Public Finance

Back-to-Back Loans

June 9, 2017

Back-to-Back loan is also known as Parallel Loan or Credit Swap Loan. To understand this concept we need to imagine the following: An Indian Parent company having a subsidiary abroad (Suppose US) A Foreign (US) Parent company having a subsidiary in India We assume that the foreign parent company...

Progressive, Regressive and Proportional Taxes

April 2, 2017

There are three kinds of the taxes on the basis of their quantum / ratio of charging viz. regressive tax progressive tax and proportional or flat tax. Regressive Tax A regressive tax is the one in which tax rate decreases as the amount subject to taxation increases; and the...

Tax Information Network

November 23, 2015

On behalf of the Income Tax Department, the National Securities Depository Limited (NSDL) established Tax Information Network (TIN). This is a source of the countrywide tax related data.  The basic idea behind establishing TIN was to modernise collection, processing, monitoring and accounting of direct taxes using information technology. TIN...

Incremental Budgeting

November 23, 2015

Incremental budgeting is a way of budgeting where the future allocations are based on current allocations. The new budget is prepared by increasing or decreasing the current budget by certain amounts or percentages. The increased amounts are arrived through a fairly simple calculation and the scope for political conflicts...

Fiscal Policy

November 19, 2015

Fiscal policy refers to all the means which influence the income and expenditure of the Government. Since most of the government income comes from taxation and most of the government expenditure goes to public expenditure, these two viz. taxation and public expenditure are main fiscal policy instruments. Any government...

Large Taxpayer Unit

December 22, 2014

A Large Taxpayer Unit (LTU) is a self-contained tax administration office under the Department of Revenue.  It acts as a single window clearance point for all matters relating to central excise, income tax/corporate tax and service tax. Entities would be able to file their excise return, direct taxes returns...

Money Laundering

December 11, 2013

Money laundering is the process by which large amounts of illegally obtained is given the appearance of having originated from a legitimate source. So basically, all the ways to convert the black money into white money are Money laundering. But in Money laundering, the black money must involve a predicate crime such as...

Zero-based Budgeting

February 12, 2013

Zero-based budgeting is a method of budgeting in which all expenses for each new period must be justified. Under zero-based budgeting, no reference was made or considered of previous years. The budget request has to be evaluated thoroughly with its commencement from the zero-base. Evolution of zero-based budgeting (ZBB)...

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