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Definition of Book Profit

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ABC Bank invested in the Bonds of Crayon International on 02 Jan 2023. The Bonds were bought at @1200 USD. On 31st March 2023, the Market price of Bonds stood @ 1240 USD. The number of Bonds purchased by ABC Bank is 20000 units. Based on the above:


Amount in USD

Purchase Price 1200

No of Bonds purchased 20000

Total Book Price 24,000,000

Market Price on 31st March 2023 1240

Book Profit per unit of Bond 40

Total Book Profit as on 31st March 2023 800,000

 Further Book Profit is not confined to just investments but also to normal business revenues as well however the methodology to compute Book Profit differs in the case of business form as per Income Tax rules prevalent in the country to which the business belongs.

Book Profit in Share Market

Book Profit in Share Market implies the timely booking of profits else it remains as Mark to Market (MTM) Notional profit. The value of securities in the share market keeps on fluctuating resulting in notional gains/losses on the securities held. When securities are held in the books of the business with gains it is called Book profits, however, this profit can’t be accounted for by the business as it is not realized.

Let’s understand this with the help of another example:

Ram bought the following shares on varying dates in the month of January 2023 namely;

Share Name

Price ( in USD) Quantity

Total (in USD)

Reliance 34 1000 34000

HDFC 20 400 8000

Google 100 700 70000



On 31st March it was informed that Ram has the following position:

Market Price ( in USD) Quantity

Total (in USD)

Reliance 70 700* 49000

HDFC 30 400 12000

Google 400 700 280000



*300 shares of Reliance sold @$70 per share.

Now we can see Ram will report a Net profit on the shares sold and Book profit on the shares which are still held by him as under:

Realized Profit which will form part of Net Profit as it is realized:

(300 * {36}) =$10800

Book Profit for Ram as on 31st March 2023 will be as follows:

Market Price ( in USD) Book Price ( in USD) Quantity

Book Profit (in USD)

Reliance 70 34 700 25200

HDFC 30 20 400 4000

Google 400 100 700 210000



Book Profit as per Income Tax Act

As per Income Tax Act guidelines, it is derived from Net profit after adjusting for the following items:

Addition of Income-tax payable/paid by the business which is included in the computation of Net Profit.

Addition of amount transferred to any reserves and amount provision for contingent liabilities.

Addition of provision for losses set aside for subsidiaries of the business and any dividend paid or proposed to be paid.

Addition of certain expenses related to incomes that aren’t permission as per the provision of the Income Tax Act for the purpose of computation of Book Profit.

Reduction by any amount added to derive Net Profit such as Long term capital gains, royalty, etc.

Reduction of Non-cash expenses such as Depreciation if debited to P&L account for computation of Net Profit.

Reduction of the amount of any brought forward unabsorbed depreciation use for computation of Net Profit.

Book Profit vs Net Profit

The two terms are used frequently in accounting parlance; however, differ a lot. Key differences are enumerated below:


Book Profit

Net Profit

Taxability Book Profit is not used for determining tax in the case of Business forms such as Company etc. Net profit is derived after adjusting for the tax liability of the business.

Meaning Book Profit refers to the profit computed as per the Income Tax Act relevant to the business. Net profit refers to the profit computed as per the Book of Accounts of the company in accordance with the Companies Act relevant to the business.

Analyst Focus It is not tracked by the Analysts and stakeholders but is used more for taxation purposes only. It is closely tracked by Analysts and stakeholders and is an important number used for various financial ratios purposes.

Importance of Book Profit

Every legal entity is liable to pay income taxes in the country in which it operates and in order to pay its tax liability it is required to determine its tax liability which the first and foremost step in tax management. Determination of Book Profit is necessary for the purpose of calculating the Tax liability.


It is an accounting term which implies profits which are notional in nature and not realized by the business. Due to the notional nature, these profits are contingent and can change over time and maybe even wipe out completely as well in case of a drop in prices. In other words, we can say that Book Profits are paper profits and as such, they are not taxable in nature unlike Realized Net profits of the business.

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Difference Between Payroll Tax And Income Tax

Employers must withhold a portion of employees’ pay to pay employment taxes. Two sorts of employment taxes are taken out of an employee’s gross pay.

What is Payroll Tax?

Unemployment insurance and social security contributions are examples of payroll taxes. It’s a tax in which both the company and the employee participate. The FICA (Federal Insurance Contributions Act) levy covers healthcare costs and social security contributions. The retiree’s monthly payout is based on the social security tax the worker contributed throughout their working years. Insurance against joblessness is provided by the Federal Unemployment Tax Act (FUTA), and medical costs are covered by Medicare beginning the year after retirement, regardless of age.

What is Income Tax?

All levels of government impose some form of tax on citizens’ incomes. A municipal income tax is added in certain areas, while others do not. State income taxes and payroll taxes are typically imposed by each state independently. To avoid paying federal income tax, just check the appropriate box on Form W−4. The company withholds a portion of the payment for tax purposes. This tax payment must be made to either the state or federal government. After the government gets its share, the withheld wages are returned to the workers.

Differences: Payroll Tax and Income Tax

The following table highlights how Payroll Tax is different from Income Tax −

Characteristics Payroll Tax Income Tax

Contributors Payroll taxes are split evenly between employers and workers. An employee is responsible for paying the entire income tax.

Consists of Payroll taxes include social security, unemployment, and medical care. Depending on where you reside, you may owe several levels of taxation on your income− some are collected at the state level, others at the federal level, and yet others at a local level (such as a municipal tax that is paid for the locality where you dwell).

Source Wages, or the money an employee earns from his work, are the primary factor used to determine how much money must be withheld for payroll taxes. A person is required to pay taxes on all of their income. It’s possible to send this money once a week, once a month, or even once a day. The income tax is also calculated from income in other ways, such as by renting out a room in their home, investing in the stock market, banking on the interest on their savings, etc.

Nature of Tax Payroll taxes is regressive compared to income taxes since the tax brackets are not adjusted for inflation. Income tax is considered progressive because it grows proportionally with the employee’s compensation, according to a set of income brackets.

Purpose Governments typically rely on income taxes to fund their operations.


While both federal and state taxes have unique characteristics, we can all agree that they both represent a significant portion of the earnings paid to employees. Both taxes are being levied for different reasons, and we need to know how much we’re paying and how it’s being distributed. Paycheck withholding taxes include, among others, federal income tax and state and local payroll taxes.

Compared to the tax rates applied to individuals’ incomes, the payroll tax is a more regressive collection method. This is because payroll taxes are only levied on money coming in, and most payroll taxes have a maximum salary before they kick in.

In general, interest rates are stable over much of the middle−income range, but they decline gradually as one approaches the top end of the income spectrum. Income tax is a type of tax that everyone must pay based on how much money they make each year. If we can identify the distinctions, we can better understand the function of each tax.

Expedited Funds Availability Act (Efaa)

Expedited Funds Availability Act (EFAA)

A U.S. law that requires banks to make deposits and checks available within a certain number of days

Written by

CFI Team

Published September 23, 2023

Updated July 7, 2023

What is the Expedited Funds Availability Act (EFAA)?

The Expedited Funds Availability Act (EFAA) is a United States law that requires banks to make deposits and checks available within a standardized period. The law was enacted in 1987 to control the holding periods on the funds deposited in customers’ accounts in commercial banks.


The Expedited Funds Availability Act (EFAA), enacted in 1987, requires banks to make deposits and checks available within a certain number of days.

The funds in the deposits can be accessed on specific days, depending on the deposit size and the time duration elapsed since the account was created.

EFAA offers four types of holdings that any financial institution can place on a check deposit according to their preference.

Expedited Funds Availability Act (EFAA) Explained

The Expedited Funds Availability Act (EFAA) was adopted to govern the availability of funds from customers’ accounts and the use of hold periods by financial institutions. As per the legislation, deposits to commercial banks can be accessed on specific days, depending on the deposit size and the time duration elapsed since the account opening.

Depending on the deposit size and the account type, the EFAA decides the kind of holding that banks may use on check deposits. The Federal Reserve enforced the EFAA, which is also called the Regulation CC.

All account holders must be informed of holding policies and of any change in the policies by their respective financial institutions. The holding policies are made available in writing on the opening of new accounts or when requested by clients. The accounts on which interests are paid receive earnings from the time the deposits are made to banks, regardless of the holding period.

Expedited Funds Availability Act (EFAA) and Types of Holds

The Expedited Funds Availability Act (EFAA) offers four types of holds that any financial institution can choose from and place on a check deposit. Although it is legal to set any type of holding on deposits, bank policy may indicate that the holding type placed on deposits offers the highest amount of money for the longest period that can be applied legally. The following are the types of holdings provided by the EFAA:

1. Statutory Hold

Statutory holds are individual state-mandated reserve obligations for insurance companies. As per law, insurers must keep a portion of assets in the form of easily obtainable securities for quick repayment of claims. A statutory hold can be placed on any deposit type. However, no other hold should’ve been set on the same deposit at that time. The bank must make the following payments:

$200 on the next working day after making a deposit

$600 on the second working day after the deposit is filed

Balance amount on the third workday

2. New Account Hold

The Expedited Funds Availability Act states that if the account owner previously opened an account at the depository bank, another account will not be considered new for at least 30 calendar days after the creation of the existing account.

It implies that an account is considered new for the first 30 days of its creation, and a new account hold is set on deposits of the accounts. The new account hold is removed on the ninth working day following the deposit.

3. Large Deposit Hold

A large deposit hold is placed if deposits of more than $5,000 are made in one business day. The rules of funds availability for the first two days are the same as those for statutory holds. However, for the third day, the bank must make available $4,800 with any balance amount made accessible on the seventh workday following the deposit.

4. Exception Hold

Financial institutions use it to hold funds in accounts when they become suspicious of an illegal deposit or when the account’s been frequently overdrawn. Exception hold can also be used when a system failure or power outage occurs in a bank premise. Generally, an exception hold is placed on an account if more than $5,000 is withdrawn for at least six consecutive working days.

Additional Resources

Regulation Of Narcotic Drugs Act

The former is freely accessible at drugstores and pharmacies without a prescription and are used to treat moderate to severe levels of pain; they are taken on a doctor’s prescription along with strict monitoring of the medications. The World Health Organization states that “Around the world, drug usage results in 0.5 million deaths. Over 30% of these fatalities, which have an over 70% opioid relationship, are caused mostly by overdose.” According to estimates from the WHO, there were around 115 000 opioid overdose deaths in 2023, and the usage of increasingly strong opioids that are emerging on the drug black market is increasing.

Laws in India Regulating Narcotics

The NDPS Act forbids the possession, sale, purchase, transit, storage, use, or consumption of any narcotic drug or psychotropic substance that is created, made, or cultivated. As of March 1986, the Narcotics Control Bureau was created in compliance with one of the act’s requirements. Violations of Section 27 of the NDPSA, which deems consuming narcotics a crime, may result in fines of Rs 10,000, six months in prison, or both. Regarding bail, the Act includes certain extremely tight regulations.

In India, bhang, a cannabis product, is legal. Its other forms, ganja (marijuana) and charas (hashish), are forbidden. In addition to prescription opioids, opiates include heroin (brown sugar, smack), opium (doda, phukki, or poppy husk).

The 1985 Narcotics, Drugs, and Psychotropic Substances Act

The phrase “creating, making, cultivating, owning, selling, transferring, purchasing, or consuming any Narcotic Drugs and Psychotropic Substances” is used to describe legal violations. The legal use of the word “narcotic” differs significantly from the medical definition, which uses it to describe a drug that causes sleep. Cocaine, marijuana, or an opiate (a real narcotic) are all considered to be narcotic substances under law (the very antithesis of a narcotic, since it is a stimulant). Psychedelic drugs including LSD, phencyclidine, amphetamines, barbiturates, methaqualone, benzodiazepines, mescaline, psilocybin, and designer drugs are examples of psychotropic chemicals (MDMA, DMT, etc.).

Special Courts weren’t present at first, but a 1989 change permitted the government to establish them. All offenses under the NDPS Act will fall within the exclusive jurisdiction of one judge, who will have the power to do so. Your penalty will depend on how much drug usage there was in this particular case. The NDPS Act divides drug quantities into two groups. The two categories are Small Quantity and Commercial Quantity. If you have drugs in little amounts, the penalty will be less severe; if you have drugs in large amounts, the punishment will be more severe. The tiny quantity and commercial quantities of each substance are clearly defined under the NDPS Act.

Drugs’ Effects on Global Society

Beyond the drug users themselves, friends and relatives of drug users as well as different enterprises and government resources are all negatively impacted by drug misuse. ONDCP has estimated that despite the fact that many of these impacts are ineffable, drug misuse cost the United States $180.9 billion in economic expenses in 2002.

Legal Aspect

Despite the fact that drug misuse is today a societal issue, cultural and religious ideas had a significant impact on its early development. “Almost every community, in every part of the world, had their medicine men, witch doctors… selected principally on the basis of their propensity to communicate with the spirits. The medicine men commonly used medications to induce trances because they needed to be able to do so in order to access the spirit realm.

Both the Bible and the ancient Indian scripture known as the Rig Veda testify to the necessity of utilizing drugs and/or other addictive substances during religious rites. In reality, “plant medications that had first been employed to assist access to the spirits came to be viewed, and subsequently worshipped as spirits, or deities, in their own right” in many regions of the world.

The League Covenant’s Article 23, Paragraph 1 assigned the League the duty of universal control over the trade in opium and other harmful substances (c). “The activity of the League under the Covenant shall be performed by means of an Assembly and of a Council, with a permanent Secretariat,” states Article 2 of the Covenant. The League Assembly was given extra power under Article 3 of the Covenant by being permitted to “deal at its sessions with any topic within the field of activity of the League or affecting the peace of the world.”


Heroin and other narcotic drugs have the ability to both extend and shorten life. Use drugs only as prescribed by a doctor, only for medically necessary causes. ” Addiction doesn’t kill the addict. The family, the kids, and everyone who tried to help are all killed by it! The drug situation in India is far worse than it first seems. In ancient India, ganja, charas, and other psychotropic substances were utilized for psychotherapy, pain management, and other medicinal procedures. India didn’t have any laws that prohibited the use or possession of drugs before to 1985. It is significant to remember that the NDPS Act contains a number of sections outlining severe punishments.

For instance, Section 37 states that more serious offenses are not permitted to be released on bond. Courts tended to be reluctant to release defendants on bond as a result of this law’s tighter enforcement compared to the Unlawful Activities (Prevention) Act of 1976 (UAPA). Many laws are intended to solve societal concerns, yet they can be harsh if they are used improperly. As the law gets more onerous, the risk of draconian laws arising rises. Due to its strictness, the NDPS has a potential for further misuse. In order to prevent the use of the law as a weapon and to ensure that everyone receives justice, it is the responsibility of the courts.

Frequently Asked Questions

Q1. What does this rule aim to achieve?

Ans. The Controlled Drugs and Substances Act (CDSA) has jurisdiction over the Narcotic Control Regulations (NCR). The CDSA and its rules offer a framework for the management of chemicals that can change mental functions and that, if diverted to an illicit market, may cause harm to a person or to society. The CDSA provides law enforcement agencies the power to take action against illegal activity involving drugs by scheduling certain substances.

Q2. What constitutes this regulation’s essential components?

Ans. According to the Narcotic Control Regulations (NCR), certain conditions must be met including doctors, pharmacists, and hospitals to engage in certain regulated activities, including as the possession, sale, distribution, import and export, and manufacturing of narcotics.

Apple Accused Of ‘Poor Tax Conduct’ For Tax Avoidance, Esp On Foreign Earnings

Non-profit group Fair Tax has accused Apple of ‘poor tax conduct’ for using aggressive tax avoidance measures to reduce its overall tax rate to 17.1% over the past decade, less than half the official corporate tax rate of 35%…

Corporate tax is levied only on profits, so after all operating expenses and investments have been deducted from total revenue.

To be clear, Apple is not accused of any legal wrong-doing. Unlike tax evasion, tax avoidance is perfectly legal – but does mean there is less money to spend on public services and infrastructure, says Fair Tax.

Tax matters. It helps to fund vital public goods and services and when paid fairly, it ensures a level playing field for businesses large and small.

We want a future where all businesses are proud to pay their fair share of tax [but] profits continue to be shifted to tax havens, especially Bermuda, Ireland, Luxembourg and the Netherlands […]

When multinational corporations abuse their tax responsibilities to society, they weaken the supports that our economies need to work well and create wealth.

Of the six US tech giants accused of not paying their fair share, Apple isn’t ranked as one of the worst offenders. Indeed, it gets the second-best report after Microsoft. Its tax payments do, however, represent a significantly lower percentage of its profits than most businesses, especially on overseas income.

Presents itself as “the world’s largest taxpayer” and it certainly makes the largest tax contribution of the Silicon Six, having paid $93.8bn in income taxes this decade (albeit on profits of $548.7bn and revenue of $1,888.0bn). However, cash tax paid as a percentage of profit over the decade is still a relatively low 17.1%. The trend of low current tax provision in connection with foreign profits continues in 2023, with just $3.9bn booked on $44.3bn of foreign profit, giving a booked current tax rate of just 8.9%.

Amazon is listed as the biggest offender when it comes to poor tax conduct, followed by Google, Netflix, Apple, and Microsoft.

Fair Tax suggests it is in the long-term financial interests of big tech to pay a fair amount of tax, to avoid future financial shocks and damage to their brand image.

The international tide is turning on the acceptability of corporate tax avoidance. The idea of countering the profit-shifting of Big Tech multinationals via the introduction of digital sales taxes has taken root in many countries. Investors need to look afresh at the future impact that this will have on company valuations and income flows. Not least because the OECD is now leading multilateral efforts to address the tax challenges from digitalisation of the economy, and is looking to ensure that profitable multinationals pay tax wherever they have significant consumer-facing activities and generate their profits.

More than 130 countries have agreed on the need for global tax reform, including ensuring that companies pay tax in each of the countries in which they operate.

We are currently awaiting a decision on the appeal by Apple and Ireland against the €13B ($14.5B) tax ruling.

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Kindle Book Won’T Download Issue

Blessed with the kindle editions, there is no need to carry your heavy books while you travel. You can enjoy your kindle version anywhere.

Yes, of course, you cannot relish the smell of your newly bought book, but you can easily access it in minutes and can choose from innumerable options!

When you lose interest to read a book you have the option to change it with the wink of an eye wherever you are.

But sometimes due to some technical glitches, you may encounter the kindle book won’t download issue and this can be annoying while searching for some of your long-awaited favorites.

In this article, I am going to discuss the possible ways to address the issue. 

In order to sort out the reason why you cannot download the kindle edition, first make sure that you have a proper Wi-Fi connection.

Often due to poor connectional issues, you cannot operate this downloading function.

Next, you can give your Kindle device and the app a fresh restart and solve the problem at once.

Otherwise, you can open amazon settings and go to the Manage Your Content and Devices option and choose to send those from the account manually.

In case you cannot solve the kindle book won’t download the issue in any other ways, contact your customer care service and seek help from the customer care unit. Now let us discuss the fixes in detail. 

Sometimes you may have a poor network connection for which you may face book won’t download on the kindle app issue. For this, here, I recommend you to check whether the Wi-Fi is properly connected.

You can go for disconnecting and then again connecting back to the Kindle and check whether the issue gets addressed this way.

Wait patiently till the procedure gets completed and you are required not to perform any other activity in between as this may harm your system.  After you finish the process, try to download your Kindle edition. 

In case your Kindle device is kept on for a long time, you may face issues while downloading your Kindle edition.

Many users have fixed this problem simply by giving their kindle device a fresh restart.

Although this step may sound to be remarkably easy yes this has helped a lot!

Press the power button and hold it for 40-50 seconds and then wait till the kindle gets turned off and then reboot itself. Now after you are done, check whether your kindle download error got solved. 

If you cannot solve the kindle book won’t open issue with any other method, you can try to use the Manage Your Content and Devices option.

You can easily find this option in your amazon’s settings and send those from the account manually.

Locate your version from the Settings that you are unable to download and then move on to Actions.

After that choose the Deliver To A Device option.

When you are troubled with the kindle download error, it is better to delete and then re-download your book. This way you can easily check the issue.

For re-downloading your kindle edition, you will have to go back to the Amazon account you use. You will find all of your books here. Now send back the book you failed to download. 

Here you will be able to find out the orders that you have made, and you can also re-download the same.

You have another option to download it to your computer and then transfer it to the Kindle edition. 

Sometimes it might happen that after selection of your book you have placed order and chosen some method to pay.

You have chances that the method you have selected to pay may not be valid or applicable and this is preventing it from getting synced or downloaded.

In this case you will have to visit Manage Your Content and Devices section and from there open the Settings option.

Now, from the given options, choose payment settings and then move on to the Edit Payment Method option. 

If no solution has helped you to check the kindle book won’t open problem, contact with the representatives from Amazon.

You can easily find the customer care service and from the help desk, speak to the concerned person and resolve your issue.

Also Read: Kindle App For Windows 10: Unable To Connect Error Solved

So, I hope this article has helped you with some feasible solutions to solve the annoying Kindle book won’t download issue.

You can also shoot us a mail at your convenience. We are always eager to hear from you.

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