Purchase Consideration – Meaning & Methods

In case of amalgamation, purchase consideration is the agreed amount which transferee company (Purchasing company) pays to the transferor company (Vendor company) in exchange of the ownership of the transferor company. It may be in form of cash, shares or any other assets as agreed between both the companies. For example, XYZ Ltd is purchasing…


Income tax slab for Financial Year 2017 – 18

The below given income tax slab is applicable for financial year 2017 – 18 and assessment year 2018 – 19. Income tax slab for financial year 2017 -18 & assessment year 2018 – 19 (Amounts are in Indian rupees) For Men and Women: Rate Men Women Exemption limit Up to 2,50,000 Up to 2,50,000 5%…


Meaning of Net Salary

Net salary, also known as ‘Take home salary’ is the difference of gross salary and deductions from gross salary.  Put it simple, some amount of money is deducted every month from the salary of employees as a part of retirement benefits, taxes and statutory provisions. Salary remained after these deductions is known as net salary.…


Demerger – Meaning & Purpose

Demerger refers to corporate strategy in which a company splits into more than one entity. Converse to merger, it is done to operate each of the segments smoothly, dissolve one of the segments to raise capital or to focus on core business. Purpose: In most of the cases, demerger takes place when management decides to…


How is income tax calculated?

Income Tax: Income tax is amount of tax levied upon income of an individual earned during a financial year. Taxable Income: Taxable income computation is first step in calculation of income tax.  Income tax is calculated on annual taxable income and deduct every month from income of an individual on average basis. Total Income is…