To begin, an ETF (Exchange-Traded Fund) is a type of mutual fund. Like a mutual fund, it pools money from various investors, has a fund manager and a Net Asset Value. An ETF, on the other hand, has two distinguishing characteristics that set it apart:ETFs, like stocks, can be exchanged on a stock exchange (in the secondary market)It is a passively managed fund that follows an index and has become one of India’s most common passive investing types.Nifty BeES, India’s first exchange-traded fund, monitors the success of the Nifty 50 Index. As a result, the fund manager purchases stocks from the Nifty 50 index to match the index’s returns.ETFs, including bonds, are traded on a stock exchange. Investors may exchange them like stocks, and the price of each ETF unit is dictated by market demand and supply rather than the NAV.

With a total market capitalisation of more than $900 billion, the cryptocurrency space has attracted the attention of several investors, including those seeking quick cash with few regulations. ICOs are a highly popular method of raising money in this space.Investors are drawn to ICOs for their dream of grabbing an early to successful crypto. As of April 2018, ICOs raised a whopping USD 5,014,952,132. Here’s more about ICO.What is an ICO?An ICO or initial coin offering is an event where an organisation sells new crypto to raise money. In exchange for their financial contributions, investors receive cryptocurrency. In several ways, an ICO is the crypto version of an IPO (initial public offering) in the stock market.Working of an ICOWhen an organisation decides to launch an ICO, it declares the rules, date, and purchase procedure in advance.

Crypto exchanges levy certain fees for trading on the platform. If you have been trading on crypto exchanges, you should have encountered certain terms like maker and taker fees. As a crypto trader, you need to know what these fees are. What are Maker fees?To explain in simple terms, makers bring liquidity to the market for other traders. The order that a maker place adds liquidity to the order book. When another trader picks it up, it helps ‘make the market’. The limit order on an exchange is not executed or filled immediately. It is triggered when the asset's price falls or rises above a certain limit.

Non-fungible tokens (NFTs) and cryptocurrencies have recently gained immense popularity. NFTs are unique digital assets that are stored on blockchain technology, and cryptocurrencies are decentralised digital currencies that operate independently of central banks. The increasing adoption of NFTs and cryptocurrencies has led to questions about how they are taxed. This article will explain how NFTs and cryptocurrencies are taxed. What Are NFTs?An NFT is a type of digital asset that represents ownership of a unique item or piece of content, such as artwork, music, or a video clip. Unlike cryptocurrencies such as Bitcoin, which are interchangeable and have the same value regardless of their specific unit, each NFT is unique and cannot be replicated or replaced.

Purchasing a car or bike is a huge investment in your life. But at the same time, you have to understand that with time the car ages and its value depreciates. As soon as you bring your vehicle out of the showroom, the value depreciates by 5% and gradually keeps on falling with each passing year. This depreciation amount is generally considered when you buy or claim insurance for your car or bike.Therefore, in this article, we will be guiding you in detail on how depreciation on your car or bike is calculated, as well as provide some examples. Depreciation Rate For Cars And BikesWhen you buy a car or bike, its value diminishes slowly with time due to natural wear and tear. This phenomenon is known as depreciation.

Fair market value refers to the price at which an asset could be sold in an open market between two unrelated persons, having reasonable knowledge about the asset and willing to carry out the transaction. Fair market valuation is used extensively under the Income Tax Act, in various situations like gift taxation, transfer of asset for inadequate consideration, Employee Stock Option Plan taxation, and other capital gain situations.  Learn more about its meaning, calculation procedure, valuation methods and examples.What is Fair Market Value?Fair Value or refers to the price set for selling or purchasing an asset in the open market. Financial institutions like NBFCs and Government organizations use Fair Value while assessing the valuation of collateralized or taxed assets.Several conditions need to be fulfilled to determine an asset's Fair Value. Buyers and sellers must have full knowledge of an asset before participating in a transaction. Their decision should not be influenced by time or any other external factors. Insurance claims, charity, property taxes, stock ownership, etc., are some transactions requiring this value.Fair Market Value in Income TaxFair Market Value (FMV) is a crucial concept in taxation, especially under the Income Tax Act, and is used to determine the value of an asset for the purpose of calculating capital gains, perquisites, and gifts, among others.As per Section 2(22B) of the Income Tax Act, the price of capital gains sold on a relevant period in the open market is FMV. If FMV cannot be assessed hypothetically, it is determined using this rule.Instances where in transaction made not in line with FMV treated in Income Tax lawsIf an individual or HUF receives immovable property or certain movable properties for less than FMV, the difference is taxed as "Income from Other Sources".For Employee Stock Option Plans (ESOPs), the FMV on date of exercise is used to compute taxable perquisite value.How to Calculate the Fair Market Value?The calculation of FMV primarily depends on the type of assets. You need to consider some factors while assessing an asset’s Fair Market Value.

Crypto derivatives, such as options and futures, are financial instruments that allow traders to speculate on the future price movements of cryptocurrencies. While these instruments can be useful for hedging risks and generating profits, they can also have complex tax implications. In this article, we will explore the taxation of crypto derivatives, including options and futures.Concept of Cost BasisCost basis refers to the original cost or value of an asset, such as a stock, bond, or real estate property. It is used to determine the amount of capital gain or loss when the asset is sold or exchanged. In other words, the cost basis is subtracted from the sale price to calculate the gain or loss.For example, let's say you purchased 100 shares of XYZ stock for $10 per share, which would give you a cost basis of $1,000. If you later sell those shares for $15 per share, your total proceeds would be $1,500.

According to the Third Amendment of Income Tax Rules 2023, the tax audit report needs to be furnished by charitable trusts, institutions and NGOs to file form 10B. These institutions and trusts must be registered under Section 12A or approved under Section 10(23C) of the Income Tax Act. Keep reading to get a detailed idea about Form 10B of the Income Tax Act.Form 10B of the Income Tax Act Form 10B previously allowed a taxpayer to file an audit report if they were already registered or applied as a charitable or religious trust or institution by filing Form 10A. These trusts or institutions had to be registered under Section 12A.As per Income Tax (Third Amendment) Rules 2023, the focus of applicability of the form for furnishing tax audit reports has a wider scope. Under Section 12A of the Income Tax Act, 1961, form 10B is now concerned with audit reports of charitable funds, universities, educational institutions, hospitals or other medical institutions whose total income in the previous financial year has crossed the threshold of Rs.5 crore. Form 10B ApplicabilityEvery organisation or trust registered under Section 12 must file Form 10B as per the Third Amendment of the Income Tax Act.Form 10B of the Income Tax Act applies to the following cases:If the total income of the trust or institution, without using the provisions of the mentioned clause/section, as applicable-sub-clauses (iv), (v), (vi) and (via) of clause 23C of section 10sections 11 and 12 of the Act,exceeds rupees 5 crores during the previous yearIf any foreign contribution is received during the previous year by any trust or institutionTrusts or institutions applied any part of their income outside India during the previous year. Here are some of the situations in case of which you need to mandatorily file form 10B:If the total income of the trust or institution exceeds Rs.5 crore during the previous fiscal year.In case a trust or institution receives any amount of foreign contribution.

India and France have signed a Double Tax Avoidance Agreement (DTAA) to avoid double taxation for taxpayer earnings in both countries. This agreement applies to taxpayers who are residents of one or both countries. Under DTAA, taxes paid in one country can be claimed as a credit in another country, ensuring that tax is effectively paid in only one country. DTAA helps to avoid such unfair tax systems and maintain strong trade relations between countries.This article will examine the DTAA between India and France, helping us understand the details of ways to avoid double taxes.What is DTAA Between India and France?The agreement between the Government of India and France regarding the avoidance of double taxation came into action on 1 August 1994. The double tax avoidance agreement between India and France has 31 Articles. India France DTAA will work in a manner where a resident of India who earns in France will have to pay taxes in France, while India will give a deduction on the amount of income tax paid.

Many individuals own the residentship of a particular country but earn their living in a different country. As per the Income Tax Act of 1961, you must pay taxes against your earnings. So, if you are generating income from a different country, you may need to pay taxes to both your residential country and the one you are earning from. However, paying double tax for the same income is undoubtedly unfair. To prevent double taxation, the Fiscal Committee of the League of Nations introduced DTAA in 1927. Read along to know more about it!What is DTAA?DTAA stands for Double Taxation Avoidance Agreement.