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A Career In Commerce And Job Opportunities

IntroductionCommerce has been a course that has been neglected a lot in India. The…

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Introduction
Commerce has been a course that has been neglected a lot in India. The basic system has divided courses into three categories- science, commerce, humanities. Science has always been valued the highest in India because everyone thinks the students in this field get more opportunities and better jobs when compared to the other two fields and also the pay is high so they can live a luxurious life. However, have you ever wondered what exactly to do After Bcom course?

Even though the statement is true it’s not only for science students. Even a commerce student can earn a good amount and live a comfortable luxurious life. In every job, the main importance is your pay and comfort according to your lifestyle. Therefore, your skills play an important role no matter the course.

What Is Commerce? Who is it for?
Commerce is essentially the conduct of trade among economic agents. It usually refers to the exchange of products, services, or something useful, between businesses or entities. From a better perspective, nations are only concerned with managing commerce in a way that enhances the well-being of their citizens, by providing them jobs and producing beneficial goods and services.

Commerce has existed from the time humans started exchanging goods and services with each other. Starting from bartering to the creation of currencies to the establishment of trade routes, humans have found ways to exchange goods and services and build a distribution process around the process of doing so.

In the present time, commerce normally refers to the macroeconomic purchases and sales of goods and services by large organizations at scale. Commerce is for any person who is interested in finance and transactions. So, if you have done a Commerce course and wish to make a career out of it, here are some career options that you should consider.

Top Highest Paying Jobs In Commerce field

Chartered Accountant
If you’re someone from the Commerce field, you’re presumably to understand about the Chartered Accountancy professional course. The Institute of Chartered Accountants of India or ICAI is a statutory body that designates an individual as an accountant after they need skilled a series of examinations and internship. It is one of the foremost popular commerce stream jobs. As a CA, they will handle the important accounts of a corporation and make sure that the finances are properly recorded and calculated.

Taking the role of a Chartered Accountancy is one of the absolute best-paying jobs in India for commerce students and it is a dream of most commerce students to become a CA. One can expect a starting salary of around Rs. 6 to Rs. 7 lakhs per annum as a CA. It is one of the very best salary jobs for commerce students.

when a CA gains more experience the value also increases. However, the CA exams are said to be one of the toughest then, many students stand back from it. While preparation requires immense diligence, this commerce job does pay off at the top, and therefore the fewer the attempts, the higher the pay.

Investment Banker
This is one of the highest-paying highest paying jobs in the field of commerce in India. Being an investment banker offers a huge salary in the commerce field. The duty of the investment banker is to provide advice and suggestions to various companies and firms so that they can use their money more effectively and achieve their financial goals.

Most companies develop their long-term and short-term financial plans with the help of investment bankers. according to their experience, an investment banker can get a salary of Rs. 20-25 lakhs per annum.

Chartered Financial Analyst
Chartered Financial Analyst is also one of the biggest posts in the field of investment management. CFA places amongst the highest paying jobs in the commerce field in India. any Commerce students who opt for this get an average salary of Rs. 12 lakhs per year. It is a good job profile that concerns commercial services globally.

CFA is also an essential part of many fields like asset management, equity, credit analysis, and revenue analysis, so on and so forth. They collect data from multiple sources and analyze it and evaluate the advantages and disadvantages of different investment vehicles.

Certified Public Accountant
The CPA is quite the same as the Chartered Accountancy, but CPA is offered by the American Institute of Certified Public Accountants (AICPA). hence, the CPA has a global interest.

Candidates who wish to obtain a CPA degree must have a bachelor’s degree in either Business Administration or Finance or Accounting and must complete 150 hours of study. The CPA does jobs like managing tax, auditing, reporting, and accounting processes for organizations or MNCs.

It is one of the jobs in the commerce field with a high salary that may lead to commercial broadcasters that can give you financial security. One must have a Business or Accounting degree to be eligible to appear for the CPA exam. A CPA can get a salary of around Rs.7-9 lakhs per annum.

Actuary
An actuary is another respectable career option for people who are looking for jobs in the commerce field with a high salary. Actuaries are people who test risks involved in the insurance industry. Risks can include loss of property, disability, or other potential risks to the corporate.

They are risk management professionals who use their mathematical skills to live the likelihood of future events and predict their financial impact on their customers and businesses generally.

As an actuary, your work won’t be limited to financial institutions. As all areas of business are in danger, Actuaries may find employment opportunities in non-financial domains like land, health care, and other similar fields. An actuary can get up to a minimum salary of 10-14 lakhs per annum.

Cost Accountant
Cost Accountant is another one of the top jobs in the commerce field. There are two main objectives of accounting profit analysis and budget preparation. they are financial experts who help with budgeting, cost management, and company assets and evaluate company performance.

They are usually employed by manufacturing firms. Cost Accountants are essentially responsible for collecting, verifying, analyzing, and communicating data to facilitate financial visibility and improve processes.

They are also a part of the executive team and helped develop the company’s financial plan and report to stakeholders and tax authorities. a fresher has a salary of around Rs. 4 lakhs per annum as a Cost Accountant.

Professional Accountants
In addition to Chartered Accountants, students can also take up the profession of Professional Accountants as it also comes under the highest paying jobs in India. Professional Accountants help with accounting, tax, and compliance reporting.

They should have a working knowledge of accounting software such as SAP, Tally, and Excel. Accounting professionals should create and maintain accurate financial records for businesses and individuals. Professional Accountants can also get a job at an accounting firm or can set up their independent process. They can earn around Rs. 6 lakhs per annum as starting package.

Cost Accountant
Cost Accountant is another one of the top jobs in the commerce field. There are two main objectives of accounting profit analysis and budget preparation. they are financial experts who help with budgeting, cost management, and company assets and evaluate company performance.

They are usually employed by manufacturing firms. Cost Accountants are essentially responsible for collecting, verifying, analyzing, and communicating data to facilitate financial visibility and improve processes. They are also a part of the executive team and helped develop the company’s financial plan and report to stakeholders and tax authorities.

The salary of a fresher as a Cost Accountant is around Rs. 4 lakhs per annum. Retail Manager – A Retail manager assists in the management of supermarkets as per the business principles. The job of a Retail Manager is to run the sales or store successfully. They need a degree in Retail Management.

Retail Managers manage and monitor all aspects of the daily operations of stores, including sales, inventory, staff, and resource management. They have to be familiar with the product and their marketing philosophy. They must use clever marketing strategies to persuade customers to buy products from the store.

Company Secretary
The essential job of a company secretary is to ensure that the company they are working with, runs with proper coordination and while adhering to all the legal requirements and rules.

The Company Secretary (CS) is one of the main positions in the company or organization. CS serves as president between stakeholders and the board. They are responsible for making formal submissions such as account details, tax reports, and annual receipt reports.

CS is also one of the most popular commercial activities in India. Company Secretaries can expect a high salary of Rs. 6-7 lakhs per annum.CS is undoubtedly the most promising course.

Personal Financial Advisor
A personal financial advisor is a person who assists their clients with their financial goals, pensions, retirement savings, insurance, and debt management. Financial advisers require degrees in finance, finance, business, Mathematics, Law. They can get a salary of around Rs. 5 lakhs per annum.

Conclusion
These were the ten highest paying jobs in commerce fields in India. There are many more jobs for commerce students as well which provide decent pay. To name some of them are statistician, sales manager, finance manager, budget analyst, auditor, so on then forth.

It is a field suitable for those people that incline the sector of accountancy, finance, economics, and lots of other related fields. Several students in India join the sector of commerce only because they think it’s an easy choice than that of science but the reality isn’t so. If you’re hooked into this field then it definitely features a lot to supply and if you’re a hardworking person then you’ll get the highest salary jobs in the commerce field. Even though you don’t go for professional courses like CA or CFA, there are also some short term job oriented professional training programs available in the market to get entry in the commerce field job. Link for one of most sought after accounting course for commerce students is provided herewith.

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Learn Commerce Structures III: Private Limited Company

Introduction  A Private Limited Company is quite a proven and effective business model. It…

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Introduction 

A Private Limited Company is quite a proven and effective business model. It involves private ownership, with a limited number of shareholders(a maximum of 200). These are small but successful business entities and are comparatively easy to achieve targets, for young entrepreneurs, after the BCom course. 

Although it’s somewhat open to all options, individuals from Commerce courses happen to make better jobs here, mostly due to additional Educational orientations to similar subjects, something other stream novices to this sector, are deprived of.

What Is A Private Limited Company? 

As the name suggests, a Private Limited Company is a privately held business entity. It offers limited liability or legal protection to its shareholders. It is an intermediate business stature, shareholders in between a partnership and a collectively owned business company. 

A maximum of 200 shareholders can be a part of this institution. According to the definition, the shares of these companies are not publicly sold in Stock Exchange markets and can only be sold to the stakeholders in the business, implying a ground-level limitation in the liquidation of such a company.

Who’s The Owner Of A Private Limited Company?

Private limited companies are owned by one or more individuals (human or corporate), known as “members”. The company’s “shareholders” are those, who’s memberships are limited by shares, while “guarantors”  are those limited by guarantees. Beyond the technical terms, members of a company are often referred to as partners.

The companies are majorly owned and managed by the same set of people, where the ones managing the functioning of the system are called Directors, and the ones assisting them are called Secretaries. Together, the executive branch of a company is known as company officers.

What Are The Features Of A Private Limited Company?

A private limited company has the following features:

  • Membership: As per the provisions of the Companies Act 2013, from a minimum of two to a maximum of 200 members, is what a private limited company is allowed to comprise of.
  • Limited liability: The liability of the members is limited to the number of shares directly held in their name.
  • Perpetual succession: Even in case of death, insolvency or bankruptcy of any of its members, the company continues to exist in the eyes of the law, thereby offering ways of forever existence.
  • Register of members: This database is not mandatory for a private limited company to maintain, unlike any public limited company.
  • Directors requirement: The company is required to have a minimum of two directors, and then it can remain operational.
  • Paid-up capital: A private limited company must hold a minimum capital worth rupees one Lac, or such higher amounts, prescribed from time to time.
  • Prospectus: A private limited company is not required to issue a prospectus either, again, an absolute must in case of any public limited company. 
  • Minimum subscription: There are no such limits on this ground and the company is free to start a business immediately after its formation.

Name: The company must use the word private limited company at the end of its name.

What Are The Merits Of A Private Limited Company?

A private limited company has the following advantages

  • Flexible Investment: No minimum capital threshold is required for registration.
  • Separate legal identity: A private limited company is a separate legal identity in the court of law and doesn’t hold overlapping assets and liabilities with the directors.
  • Free and easy transfer of shares: Shares of the company are transferable by a shareholder to any other person and it is particularly hazel free.
  • FDI allowed: In a private limited company, 100% foreign direct investment is permissible in certain segments.

What Are The Demerits Of A Private Limited Company?

A private limited company has the following disadvantages:

  • Publicity restrictions: It arrests the transferability of shares by its articles.
  • No place in the stock market: Shares of these companies are not entitled to be sold in the Stock Exchange markets.

Is There Any Specific Employer Requirement In A Private Limited Company?

There is no such mandatory requirement, to appoint employees in a private limited company. Though informal, graduates from Commerce Courses, are likely to prioritize, in the selection processes.

What Are The Requirements For Private Limited Company Registration?

A private limited company has the following requirements for registration::

  • A minimum of two adult persons are required to act as Directors of the company
  • Minimum of 2 Directors and can have a maximum of 2015 directors.
  • One of the directors of a private limited company has to be an Indian Citizen and Indian Resident.
  • The other director(s) can be a Foreign National.
  • Two persons are required to act as a shareholder of a company

What Are The Documents Required For Registration?

The documents required for a private limited company are:

  • ID proof: PAN card and passports of Indian and foreign directors, respectively
  • Address proofs: Ration card or Aadhar card or driver’s license or voter ID
  • Residence proofs: Bank Statement or electricity bill of the premise
  • Notarized rental agreement
  • NOC from the property owner
  • A copy of the sale deed or property deed (for an owned property)
  • Digital signature of any one director

What Is The Process Of Registering A Private Limited Company?

Once a name for the company is finalized, the following steps have to be carried out by the applicant: 

Step 1: Apply for DSC (Digital Signature Certificate).
Step 2: Apply for the DIN (Director Identification Number)
Step 3: Apply for the name availability.
Step 4: File the EMoa and EAOA with registration form to register the private limited company
Step 5: Apply for the PAN and TAN of the company
Step 6: Certificate of incorporation will be issued by RoC with PAN and TAN
Step 7: Open a current bank account on the company name

Conclusion

Merits and Demerits are the two sides of the same coin, likewise, for a private limited company. It is the most prevalent and recognized business entity, in the current date. This is majorly due to the higher degree of freedom, that it offers in setting it up and functioning.

There’s no time gap between these two, and that’s an incredible opportunity to encourage start-ups. After BCom. Courses, thousands of young minds sketch business plans, not always relevant or effective in the public domain. Whereas the private window offers a more homely than a professional working space, warming up young interns to gear up quickly.

Massive Private Limited Companies have prospered beyond extents, inspiring millions to execute their expertise. Some of these include Flipkart, Ola, Snapdeal, etc. It’s important to have directional thinking and appropriate strategies,  to suit the ideas.

Part – iv- Learn Commerce structures IV: Public Limited Company
Part – ii – Learn Commerce Structures II: Proprietorship Firm
Part – i – Learn Commerce Structures: All About Partnership Firms

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Learn Commerce Structures II: Proprietorship Firm

A Proprietorship Firm or Sole Proprietorship is the simplest form of business that can…

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A Proprietorship Firm or Sole Proprietorship is the simplest form of business that can be. It is one-man business ownership, where the owner is the business and is not a separate legal entity. Being a separate legal entity comes with government regulations which Sole proprietorship is exempt from. These do not even need to be registered. Most small businesses start as sole proprietorships and go on to expand later.

Since the owner and the business are the same entity, in this case, the profits and losses incurred by the business are directly incurred by the owner. This has both positive and negative aspects of the business and its owner. To learn more about Proprietorship Firms, after B.Com course in Ahmedabad is a good choice.

What Makes A Sole Proprietorship?

  • No Separate Identities: Since the business and the owner are the same, the owner becomes responsible for all transactions and activities carried out by the business.
  • The Risk Factor: The profits and losses of the business are directly associated with the owner. This means all losses are incurred from the personal wealth of the owner while all profits go to their personal wealth as well.
  • Legal Formalities: Since no law governs sole proprietorship, there are no procedures to follow when establishing, expanding or closing a Proprietorship Firm. 
  • Liability: Since the business equates to the owner, there is an unlimited financial liability for the owner. The debts and liabilities of the business automatically fall on the owner.
  • Owner and Business Life-cycle: The events and occurrences in the life of the owner will directly impact the running of the business. An accident, death, imprisonment, etc. will all affect the business operations directly.

Proprietorship Firm Is Not A One Person Company

  • Legality Of The Business: Unlike a proprietorship firm which is not a legal entity, a One Person Company is a legal entity that is separate from the owner. It is defined and regulated under the Companies Act 2013. Enrolling in the after Commerce course in Ahmedabad will prove helpful in learning more about what makes Sole Proprietorship a unique and also largely preferred business choice for a lot of people. 
  • Liabilities: The liabilities of the business do not directly fall on the owner in the case of a One Person company. The owner has a limited liability towards the only shareholder of his company (Which practically is himself, but not so legally).
  • Succession: Succession in a Proprietorship Firm depends on declaring a legal nominee. The continuity of the business stays uncompromised only if the nominee is declared in a will. The death of the (only) company member will otherwise simply disrupt the business.
  • Tax Returns: If the annual turnover crosses the legally specified limit, sole proprietorships need to get their accounts audited. A-One Person Company on the other hand has to file annual returns just like a private limited company. 
  • Change In Nature: An increase in turnover of a One Person Company can lead to it becoming a Private or Public Limited Company. For a Sole Proprietorship, regardless of the profits earned, its status remains as a Sole Proprietorship.

Advantages Of A Sole Proprietorship

  • Complete Control: Since the owner is directly liable for everything, at all steps and stages of the business, the owner has the complete power to decide on matters.
  • Confidentiality: Financial data and documents are not required to be published by Sole Proprietorships which maintains the confidentiality of procedures and operations. 
  • Sense Of Achievement: Since the owner is answerable to own self only, all good decisions, advances, and business expansions bring great satisfaction to the self of the owner.

The Advantages Are Only One Side Of The Coin: Disadvantages Of Sole Proprietorship

  • Unlimited Liability: The aspect of complete control means all losses are solely incurred by the owner. The liabilities continue from the business to the owner. A failing business can take with it the personal wealth of the owner.
  • Uncertain Lifecycle: The life cycle of a Proprietorship Firm depends directly on the outlook and life events of the owner. A debilitated attitude or the happening of an event with a negative impact can leave the business in the lurch.
  • Limits to Managerial Abilities: Since the owner is the business, and no other people are a part of it, tasks like managerial work become difficult to pull off for a single person. 
  • Limited Capital: Since there is only so much that an individual can invest from their personal wealth into a business, these businesses also need money to expand. Unfortunately, banks are not actively willing to lend to proprietorships.

The commerce course in Ahmedabad is a great learning opportunity for those planning to venture into the business world. A Sole Proprietorship is often the beginning of what ends up becoming big and beloved brands, products and service providers. Starting on one’s own is always a better idea, a better learning experience. 

Part – iv- Learn Commerce structures IV: Public Limited Company
Part – iii – Learn Commerce Structures III: Private Limited Company
Part – i – Learn Commerce Structures: All About Partnership Firms

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GST Compliances for Composition Scheme Dealers

GST Composition Scheme provides relief to small businesses in the form of lower rates…

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GST Composition Scheme provides relief to small businesses in the form of lower rates and lesser compliances. By opting for this scheme, a business can pay GST at a fixed rate, without claiming input tax credit. You can learn more nitty-gritties regarding applicability/eligibility and benefits of this scheme by taking GST classes in Ahmedabad at Super 20 Training Institute (s20.in). Meanwhile, the article here lists down the compliances to be undertaken, should you or your client opt for this composition scheme.

Typical compliances for an indirect tax scheme involve:

In the context of GST composition scheme, these compliances are explained as under:

A. Opt for the scheme
For traders and manufacturer : If turnover is upto Rs. 1.50 Crores p.a.
For Service sector : If turnover is upto Rs. 50 Lacs p.a.
then only a person can opt for composition scheme as the scheme is to benefit small businessmen.

Where a registered dealer desires to opt for composition scheme, typically he is required to do so before or at the beginning of the year, by filing Form GST CMP-02. Where the scheme is opted for in the middle of the year, it becomes applicable from the month following the month in which the form is filed.

Persons applying for fresh registration under GST and opting for composition scheme, may do so by filing Form GST REG-01.

Once a dealer has opted for the scheme, there are two more statements to be filed:

  • Form GST CMP-03 – This statement provides information regarding stock and inward supplies held on the day of opting for the scheme. 
  • Form GST ITC-03 – This statement is required to be filed in order to reverse any input tax credit already claimed on stock of inputs / capital goods before opting for this scheme.

If all these forms and compliances seem daunting, attend GST classes in Ahmedabad to get complete clarity and sort out any queries you may have. 

B. maintaining detailed records
The main purpose of the scheme is to provide relief to taxpayers from comprehensive maintaining of records and compliances. Therefore, unlike regular dealers, dealers registered under the composition scheme are NOT required to maintain detailed records. Further, they are NOT required to collect taxes either, as the taxes are paid at a fixed rate out of own pocket. However, the following to-do’s should be borne in mind:

  • The dealer must issue a Bill of Supply, and NOT a tax invoice.
  • All bills of supplies must state ‘composition taxable person, not eligible to collect tax on supplies’.
  • All hoardings outside the office / at other prominent places must clearly state ‘Composition taxable person’. 
  • Composition delaer can not make any interstate sales.

C. Calculating and payment of taxes
A dealer under the composition scheme should collectcollate the following details of:

  • outward supplies on which tax is payable
  • inward supplies on which tax is payable on reverse charge

Thereafter, compute tax liability by using fixed (reduced) rates as applicable, and split tax liability equally among the CGST and SGST components. Further, credit of input tax cannot be claimed by a GST composite dealer. Add interest payable (if any).The afore-said details would need to be filled in Form GST CMP-08. Form CMP-08 is a statement-cum-challan required to be filed on a quarterly basis. It summarizes the tax liability of the dealer alongwith other relevant details sought by the government. Due date for payment of taxes as well as filing of this statement is 18th of the month following the quarter for which taxes are being paid.

D. Filing of returns – Quarterly and annual
The quarterly statement in Form CMP-08 mentioned above serves as quarterly return as well (it replaces erstwhile quarterly Form GSTR 4).

An annual return also needs to be filed by a GST composite dealer by 30th April following the relevant financial year.

Law prescribes penalties where there is delay in filing of the returns mentioned above. Super 20 Training Institute offers excellent GST return training in Ahmedabad so that you can ensure that the return filing process for you and/or your clients is smooth and hassle-free.

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Knowledge Series For Commerce Students: Know Your Home Loan

Home Loans cater to your needs or possibly a renovation, construction, or additional repairs…

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Home Loans cater to your needs or possibly a renovation, construction, or additional repairs to your humble abode. It is affiliated with a plethora of facets that the borrower needs to take into consideration before he/she can finally attempt to avail of such a loan.

How Much Of A Loan Amount Are You Eligible To Avail?
The predominant requirement is the eligibility of the borrower in the repayment of the loan that would determine the tenure, interest rates, and down payments attached to the loan amount. Your surplus income will drive the lender to figure out the actual amount of loan that you are eligible for.

So, your total assets, total liabilities, and the apparent stability of income play a pivotal role in gaining the lender’s trust. At the end of the day, a bank needs to ensure that your financial stability will not pose any problem for them in the repayment of the loan amount.

Additional Charges And Figures That You Need To Be Aware Of
Statistically, the bank assumes that as much as 50% of your income would suffice for your loan repayment, furthermore, the desired tenure, as well as pegged interest rate, will also impact the decision of assessing the amount of loan.

The majority of lenders expect around 10 to 20 per cent of the amount of home’s purchase in the form of a down payment on your part, and the remaining portion of the loan is eventually financed by the lender.

Now, this aggregate amount of loan encompasses certain charges, for instance, registration, transfer, stamp duty etc. You may be eligible for a larger amount but it does not necessarily mean that you have to get that much amount financed, even a significantly smaller amount can also be availed which directly relies on your requirement.

It is advisable, however, that keeping the ratio of down payment relatively higher than the ratio of loan amount so that the ultimate cost of interest payable can be mitigated and be kept at the desired level.

The Necessity Of A Co-Applicant
Additionally, having a co-applicant is an indispensable requirement to fulfil, so if you are the only owner of the property under scrutiny, then, in this case, an immediate sibling or any other family member can be anointed as a co-applicant.

What Specific Documents You Will Require For The Loan?
The documentation process is another integral and intrinsic phase where a checklist of specified documents is handed out by the bank which is to be filled accurately to steer clear of future ramifications.

Your unique identity proof, proof of residence, form 16/Income tax returns and recent salary slips which has to be decidedly authenticated by your employer and has to be self-attested.

But generally, in most cases, collateral security is also warranted such as insurance policies, units of mutual funds or any other significant investment. In most cases, the designated property is purposefully mortgaged in favour of the lender in the form of security until the loan has been repaid in its entirety.

Should You Secure Your Home Loan With An Insurance Policy?
It is vehemently advisable to secure insurance in favour of the home loan so that the liability does not fall on anyone else, but you alone will be secured enough to repay it. Now there are two prominent plans which are prevalent in today’s scenario, i.e. pure term insurance and the other one is a Mortgage insurance plan.

Now the loan amount should be equivalent to the insurance amount. As far as the premium is concerned, then a single premium, as well as regular premiums, will be the coveted choice. However, it is not mandatory to avail of insurance cover but a sense of self-assurance is generated by availing of such service.

Disbursement Of Loan
The documentation process is the precursor of the disbursement of the loan. The magnitude of the loan amount is solely scrutinised based on the documentary proof and that entails the procurement of a sanction letter from the bank which explicitly states the final amount of loan, duration, and applicable interest rate etc.

So in a nutshell, when the loan has finally been confirmed from the bank, it is commonly referred to as disbursement of the loan after getting through entire technical and legal or valuation activities and handover the cheque or demand draft in favour of seller after successful execution of sale deed and mortgage deed of the house.

Types Of Interest Rates
Rates of home loan can be distinct in the form of fixed or flexible. Calculation of EMI varies as per the various financial institutions/banks from where your loan has been sanctioned. Underlying additional charges also apply in tandem with the payment of the EMI such as processing fee which is generally about 0.5 to 1% of the loan amount. Now, repayment in the form of EMI begins right after the month when the loan has been disbursed.

Repayment Through ECS
Electronic Clearing System (ECS) is one of the avenues through which the repayment of the loan can be done, which involves direct payment of the loan amount from your salary account on a specific date of the repayment.

If you are eligible to pay higher EMI, then it will certainly benefit you since it acts as a long-term advance. Clearing the obligated amount faster will alleviate and relieve your mental stress easily.

Pre-Closure
The borrower always has this option at his disposal to pre-close his/her loan way ahead of the specified duration. However if the interest on your loan is of floating nature, then you will not be bound to pay additional charges, whereas if it is of a fixed nature, then certain charges may be applicable.

Every financer or lender should explicitly state in their statement the total interest as well as the principal amount payable at the very beginning of the financial year. This will eventually serve as a propellent factor to the department of accounts regarding your proof of investment for necessary tax deductions.

This phenomenon will serve you to reap tax benefits at the end of the year. It is prudent to pick the lender that renders the lowest EMIs option which can mean that you are paying a significantly lesser amount of money in the form of repayments as compared to other applicants from any other financial institution.

How Your Grievances Can Be Addressed
There may be incidences that a borrower may not be satisfied with the services rendered by the bank or some other pertaining relevant problem might occur.

So in that case, you can mention your grievance specifically in writing delineating the factors that displeased you, which needs to be addressed at the concerned branch and if however, the bank does not resolve or overlooks your concern then you have the option at your disposal to lodge your complaint with the ombudsman.

Income Tax Benefit of Housing Loan
Interest payment for housing loan is deductible under the head income from house property. The maximum limit is Rs. 2 Lacs p.a. u/s. 24(b). Moreover, we can also get benefit u/s. 80C of income tax for the principal repayment of housing loan with maximum limit of Rs. 1.50 Lacs. The stamp duty and registration charges paid at the time of registration of sale deed is also deductible u/s 80C of Income Tax Act, 1961.

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Knowledge Of Insurance For Tax Professionals

Varsha who works at a media office in Ahmedabad met with an accident on…

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Varsha who works at a media office in Ahmedabad met with an accident on her way to work. She was rushed to the hospital where she was treated for four days before being discharged. The hospital bill amounted to about Rs.60,000.

Fortunately, she had a health insurance cover of Rs.3,00,000. The hospitalization and treatment charges were taken care of by the insurer. Had there been no insurance coverage, she would have had to pay the entire amount out of her own pocket.

Insurance is your cushion against unexpected financial losses or damages. An insurance policy is what Varsha signed with the insurance company which was a legal statement of her agreement with the company, which agreed to cover costs in case of a damage, in exchange for a periodic premium paid by her.

Here, the company is the ‘insurer’ while Varsha is the ‘policyholder’ as well as the ‘insured’. A policyholder is not always the same as the ‘insured’. Such cases will be explained further in this read.

Insurance is not only procured by individuals but also by businesses to insure against specific types of risks. Premium, Deductible and the Policy Limit are three essential components of an insurance policy. A good understanding of what all an insurance policy entails can be gathered by enrolling in the taxation course in Ahmedabad.

Components Of An Insurance Policy

  • Premium – A premium is a regular payment – annual, semi-annual or monthly —made by the policyholder to the insurance company for purchasing a policy. The amount of the premium depends on factors like the type of coverage (business-specific, medical insurance, home insurance etc.), the amount of total coverage, an individual’s insurance history (to determine risk factors), as well as competition in the insurance industry. Higher the risk factors, more the amount of premium you have to pay.
  • Deductible – It is the amount that a policyholder has to pay on her own while the insurer pays a claim. Deductibles are meant to work as disincentives against minor or insignificant claims. The policyholder usually has the choice to decide their deductible. As a general rule, higher the deductible, lower is the premium and vice versa. 
    Policy Limit – It is the maximum amount the insurance company will pay for a covered claim. These maximum amounts can be determined per-damage, per-time-period or over a policy’s lifetime. Higher policy limits have higher premiums.

Policy limits can vary within a policy according to various aspects of the damage. To delve into understanding these, one may consider taking the tax practitioner course in Ahmedabad.

Types Of Insurance Policies

Life Insurance or Term Plan

It is particularly an essential coverage in cases where the beneficiaries are heavily dependent on the insured person. Life insurance policies promise to compensate the beneficiaries of the insured person, in case they expire during the policy term, or after a set period. The payment made for life insurance is deductible under section 80C of Income Tax Act,1961. To know details about how much you can save as tax you can learn by taxation course in Ahmedabad.

Health Insurance 

For medical emergencies, health insurance covers the costs of treatment, hospitalization and medication. Health insurance plans in India also come with tax benefits on premiums as mentioned in section 80D of Income Tax Act, 1961. Types of Health insurance plans include 

  • Individual plans
  • Family plans
  • Senior Citizen plans
  • Critical Illness plans
  • Maternity plans
  • Group plans
  • Unit Linked health plans
  • Coronavirus plans

Employees these days are mostly covered under Group insurance plans by employers, who pay the premium instead of the employees.The same is allowable expense for the company. Though the amount is usually not great, yet it is advisable to be covered under such plans since some benefits still count against zero-premium paid.

Vehicle Insurance 

It ensures monetary compensation in case of any accidents that may have led to the damage of the motor vehicle. A four-wheeler insurance policy is mandatory in India as per the Motor Vehicle Act 1988.

Vehicle insurance includes all expenses in case of death and damage suffered due to collisions or natural calamities, hospitalization expenses in the event of an accident, legal/financial damages due to third party liability, as well as rider benefits like roadside assistance. Major types of car insurance plans available in India are –

  • Comprehensive car insurance: Insures car damages and third-party liability cover 
  • Third-Party car insurance: Only third-party legal liability cover
  • Pay as you drive insurance: Insurance premiums are decided by the kilometres driven (suitable for people who own more than one car, and each of the vehicles is not used very frequently)

The taxation training in Ahmedabad is a good option to consider if one wants to learn about new policy developments like the ‘Pay as you drive insurance’, that are created as a response to changing lifestyles and newer needs.

Education Insurance 

Securing their child’s future is the biggest concern of a parent. Education insurance policies aid in the same by providing an amount of education cost when the child is ready to indulge in higher education; 18 years of age and above. This is the kind of policy where the ‘policyholder’ is not the same as the ‘insured’. Here, the parent/guardian is the policyholder while the child is the insured. 

Home Insurance 

It covers all expenses in case of damages incurred to a house due to any sort of physical damage caused either due to human-caused accidents or natural calamities. Home insurance covers not only the building or structure but also the contents of the house and any other detached structures that may be a part of it. Home insurances are aimed at providing indemnities for a variety of damages and include- 

  • Fire and Special perils
  • Public Liability cover
  • Building structure insurance
  • Burglary or Theft
  • Personal accident
  • Contents insurance
  • Landlord insurance
  • Tenant insurance

Professional Liability Insurance 

It ensures professionals like lawyers, trainers, tax preparers, accountants, doctors, beauticians and so on, against claims of damage made by clients. It indemnifies professional liability for the policy period only. The cover is provided mainly on a claims-made basis.

The aspect of a retroactive date is also available in the case of Professional Liability Insurance, which means that damages caused before the beginning of the policy period, which is being claimed during the policy period, are also covered.

Knowledge about insurance and its acute parts and mechanisms can be expanded by enrolling in the best tax course provider in Ahmedabad. A deeper understanding will help one to better analyze and choose the perfect insurance needed for a specific case and time. Knowledge so gathered will assist in making wiser decisions when choosing financial safety nets for oneself or clients.  

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Learn Commerce Structures: All About Partnership Firms

When you start a business or a venture one has to make decisions. And…

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When you start a business or a venture one has to make decisions. And business is a whole new process of setting a company or a firm that is just like a newborn baby. A baby has to be taken care of and has to be taught everything and also needs spoon-feeding. A new venture requires a whole lot of effort and partnership is the most major part of it. 

A partnership is a part of a new venture and you as an individual have to decide whether you want to do solo business or you want a helping hand. So, today we will learn about a partnership, different features of partnerships, and different types of partnerships.

If you are a person who wants to start a new venture after B.com course in Ahmedabad. The partnership will be the most important aspect of it. And here you will get to know partnership and how a partnership works? And what is a partnership? And some of its key features.

A partnership is part of a business or a new venture. Also, a partnership is considered to be a kind of business. In this kind of business, minimum of two partners decide to come together for a new venture and share responsibilities as decided by them. In a partnership, there is a formal agreement that takes place between two or more people and they are the co-owners. And in this agreement, all have shared as mutually decided in profits as well as losses. Also, there is no solo decision; the majority of all the partners have to agree to the decision.

In India, all functions and aspects of partnership works or are administered under ‘The Indian Partnership Act 1932’. This law specifies and explains that a partnership is an association between two or more individuals or organizations who have agreed to be co-owners of a venture and they have to share the profits and loss as mutually decided. Also, the share of profits that have been generated from a business should be done under the supervision of the members or on the behalf of other members.

Features Of Partnership

Now that we have understood what a partnership looks like, let’s look at some features that constitute this type of arrangement.

  1. Partners Agreement: In a company or an organization the association of two or more partners is the most important aspect. When you as an individual decide to do a partnership for your new venture all the partner’s agreements will be the prior thing to do. An agreement is the basis of an association between two or more individuals. This is a type of agreement that is always written. Also, some people do an oral agreement evenhandedly. But it is preferable to do a written agreement. Also, it is always that all partners have a copy of their written agreement. The agreement should also be norarised and prescribed stamp duty has to be paid on the same. We have also registered our firm with the registrar of the firm.
  2. Two or more two people: In a new venture it is always suggested that there should be a partnership of two people which have a common goal. In an enterprise, for a partnership, at least two people should be there. Whereas there can be more than two people depending upon what is your goal. 
  3. Sharing of profit: When two people form an association for a common goal so it is a rule that they have to share the profit or loss that is being processed by the company. The partners have to share the profit as well as loss as mutually decided.
  4. Profit Motive: It is very important that when you and your partners start a business that business should be profitable and have a gaining motive.
  5. Correlated Business: In a partnership both the partners are the co-owners as well as an agent of their firm. Any act performed by a partner will affect the other partners and the company. So, this point acts as a test of partners and their partnership.
  6. Limitless Liabilities: Every partner in a partnership has limitless liabilities.  All the partners are jointly and severally liable for all the losses caused by  the firm.

These features are the most important for the person who wants to start a partnership. After commerce course in Ahmedabad, an individual must have learned about the features of a partnership and how it works.

Types Of Partnerships

Partnerships are divided into different categories depending upon the state and at which part of the world business operates. Here we will talk about three common types of partnerships.

  • General Partnership: This type of partnership comprises two or more two people who have formed an association to run a business. In this type of partnership, every partner has an equal right and every partner can exercise their rights. Every partner has the right to control business and also participate in every activity like decision making, management activities, etc. Not only the rights, but there is equal sharing of responsibilities as well as liabilities. Any type of loss, profit, or liability every partner will be held responsible for the same. Even if one partner is sued, the rest of the partners are held accountable. The court or the creditor will hold the partner’s assets. So, people usually don’t opt for this type of partnership.
  • Limited Partnership: In this partnership, includes each of the final and restricted partners. the final partner has unlimited liability, manages the business, and also the alternative restricted partners. restricted partners have restricted management over the business (limited to his investment). they’re not related to the everyday operations of the firm. In most cases, the restricted partners solely invest and take a profit share. they do not have any interest in taking part in the management or higher cognitive process. This group action means that they are doing not have the correct to compensate the partnership losses from their revenue enhancement come back
  • Limited Liability Partnership: In an LLP partnership all the partners have limited liability. Each partner is guarded against alternative partners’ legal and monetary mistakes. A Limited Liability Partnership is similar to a Limited Liability Company (LLC) but different from Limited Partnership and a general partnership. We have to register LLC to registrar of companies under LLP Act to start the same.
  • Partnership At-Will: Partnership at Will can be defined as a partnership where no clause has been mentioned about the expiration date of the partnership. Under Section 7 of The Indian Partnership Act 1932, Two clauses have to be fulfilled for Partnership At Will
  1. The partnership agreement should not have any fixed expiration date.
  2. No particular determination of the partnership should be mentioned.

Therefore, if the duration of the partnership has been mentioned in the agreement that will not be considered Partnership At Will. Also, If the firm has initially fixed an expiration date but continues or is operational after the given date then that is considered Partnership At Will.The technicalities of Partnership can only be learned from a good institute. Like the commerce course in Ahmedabad offered by H.L College of Commerce.

Advantages of Partnership

  • In a partnership, there is an easy formation that can be done through an oral or written agreement
  • In a new venture, there is a large use of resources instead of  being a sole proprietor you can be share and contribute the capital
  • There is flexibility where you can make any changes ad required to achieve the motive
  • All the loss and profits are equally shared and burden so no one individual is a loss or profit
  • A partnership firm has a combination of new skills because there is the advantage of knowledge, skill, talents and experience.

Disadvantages Of Partnership

  • There is a limited amount of capital
  • There are unlimited liabilities
  • There is difficulty in transferring shares because the funds can only be transferred once the agreement is done
  • A partnership business could face dissolution just in case of death, economic condition or mental or physical sickness of active partners
  • A partnership has limited business sizes and it barely has its existence of the law so there is a less public faith
  • In a partnership, some dispute can occur in terms of authority and the profit so this create problems between the partners and for the business
  • With a lack of prompt decision the partner’s square measure needed to make consequences before creating any call within the partnership business.All the partner ought to move to debate the matter of business. therefore this takes a very long time to form a call and conjointly delays it
  • There is a risk of implied authority that the two active partners are the decision-makers of the business, but there is no certainty if the partner is deciding for the betterment of the business. There is a risk whether the partner is deciding for his or her benefits

Conclusion

A partnership is the best way to do business. As it creates opportunities for any two or more individuals and this brings the best out of it. Two or more minds with creative and mind-blowing ideas give outstanding performance and results. The partnership is a benefit for those who have a proper written agreement because that will help in doing a proper and well-structured business with equal responsibilities and liabilities.

Part – iv- Learn Commerce structures IV: Public Limited Company
Part – iii – Learn Commerce Structures III: Private Limited Company
Part – ii – Learn Commerce Structures II: Proprietorship Firm

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Accounting Software For Small Business

Advanced Enterprise Resource Planning(ERP) systems can transform the way you run your business. No…

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Advanced Enterprise Resource Planning(ERP) systems can transform the way you run your business. No matter what service you provide or whatever industry you might be in, proper software can help you manage your processes, help you with communication and also enhance the flexibility you provide to your customers.

ERP is a system that takes care of every possible aspect of your business be it assessing, reviewing, or improving any aspect of your business. ERP keeps you as informed as possible about your business.

So, where do you start?
Considering factors like cost, advancement, elaborate features isn’t unusual while choosing an EPR ERP system. However, you have to be careful so that you don’t end up with a system that has a lot of fancy functionalities but of no use to your business.

You can consider enrolling in a tally institute in Ahmedabad to learn more about accounting processes. It offers classes on various aspects of accounting including accounting software.

A Business Management Software, What Is That?
An application or a set of programs that help businesses support, improve and automate their processes is called a business management software by definition. It is a tool that is built to meet all the requirements of business processes in the most effective way possible.

Features
General features to look for in a business management system:

  • Project & task management
  • Time management & calendar management 
  • Document sharing & collaborating with various other organisations 
  • Sales & CRM
  • Budget management, invoice, and expense management
  • Business intelligence 
  • Accounting and financial reporting
  • Resource management

What Is Accounting Software?
Accounting is a solution to process accounting transactions and manage accounts mainly used by business owners, accounting professionals.

The process of recording, analysing, and interpreting financial transactions and information is called business accounting. In this way, a business keeps tracks of its operations which can become very difficult sometimes and that is where accounting software steps in.

Tally training in Ahmedabad is offered in a lot of different institutes there and it will surely help you know more about these software and accounting processes in details.

Accounting software helps simplify the processes, giving business owners more time to focus on the administration and execution of their strategies.

  • Task Automation
    Entering data manually can be tedious and also keeps a lot of space for errors. Accounting software helps you keep manual entry to a minimum and thus increases efficiency. Good software requires you to enter the data just once and extracts that data every time required in the future. 
  • Taxes Made Simpler
    Manually keeping track of all your transactions, calculating all your dues and filling all the returns can be very tedious and painful. Accounting software makes everything a lot easier. Return reports are automatically created and you can file them directly via a third-party app.
  • Easily Accessible Data
    Accessing your financial data anywhere and at any time is even easier now. Cloud accounting software helps you access your data whenever you wish. A suitable device, internet and a browser are all you need. 
  • Data Loss Is Reduced
    Backing up data is very essential especially for important documents. Without a proper back up you could easily lose them but doing it manually is not feasible. Accounting software takes care of that too. They organise and store the data in a way so that you can retrieve them whenever you wish to. Cloud accounting systems back up your data regularly to prevent data loss.

Why Choose Accounting Software?
Being the business owner of a small business, it can be very hectic and stressful to manage a lot of things together at one point in time. It is a huge challenge for a business owner.

Business software is essential in the journey of business growth. It helps you manage complexities and also improves the performance hugely.

A lot of choices may be available at the market but small business accounting software will be the most recommended considering all the needs and requirements along with the business. This software come with a complete solution that manages every aspect of the business like billing, GST, inventory etc in one single software.

This avoids situations of buying separate software and wasting time and resources on maintaining each one separately. It gives you a complete view of the business which in turn helps you make smart business decisions.

A Few Tips To Keep In Mind While Picking The Right Accounting Software For Your Business 

  • The accounting software should have a free trial to allow you to see through all of the features before actually investing in it
  • Accounting itself is complicated and if the system that handles it is complicated too, it defeats the purpose. It should be easy to use
  • The system should have multi-user access
  • Sending out recurring invoices and payments reminders call for automation in the system
  • Online accounting systems also require data security. 
  • You should keep in mind to look for a system that provides you with the maximum features you need for your business at a reasonable price 
  • Your system should also be able to give you technical support in case you need some while working on something

Examples Of Accounting Softwares For Small Business
Accounting software is essential for small businesses. It not only helps in ease of managing an account but also helps in making decisions. At no cost, you can try them for free.

TallyPrime is a complete business management software for small businesses like yours. It provides a complete solution from accounting, banking to payroll in a single software. Institutes provide tally ERP course in Ahmedabad. Enrolling on the same will give you detailed knowledge about these.

The following are the few benefits of trying accounting software for free.

  • Easy accounting and managing of books
  • Printing professional-looking invoices in a jiffy
  • Better control and easy track of payables
  • Business information available easily since the reports are auto-generated
  • Books are accurate and complete
  • Easy management of tax compliance
  • Accurate returns in the preferred format
  • Optimum inventory and stock level
  • Better control of cash flow and the like.

Some examples of free accounting software:

  1. Wave
  2. ZipBooks
  3. Akaunting
  4. SlickPie
  5. GnuCash
  6. CloudBooks
  7. Zoho Invoice
  8. NCH Express Accounts

Conclusion
Now that you have a basic idea about accounting software, it’s time to try out these free software and see which one suits your purpose the best. If you want to go for the paid ones make sure you know what you are investing in because a waste of money is not something you would want, right?

Proper software can lift a heavy burden off of your shoulder and help you in a lot of ways so that you can focus on other important aspects of your business.

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All About Depreciation Bookkeeping

Finances are an inherent part of our everyday lives and on an everyday basis…

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Finances are an inherent part of our everyday lives and on an everyday basis – we do come across the processes of depreciation, appreciation and other related processes in different forms. These processes may sound complicated to comprehend, but once we understand them and the outline of their functioning, we may conclude that they are actually simple and extremely essential.

Before we delve deeper into the processes of depreciation, we must go through the concept of bookkeeping. Bookkeeping is the backbone of a stable and well running business, as it involves keeping records of the financial affairs of the business. This process must be done judiciously with care and concern, as if it is taken lightly, it may circumstance in financial muddles and other such confusion. 
The skill of bookkeeping is not easily learnt, and engaging in official and professional training for the same is beneficial – both for the individual and her respective business. To further understand the concept of bookkeeping as a whole, an individual can consider enrolling in a tally class in Ahmedabad.

What Is Depreciation?

Before we understand the process of depreciation as a whole, we need to don the economic eyeglasses and understand the concept of a fixed asset – as depreciation revolves wholly and solely around this concept. 

A fixed asset is most often defined as a long-term asset used by a company/firm that holds a lasting period for over a year. These assets include land, big machines etc. – and depreciation involves constant decreasing of a specific/recorded cost on this very asset.

For instance, let us say that a firm purchases a steel grinding machine with a cost of Rs 400,000 and the expected working period of this specific machine is eight years, then it can be said that the firm depreciates the asset held under this process of depreciation at the cost of Rs 50,000 per year. 

Thus, we can infer, from the given example, that it is the cost of the depreciation asset divided by the number of years the asset is put into use, which is considered as a certain ‘depreciative cost’ every year. (From the given example, we can infer that the asset is divided by eight years as the machine is used for eight years). 

The principles and nuances of depreciation can be levied on every other fixed asset except land, as land is a particular asset whose value only appreciates with time and usage. The above description is a brief overview of depreciation, and further insight into depreciation can be gained in a tally computer course, to be considered in Ahmadabad, which the individual must consider attending.

Calculation Of Depreciation 

There are multiple methods, using which depreciation can be calculated with both ease and efficiency. Yet, before we engage with the calculation process, there is a certain checklist of factors that we must keep in our mind, which are as follows – 

  1. Life of the asset – The ‘life’ of the asset, or to be more specific, the ‘productive’ life of the asset refers to a certain period beyond which the mentioned asset is not considered useful. The mentioned asset loses its cost – affectivity post this period, and the operation of this very asset cannot be continued judiciously. 
  2. Salvage Value – After the mentioned asset discards its cost-effectivity and is no longer useful for the company, losing its ability to contribute towards the functioning of the operation productively, the firm may consider selling the asset at a lower amount. This ‘lower amount’ is defined as the salvage value of the mentioned asset.
  3. The overall cost of the asset – As we engage with the process of depreciation, it is essential for us to keep in mind, the overall cost/total cost of the asset we are working with. This ‘overall cost’ does not merely include the cost of the asset, but it also includes production/set up expense, transport cost – so on and so forth. 

A further and more thorough understanding of these factors can be obtained in the tally computer course in Ahmedabad. Attending this course can surely prove to be a knowledgeable and enriching experience for the individual who poses interest in the field of accounting, and specifically in the field of bookkeeping. 

Finally, what is depreciation bookkeeping?

Depreciation Bookkeeping

After we thoroughly comprehend the processes of depreciation and make a checklist of certain, specific factors to keep in mind while engaging with this process, we must now move onto the main topic of depreciation bookkeeping, which is, in simpler words, the accounting/recording of the amount of depreciation suffered. 

  1. Straight Line Depreciation Method – It involves the simple placement of a constant rate of depreciation every year, over the life of a fixed asset. This is not merely the easiest, but the most straightforward method of depreciation calculation which can also be classified as the method most commonly and easily used by companies. 

Formula – Annual Depreciation expense = (Asset cost – Residual Value(5% of original cost of asset)) / Useful life of the asset
2. Written Down Value Method: Most of the companies are using the written down value method. The main reason of this depreciation method is that the actual realizable cost of the asset can be derived from this method of depreciation. In this method of depreciation, depreciation on assets is higher in the initial period and lesser in later years. This is because, asset value will be reduced more in the initial years and there after, maintenance cost increases and value of the asset will be decreasing but with a lesser amount.

The above methods of depreciation bookkeeping are just a brief insight into the vast field of accounting, knowledge about which can be furthered if the individual enrolls in the tally course in Ahmedabad. 

Enrolling in the mentioned class is highly recommended, as professional insight into the processes of depreciation and related methods holds great water in the long run, benefitting both the individual and her firm as a whole, ensuring greater stability/smooth financial functioning of the firm, development of better customer relations, and most importantly, complete internal satisfaction to the person running/supervising the finances and the overall working of the firm.