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UNIT - I
INTRODUCTION TO COMMERCE

Meaning and definition of Commerce:

Commerce refers to all those activities which are necessary for bringing goods from the place
of production to the place of consumption.

“Commercial operations deal with the buying and selling of goods, the exchange of
commodities and the contribution of finished products.” - EVELYN THOMAS

IMPORTANCE OF COMMERCE
1. Commerce tries to satisfy increasing human wants:
Human wants are never-ending. They can be classified as ‘basic wants’ and
‘secondary wants’. Commerce has made distribution and movement of foods possible from
one part of the world to the other.

2. Commerce helps to increase our standard of living:

Standard of living refers to the quality of life enjoyed by the members of society.
When man consumes more products his standard of living improves. To consume a variety of
goods he must be able to secure them first.

3. Commerce links producers and consumers:

Production is meant for ultimate consumption. Commerce makes possible to link
producers and consumers through retailers and wholesalers and also through the aids to trade.
Consumers get information about different goods through advertisements and salesmanship.
Thus commerce creates contact between the centers of production and consumption and links
the.

4. Commerce generates employment opportunities:

The growth of commerce, industry and trade bring about the growth of agencies of
the trade such as banking, transport, warehousing, advertising etc. These agencies need
people to look after their functioning. The development of commerce generates more and
more employment opportunities for millions of people in a country.

5. Commerce increases national income and wealth:

When production increases, the national income also increases. In a developed
country, manufacturing industries and commerce together account for nearly 80% of total
national income. Thus, commerce increases the national income and wealth.

6. Commerce helps in expansion of aids to trade:

With the growth in trade and commerce, there is a growing need for expansion and
modernization of aids to trade. Aids to trade such as banking, communication, advertising
and publicity, transport, insurance, etc., are expanded and modernized for the smooth conduct
of commerce.
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7. Commerce helps in growth of industrial development:

Commerce looks after the smooth distribution of goods and services made available
by the industry. Without commerce, the industry will find it difficult to keep the pace of
production. Hence, commerce helps in attaining better division of labor and industrial
progress.

8. Commerce encourage international trade:

Through commerce, we can secure a fair and equitable distribution of goods
throughout the world. With the help of transport and communication development, countries
can exchange their surplus commodities and earn foreign exchange, which is very useful for
importing machinery and sophisticated technology. It ensures the faster economic growth of
the country.

9. Commerce benefits underdeveloped countries:

Underdeveloped countries can import skilled labor and technical know-how from
developed countries while advanced countries can import raw materials from underdeveloped
countries. This helps in laying down the seeds of industrialization in the underdeveloped
countries.

10. Commerce helps during emergencies:

During emergencies like floods, earthquakes, and wars, commerce helps in reaching
the essential requirements like foodstuff, medicines and relief measures to the affected areas.

BARTER SYSTEM
Meaning of Barter System:
Goods were exchanged for goods prior to invention of money. Barter system worked on
certain conditions mentioned below:

1. Each party to barter must have surplus stocks for the trade to take place.
2. Both the buyer and seller should require the goods and other desperately double coincidence
of wants.
3. Buyer and seller should meet personally to affect the exchange.

BUSINESS
Business refers to any human activity undertaken on a regular basis with the object to earn
profit through production, distribution, purchase and sale of goods and services. Business activities
are connected with raising, producing or processing of goods.

“Business refers to economic activities are performed for earning profit”. – James Stephenson.

FORMS OF BUSINESS
1. Cooperative
2. Joint – stock company
3. Corporation
4. Company
5. General partnership
6. Limited liability company
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7. Limited company
8. Joint venture
9. Public listed company
10. Sole proprietorship
11. Partnership
12. Corporations or statutory bodies

CLASSIFICATION OF BUSINESS
1. Agriculture business
2. Mining businesses
3. Service businesses
 Financial service
 Transportation
 Utilities or public service
4. Entertainment companies
 Sports organizations
5. Industrial manufactures
6. Real estate businesses
7. Retailers, wholesalers and distributors

ACTIVITIES OF BUSINESS
1. Accounting
2. Commerce
3. Finance
4. Human resource
5. Information technology
6. Manufacturing
7. Marketing
8. Research and development
9. Safety
10. Sales

MANAGEMENT OF BUSINESS
 Restructuring state enterprises
 Business process management

INDUSTRY
Industry refers to economic activities, which are connected with conversion of resources into
useful goods. The production side of business activity is referred to as industry.

The term industry is also used to mean group of firms producing similar or related products.

Industrial Economics:
 Industry (economics), a generally categorized branch of economic activity.
 Industry (manufacturing), a specific branch of economic activity, typically in
factories with machinery.
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 The wider industrial sector of an economy, including manufacturing and production

of other intermediate or final goods.
 The general characteristics and production methods common to an industrial society
Industry classification, a classification of economic organizations and activities

KINDS OF INDUSTRY
I. On the basis of activity:
1. Primary industry:
o Extraction industry
o Genetic industry

2. Secondary industry:
o Manufacturing industry
(i) Analytical industry
(ii) Synthetically industry
(iii) Processing industry
(iv) Construction

3. Tertiary industry:

II. On the basis of size:

1. Micro industry
2. Small industry
3. Medium industry
4. Large industry

TRADE
Trade is an essential part of commerce. The term ‘trade’ is used to denote buying and selling.
It helps in making the goods produced available to ultimate consumers or users.

Therefore, one who buys and sells is trader. A trader is a middleman between the producer
and the consumer. Trade may be classified into,

 Internal trade.
 External trade.
 Wholesale trade.
 Retail trade.
 Import trade.
 Export trade.
 Domestic trade.
 Foreign trade.
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HINDRANCES OF TRADE / COMMERCE

Business consists of all industries and commerce. It serves to remove several hindrances and
solve many problems while facilitating the production and distribution of goods. The various
hindrances removed by business are as follows.

1. Hindrance of person:
Manufacturers do not know the place and face of the consumers. It is the retailer who
knows the taste, preference and location of the consumers. The chain of middlemen
consisting of wholesalers, agents, and retailers establish the link between the producers and
consumers.

2. Hindrance of place:
Production takes place in one centre and consumers are spread thoughout the country
and world. Rail, air, sea and land transports bring the products to the place of consumer.

3. Hindrance of time:
Consumers want products whenever they have money, time and willingness to buy.
Goods are produced in anticipation of such demands. They are stored in warehouses in
different regional centers. So, that they can be distributed at the right time to the consumers.

4. Hindrance of risk of loss:

Fire, theft, flood and accidents may bring huge loss to the business. Insurance
companies serve to cover the risk of such losses.

5. Hindrance of knowledge:
Advertising and communication help in announcing the arrival of a new products and their
uses to the people.

6. Hindrance of finance:
Producers and traders may not have the required funds at the time of their need.
Banks and other financial institutions provide funds and help in transfer of funds to enable the
functioning of business smoothly.

BRANCHES OF COMMERCE

1. Trade:
Trade refers to the actual trading of goods and services for something of value. The
channel through which goods are passed from the producer to the consumer is termed as
trade.

2. Transportation:
Selling all the goods produced at or near the production place is not possible. Hence,
goods are to be sent to different places where they are demanded. The medium which moves
men and materials from one place to another is called transport.
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3. Distribution:
It is not possible on part of the producers to make direct contact with the consumers
which are millions in numbers. A chain of middlemen like wholesalers, retailers, brokers and
other agents help in the process of distribution of goods. The hindrances of persons is being
removed with the help of different middlemen.

4. Banking:
Now-a-days we cannot think of business without bank. To start the business or to run
it smoothly we require money. Banks supply money. Business activities cannot be
undertaken unless funds are available for acquiring assets, purchasing raw materials and
meeting other expenses. Necessary fund can be obtained from bank.

5. Insurance:
Business involves various types of risks, factory building, machinery, furniture etc.
must be protected against fire, theft and other risks. These risks develop a state of fear of
losses and these losses are covered by the help of insurance.

6. Warehousing:
Usually, goods are not sold or consumed immediately after production. They are held
in stock to make them available as and when required. Special arrangement must be made for
storage of goods to prevent loss or damage. Warehousing helps business firms to overcome
the problem of storage and facilities the availability of goods when needed. Prices are
thereby maintained at a reasonable level through continuous supply of goods.

7. Communication:
The buyers and sellers are intimated through various communicating agencies. The
producer intimate the buyer about the production of goods, and the buyer sends orders for
supply of goods. The post office, telephone, telex and fax helps in communication between
the producer and consumer.

8. Advertising:
Advertising Frisbee knowledge cap and it solves the difficulty of information
advertising helps consumers to know about the various brand manufactured by several
manufacturers the media used to advertise products for radio, newspapers, magazines,
television, internet, billboard and so on.

9. Salesmanship:
Salesmanship is a skillful art of selling commercial goods. It facilitates personal
selling. Many times the sales force is required to book orders directly from dealer or
customers.
It is very much required in the sales of services and industrial goods.
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UNIT- II
INTRODUCTION TO ACCOUNTING

BOOKKEEPING:
MEANING:
Book-keeping is the process of recording financial transactions in the books of accounts. It is
the primary stage in the accounting process. It includes recording the transactions and classifying the
same under proper heads. Book-keeping work is of routine nature. Transactions may be recorded in
the accounting note books and ledgers or may be recorded in a computer.

Definition:
“Book-keeping is an art of recording business dealings in a set of books” - J.R. BATLIBOI.

“Book-keeping is the science and art of recording correctly in the books of account all those
business transactions of money or money’s worth”. – R.N. CARTER.

Objectives of book-keeping:

1. Recording financial transactions:

Book-keeping means recording the financial transactions and information concerning
the business of a company regularly. It is a systematic recording of all transactions.

2. Depiction of financial position:

To keep record of assets and liabilities in such a way that the financial position of the
business may be ascertained.

3. To identify and summarize the transaction:

Book-keeping helps to identify the transactions of financial nature and summarize
them systematically in a chronological order.

4. Generating financial reports:

The financial statements or other accounting reports of a business are summarized
from their books of accounts. Thus all businesses irrespective of their size etc.

5. Identifying frauds and errors:

Financial losses due to errors or fraud can be detrimental to the stability of any
business. Book-keeping services help in identifying these errors and frauds.

6. Calculation of profit and loss:

The proprietors/owners of the business are keen to have an idea regarding the net
results of their business activities. Knowing the profit and loss status of your business is
important for the proper functioning of the company.
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7. Helpful for tax purpose:

Book-keeping helps to determine tax liability of the business by providing essential
financial data. The purpose of book-keeping is to make sure that the accounts are necessary
for income and other tax purpose.

8. Completing payroll:
Maintaining and balancing current account and general ledgers; completing payroll.

9. Control over assets and liabilities:

The position of these debtors over creditors, liabilities over assets are well-known
through keeping accurate books of accounts. For running a business successfully a
businessman is to acquire various assets like land, building, machinery, etc.

10. To ascertain profit and loss:

Accounting records help business people to accurately calculate profit or loss over a
particular period. To disclose the factors responsible for earning profit or suffering loss in a
given period.

11. Ascertainment of results:

Ascertainment of results, every business concern is interested to know its operating
results at the end of a particular period.
(i) Providing information to the users for rational decision-making.
(ii) Systematic recording of transactions.
(iii) Ascertainment of results of above stated.

12. Determine financial effect.

Another important objective is to determine the financial position of the business to
check the value of assets and liabilities. The foremost objective of bookkeeping is to identify
all financial transactions taking place in the company and recording them accurately.

ACCOUNTING

Meaning:
Accounting is the systematic process of identifying, measuring, recording, classifying,
summarizing, interpreting and communicating financial information. Accounting gives information
on,

1. The resources available

2. How the available resources have been employed and
3. The results achieved by their use.

Accounting:
According to the American institute of certified public accountants “ Accounting is the art of
recording, classifying and summarizing in a significant manner and in terms of money, transactions
and events which are in part, at least of a financial character and interpreting the results thereof”.
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American accounting association has defined accounting as “the process of identifying,

measuring, and communicating economic information to permit informed judgments and decisions by
users of the information”.

From the above definitions, the following attributes of accounting emerge:

1. Accounting is an art. It requires the expertise and skill of accountants to design accounting
system and policies, to decide the accounting process in order to suit the requirements of an
organization.
2. The transactions or events of a business must be recorded in monetary terms.
3. Accounting process involves recording, classifying, and summarizing of transactions an
analysis and interpretation of the results.
4. The results of such analysis must be communicated to the person who are interested in such
information.

Objectives of Accounting

1. Accurate transaction record:

The first objective of accounting is to maintain an accurate record of all transactions.
A transaction includes any exchange of money for goods or services, whether purchased or
sold by the company. This can include materials, building costs and equipment.

2. Asset and liability tracking:

Assets and liabilities are types of financial items that a company can own. Assets are
any item that has value, while liabilities refer to the debt the company has. Another objective
of accounting is to maintain a consistent record of the assets and liabilities a company
maintains.

3. Business decision guidance:

Business professionals can use accounting resources to guide their business decisions.
Because accounting professionals keep an accurate record of all transactions and the financial
status of the company, a leader can use the information to better understand which decisions
may result in success.

4. Compliance with legal regulations:

Accounting can be a legal requirement for many companies. Legal compliance is
another accounting objective because companies can often supply their accounting records to
show compliance with rules and regulations.

5. Control over fraud and risk:

An important objective of accounting is controlling instances of fraud. Fraud can
occur when information is not accurate within the records. Accounting creates a system of
accountability that requires all team members and departments to communicate their financial
transactions.

6. Economic data recording:

Accounting creates a detailed history of financial actions within a company from
when it starts. This generates a store of date relating to the business’s financial history. A
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company can use accounting information to create a database containing economic and
financial data.

7. Financial budgeting and planning:

Budgeting and financial planning are aspects of accounting that help companies
prepare for the future. Creating a budget is an important accounting objective because it
allows accounting professionals to prepare a plan for what the company intends to spend in
the upcoming month or quarter. Financial planning can help companies keep costs low and
profits high.

8. Information for financing:

Financing is a process that entails a company applying for a loan to fund a business
expense. When companies apply for business loans, they often present their financial
information to show lenders they are capable of paying the money back. This makes
collecting information for financing applications an important function of accounting.

9. Management of cash flow:

The term cash flow refers to the number of liquid assets a company maintains.
Management of cash flow is an important accounting objective because it helps accountants
ensure there is enough cash for company processes.

10. Measure of performance:

The process of accounting produces financial records that business professionals can
use to measure performance. This may include accounting performance, in which
professionals assess the level of accuracy and adherence to budgets. It can also include team
or departmental performance.

11. Tax preparation and filing:

Filing and paying tax are vital actions for a company’s financial health. One objective of
accounting is tracking all expenses so when it is time to file and pay taxes, the company can
be sure it pays the correct amount. Businesses want avoid overpaying on taxes, and
accounting can help them identify opportunities for tax credits and ensure they pay the correct
amount.

12. Understanding of financial health:

The accounting process monitors all aspects of company’s financial profile. This
allows business professionals to access accounting information and receive a general
overview of the company’s financial health. They may review assets and liabilities, cash
flow, future financial planning and budgets, tax estimates, how departments perform
financially and wages.

FINANCIAL ACCOUNTING
Financial accounting is a branch of accounting concerned with the summary, analysis and
reporting of financial transactions related to business. This involves the preparation of financial
statements available for public use. Stockholders, suppliers, banks, employees government agencies,
business owners and other stakeholders are example of people interested in receiving such
information for decision making purposes.
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Features of financial accounting:

1. Comparability.
2. Determine profitability.
3. Legal requirement.
4. Understandability.
5. Auditing finances.
6. Identifying transactions.
7. Relevance.
8. Timelines.
9. Assessing financial resources.
10. Depiction of financial resources.
11. Monetary transaction.
12. Monitoring financial transactions.
13. Recordkeeping.
14. Verifiability.
15. Accounting periods.

Cost Accounting
Cost accounting is a form of managerial accounting that aims to capture a company’s total cost of
production by assessing the variable costs of each step of production as well as fixed costs, such as a
lease expense.

Cost accounting is defined by the institute of management accountants as “ A systematic set of

procedures for recording and reporting measurements of the cost of manufacturing goods and
performing services in the aggregate and in detail. It includes methods for recognizing, classifying,
allocating, aggregating and reporting such costs and comparing them with standard costs”.

Features of Cost Accounting:

 It is a sub-field in accounting. It is the process of accounting for costs.
 Provides data to management for decision making and budgeting for the future.
 It helps to establish certain standard costs and budgets.
 Provides costing data that helps in fixing prices of goods and services.
 Is also a great tool to figure out the efficiency of a unit or a process. It can disclose wastage
of time and resources.

MANAGEMENT ACCOUNTING
Management accounting is a method of accounting that creates statements, reports, and
documents that help management in making better decisions related to their business performance.
Managerial accounting is primarily used for internal purpose. It is also called managerial accounting.

According to cost and management accounts, London, “ Management accounting is

concerned with the presentation of professional knowledge and abilities to reveal accounting
information which may help to the management in policy formulation, planning and control for the
undertakings.
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Features of Management Accounting

1. Decision Making
2. Financial Statement Analysis
3. Planning
4. Cash Flow Analysis
5. Concerned With Future
6. Coordinating
7. Forecasting
8. Provides Data
9. Selective Nature
10. Statistical Analysis
11. Study Causes And Effects
12. Budgetary Control
13. Budgeting Forecasting
14. Communication
15. Controlling

DIFFERENCE BETWEEN FINANCIAL ACCOUNTING AND COST ACCOUNTING

S.No Financial Accounting Cost Accounting

Records and summarizes cost information

Records financial data of the and data. This includes information about
1 organization. So it records all relevant labour, materials and various overheads of
monetary data the manufacturing process.

Financial accounting only deals in Cost accounting uses both historical and per-
2 historical costs (only actual costs and determined costs (standard costs, estimates
figures) etc.)

The users of the information provided Information provided by cost accounting is

by financial accounting are both internal only meant for people within the firm like
3 and external users management, employees etc.

Financial accounting is mandatory for Cost accounting is only done by

all firms. Every organization has to manufacturing firms. And in most cases, itis
4 keep some record of its financial not mandatory.
transactions
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The emphasis here is on recording the Other than recording data it also provides a
transactions/data and presenting it in system of cost control of labour ,material,
5 the given format. overhead costs

Financial accounts deal with the Costing will enable us to get the profit or loss
6 business in its entirety. So it provides for individual products, process , job etc.
us with profit or loss for the whole
concern

In financial accounting, there is no In Cost accounting, forecasting is possible

aspect of forecasting. It simply a record using some of the budgeting techniques
7 of the financial position of the firm

Financial accounting is strictly a Cost accounting is both a positive and

positive science. There is rigidity in the normative science.
8
process due to legal requirements

DIFFERENCE BETWEEN FINANCIAL ACCOUNTING AND MANAGEMENT

ACCOUNTING

Basis for Comparison Financial Accounting Management Accounting

Financial Accounting is a powerful Management Accounting is a powerful

1.Definition
tool that allows organizations to tool that empowers managers to formulate
accurately publicize their finances Profitable strategies and plans for
and provide valuable insights into business operations, providing relevant
their operations. insights derived from the accounting
system.
To aid internal managers in the strategic
planning and decision-making process,
To create periodical reports delivering substantial data on a variety of
2.Objective matters.

3.Orientation Historical Future

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4.Nature of Statements
General-purpose financial statements Special purpose financial statements
Prepared

5.Rules and No fixed rules for the preparation of

GAAP rule are followed reports
Regulations

6.Nature of Reports Financial Financial and Non-financial

7.Format of the
Specified Not Specified
Financial Statements
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UNIT- III
INTRODUCTION TO MARKET

Meaning:
The word market is derived from the latin word ‘marcatus’ which means trade, commerce,
merchandise, a place where business is transacted. The common usage of market means a place
where goods are bought or sold. It is a medium or place to interact and exchange goods and services.
In simple words, the meeting place of buyers and sellers in an area is called market.

The term market defined by different authors in different ways among the most important is
given below:

Definition of Market:
(i) According to pyle “Market includes both place and region in which buyers and sellers are
in free competition with one another”.

(ii) In other words of clark and clark “a market is a centre or an area in which the forces
leading to exchange title to a particular product operate and towards which the actual
goods tend to travel”.

From the above definition it is observed that

 Market may mean a place where buying and selling take place.
 Buyers and sellers come together for transactions.
 An organization through which exchange of goods takes place.
 The act of buying and selling of goods (to satisfy human wants).
 An area of operation of commercial demand for commodities.

Need for Market:

i) To exchange (barter) goods and services.
ii) To adjust demand and supply by price mechanism.
iii) To improve the quality of life of the society.
iv) To introduce new modes of life.
v) To develop product by enhancing market segment.

CLASSIFICATION OF MARKET
I. On the basis of Geographical Area:

o Family market:
When exchange of goods and services are confined within a family or close
members of the family, such a market can be called as family market.

o Local market:
Participation of both the buyers and sellers belonging to a local area or areas,
may be a town or village, is called as local market. The demands are limited in this
type of market. For example, perishable goods like fruits, fish, vegetables, milk etc.
but strictly speaking such markets are disappearing because of the efficient system o
transportation and communication. Even, then, in many villages such markets exist
even today.
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o National market:
Certain type of commodities has demand throughout the country. Hence it is
called as a national market. Today the goods from one corner can reach another
corner with ease as the communication and transportation facilities are developed
well in India. This creates national markets for almost all the products.

o International market or world market:

World or international market is one where the buyers and sellers of goods
are from different countries involvement of buyers and sellers beyond the boundaries
of a nation.

II) On the basis of Commodities/Goods:

A) Commodity Market
A commodity market is a place where produced goods or consumption goods
are bought and sold. Commodity markets are sub-divided into.

o Produce exchange market:

It is an organized market where commodities or agricultural produce are
bought and sold on wholesale basis. Generally it deals with a single commodity. It is
regulated and controlled by certain rules. Eg. Wheat exchange market of hapur, the
cotton exchange market of Bombay etc.

o Manufactured goods market:

This market deals with manufactured goods. E.g. leather goods,
manufactured machinery etc. the leather exchange market at kanpur is an example of
the same.

o Bullion market:
This type of market deals with the purchase or sale of gold and silver. Bullion
markets of Mumbai, Kolkata, Kanpur, etc., are examples of such markets.

B) Capital Markets
New or going concerns need finance at every stage. Their financial needs are met
by capital markets. They are of three types:

o Money market:
It is a type of market where short term securities are exchanged. It provides
short term and very short term finance to industries, banks, government agencies and
financial intermediates.

o Foreign exchange market:

It is an international market. This type of markets helps exporters and
importers, in converting their currencies into foreign currencies and vice versa.

o The stock market:

This is a market where sales and purchases of shares, debentures, bonds etc.
of companies are dealt with. It is also known as securities market. Stock exchanges
of Mumbai, Kolkata, Chennai etc., are examples for this type of market.
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III) On the Basis of Economics:

A) Perfect market

i) Large number of buyers and sellers are there.

ii) Prices should be uniform throughout the market.
iii) Buyers and sellers have a perfect knowledge of market.
iv) Goods can be moved from one place to another without restrictions.

B) Imperfect market

i) Products are similar but not identical.

ii) Prices are not uniform.
iii) There is lack of communication.
iv) There are restrictions on the movement of goods.

IV) On the Basis of Transaction:

o Spot market:
In such markets, goods are exchanged and the physical delivery of goods
takes place immediately.

o Future market:
In such markets, contracts are made over the price for future delivery. The
dealing and settlement take place on different dates.

V) On the Basis of Regulation:

o Regulated market:
These are types of markets which are organized, controlled and regulated by
statutory measures.
Example: Stock exchanges of Mumbai, Chennai, Kolkata etc.

o Unregulated market:
A market which is not regulated by statutory measures is called unregulated
market. This is a free market where there is no control with regard to price, quality,
commission etc. demand and supply determine the price of goods.

VI) On the basis of time:

o Very short period market:

Markets which deal in perishable goods like, fruits, milk, vegetables etc., are
called as very short period market. There is no change in the supply of goods. Price
is determined on the basis of demand.

o Short period market:

In certain goods supply is adjusted to meet the demand. The demand is
greater than supply. Such markets are known as short period market.

o Long period market:

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This type of market deals in durable goods, where the goods and services are
dealt for longer period usages.

VII) On the Basis of Volume of Business:

o Wholesale market:
In wholesale market gods are supplied in bulk quantity to dealers/retailers.
The goods and services are not sold to customers directly.

o Retail market:
In retail market the goods are purchased from producer or wholesales and
sold to customers in small quantities by retailers.

VIII) On the basis of importance:

o Primary market:
The primary producers of farm sell their output or products through this type
of markets to wholesalers or consumers. Such markets can be found in villages and
mostly the products arrive from villages.

o Secondary market:
In this market, the semi finished goods are marketed. Here finished goods
are not sold. The commodities arrive from other markets. The dealings are
commonly between wholesalers or between wholesalers and retailers.

o Terminal market:
It is a central site that serves as an assembly and trading place for
commodities in a metropolitan area. For agricultural commodities, these are usually
at or near major transportation hubs.

MARKETING
Marketing is the process of creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large. It involves
various activities, including market research, product development, advertising, sales, and
customer relationship management, all aimed at satisfying customer needs and achieving
organizational goals. Marketing is a fundamental function for businesses and organizations to
promote their products or services, build brand awareness, and engage with their target
audience.

Marketing can be defined as the set of activities and processes that involve creating,
communicating, delivering, and exchanging products or services to satisfy the needs and
wants of customers. It encompasses a wide range of activities, from market research and
product development to advertising, sales, and customer relationship management, with the
ultimate goal of generating value for both the business and its target audience.

Definitions of Marketing:

Marketing has been defined by various authors and experts over the years. Here are
some notable definitions:

1. Philip Kotler: "Marketing is the science and art of exploring, creating, and delivering
value to satisfy the needs of a target market at a profit."
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2. Peter Drucker: "The aim of marketing is to know and understand the customer so well
that the product or service fits him and sells itself."

3. American Marketing Association: "Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large."

4. Theodore Levitt: "Marketing is not the art of finding clever ways to dispose of what you
make. It is the art of creating genuine customer value."

5. Kotler and Armstrong: "Marketing is the process by which companies create value for
customers and build strong customer relationships to capture value from customers in return."

These definitions highlight the core principles of marketing, which revolve around
understanding and meeting customer needs, creating value, and building relationships to
achieve organizational objectives.

CHARACTERISTICS OF MARKETING

Marketing exhibits several key characteristics that are essential to its function and
effectiveness:

1. Customer-Centric:
Marketing focuses on understanding and satisfying the needs and wants of customers.
It begins with a customer-centric approach.

2. Value Creation:
Marketing aims to create value for customers by offering products or services that
address their problems or fulfill their desires.

3. Exchange Process:
It involves the exchange of goods, services, or ideas between the organization and its
target audience, typically in return for money or some other form of value.

4. Integrated Process:
Marketing is a comprehensive process that encompasses various activities, including
market research, product development, pricing, promotion, and distribution, all working
together to achieve goals.

5. Communication:
Effective marketing involves clear and persuasive communication with customers to
inform, educate, and persuade them about a product or service.

6. Customer Relationship Management:

Marketing seeks to establish and maintain strong relationships with customers,
aiming for repeat business and loyalty.

7. Dynamic and Ever-Evolving:

The field of marketing is constantly evolving due to changes in technology, consumer
behavior, and market trends.

8. Profit-Oriented:
While not exclusively profit-driven, marketing's ultimate goal is often to generate
revenue and profit for the organization.
 20

9. Research-Based:
Market research is a fundamental component of marketing, helping organizations
understand their target audience and market dynamics.

10. Long-Term Orientation:

Marketing strategies often have a long-term focus, aiming to build enduring brand
equity and customer loyalty.

11. Multifaceted:
Marketing encompasses various sub-disciplines, including digital marketing, content
marketing, social media marketing, and more, each with its own techniques and
strategies.

These characteristics collectively define the essence of marketing and its role in
helping businesses and organizations meet their objectives while serving the needs of their
customers.

DIFFERENCE BETWEEN MARKET AND MARKETING

"Market" and "marketing" are related terms but refer to different aspects of business
and commerce:

1. Market:

i) A market is a physical or virtual space where buyers and sellers interact to

exchange goods, services, or information.
ii) It can refer to the entire marketplace for a particular product or service or a
specific segment within that marketplace.
iii) Markets can be local, regional, national, or global, depending on the scope and
reach of the exchange.

2. Marketing:

i) Marketing is a set of activities and processes designed to promote, advertise, and

create awareness of products, services, or ideas in the marketplace.
ii) It encompasses market research, product development, pricing, advertising,
distribution, and customer relationship management.
iii) Marketing aims to influence consumer behavior and purchasing decisions within
a market.

In summary, a "market" is the space or environment where transactions take place,

while "marketing" is the strategic and tactical approach used to influence and manage these
transactions within that market. Marketing is a means to connect with and serve a particular
market or target audience effectively.

Approaches to the Study of Marketing

The study of marketing involves various approaches and perspectives, each providing
a unique insight into the field. Here are some key approaches to the study of marketing:

1. Economic Approach:
 21

This approach focuses on the economic factors that influence marketing decisions,
such as supply and demand, pricing strategies, and market competition. It often involves
analyzing the allocation of resources in marketing activities.

2. Behavioural Approach:
This approach emphasizes consumer behavior, psychology, and decision-making
processes. Researchers study how individuals and groups make choices, respond to
marketing stimuli, and form preferences.

3. Societal Approach:
This perspective considers marketing's impact on society and emphasizes ethical and
social responsibility. It examines how marketing activities can influence culture, values,
and well-being.

4. Cultural Approach:
This approach examines how culture and cultural factors influence marketing
strategies and consumer preferences. It recognizes that marketing strategies may need to
be adapted to suit different cultural contexts.

5. Relationship Marketing Approach:

This approach emphasizes the importance of building and maintaining long-term
customer relationships. It focuses on customer loyalty, retention, and lifetime value.

6. Digital and Technology-Based Approach:

Given the increasing role of technology in marketing, this approach examines how
digital tools, social media, data analytics, and e-commerce impact marketing strategies
and consumer engagement.

7. Environmental and Sustainability Approach:

With growing concerns about environmental sustainability, this approach examines
how marketing can be used to promote eco-friendly products, practices, and responsible
consumption.

8. Global Marketing Approach:

This perspective explores how companies expand their reach and adapt marketing
strategies to operate in a global marketplace. It considers cultural differences, legal and
regulatory factors, and international market trends.

9. Market Research and Analytics Approach:

This approach focuses on the collection and analysis of data to inform marketing
decisions. It includes techniques like market research, consumer surveys, and data
analytics to gain insights into market trends and consumer preferences.

10. Cross-Functional Approach:

This approach recognizes that marketing does not operate in isolation but involves
coordination with other functional areas of a business, such as finance, operations, and
sales. It emphasizes the need for collaboration and alignment with the overall business
strategy.

These various approaches contribute to a holistic understanding of marketing, reflecting

the multidisciplinary nature of the field and its importance in modern business and society.
Researchers and practitioners often draw from multiple approaches to develop effective
marketing strategies and practices.
 22

UNIT – IV
INTRODUCTION TO LEGAL ASPECTS OF BUSINESS

Meaning of legal aspects of business:

1. Indian Contract Act – 1872
2. Negotiable Instrument Act- 1881
3. Sale of Goods Act – 1930
4. Partnership Act – 1932
5. Banking Regulation Act – 1948
6. Income Tax Act – 1961
7. Insolvency and bankruptcy Code – 2016
8. GST Act – 2017
9. Anti-Money Laundering Act – 2020

Indian Contract Act – 1872:

The Indian Contract Act, 1872, is a legal framework in India that governs contracts. It defines
what constitutes a valid contract, the rights and duties of parties involved, and the remedies available
in case of breaches. It lays down the principles and rules that regulate contracts in India, making it a
critical piece of legislation for business and commercial transactions.

Negotiable Instruments Act – 1881:

The Negotiable Instruments Act, 1881, is an Indian legislation that deals with negotiable
instruments such as promissory notes, bills of exchange, and cheques. This act defines the various
aspects of these instruments, including their properties, use, and transferability. It provides the legal
framework for the functioning and regulation of negotiable instruments in India, making it an
essential part of commercial and financial transactions.

Sale of goods Act – 1930:

The Sale of Goods Act, which was applicable in India until the introduction of the Goods and
Services Tax (GST), was a legal framework that governed the sale and purchase of tangible goods. It
outlined the rights and responsibilities of both buyers and sellers in the context of goods transactions.
This law covered aspects such as the transfer of ownership, warranties, and conditions related to the
quality and fitness of goods, and the remedies available in case of disputes or breaches in sales
contracts. The Sale of Goods Act aimed to provide a clear legal structure for commercial transactions
involving physical products.

The Sale of Goods Act, 1930, was an important piece of legislation that governed the sale
and purchase of goods in India until it was repealed and replaced by the Goods and Services Tax
(GST) regime in 2017. This act outlined the legal framework for transactions involving tangible
goods, specifying the rights and obligations of both buyers and sellers. It covered aspects such as the
transfer of ownership, warranties, and conditions related to the quality and fitness of goods, and
remedies available in case of disputes or breaches in sales contracts.

It's important to note that the Sale of Goods Act, 1930, is no longer in force, and its
provisions have been largely superseded by the GST, which brought about a significant change in the
taxation and regulation of goods transactions in India.

The Partnership Act – 1932:

The Partnership Act, 1932, is an Indian legislation that governs partnerships and the
relationship between individuals or entities engaged in a partnership business. It defines the rights,
duties, and liabilities of partners, as well as the rules for the operation and dissolution of partnerships.
The act provides a legal framework for conducting business in a partnership structure, outlining the
 23

terms and conditions that partners must adhere to, and it offers guidance on resolving disputes and
dissolving partnerships in an orderly manner.

The Banking Regulation Act – 1949:

The Banking Regulation Act, 1949, is an important Indian legislation that provides the legal
framework for the regulation and supervision of banks and financial institutions in India. This act
empowers the Reserve Bank of India (RBI) to oversee and control the functioning of banks, including
their licensing, management, operations, and various aspects of their business. The act also outlines
the guidelines for maintaining the stability and integrity of the Indian banking system. It plays a
pivotal role in ensuring the safety and reliability of the country's financial institutions and the
protection of depositors' interests.

The Income Tax Act – 1961:

The Income Tax Act is a legal framework that governs the taxation of income in India. It
outlines the rules and regulations related to the assessment, collection, and management of income
tax. This act specifies the various sources of income that are subject to taxation, the applicable tax
rates, exemptions, deductions, and the procedures for filing income tax returns. It also establishes the
powers and responsibilities of the tax authorities and the rights and obligations of taxpayers. The
Income Tax Act is a fundamental piece of legislation that ensures the collection of revenue for the
government and regulates the taxation of individuals, businesses, and other entities.

The Income Tax Act, 1961 is the primary legislation in India that governs the taxation of
income. It is the updated version of the original Income Tax Act and serves as the comprehensive
legal framework for income tax regulations in the country. This act specifies the rules and regulations
regarding the assessment, collection, and management of income tax for individuals, businesses, and
other entities. It outlines the various sources of income subject to taxation, applicable tax rates,
exemptions, deductions, and procedures for filing income tax returns. The Income Tax Act, 1961, is a
crucial piece of legislation that provides the legal foundation for India's income tax system and
governs various aspects of income taxation.

The Insolvency and Bankruptcy Code (IBC) – 2016:

The Insolvency and Bankruptcy Code (IBC) 2016 is a significant piece of legislation in India
that was enacted to consolidate and amend the laws related to insolvency resolution and bankruptcy.
The primary purpose of the IBC is to provide a time-bound and structured legal framework for
dealing with insolvency and bankruptcy of individuals, partnership firms, and corporate entities.

Key objectives of the IBC include:

1. Resolution of Insolvency:
The IBC aims to facilitate the timely and efficient resolution of insolvency cases,
ensuring that the interests of all stakeholders are protected.

2. Maximizing Asset Value:

The code seeks to maximize the value of the debtor's assets by promoting the revival
of the debtor's business or, if revival is not feasible, by selling the assets in a fair and
transparent manner.

3. Priority of Creditors:
The IBC establishes a clear hierarchy of creditors, ensuring that the claims of
financial and operational creditors are addressed systematically.
 24

4. Avoiding Liquidation:
It promotes the rescue and rehabilitation of financially distressed businesses over
immediate liquidation, thereby potentially saving jobs and preserving economic value.

5. Time-Bound Process:
The IBC sets strict timelines for the resolution process to expedite the resolution of
insolvency cases.

The IBC has significantly reformed the insolvency and bankruptcy framework in India and
has been instrumental in addressing issues related to non-performing assets (NPAs) in the banking
sector and promoting a more robust system for dealing with insolvency and debt recovery.

The goods and services tax (GST) act – 2017:

The Goods and Services Tax (GST) Act, 2017, is the primary legislation in India that governs the
imposition, collection, and regulation of the Goods and Services Tax. GST is a comprehensive
indirect tax that replaced various indirect taxes at the central and state levels. The GST Act of 2017
aims to create a unified and simplified taxation system for goods and services across India.

Key features and objectives of the GST Act, 2017, include:

1. Uniform Tax Structure:

It introduces a single tax system that eliminates the complexities of multiple taxes
like excise, service tax, VAT, and others.

2. Destination-Based Tax:
GST is a destination-based tax, meaning that it is levied where the goods or services
are consumed, promoting a more equitable distribution of tax revenue among states.

3. Input Tax Credit:

Businesses can claim input tax credit for taxes paid on their inputs, reducing the
cascading effect of taxation.

4. Threshold Exemptions:
The act provides threshold exemptions to small businesses to ease compliance.

5. Composition Scheme:
Small taxpayers can opt for the composition scheme, which simplifies the tax
process.

6. E-Governance:
GST relies heavily on digital platforms for filing returns and processing refunds,
making it more efficient and transparent.

The GST Act, 2017, brought about a significant reform in India's indirect taxation system, unifying
the tax structure across states and promoting ease of doing business. It plays a crucial role in the
country's economic landscape by simplifying the taxation of goods and services.

Anti-Money Laundering Act – 2020:

As of my last knowledge update in September 2021, there was no specific "Anti Money
Laundering Act 2020" in India or any significant global legislation by that name in that year.
However, anti-money laundering (AML) laws and regulations are typically updated and amended
regularly to combat financial crimes and money laundering activities.
 25

Countries have various laws, rules, and regulations in place to prevent money laundering and
the financing of terrorism. These laws are designed to promote transparency in financial transactions
and impose due diligence requirements on financial institutions and businesses to identify and report
suspicious transactions.

If there has been a specific "Anti Money Laundering Act 2020" enacted in a particular
jurisdiction, you would need to refer to the laws and regulations specific to that region to understand
its provisions and implications.

Please note that financial regulations and legislation are subject to change and can vary from one
jurisdiction to another. I recommend checking with the relevant legal authorities or government
sources for the most up-to-date information on AML laws and regulations in your specific
jurisdiction.
 26

UNIT – V
TAX RETURN FILING

Meaning:

Taxation is the process by which governments collect money from individuals, businesses,
and other entities to fund public services and government operations. Taxes are compulsory payments
that citizens and businesses are required to make to the government, and they are typically imposed
based on various criteria.

There are several types of taxation, including:

1. Income Tax:
This tax is levied on the income earned by individuals and entities, such as
corporations. It can be progressive (higher income earners pay a higher percentage of their
income) or flat (a fixed percentage applied to all income levels).

2. Sales Tax:
Sales tax is typically a percentage of the purchase price of goods and services. It can
be levied at the state, local, or national level and can be added at the point of sale or included
in the price.

3. Value Added Tax (VAT):

VAT is similar to a sales tax, but it is collected at multiple stages in the production
and distribution of goods and services. Businesses pay tax on the value they add to a product
or service, and this is ultimately passed on to consumers.

4. Property Tax:
Property tax is levied on the value of real estate properties owned by individuals or
businesses. It is a major source of revenue for local governments.

5. Corporate Tax:
Corporate tax is imposed on the profits earned by companies. The rate can vary
depending on the jurisdiction and the size and type of business.

6. Capital Gains Tax:

This tax applies to the profit earned from the sale of investments, such as stocks, real
estate, and other assets. The rate can vary depending on how long the asset was held.

7. Excise Tax:
Excise taxes are imposed on specific goods, such as alcohol, tobacco, fuel, and
luxury items. These taxes are often used to discourage the consumption of certain products.

8. Customs Duty:
Customs duties are taxes imposed on goods imported or exported from a country.
They are intended to protect domestic industries and raise revenue.

9. Estate and Inheritance Tax:

These taxes apply to the transfer of wealth upon an individual's death. They are levied
on the estate's total value or the inheritance received by beneficiaries.

10. Environmental Taxes:

These taxes are imposed on activities or products that have an environmental impact, such as
carbon taxes or taxes on polluting activities.
 27

The types of taxation and the rates can vary widely between countries and regions. Taxation
policies are often influenced by economic, social, and political considerations. The revenue collected
from taxes is used to fund public services like healthcare, education, infrastructure, defense, and more.

RETURN

Returns can refer to various documents or forms that individuals, businesses, or entities are
required to file with government authorities to report various financial and tax-related information.

Here are some common types of returns:

1. Income Tax Return (ITR):

Individuals and businesses are required to file income tax returns to report their
income, deductions, and tax liability to the tax authorities. Various forms are available for
different categories of taxpayers.

2. Goods and Services Tax (GST) Return:

Under the GST system, businesses need to file returns to report their sales,
purchases, and tax liability. Different types of GST returns exist, including GSTR-1 for
outward supplies and GSTR-3B for summary returns.

3. Sales Tax Return:

Businesses often need to file sales tax returns to report the sales tax or value-added
tax (VAT) they have collected from customers. The frequency and specific requirements vary
by jurisdiction.

4. Payroll Tax Return:

Employers are required to file payroll tax returns to report employee wages,
deductions, and the taxes withheld from employee paychecks. This helps ensure that payroll
taxes are paid to the government.

5. Property Tax Return:

Property owners may need to file returns to report the value and condition of their
properties, which are used to calculate property taxes.

6. Customs Declaration:
Individuals or businesses involved in international trade need to file customs
declarations to report the nature and value of imported or exported goods.

7. Excise Tax Return:

Businesses that produce or sell goods subject to excise taxes, such as alcohol,
tobacco, or fuel, must file excise tax returns to report the quantities sold and pay the
applicable taxes.

8. Estate Tax Return:

Executors of estates are required to file estate tax returns to report the assets and their
values for calculating any estate taxes that may be owed.

9. Gift Tax Return:

When gifts of significant value are given, individuals may be required to file gift tax
returns to report the gifts and determine if any gift tax liability exists.
 28

10. Quarterly and Annual Financial Statements:

Businesses often prepare and file various financial statements, including quarterly and
annual reports, which provide detailed financial information to stakeholders and regulatory
bodies.
11. Annual Information Return (AIR):
Financial institutions may be required to file AIR to report high-value financial
transactions and to assist tax authorities in tracking potentially unreported income.

12. Non-profit Organization Returns:

Non-profit organizations typically need to file annual returns or reports with relevant
authorities to maintain their tax-exempt status and disclose financial information.

These are just a few examples of different types of returns, and the specific requirements and
deadlines can vary by country, state, or region. It's essential to understand and comply with the filing
requirements that are applicable to your individual or business circumstances.

FILING OF INCOME TAX RETURN

Filing an income tax return is a process where individuals, businesses, or entities report their
income, deductions, and tax liability to the tax authorities.

Here's a general overview of how to file an income tax return:

1. Gather Necessary Documents:

Collect all relevant financial documents, such as W-2 forms (for employees), 1099
forms (for various types of income), receipts for deductions, and any other documents related
to your income and expenses.

2. Choose the Appropriate ITR Form:

In India, the Income Tax Department provides different Income Tax Return (ITR)
forms for different categories of taxpayers and sources of income. Select the correct ITR form
that matches your circumstances.

3. Online or Offline Filing:

The preferred method for filing income tax returns is online (e-filing). The Income
Tax Department provides an e-filing portal for this purpose. You can also file a physical
return by submitting a paper form, but this is less common and may have specific
requirements.

4. Register on the E-filing Portal:

If you are filing online, register on the official e-filing portal of the Income Tax
Department.

5. Fill Out the ITR Form:

Complete the ITR form by entering your personal information, income details,
deductions, and tax liability. Some fields may require detailed calculations.

6. Verify the Return:

Review the filled-out ITR form for accuracy and ensure that all necessary details are
provided.

7. Calculate Tax Liability:

Calculate your total tax liability based on the information you've entered. The ITR
form may help you compute your tax automatically.
 29

8. Claim Deductions:
Ensure that you have claimed all eligible deductions and exemptions to reduce your
taxable income.

9. File the Return:

Once you are satisfied with the form and have reviewed it for accuracy, you can
submit the return through the e-filing portal. If you're filing a paper return, submit it
physically to the designated income tax office.

10. Receive Acknowledgment:

Upon successful submission, you will receive an acknowledgment or ITR-V
(Verification) form, which serves as proof of filing. You may need to send the ITR-V to the
Centralized Processing Center (CPC) in Bangalore if e-verification is not done.

11. Verification:
Verify your return, which is mandatory. You can verify your return electronically
using methods such as Aadhaar OTP, net banking, or by sending a signed ITR-V.

12. Receive Intimation:

After the tax authorities process your return, you may receive an intimation or notice
if there are discrepancies or if further information is required. Ensure prompt response if
necessary.

13. Keep Records:

Maintain records of your filed returns and supporting documents for at least several
years, as tax authorities may request them for audit or verification purposes.

It's important to file your income tax return within the due date specified by the tax
authorities, as missing the deadline may lead to penalties and interest on any outstanding tax liability.
Additionally, if you have complex financial situations, consider seeking assistance from a tax
professional or chartered accountant to ensure accurate and compliant filing.

FILING GOODS AND SERVICES TAX RETURN

Filing Goods and Services Tax (GST) returns is a crucial requirement for businesses in India
to report their sales, purchases, and tax liabilities. The process involves multiple steps and various
forms, and it's typically done online through the GST portal.

Here's an overview of how to file GST returns:

1. Registration:
Ensure that your business is registered under the GST regime. You will receive a
GSTIN (GST Identification Number) and a password to access the GST portal.

2. Select the Right GST Return Form:

There are various GST return forms, and the one you need to file depends on your
business type and turnover. The common GST return forms include GSTR-1 (for outward
supplies), GSTR-3B (a monthly summary return), and GSTR-9 (annual return).

3. Gather Transaction Data:

Collect all relevant transaction data, such as invoices, purchase orders, and other
records for the specific period you are filing the return for.
 30

4. Log In to the GST Portal:

Visit the official GST portal and log in using your GSTIN and password.

5. Choose the Appropriate Return Form:

Select the applicable GST return form from the available options.

6. Fill in the Return Form:

Enter your business and transaction details into the selected GST return form. This
includes sales, purchases, input tax credit, and other relevant information. Ensure that the data
is accurate and complete.

7. Validate and Save:

Validate the data entered and save it in the GST portal. The portal will alert you to
any errors or discrepancies that need to be corrected.

8. Reconcile and Pay Tax:

Check the tax liability calculated by the portal. Pay any taxes due through the online
payment options available on the portal.

9. Submit the Return:

After reconciling and paying the tax, submit the return through the portal.

10. Receive Acknowledgment:

Once the return is successfully submitted, you will receive an acknowledgment
receipt. This serves as proof of filing.

11. File Nil Returns:

If you had no business transactions during a specific period, you may need to file a
nil return to inform tax authorities that you had no sales or purchases.

12. Regular Filing:

GST returns are typically filed monthly. Ensure that you file your return by the due
date to avoid penalties and interest.

13. Annual Return:

In addition to monthly or quarterly returns, businesses may be required to file an
annual return (GSTR-9) by the specified deadline.

14. GST Reconciliation:

Regularly reconcile your GST return data with your books of accounts to ensure
accuracy and compliance.

15. Maintain Records:

Keep detailed records of invoices, purchase orders, and other transaction documents
for several years, as these may be needed for audits or verification.

Filing GST returns accurately and on time is essential for maintaining compliance with tax
authorities and avoiding penalties. If you have complex transactions or are uncertain about the
process, it's advisable to seek the assistance of a qualified chartered accountant or tax professional.
 31

SLAB RATES

Slab rates typically refer to the progressive tax rates used in an income tax system. These
rates are applied to different income brackets, with individuals or entities paying higher tax rates as
their income increases. Slab rates are designed to impose a higher tax burden on those with higher
incomes, while those with lower incomes pay a lower percentage of their income in taxes.

Income tax slab rates vary by country and can change over time due to legislative changes. In India,
for example, the income tax system has specific slab rates for different categories of taxpayers. As of
my last knowledge update in September 2021, here are the income tax slab rates for individual
taxpayers in India:

For individuals below the age of 60:

1. Income up to 2.5 lakhs: No tax

2. Income between 2.5 lakhs and 5 lakhs: 5% tax
3. Income between 5 lakhs and 10 lakhs: 20% tax
4. Income above 10 lakhs: 30% tax

For individuals between the ages of 60 and 80 (senior citizens):

1. Income up to 3 lakhs: No tax

2. Income between 3 lakhs and 5 lakhs: 5% tax
3. Income between 5 lakhs and 10 lakhs: 20% tax
4. Income above 10 lakh: 30% tax

For individuals above the age of 80 (very senior citizens):

1. Income up to 5 lakhs: No tax

2. Income between 5 lakhs and 10 lakhs: 20% tax
3. Income above 10 lakhs: 30% tax

Please note that these tax slab rates are subject to change, and it's important to verify the
current rates and thresholds with the relevant tax authorities, especially if you are planning to file your
income tax return. Slab rates can vary significantly from one country to another, and even within
countries, they may differ for various categories of taxpayers, such as individuals, businesses, and
specific types of income.

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