Direct tax is a type of tax in which the same entity who bears the burden of the tax also pays it to the government. There is no other party involved other than the taxpayer and the IT authority. You cannot transfer your direct tax obligations to another individual or entity. In India, tax authorities …
Post Type Archives: Glossary
Direct Transfer
The government of India implemented the direct transfer scheme to enhance the transfer of government subsidies in the country. The main objective is to improve the delivery system and revamp the existing procedures in welfare schemes. In simple terms, direct transfer aims to directly transfer subsidy benefits from various Indian welfare schemes into the beneficiaries’ …
Disclosure
Wondering what is disclosure? This term refers to a statement that reveals relevant or useful information about a company or business. It is issued by a company for the public in general or specifically for its investors. The disclosure definition as per Cambridge Dictionary is ‘the act of making something known or the fact that …
Diversification
Diversification is a strategy that involves spreading investments across different assets, sectors, or categories to reduce the impact of potential losses. For example, you may diversify your portfolio by investing in stocks, bonds and real estate across different industries and geographies to mitigate risk. Moreover, you can diversify your investment in just mutual funds by …
Divestment
Divestment or divesting is the opposite of investment. It refers to the process of selling assets, divisions, or investments in a company to maximise the parent company’s value. Generally, a company proceeds with divestment when a division or asset of a subsidiary is not performing as expected. This process helps streamline the operations of a …
Dividend
If you are a new investor in the stock market, you must be wondering what is a dividend. Simply put, it is the portion of profits and earnings the company disburses to its shareholders. You get these earnings when a company generates a profit and decides to pay the shareholders rather than retain it. The …
EBITA
EBITA, commonly known as Earnings Before Interest, Taxes and Amortisation. It is a measure of a company’s operating performance that shows its profitability before considering: Interest Taxes Non-cash expenses such as amortisation EBITA is used to assess the efficiency and profitability of companies and compare firms operating in similar segments.
Export Duty
Wondering what is export duty? Export duty is the tax levied when a country exports goods to another country. It is a percentage of the total value of goods and this percentage depends on various factors like the type of goods, size, weight, etc. The government imposes these charges for the benefit of domestic establishments. …
Finance
Finance is a broad term used to refer to creating and managing money in the form of investments, debt or loans, securities and more for individuals, companies and the government. Government policies regarding currency, repo rates, the budget and the rate at which loans are given out by financial institutions all come under finance. Its …
Financial Crisis
A financial crisis is when the value of assets experiences a sharp decline. Businesses and customers struggle to make debt repayments, and financial institutions experience liquidity shortages. In such cases, investors sell their assets, and the public withdraws funds from the banks due to the fear of a decrease in the value of assets. A …