Accountantjee

MCA- Ministry of Corporate Affairs-  The aim of MCA is primary to provide & sustain in the democratic society in India an ethical business culture so as to facilitate world class governance of corporates, to which investors as well as lender can confidently commit their funds, to promote & sustain competition in market, to protect the interest of consumers, and to ensure freedom of trade carried on by other participants in India. Objectives 1. To provide simplified laws governing the corporate sector & to facilitate corporate growth. 2. To strengthen e-Governance 3. To ensure effective implementation of laws being administered by the Ministry of Corporate Affairs. 4. To ensure 'Protection of Investors & Promotion of Investor education & awareness. 5. To Promote competition 6. To promote capacity building & advisory support to the sector 7. To ensure proactive dissemination of corporate sector statistics 8. To develop & strengthen investigative capabiliti...

One of my senior asked me "Mangesh is expense & expenditure is same? What will be the treatment of expense or expenditure in accounting?". I quickly said it's same & it is shown in Profit & Loss Account. He laughed & told me google it. To my surprise it came out two different things & it treatment in accounting is also different. Here I will explain why it is necessary to understand the meaning of both terms in simple words- no boring definition, will learn with examples. Many of us use the word expense & expenditure interchangeably. But in accounting they have separate meaning. They affect the bottom line i.e. Profit. 1. Expense--  Outflow of money--money is spent-- leading to expense 2. Expenditure-- Outflow of money-- money is spent-- leading to expense & assets. Let's understand it with an example. Mr. A started a business & made below transactions.  1. Purchase Machines- 3,00,000.00 2. Purchase Raw Material- 1,00,000.00 3. Paid Fix...

INCOME FROM SALARIES Important Points to be considered An income is chargeable to tax under the head “salary” if & only if there exits an employer-employee relationship between the payer and the payee.  Basis of Charge Salary is chargeable to tax on DUE BASIS (accured) or on RECEIPT basis (advance) whichever is earlier. Taxability of Allowance Fully Taxable Allowances   Sr. No. Allowance Type Particulars 1 Dearness Allowance (DA) Extra amount given to an employee to meet the burden of inflation or increase cost of living. 2 City Compensatory Allowance Compensation for the high cost of living in metropolitan & Large cities. 3 Fixed Medical Allowance Fixed allowance paid to the employees on a monthly basis irrespective of whether they submit the bills to substantiate the expenditure or not. 4 ...