Bill Gates On The Dangers Of Success
June 29, 2012 1 Comment
PAN Cards And FDs
June 25, 2012 2 Comments
Under section 139A of the I-T Act,only persons whose income is chargeable to tax are required to obtain a PAN.However section 206 AA of the same Act, which became effective from assessment year 2010-11, makes it mandatory for every person to furnish PAN card in their transactions with banks and financial institutions.So section 206AA compeled even those without a taxable income to obtain a PAN, failing which tax would be deducted at source.
A writ petition was filed before the Karnataka High Court by A Kowsalya and two other small investors, who had made investments in financial institutions (F Is). They do not have any income other than the income received from F I s and they have declared this under Form 15G. Form 15G is usually used for declaring that a person’s income is below taxable limit, and therefore, the bank or FI is not required to deduct tax at source while making payments.The FIs, however, told the petitioners that tax would be deducted at source if they did not furnish PAN cards as required under section 206AA of the Income-Tax Act. The petitioners challenged the validity of Section 206AA of the Income-tax Act in their writ petition. Read more of this post
How Much To Pay For A Business ?
June 23, 2012 Leave a comment
When a seller quotes a price for his business it is known as “Ask price”. In response a buyer offers his price; this is known as “Bid Price”. After negotiation both parties agree at a price to close the deal. In order to make a bid price a buyer must do a valuation of the business he is interested in. There are five methods of valuing a business before buying it:
1. Asset Value: This is the easiest method in valuing a business. Underlying assumption in this method is that the business is a going concern. You tally all assets tangible and intangibles, fixed and current to get the total value. In the case of fixed assets either you can take the value net of associated depreciation or on replacement value basis. Current assets are appraised generally on realizable amount basis. Intangibles such as goodwill can be re-estimated. From the total assets value you must deduct outside liabilities to arrive at net value of assets in a business. Although the method is a popular one, it lacks credence as it does not take the capacity of the assets to generate income in the future, which is more meaningful to the buyer than just jotting up assets. Moreover, small businesses as well as service providers are very lean on assets but fat on earnings. Hence, asset value may not be representative for these businesses. On the other side of the coin, large scale industry is asset rich but whether they generate adequate returns on assets employed is a moot point. Read more of this post
The Grace Groner Story
June 20, 2012 3 Comments
Grace Groner was born in the year 1909, in a small farming community, in Lake County-Illinois.She had a twin sister, Gladys. They were orphaned at age 12.The twins were then taken in by George Anderson, one of the prominent members of the community,who later adopted them.He paid for both of them to attend boarding school and later the nearby Lake Forest College. They were always considered “family” by the Anderson family.
Grace graduated in 1931.At the time, it meant a great deal more than it does today to be a lady and a college graduate.After graduation Grace took up a job nearby as a secretary,an accomplishment for working women of her generation.She stayed on at Abbott Laboratories for 43 years,till her retirement.For many years Grace lived with Ann Findlay, an elderly relative of George Anderson, in a small apartment in the building that housed the Lake Forest movie theater, which was owned by the Anderson family. Lake Forest,a town just north of Chicago, is one of its richest suburbs. Read more of this post
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