DIFFERENCE BTWN FDI AND FII

FII is investing into financial markets of India. Majorly secondary market. FDI is acquisition of physical assets or capital in INdia. It leads to change in management, transfer of technology, increase in production etc. 1. FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an investment made by an investor in the markets of a foreign nation. 2. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily. 3. Foreign Direct Investment targets a specific enterprise while FII targets the capitak markets of foreign country. 4. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor 5. FDI flows into the primary market, the FII flows into secondary market. 6. FIIs are short-term investments, the FDI's are long term. FDI means foreign direct investment. FDI outflow means withdrawal of investments from a country is more than new investment, i.e.. more money is taken out than invested at a particular time.

Income tax slab 2012-2013

March 16, 2012 by financeminister
Tax exemption limit raised to Rs 2 lakhs and tax rates has changed for other slabs too. Find the latest income tax slab for Year 2012-2013 based on the budget presented on 16 March 2012. Use our Free income tax calculator for getting an idea of how much tax you will be saving compared to last year per the latest tax rates.

India Income tax slabs 2012-2013 for General tax payers

Income tax slab (in Rs.) Tax

0 to 2,00,000

No tax

2,00,001 to 5,00,000

10%

5,00,001 to 10,00,000

20%

Above 10,00,000

30%

India Income tax slabs 2012-2013 for Female tax payers

Income tax slab (in Rs.) Tax

0 to 2,00,000

No tax

2,00,001 to 5,00,000

10%

5,00,001 to 10,00,000

20%

Above 10,00,000

30%

India Income tax slabs 2012-2013 for Senior citizens (Aged 60 years but less than 80 years)
Income tax slab (in Rs.) Tax

0 to 2,50,000

No tax

2,50,001 to 5,00,000

10%

5,00,001 to 10,00,000

20%

Above 10,00,000

30%

India Income tax slabs 2012-2013 for very senior citizens (Aged 80 and above)
Income tax slab (in Rs.) Tax

0 to 5,00,000

No tax

5,00,001 to 10,00,000

20%

Above 10,00,000

30%

Investors can apply for shares in an IPO in 4 different categories: 1. Retail Individual Investor (RII) In retail individual investor category, investors can not apply for more then Rs one lakh (Rs 1,00,000) in an IPO. Retail Individual investors have an allocation of 35% of shares of the total issue size in Book Build IPO's. NRI's who apply with less then Rs 1,00,000 /- are also considered as RII category. 2. High Networth Individual (HNI) If retail investor applies more then Rs 1,00,000 /- of shares in an IPO, they are considered as HNI. 3. Non-institutional bidders Individual investors, NRI's, companies, trusts etc who bid for more then Rs 1 lakhs are known as Non-institutional bidders. They need not to register with SEBI like RII's. Non-institutional bidders have an allocation of 15% of shares of the total issue size in Book Build IPO's. 4. Qualified Institutional Bidders (QIB's) Financial Institutions, Banks, FII's and Mutual Funds who are registered with SEBI are called QIB's. They usually apply in very high quantities. QIB's have an allocation of 50% of shares of the total issue size in Book Build IPO's. In a book built issue allocation to Retail Individual Investors (RIIs), Non Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) is in the ratio of 35:15: 50 respectively.

Revenue Receipt
1. It has short-term effect. The benefit is enjoyed within one accounting period. It occurs repeatedly. It is recurring and regular. It is shown in profit and loss account on the credit side. 1.

Capital Receipt
It has long-term effect. The benefit is enjoyed for many years in future. It does not occur again and again. It is nonrecurring and irregular. It is shown in the Balance Sheet on the liability side.

2. 3.

2. 3.

4.

It does not produce capital receipt.

4.

Capital receipt, when invested, produces revenue receipt e.g. when capital is invested by the owner, business gets revenue receipt (i.e. sale proceeds of goods etc.). The capital receipt decreases the value of asset or increases the value of liability e.g. sale of a fixed asset, loan from bank etc. Sometimes expenses of revenue nature are to be incurred for such receipt e.g. on obtaining loan (a capital receipt) interest is paid until its repayment

5.

This does not increase or decrease the value of asset or liability.

5.

6.

Sometimes, expenses of capital nature are to be incurred for revenue receipt, e.g. purchase of shares of a company is capital expenditure but dividend received on shares is a revenue receipt.

6.

Capital Reserve The reserve which is created out of the capital profit is known as capital reserve. Capital reserve is created out of the profit of some specific transactions of capital nature. It is not available for the distribution to shareholders as dividend. It is used to meet capital loss. Capital reserve is shown on the liabilities side of the balance sheet. Sometimes, it can be used to issue fully-paid bonus shares. Items of capital profit out of which capital reserve is created: * Profit on revaluation of assets and liabilities. * Profit on sale of assets * Profit on sale of shares and debentures * Profit on forfeiture of shares * profit on redemption of debentures * profit on purchasing running business Revenue Reserve Revenue reserve is created out of the revenue profit earned in the normal course of the business. It refers to the undistributed revenue profit. It can be distributed as dividend to the shareholders. Revenue reserve helps to strengthen the financial position of the company and also helps to declare uniform rate of dividend. Items relating to revenue reserve * General reserve * Dividend equalization fund * Sinking fund * Research and development fund