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Putting every lease on the balance sheet would mean capitalising the office printer and the twelve-month car hire. Ind AS 116 provides two optional exemptions to avoid that — but they are narrower than most people assume, and the elections work differently from each other in a way that catches preparers out. Technical accounting content…

Maintaining full books of account, getting them audited, and tracking every expense is a substantial burden for a business turning over ₹60 lakh. Section 44AD exists to remove that burden — you declare income at a deemed percentage of turnover and skip most of the compliance. The catch is a five-year commitment that many people…

You redeem ₹1,00,000 from an equity fund and ₹99,000 arrives. The missing ₹1,000 is exit load — a charge for leaving early. Understanding how it is calculated, and particularly how it interacts with SIP instalments, prevents an avoidable cost. What is Exit Load? Exit load is a fee charged by a mutual fund when you…

A share priced at ₹80 is not cheaper than one priced at ₹4,000. Price alone tells you nothing about a company’s size — it depends entirely on how many shares exist. Market capitalisation is the number that fixes this confusion, and it underpins how funds, indices and SEBI categories are all defined. What is Market…

Recognising a right-of-use asset requires recognising something on the other side of the balance sheet. That something is the lease liability — and getting its measurement right depends on two decisions that carry more judgement than most people expect: which payments to include, and what rate to discount them at. Technical accounting content following Ind…

A tax audit is not an investigation and it does not create additional tax liability. It is a verification exercise — a Chartered Accountant examines your books and reports prescribed particulars to the department. What makes it worth understanding is that crossing the threshold is mandatory, not optional, and the penalty for missing it is…

You receive ₹15 lakh — a bonus, a property sale, a maturity payout. You want it in equity, but putting the entire amount in on a single day feels like a large bet on that day’s price. An STP is the mechanism designed for exactly this situation. STP Full Form and Meaning STP stands for…

The Sensex is India’s oldest stock market index, and the number most people picture when they think of “the market”. It started at 100 in 1979. Understanding how it got from there to where it is today explains a good deal about long-term equity investing. What is the Sensex? Sensex is short for Sensitive Index,…