New Tax slabs of Income-tax.

              Mr.Arun Jetli our finance minister present historical budget for 2017-2018.and our new tax slab for assesment year 2018-19 is below,

          There is Including below:

Surcharge= 10% of total income tax,where total income exceeds 50 lakh (to 1 crore),

                     15% of total income Tax , where total income exceeds 1 crore

Cess  = 3% of [total Income Tax + surcharge(if applicable)] 

    here is some releaf for small Taxpayers,

For F.Y.2017-18:

    if  individual's income is below 3.5 lakh than,Income Tax Exemption limit for FY 2017-18, is up to Rs. 3,00,000 (only for Individual) because of tax rebat of 2500 rs. (u/s 87A).

Exmaple of tax calculatting:
- If Taxable Income is 12,00,000 rs. Than tax is,

                         0 to 2,50,000   = 00

           2,50,000 to 5,00,000     =12,875  (05.15%)

           5,00,000 to 10,00,000   =1,03,000 (20.60%)

         10,00,000 to 12,00,000   =61,800    (30.90%)

                       TOTAL  TAX    =1,77,675 Rs.

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   Your income is taxed according to income tax slab rates. Tax slabs have not change for financial year  2014-15 (assessment year AY 2015-16). Income tax slab rates are same for these 3 financial  years – FY 2014-15 , FY 2015-16 and  FY 2016-17.(We also called Assesment yr.2015-16 , 2016-17, 2017-18.).

  There is Including below:

 Surcharge= 15% of total income Tax , where total income exceeds 1 crore

 Cess  = 3% of [total Income Tax + surcharge(if applicable)]

                            

    here is some releaf for small Taxpayers,

For F.Y.2016-17:

if  individual's income is below 5 lakh than,Income Tax Exemption limit for FY 2016-17, is up to Rs. 2,70,000 (only for Individual) because of tax rebat of 2000rs. (u/s 87a).

For F.Y.2017-18:

if individual's income is below 5 lakh than,Income Tax Exemption limit for FY 2017-18, is up to Rs. 3,00,000 (only for Individual) because of tax rebat of 5000rs. (u/s 87a).

Exmaple of tax calculatting:

- If Taxable Income is 12,00,000 rs. Than tax is,

                         0 to 2,50,000   = 00

           2,50,000 to 5,00,000     =25,750    (10.30%)

           5,00,000 to 10,00,000   =1,03,000 (20.60%)

         10,00,000 to 12,00,000   =61,800    (30.90%)

                      TOTAL  TAX    =1,90,550 rs.

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explore below topics to increase your knowledge about "Accounting & Taxation"

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What is the importance of Accounting?

Knowledge about " Accounting basic".

How to save Tax by use section 80C?

Accounting basic

   first of all I tell one story of one grocer Mr.modi.He starts her grocer shop.He has research his idea and prepaired a business plan and that documents like verious lisence etc.Mr.modi decides that the name for his corporation will be "All in one store".and keep permits and government identification numbers (like pan card,gst no.etc.) that will be needed for the new corporation.

         Mr.modi  is a  hard  worker  and a  smart man,  but admits he is not comfortable with matters of accounting. He assumes he will use some accounting software, but wants to meet with a professional accountant before making his selection. He asks his businessmen friend to recommend a professional accountant    who    is  also  skilled  in  explaining  accounting  to  someone  without  an accounting background. He wants to understand the financial  statements and wants to keep on top of his new business.His banker recommends Mr.Shah, an accountant who has helped many of the small businessmen.
         At his  first  meeting  with  Mr.shah,  modi asks  her  for  an  overview  of accounting, financial statements , and the need for accounting software. Based on modi's business plan, Mr.shah sees that there will likely be thousands of transactions each year. She states that accounting software will allow for the electronic recording, storing, and retrieval of those many transactions. Accounting software will permit modi to generate the financial statements and other reports that he will need for running his business.

        modi  seems  puzzled  by the term  transaction, so Mr.shah gives him three  examples of transactions that Direct Delivery, Inc. will need to record:

   it seen expenses transections like ,he needed  a  vehical for home  delivery  of  grocery.so that it's maintenense and fual expenses,driver's salary etc.,rent expenses for shop,electric exp.,advertizing exp....

There is purchase a/cs.it's recorded purchase from hole salers.

There is sale a/c.it's recorded sale to daily customer.

With thousands of such transactions in a given year, modi is smart to start using accounting software right from the beginning. Accounting software will generate  sales  invoices  and accounting  entries simultaneously , prepare statements for customers with no additional work, write checks, automatically update accounting records, etc.

        By  getting  into  the  habit  of  entering  all of the day's business transactions into his computer, modi will be rewarded with fast and easy access to the specific information he will need to make sound business decisions.  Mr.shah  tells  modi  that  accounting's     "transaction  approach"  is  ,   reliable  , and  informative. She has worked with other small business owners who think it is enough to simply "know" their company made1,00000rs.e year (based only on the fact  that  it  owns 1,00,000rs.it  did  on 1st april)are the people who start off on the wrong foot and end up in Mr.shah office for financial advice.

      if modi enter  all of  Delivery's transactions into his computer, good accounting software will  allow  hisprint  out his financial statements with a click of a button. In Parts 2 through 7 Marilyn will explain the content and purpose of the three main financial statements:

1.Income Statement
2.Balance Sheet
3.Statement of Cash Flows

let's learn it more,

1.INCOME STATEMENT
       

       Modi points out that an income statement will show how profitable"all in one shop" has been during the time interval shown in the statement's heading. This period of time might be a week, a month, three months, five weeks, or a year—Modi can choose whatever time period he deems most useful.The reporting of profitability involves two things: the amount that was earned(revenues) and the expenses necessary to earn the revenues. As you will see next, the term revenues is not the same as receipts, and the term expenses involves more than just writing a check to pay a bill.

A. Revenues

               The main revenues for shop are thesale of grocery to daily customer. Under the accrual basis of accounting (as opposed  to the less-preferred cash method of accounting), revenues are recorded when they are earned, not when the company receives the money. Recording revenues when they are earned is the result of one of the basic accounting principles known as the revenue  recognition principle.


For example,

if modi sale 1,000 packets of salt in December for 10rs. per packet, he has technically sale totalling 10000rs. for that month. 
He sends invoices to his customer for these thing and his terms require that his customer must pay by January 10. Even though his customer won't be paying Direct Delivery until January 10, the accrual basis of accounting requires that the 10000rs. be recorded as December revenues, sincethat is when the delivery work actually took place. After expenses are matched with these revenues, the income statement for December will show just how profitable the company was in delivering parcels in December.

When Modi receives the 10000rs. worth of payment checks from his customers on January 10, he will make an accounting entry to show the money was received. This 10000rs. of receipts will not be considered to be January revenues, since the revenues were already reported as  revenues in December when they were earned. This 10000rs. of receipts will be recorded in January as a reduction in Accounts Receivable. (In December Modi had made an entry to Accounts Receivable and to Sales.)

B.EXPENSES

     Now Mr.shah turns to the second part of the income statement—expenses.there is two type of expenses 

1. direct exp.     
       In this case which money is paid for purchase of grocery from hole seller,wages expenses etc. are direct expenses.
    Mr.modi purchase some goods of 25000rs. at 8,december from Patel treders and due of payment is 10,january. then purchase a/c of december is debited  25000rs & account payable is credited 25000rs..when he pay 25000 (at 10,january) then,purchase a/c is credited 25000 & account payable is debited 25000


 2.indirect exp.

        In this case which money is paid for electic bill,fual expens,telephone bill,salary paid to emploies,shop maintain exp.etc. are indirect expense
         If shop rent is 8000rs/month. then last date of every month 8000 is debited to rent exp. a/c & credited to account payable.and when he actualy paid, this entry is reverced

2.BALANCE SHEET 

Mr.Shah moves on to explain the balance sheet, a financial statement that reports the amount of a company's (A) assets, (B) liabilities, and (C) stockholders' (or owner's) equity at a specific point in time. Because the balance sheet reflects a specific point in time rather than a period of time, Mr.Shah  likes to  refer to  the  balance  sheet as a  "snapshot" of a company's financial position at a given moment. For example, if a balance sheet is dated MARCH 31, the amounts shown on the balance sheet are the balances in the accounts after all transactions pertaining to March 31 have been recorded.
let's I explain part of Balance sheet

(A) Assets

Assets are things that a company owns and are sometimes referred to as the resources of the company.Modi readily understands this—off the top of his head he names things such as the company's vehicle,its cash in the bank, all of the stokes he has on hand, . Mr.Shah nods  and  shows Modi    how     these are reported  in accounts called Vehicles, Cash, Supplies,and Equipment. She mentions one asset Modi hadn't considered—Accounts
 Receivable. If Modi sale some goods, but isn't paid immediately for the bill, the amount which is recived letar an asset known as Accounts Receivable.

Prepaids

MR.Modi brings up another less obvious asset—the unexpired portion of prepaid expenses. Suppose "ALL IN ONE STORE" pays 12,000rs. on March 1 for a six-month insurance premium on its delivery vehicle. That divides out to be 1000rs. per month  Between March 1 and March 31, 1000rs. worth of insurance premium is "used up" or "expires".The expired amount will be reported as Insurance Expense on March's income statement. Modi asks Mr.Shah where the remaining 11,000rs. of unexpired insurance premium would be reported. On the March 31 balance sheet, Mr.Shah tells him, in an asset account called Prepaid Insurance.

Other examples of things that might be paid for before they are used include supplies and annual dues to a trade association. The portion that expires in the current accounting period is listed as an expense on the income statement;the part that has not yet expired is listed as an asset on the balance sheet.

(B) Liabilities

The balance sheet  reports store's   liabilities  as of  the  date  noted in  the  heading of the balance sheet. Liabilities are obligations of the company; they are amounts owed to others as of the balance sheet date. Mr.Shah gives Modi some examples of liabilities: the loan he received from his aunt (Notes Payable or Loan Payable), the interest on the loan he owes 
to his aunt (Interest Payable), the amount he owes to the supply store for items purchased on credit (Accounts Payable), the wages he owes an employee  but hasn't yet paid to him (Wages Payable).


(C) Stockholders' Equity (owner's equity)

If the company  is  a corporation, the  third  section of  a  corporation's balance sheet is Stockholders'  Equity.(If the company is a sole proprietorship, it is referred to as Owner's Equity.) The amount of Stockholders' Equity is exactly the difference between the asset amounts and the liability amounts. 
so that, 
  
ASSET= LIABILITIES + STOCKHOLDER'S EQUITY (OR OWNER'S EQUITY)

As a result accountants often refer to Stockholders' Equity as the difference (or residual) of assets  minus  liabilities. Stockholders'Equity  is  also   the "book value" of the corporation.
Since the corporation's assets are shown at cost or lower (and not at their market values) it is important that you do not associate the reported amount of Stockholders' Equity with the market value of the corporation.(Hence, it is a poor choice of words to refer to Stockholders' Equity as the corporation's "net worth".) To findthe market value of a corporation, you should obtain the services of a professional familiar with valuing businesses.

  Within the  Stockholders'  Equity  section  you may  see  accounts such as Common Stock, Paid-in Capital in Excess of Par Value-Common Stock, Preferred Stock, Retained Earnings, and Current Year's Net Income.

The account Common Stock will be increased when the corporation issues shares of stock in  exchange  for cash  (or some other asset). Another  account  Retained  Earnings  will increase when the corporation earns a profit. There will be a decrease when the corporation has a net loss. This means that revenues will automatically cause an increase Stockholders' Equity  and  expenses  will  automatically  cause a  decrease  in Stockholders' Equity. This illustrates a link between a company's balance sheet and income statement.

3.Statement of Cash Flows

       The third financial statement that Modi needs to understand is the Statement of Cash Flows.This  statement   shows  how   "all in on store"'s  cash amount has changed during the time interval shown in the heading of the statement.Modi will be able to see at a glance the cashgenerated and used by his company's operating activities, its investing activities, and its financing activities. Much of the information on this financial statement will come from store's balance sheets and income statements.


The three financial reports that Marilyn introduced to Joe—the income statement, the balance sheet, and the statement of cash flows—represent one segment of the valuable output that good accounting software can generate for business owners.

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explore below topics to increase your knowledge about "Accounting & Taxation"

What is the importance of Accounting?

What is new slab of Income Tax(AY.2018-19)?

How to save Tax by use section 80C?

Accounting Importance

                                 Accounting is most important in any Business in the world. Histry of Accounting is million years.In holy book"RAMAYANA",When "BHAGWAN RAMA" was came to ayodhya-nagari after 14 year of "VANVAS" and enter in ayodhya first of all he ask to his younger brother BHARAT about last 14 year's account of treasury(Rajkosh) of ayodhya.so that we can say that importance of accounting is very huge from many years,

I just told you what the purpose of accounting was, let's talk about  important of accounting. Do you remember being a child, and it seemed that as soon as you were given money it was gone?'If company is running this way....
 'Now, can you imagine how well a company could run if they had no idea where their money went? I feel safe in predicting that the majority of companies out there would be in ruins and so would the entire economy. In order to even have a hope of success, a company has to know where their money is coming from and where it's going out. That's the importance of accounting and of the financial statements.'
Now, I explain "What is financial statements?",
         There are four main financial statements that are created in the accounting cycle. And just so you know, they are created in a specific pattern. The first financial statement is the income and expenses statement, which tells how much money was made or lost in a given time period. Next is the statement of retained earnings, which tells how much money that was made was reinvested into the company. The third statement is the balance sheet. The balance sheet is the financial statement that lists all the assets, liabilities, and owner's equity of the company. It's important to note here that the accounting equation is also known as the balance sheet equation. The last financial statement is the statement of cash flows, which tells how much money came in and was paid out in a specific time period.'

   

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explore below topics to increase your knowledge about "Accounting & Taxation"

---

Knowledge about " Accounting basic".     

What is new slab of Income Tax(AY.2018-19)?

How to save Tax by use section 80C? 

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