CA profession in India

Chartered Accounts are a very important part of the economy. The profession is an old profession and it is still relevant in the new scenario. However, the professionals have to come up with new things to live up to the opportunity and threats in the new world.  

The CA profession can be divided into two broad categories of members doing practice and those who are in industry. In the new world of specialization, the CA professional body should take up the initiatives to bring about changes in the curriculum with emphasis on the chosen field of specialization. After the basic education institute should make arrangement for mandatory specialization courses in the final. The fields can be like 

 Banking

 Insurance

 Transfer Pricing

 Systems Knowledge like SAP implementation

 Mergers and Acquisitions

Also there should be mandatory industrial trainings, to ensure that new pass outs know how the corporate culture works. This will impart them with specialized knowledge in this new age. 

Apart from the technical knowledge, soft skills are also equally important for the members. Soft kills like interpersonal skills, presentation, and public speaking are also equally important.  The members are like brand ambassador of the profession. In case they can exhibit positive, forward looking attitude then that will be the image of our profession to the outside world. We need to ensure that these skills are provided to the members to make them more presentable and saleable in the market. Finance professionals have sound technical knowledge but lack badly with soft skills. In order to take full advantage of the new information age, they must inculcate these skills. 

Digital revolution is disrupting the old economy and the world at large. Finance professionals are no different. It is utmost important that apart from the above skills, we should also focus on our digital presence. Especially true for the members who are in practice, they should embrace the digital revolution and shed the old mind set to come up with innovative ideas to stay relevant in this new digital age. Take advantage of the new opportunities in the new era  to further enhance your stature in the financial market.

 
Finance Connect is an initiative towards this direction wherein finance community can come together and find new opportunities with a digital identity. They can form association with diverse groups and work together to achieve higher objectives and enhance their reach. http://www.financeconnect.in/

Finance Profession in India

The liberalization has opened many door of opportunity for the Indians. Liberalization was a path breaking change for India and every change will bring in opportunities and challenges. However, the finance profession could not take these opportunities fully in the liberalized market.

Another change India is witnessing is the digitization change. The way Indians interact, work, transact and behave is undergoing a sea change. We buy things online; we make payments online and check for any information over the internet. 

Therefore, any business should have their online identity in today’s world. The finance professionals are no different. We need to have a digital identity to connect to our clients in a much better way. There are many benefits of being online. We increase our visibility and become more relevant to the new age clients. Think of a platform wherein all the finance professionals are having a brief profile and visible to their prospective and existing clients. A platform which will shatter the walls of the professional bodies and people can inter act among themselves and to the clients. We talk about capacity building, what about building capacity across fields. Let me quote an example a CA approaching and connecting with a CS for some assignment or to some CMA. May be a CA getting in touch with another CA who may have expertise in a field.

Come and discover such a platform which is financeconnect.in

 

Please provide your feedback and thoughts to financeconnectindia@gmail.com

Mutual Fund Taxation

This week we will look into the taxation aspect of the Mutual Funds. The funds can we divided into equity oriented and non-equity oriented mutual funds. Equity oriented is a fund investing 65% or more of the fund value into domestic equities of companies.

Non-Equity Oriented funds are Debt funds, as a category, include liquid, ultra-short-term, short-term, income accrual, dynamic bond, and gilt funds. It also includes all debt-oriented funds as MIPs and other hybrid non-equity funds. International funds and gold funds also follow the same taxation as debt funds.

Holding period decides the nature of capital gain. Then the nature of capital gain and type of mutual fund decides the taxability of the gains. In the below table we have summarized the taxability structure of the various funds and categorization of capital gains.

Equity Oriented Funds                  Non-Equity Oriented Funds

Long Term Capital Gain (LTCG)

Holding Period                                  More Than 12 months                   More than 36 months

Taxability                                             Not taxable                                        Taxable @ 20% with indexation benefits

Short Term Capital Gain (STCG)

Holding Period                                  Less than 12 months                       Less than 36 Months

Taxability                                             15% of the ST Capital Gain            taxable at slab rate

(Securities transaction tax (at 0.001%) will apply on all redemptions of equity schemes in case of STCG)

Investing in Equities Oriented funds is also advisable from the point of view of taxability as well for Long per period more than 12 months, entire long term capital gains in not taxable.

Do write back to us for your feedback @fianceconnectindia@gmail.com

Discover more about mutual funds on our portal fiannceconnect.in

About Mutual Funds Investment

Mutual Funds are one of the best modes of investments. Mutual Fund collects money from the small investors and invests in the Shares of Companies or Debentures, Securities, etc. They provide the units of the mutual funds to the investors. The units can be tracked at any point of time. There are two types of funds like open ended and closed ended. Open ended are open for investments and closed ended are closed for further investments only they have collected the required funds during initial offer.

• Closed ended are like ELSS funds which gives tax benefits and lock in period is also there before which they ca not be sold.

•        Open ended can be sold any time; no lock in period is required.

      Mutual Funds can be classified as below based on the nature of their investments

Fund Type                                 Investment Type                                             Risk/Return

·         Equity Mutual Funds          In equities of the companies                                          High /High

·         Balanced Funds:-               In equities and another portion in debts                         Medium/Medium

·         Debt Funds                       In the fixed income instruments                                      Low/Low

In personal Financial planning Mutual Funds can play a very good role. One can invest one time or through SIP Systematic Investment Plan mode.

SIP is best mode of investment wherein on a defined date the defined amount gets deducted from your account.  Income- Investment=Expense is the principle of SIP mode of investment. First invest and then balance use for your day to day and other expenses.

The horizon of investment, goal and risk profile are very important to select the type of funds. In case you have long time period of 5 years or more than go for equities, in case of lower time period then go for Debt funds. For low risk profile prefer balanced funds.

Next week we will talk further on mutual funds also look at the tax advantages of investing in Mutual Funds.wer time period then go for Debt funds. For low risk profile prefer balanced funds.

You can visit our portal financeconnect.in for reaching out to mutual funds agents in Pune and Mumbai; they can help you with your investment needs.

In case of any other query reach out to us at financeconnectindia@gmail.com, or you can share your views etc. with us at the same mail id. 

About Mutual Funds Investment

Mutual Funds are one of the best modes of investments. Mutual Fund collects money from the small investors and invests in the Shares of Companies or Debentures, Securities, etc. They provide the units of the mutual funds to the investors. The units can be tracked at any point of time. There are two types of funds like open ended and closed ended. Open ended are open for investments and closed ended are closed for further investments only they have collected the required funds during initial offer.

• Closed ended are like ELSS funds which gives tax benefits and lock in period is also there before which they ca not be sold.

•           Open ended can be sold any time; no lock in period is required.

Mutual Funds can be classified as below based on the nature of their investments

Fund Type

Equity Mutual Funds
Balanced Funds:-
Debt Funds

Investment Type 
         
In equities of the companies
In equities and another portion in debts
In the fixed income instruments

Risk/Return

High /High
Medium/Medium
Low/Low

In personal Financial planning Mutual Funds can play a very good role. One can invest one time or through SIP Systematic Investment Plan mode.

SIP is best mode of investment wherein on a defined date the defined amount gets deducted from your account.  Income- Investment=Expense is the principle of SIP mode of investment. First invest and then balance use for your day to day and other expenses.

The horizon of investment, goal and risk profile are very important to select the type of funds. In case you have long time period of 5 years or more than go for equities, in case of lower time period then go for Debt funds. For low risk profile prefer balanced funds.

Next week we will talk further on mutual funds also look at the tax advantages of investing in Mutual Funds.wer time period then go for Debt funds. For low risk profile prefer balanced funds.

You can visit our portal financeconnect.in for reaching out to mutual funds agents in Pune and Mumbai; they can help you with your investment needs.

In case of any other query reach out to us at financeconnectindia@gmail.com, or you can share your views etc. with us at the same mail id.