agashe

Are CA's any good

1. K.M Birla - The chairman of Aditya Birla Group. This guy is my main inspiration. A Marwari and a CA. He also did MBA from London Business School.

2. Motilal Oswal - Co Promoter, Chairman&Managing Director of Motilal Oswal Group . One of the dudes who said a NO to their family business and did wonders.

3. Shekhar Kapur - You know this guy if you have watched India’s Got Talent Season 1. He was the only guy who sat beside Sonali Bendre and he was there because he directed Mr. India. And yes, he is a CA. The most amazing thing is that his Wikipedia profile says that he did Chartered Accountancy at the behest of his parents.

4. Deepak Parekh - Padma Bhushan winner and the Chairman of HDFC. Quoting Wikipedia, “A pioneer in mortgage finance, he has enabled scores of Indian middle class people to own their houses or apartments through affordable loans.”

5. S.Gurumurthy– The only greatest thing Abhishek Bacchan did apart from marrying Aishwarya Rai was act in a movie called Guru. In the movie R. Madhvan plays an aggressive journalist who is hell bent on exposing the corrupt practices of reliance (guru’s company with some other name in the movie). The movie Guru is based on true events and R. Madhvan's character is strongly based on S. Gurumurthy. Gurumurthy’s articles in The Indian Express caused a national stir in the corporate world and did massive damage to Reliance. Yes! Chartered Accountants have been glorified in the movies too.

6. Aditya Puri – MD of HDFC. We told you we are bad at advertising. He doesn’t even have a Wikipedia page.

7. Rakesh Jhunjhunwala – Another Investor. A few facts that he is India’s 51st richest man and world’s 1062th. He has been described as the"Pied Piper of Indian bourses".

8. Prannoy Roy – The founder and Executive Chairman of NDTV. First cousin of Arundhati Roy. Also studied at Queen Marry, University of London. His father was known as Hurricane Roy.

9 T.V. Mohandas Pai – CFO of Infosys from 1994 to 2006. In 2000, he, along with others,founded the Akshaya Patra Foundation, Bangalore, to start a midday meal program for school children. Today, the midday meal program feeds over 12,00,000 children in 7,669 government schools across seven states in India,primarily -in Bangalore's rural and urban areas, Mysore, Mangalore, Hubli, Mathura, Jaipur, Baran district of Rajasthan, Nayagarh district of Orissa,Puri, Bhilai, Guwahati, Ahmedabad and Vadodara. This initiative has turned outto be the largest midday meal program in the world.

10. Shri K.Rahman Khan - A chartered accountant turned politician from Karnataka, and a long-time member of the Indian National Congress. He is the Deputy Chairman of the Rajya Sabha. Before holding the post of the Deputy Chairman he was the Union Minister of State for Chemical sand Fertilizers

After People get Drunk

 Common lines after People get drunk-

1. tu mera bhai hai

2. Gaadi main chalauga!

3. Mai teri Dil se izzat kartha hun

4. Ye mat samajh ki mai pi kr bol rah hun

5. Tu bol bhaI kya chahiye, tere liye jaan Hazir hai