Financial Year (FY) And Assessment Year (AY)

wealthymattersThe financial year is the period between 1 April and 31 March in which you earn an income. Assessment year is the following year in which this income is assessed and taxed.Income is earned in FY and taxes on that income is paid in AY.

Financial year (FY) in Hindi is called वित्तीय वर्ष and assessment year (AY) in Hindi is called निर्धारण वर्ष.

Both AY and FY begin on the 1st of April and end on the 31st of March.

Since income for any particular financial year is evaluated and taxed in the assessment year, income tax return forms have AY. Read more of this post


Income Tax For Bloggers

wealthymattersIncome of bloggers engaged in the profession of blogging is through:
2.Affiliate Sales
3.Services like Blog Consultancy, Blog Designing, SEO Services, Content Services etc
4.Any other Source like Freelance income etc.

While computing the income on which tax is to be paid, the total of all incomes earned by a blogger is taken into account. However, Income Tax is not payable on the Total Revenue earned but is payable on the Total Income earned. Total Revenue is the Gross Amount received and Total Income is the amount earned after Depreciation and Payment of Expenses incurred for the purpose of earning the Revenue. Read more of this post

Income Tax And The Depreciation Of Motor-Vehicles

wealthymattersIf you are carrying on a business or profession one of the major instruments of  reducing taxes is to claim depreciation on the purchase of your vehicle.

Any expenditure incurred for the purpose of the business is allowed as a deduction from your business profits; as such, expenditure incurred on a vehicle used in the business viz fuel expenses, repairs & maintenance expenditure, vehicle insurance are allowed as deductions. Besides, in computing income from business one of the most important items of allowances is the allowance for depreciation, provided by Section 32 of the Income Tax Act.

Depreciation is a non-cash expense which results from the reduction/diminution in the value of certain capital assets including vehicles etc. This deduction towards depreciation is very essential to arrive at the Income from Business/profession of the taxpayer and also to amortize the capital cost of the amount invested in business assets like factory building, machinery, plant, furniture, vehicles etc. The purpose of allowing depreciation is to provide in the course of time for replacement of the asset which is allowed to be depreciated over a period of time. Read more of this post

Open Offer Or Open Market Sales?


If you tender your shares in an open offer, if you have held them for over  a year , you will have to pay 20% capital gains tax with indexation benefit, and 10% tax without indexation .If you tender shares within a year, you will have to pay income tax as per your tax slab.

If shares are sold in the open market after a year, they do not attract any capital gains tax, but if they are sold before a year, they attract 10% capital gains tax.Shares sold via the bourses however are subject to the STT.

Remembering Shri PV Narasimha Rao

wealthymatters.comLike him or hate him or forget him,Narasimha Rao set India on the path of economic reforms.The Urea Scam might have tainted him and his strategy of Masterly Inactivity might have earned him criticism but to give the man his due, even when India might not have been in much of a position to bargain,he ensured that reforms and growth were initiated in such a way that it didn’t raise trenchant opposition.Here’s an article about the man’s achievements from yesterday’s paper.

Unsung hero of the India story

Swaminathan S Anklesaria Aiyar

Twenty years ago, Narasimha Rao became Prime Minister and initiated economic reforms that transformed India. The Congress party doesn’t want to remember him: it is based entirely on loyalty to the Gandhi family, and Rao was not a family member. But the nation should remember Rao as the man who changed India, and the world too. Read more of this post

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