Importance of Good Communication in Business

In the modern corporate world today, effective communication is vital in any type of businesses, because it builds a close interaction among each of the members from all the departments in an organization. It also can determine whether a business success or a business failure of the organization will be. Moreover, it does help the relationships to develop along good lines, and ensure that arguments and disagreements are kept to a minimum. For example, good communication skill is very important in partnership, so that the partners can avoid the problems of misunderstanding and petty quarrels.

We can measure the importance of communication skills in business sector when we take a look at the job advertisement.… Read the rest

Clearing and Settlement of Futures and Options

National Securities Clearing Corporation Limited (NSCCL) undertakes clearing and settlement of all trades executed on the futures and options (F&O) segment of the NSE. It also acts as legal counterparty to all trades on the F&O segment and guarantees their financial settlement.

Clearing Entities

Clearing and settlement activities in the F&O segment are undertaken by NSCCL with the help of the following entities:

  • Clearing members: In the F&O segment, some members, called self clearing members, clear and settle their trades executed by them only either on their own account or on account of their clients. Some others called trading member–cum–clearing member, clear and settle their own trades as well as trades of other trading members (TMs).
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Strategies of Options Contracts

Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.

We look here at some Strategies of options contracts. We refer to single stock options here. However since the index is nothing but a security whose price or level is a weighted average of securities constituting the index, all strategies that can be implemented using stock futures can also be implemented using index options.… Read the rest

Strategies of Futures Contracts

A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchange-traded contracts.

Futures  Trading  Strategies

We look here at some strategies of futures contracts. We refer to single stock futures. However since the index is nothing but a security whose price or level is a weighted average of securities constituting an index, all strategies that can be implemented using stock futures can also be implemented using index futures.

  • Hedging: Long security, sell futures
  • Speculation: Bullish security, buy futures
  • Speculation: Bearish security, sell futures
  • Arbitrage: Overpriced futures: buy spot, sell futures
  • Arbitrage: Under-priced futures: buy futures, sell spot
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Income Tax Assessment Procedure

Ascertaining total income is one major task of the procedure involved in levying tax on an assessee.   The task of assessing the income returned and determination of tax liability is called ‘assessment’.   The term ’assessment’ has been used in the Income-tax Act meaning differently contexts.   In certain situations, it refers to computation of income, sometimes to the determination of tax payable and in some cases to the whole procedure laid down in the Act of imposing tax liability on assessee.

Assessment of income relating to one Financial Year (FY) starts in the succeeding financial year, which is called Assesment Year (AY).… Read the rest

Clubbing of Income Under Income Tax

An assessee may reduce his tax liability by transferring his assets in favor of a person who is related to him. As per [Sec 60] to [Sec 64], income belonging to some other person will be taxed in the hands of the assessee in certain situation for the purpose of avoiding tax evasion. This is called   clubbing of income.

  1. Transfer of income without the transfer of assets: Income arising to nay person by virtue of any transfer of any income, without transferring the assets is deemed to be the income of the transferor and is taxable in his hands.
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