What is an Income Statement? An income statement represents the financial status of a company for a given period, which may be quarterly, monthly, annual, or any other specific time. It reflects the net profit and loss of organizations and their performance which can help in managing their market value. As such, it is also …
Post Type Archives: Glossary
Indirect Tax
While calculating your income tax, you may wonder, what is indirect tax? As you can guess, the indirect tax meaning is opposite to that of direct tax. Indirect tax refers to the taxes that government imposes on goods and services. This means you can transfer your indirect tax obligations to another individual or entity. Moreover, …
Inflation
Inflation means the hike in the cost of goods and services in a particular economy over time. For instance, what you could buy with ₹1,000 in 1985 took approximately ₹13,000 in 2021. This decrease in purchasing power is called inflation. Inflation is a significant economic factor that impacts various sectors such as food, fuel, and …
Input Tax
What is input tax? Input tax is the tax paid by a registered dealer or business on the purchases made under that name. The central tax, state tax and integrated tax levied on the supply of goods or services of the registered person or business is the input tax. GST, SGST and IGST are the …
Insurance
What is Insurance? Insurance is a contract between you (the policyholder) and an insurance company (the insurer). This contract provides you with financial protection against potential losses or risks. The agreement states the terms of when and how much premium you must pay to avail of such protection. In addition, it includes the circumstances that …
Interest Rate
What Does it Mean? Interest rate is the percentage amount of charge applied to the principal amount by the lender, which means that the total money borrowed includes the principal + interest percentage of the principal. The lender can be banks or any financial institution. Bank charges can be either fixed or variable throughout the …