Provident Fund and Its Types
Business, Commerce, Tax

Provident Fund and Its Types

Introduction Provident funds are maintained by many organizations (government and private) for the benefit of their employees. Under this scheme, a certain percentage of an employee’s salary is deducted every month. An Employer also contributes an equal amount. Contribution of both (employer and employee) is invested in a fund known as Provident Fund. The amount is invested in securities and…

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Depreciation and Amortization
Business, Commerce, Differences, Tax

Difference Between Depreciation and Amortization?

A gradual decrease in the value of an asset through wear and tear and obsolescence is called the depreciation. For example, Plant, machinery, building, furniture, computer hardware, road, railway line, bridge, airport, dams etc. A decrease in the value of an intangible asset is called amortization. Intangible asset means any patent, invention, design, copyright, trademark, computer software, motion picture film,…

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Accumulated Profit (Earning)
Business, Commerce, Tax

What is Accumulated Profit (Earning)?

Accumulated profits (earning) play a vital role in the distribution of dividend. So, many businesses prefer to set aside a portion of their earned profit for future use. Any reserve maintained by a company out of its profit is called accumulated profit. It may be used for a general purpose in future or may ultimately be distributed amongst the shareholders…

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Difference Between Law, Act and Ordinance
Business, Differences, Law, Tax

Difference Between Law, Act and Ordinance?

Law is the body of rules and orders formally accepted by the community for the welfare and security of the community. Act means the formulation of rules and law by the parliament. Any legislation or enactment of the President is termed as Ordinance. An ordinance promulgated by the President has the same effect as an Act of Parliament.

Tax Meaning, Purpose and Explanation
Business, Tax

Tax Meaning, Purpose and Explanation

Tax Meaning and Purpose The word “tax” means “burden or duty”. It is an amount of money paid to the government, which is based on a person’s income or the cost of goods or services which a person has bought. The system of taxation is therefore considered as a way of earning income by the Government so that after its…

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