Category: ca students

New stipend rate for CA students

Good news for CA students.. Finally ICAI has opened its eyes towards lower stipend received by CA students. On 10th september, 2014, ICAI has proposed to increase the stipend of CA students. This is the new table in regulation no. 48 of the chartered accountant regulations, 1988.   Place of service of articled assistant During 1st year of training During 2nd year of training During remaining period of training Cities having population of 20 lacks or more Rs. 2000 Rs. 2500 Rs. 3000 Cities having population of 4 lacks and above but less than 20 lacks Rs. 1500 Rs. 2000 Rs. 2500 Cities having population of less than 4 lacks Rs. 1000 Rs. 1500 Rs. 2000 Explanation: No stipend will be payable for excess leave. For the purpose of population, population figure should be taken from the last published census report of india. If student has worked from more than one principal CA, he can add period of previous CA for calculating stipend limit....

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Analysis of pass percentage of CA Final Exams-May2013, Nov 2013, May 2014

Result of CA final exam was declared yesterday. Congratulations to whom who have passed. The students who have not crossed ,don’t loose hope. Try again and do your best. As we all know, CA exam is one of the toughest exams. But the sad things is that ICAI is not maintaining result percentage criteria for many years. When result is declared, we ask each other about pass percentage. But when we go for interview, interviewer does not ask us about pass percentage. You are CA and that’s enough. Of course, attempts are counted. But in some cases, when result percentage is high, many students are crossed out and when result percentage is low, eligible students who are more brilliant than former can’t cross the exam. So it all depends on luck. As we says always. So according to me, ICAI should try to maintain average rate of pass percentage. So that, eligible will not suffer. In this article, I have tried to analysis previous three exams results of CA final, from May 2013 to May 2014. May 2013   Group Attended Passed Passing % Both 27556 2764 10.03% Group 1 45822 6319 13.79% Group 2 50354 9389 18.65%   Nov 2013 (Lowest Result in last 23 Years) Group Attended Passed Passing % Both 32536 1013 3.11% Group 1 51728 2932 5.67% Group 2 54786 4026 7.35%     May 2014...

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Easy way to understand capital gain tax india

What is capital gain tax? Capital gain is one of the head of income tax . Capital gain tax is levied on gain on transferring assets. Asset must be included in definition of capital asset as per section 2(14). Definition: “Capital asset” means Property of any kind held by an assessee, whether or not connected with his business or profession, but does not include the following: 1.     Stock in trade, raw materials, and consumable stores held for the purposes of business or profession. so if you are selling stock, capital gain tax will not arisen. 2.     Personal effects of movable nature, such as furniture, utensils, and vehicles held for personal use by the assessee or any dependent member of the family: Kindly note that transfer of personal effects like jewelry, archaeological collections, drawings, paintings, sculptures or any work of art is taxable. 3.     Agricultural land in India which is situated in any rural area.           Specified area means  Any asset situated within the jurisdiction of municipality and its population should be less than 10000 as per last census. If not situated within jurisdiction of municipality, it should be situated under certain kilometers specified by central government.            So tax is not levied on transfer of rural agricultural land.      4. Gold bonds issued by government of India including gold deposit...

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Leave salary tax treatment

In this article,I have tried to explain the treatment of leave salary and provident fund in income tax act. Leave salary: when employee receives cash equivalent in respect of earned leave(leave not taken) , it is called leave salary. treatment of leave salary received by government employees and non government employees are different.   Leave salary earned by any employee during the period of service is taxable. government employees:   Leave salary received by government employees at the time of retirement is exempt.   Non-government employees:   Leave salary is exempt from tax up to least of following. Rs. 3,00,000 Amount actually received. cash equivalent of the leave to the credit of the employee at the time of retirement. 10 month’s salary on the basis of last 10 month’s average salary.   How to calculate cash equivalent? Cash equivalent should be based on last 10 months average salary. while calculating average salary consider salary of the month of retirement also. 30 days credit for each completed year of service should be given. salary means salary, DA and commission as a percentage of turnover achieved by the employee. Example: Mr. Anup receives Rs. 52000 as leave salary at the time of retirement on 31st July, 2013. His basic pay was 4000 p.m. from 1st April, 1988. Leave to his credit is 24 months on the basis of 45 days entitlement...

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All about Service tax Invoice/Bill

Service provider issues service tax invoice after rendering of service. There is separate rule for issuance of service tax invoice:   Time Limit of issuance of service tax invoice: Invoice must be issued within thirty days from the date of completion of taxable services or receipt of payment, whichever is earlier. For banking and other financial services, time limit is 45 days. For continuous supply of service, invoice should be issued within 30 days from the date of completion of each event which requires service receiver to make payment to service provider.   Meaning of completion of taxable services: completion of services means physical part of services and also auxiliary part like measurement, quality testing etc is completed. So services are completed after completion of all the necessary activities of services. This does not include irrelevant reasons. Kindly note that issue of invoice is not required when small payment up to Rs. 1000 has been received. Thus this small amount is not covered under point of taxation rules.   Details on Invoice: As per rule 4A (1) Invoice or bill should be signed by authorized person and should be serially number and date should be mentioned. Following details should be shown on invoice 1.       Name, address and registration number of person providing taxable services. 2.       Name and address of person receiving taxable services. 3.       Description and value of taxable...

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