Uncategorized

Analytical Procedures – CA Inter Auditing Notes is designed strictly as per the latest syllabus and exam pattern.

Analytical Procedures – CA Inter Auditing Notes

Question 1.
Routine checks cannot be depended upon to disclose all the mistakes or manipulation that may exist in accounts, certain other procedures also have to be applied like trend and ratio analysis. Analyse and Explain stating clearly the meaning of analytical procedures. [RTP-Nov. 19]
Answer:
Analytical Procedures:

• Routine checks cannot be depended upon to disclose all the mistakes or manipulation that may exist in accounts, due to which, certain other procedures also have to be applied like trend and ratio analysis in addition to reasonable tests. These collectively are known as overall tests.
• With the passage of time, analytical procedures have acquired lot of significance as substantive audit procedure.
• SA-520 on Analytical Procedures discusses the application of analytical procedures during an audit.

Meaning of Analytical Procedures:
SA 520 “Analytical Procedures” deals with the auditor’s use of analytical procedures as substantive procedures.

Meaning of Analytical Procedures:
Analytical Procedures means evaluations of financial information through analysis of relationships among both financial and non-financial data.

It also encompasses such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.

Nature of Analytical Procedures:
(a) AP include the consideration of comparisons of the entity’s financial information with

• Comparable information for prior periods.
• Anticipated results of the entity, such as, budgets or forecasts, or expectations of the auditor (for example, estimation of depreciation).
• Similar industry information (for example, comparison of entity’s ratio of sales to accounts receivable with industry averages or with other entities of comparable size in the same industry).

(b) AP also include consideration of relationships, among:

• elements of financial information, such as gross margin percentages.
• financial information and relevant non-financial information, such as payroll costs to number of employees.

Benefits of Analytical Procedures:
The analytical procedures may be used for following purposes:

• To assist the auditor in planning the nature, timing and extent of audit procedures.
• As a substantive procedure when their use can be more effective or efficient than tests of details in reducing detection risk for specific F.S. assertions; and
• As an overall review of the F.S. in the final review, stage of the audit.

Question 2.
Define Analytical Procedures.
Or
Explain what do you mean by Analytical procedures. How such procedures are helpful in auditing?
Answer:
Analytical Procedures:
SA 520 “Analytical Procedures” deals with the auditor’s use of analytical procedures as substantive procedures.

Meaning of Analytical Procedures:
Analytical Procedures means evaluations of financial information through analysis of relationships among both financial and non-financial data.

It also encompasses such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.

Nature of Analytical Procedures:
(a) AP include the consideration of comparisons of the entity’s financial information with

• Comparable information for prior periods.
• Anticipated results of the entity, such as, budgets or forecasts, or expectations of the auditor (for example, estimation of depreciation).
• Similar industry information (for example, comparison of entity’s ratio of sales to accounts receivable with industry averages or with other entities of comparable size in the same industry).

(b) AP also include consideration of relationships, among:

• elements of financial information, such as gross margin percentages.
• financial information and relevant non-financial information, such as payroll costs to number of employees.

Benefits of Analytical Procedures:
The analytical procedures may be used for following purposes:
1. To assist the auditor in planning the nature, timing and extent of audit procedures.
2. As a substantive procedure when their use can be more effective or efficient than tests of details in reducing detection risk for specific F.S. assertions; and
3. As an overall review of the F.S. in the final review, stage of the audit.

Question 3.
Analytical procedures use comparisons and relationships to assess whether account balances or other data appear reasonable. Explain stating the purpose of analytical procedures. [RTP-May 18]
Answer:
SA 520 “Analytical Procedures” deals with the auditor’s use of analytical procedures as substantive procedures.

Meaning of Analytical Procedures:
Analytical Procedures means evaluations of financial information through analysis of relationships among both financial and non-financial data.

It also encompasses such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.

Nature of Analytical Procedures:
(a) AP include the consideration of comparisons of the entity’s financial information with

• Comparable information for prior periods.
• Anticipated results of the entity, such as, budgets or forecasts, or expectations of the auditor (for example, estimation of depreciation).
• Similar industry information (for example, comparison of entity’s ratio of sales to accounts receivable with industry averages or with other entities of comparable size in the same industry).

(b) AP also include consideration of relationships, among:

• elements of financial information, such as gross margin percentages.
• financial information and relevant non-financial information, such as payroll costs to number of employees.

Benefits of Analytical Procedures:
The analytical procedures may be used for following purposes:

• 1. To assist the auditor in planning the nature, timing and extent of audit procedures.
• 2. As a substantive procedure when their use can be more effective or efficient than tests of details in reducing detection risk for specific F.S. assertions; and
• 3. As an overall review of the F.S. in the final review, stage of the audit.

Question 4.
Give examples of Analytical Procedures having consideration of comparisons of the entity’s financial information. [RTP-Nov, 19]
Answer:
Analytical Procedures:
SA 520 “Analytical Procedures” deals with the auditor’s use of analytical procedures as substantive procedures.

Meaning of Analytical Procedures:
Analytical Procedures means evaluations of financial information through analysis of relationships among both financial and non-financial data.

It also encompasses such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.

Nature of Analytical Procedures:
(a) AP include the consideration of comparisons of the entity’s financial information with

• Comparable information for prior periods.
• Anticipated results of the entity, such as, budgets or forecasts, or expectations of the auditor (for example, estimation of depreciation).
• Similar industry information (for example, comparison of entity’s ratio of sales to accounts receivable with industry averages or with other entities of comparable size in the same industry).

(b) AP also include consideration of relationships, among:

• elements of financial information, such as gross margin percentages.
• financial information and relevant non-financial information, such as payroll costs to number of employees.

Benefits of Analytical Procedures:
The analytical procedures may be used for following purposes:

• To assist the auditor in planning the nature, timing and extent of audit procedures.
• As a substantive procedure when their use can be more effective or efficient than tests of details in reducing detection risk for specific F.S. assertions; and
• As an overall review of the F.S. in the final review, stage of the audit.

Question 5.
In the planning stage, analytical procedures assist the auditor in understanding the client’s business and in identifying areas of potential risk. Explain. [RTP-Nov. 20]
Answer:
Use of Analytical Procedures in Planning Stage:

• In the planning stage, analytical procedures assist the auditor in understanding the client’s business and in identifying areas of potential risk by indicating aspects of and developments in the entity’s business of which he was previously unaware.
• This information will assist the auditor in determining the nature, timing and extent of his other audit procedures.

Analytical procedures in planning the audit use both financial data and non-financial information, such as number of employees, square feet of selling space, volume of goods produced and similar information.

Question 6.
Use of substantive Analytical Procedures requires consideration of many factors. Explain those factors.
Or
With respect to SA 520 “Analytical procedures”. Explain the following factors to be considered by the auditor for substantive audit procedures.
(i) Account type
(ii) Predictability
(iii) Nature of Assertion. [Nov. 20 (3 Marks)]
Answer:
Factors to be considered while using substantive analytical procedures:
Use of substantive Analytical Procedures requires consideration of following factors:
1. Availability of Data: The availability of reliable and relevant data will facilitate effective procedures.

2. Disaggregation: The degree of disaggregation in available data can directly affect the degree of its usefulness in detecting misstatements.

3. Account Type: Substantive analytical procedures are more useful for certain types of accounts than for others. Income statement accounts tend to be more predictable because they reflect accumulated transactions over a period, whereas balance sheet accounts represent the net effect of transactions at a point in time or are subject to greater management judgment.

4. Source: Some classes of transactions tend to be more predictable because they consist of numerous, similar transactions. Whereas the transactions recorded by non-routine and estimation are often subject to management judgment and therefore more difficult to predict.

5. Predictability: SAPs are more appropriate when an account balance or relationships between items of data are predictable. A predictable relationship is one that may reasonably be expected to exist and continue over time.

6. Nature of Assertion: SAP may be more effective in providing evidence for some assertions (e.g., completeness or valuation) than for others (e.g., rights and obligations).

Question 7.
Substantive analytical procedures are generally more applicable to large volumes of transactions that tend to be predictable over time. Explain. [RTP-Nov. 18, MTP-April 19]
Answer:
Predictability of Substantive Analytical Procedure:
1. SA 5 2 0 “Analytical Procedures” deals with the auditor’s use of analytical procedures as substantive procedures. As per SA 520, substantive analytical procedures are generally more applicable to large volumes of transactions that tend to be predictable over time.

2. The application of planned analytical procedures is based on the expectation that relationships among data exist and continue in the absence of known conditions to the contrary. However, the suitability of a particular analytical procedure will depend upon the auditor’s assessment of how effective it will be in detecting a misstatement that, individually or when aggregated with other misstatements, may cause the financial statements to be materially misstated.

3. In some cases, even an unsophisticated predictive model may be effective as an analytical procedure. For example, where an entity has a known number of employees at fixed rates of pay throughout the period, it may be possible for the auditor to use this data to estimate the total payroll costs for the period with a high degree of accuracy, thereby providing audit evidence for a significant item in the financial statements and reducing the need to perform tests of details on the payroll.

4. The use of widely recognised trade ratios (such as profit margins for different types of retail entities) can often be used effectively in substantive analytical procedures to provide evidence to support the reasonableness of recorded amounts.

Question 8.
What are the factors that determine the extent of reliance that the auditor places on results of analytical procedures? Explain with reference to SA-520 on “Analytical procedures”.
or
What are the considerations to be kept in mind while performing analytical procedures on data prepared by the client?
Or
The reliability of data is influenced by its source and nature and is dependent on the circumstances under which it is obtained. Accordingly, what are the relevant criteria which determine whether the data is reliable for the purposes of designing substantive analytical procedures?
Or
CA A, auditor of ABC Ltd. wants to design substantive analytical procedure and for that he wants to check whether the data is reliable or not. Mention the relevant points which he has to consider whether data is reliable for purpose of designing the substantive analytical procedures. [Nov. 19 (3 Marks)]
Answer:
Factors determining extent of reliance on analytical procedures (SA-520):
The application of analytical procedures is based on the expectation that relationships among data exist and continue in the absence of known conditions to the contrary. The presence of these relationships provides audit evidence as to the completeness, accuracy and validity of the data produced by the accounting system.

Factors affecting the Reliability of Data on which analytical procedures are to be performed:
As per SA 520 “Analytical Procedures” facts that may affect the reliability of data are:
1. Source of the information available. For example, information may be more reliable when it is obtained from independent sources outside the entity;

2. Comparability of the information available. For example, broad industry data may need to be supplemented to be comparable to that of an entity that produces and sells specialised products;

3. Nature and relevance of the information available. For example, whether budgets have been established as results to be expected rather than as goals to be achieved; and

4. Controls over the preparation of the information that are designed to ensure its completeness, accuracy and validity. For example, controls over the preparation, review and maintenance of budgets.

Question 9.
Explain the techniques available while applying SAP. [RTP-May 19]
Or
Ratio analysis is useful for analysing asset and liability accounts as well as revenue and expense accounts. An individual balance sheet account is difficult to predict on its own, but its relationship to another account is often more predictable (e.g., the trade receivables balance related to sales).
Explain stating the techniques available as substantive analytical procedures. [RTP-May 18, MTP-Oct. 19]
Or
Discuss the techniques available as substantive analytical procedures. [May 18 (5 Marks)]
Or
The design of a substantive analytical procedure is limited only by the availability of reliable data and the experience and creativity of the audit team. Explain clearly stating the techniques available as substantive analytical procedures. [MTP-Aug. 18]
Answer:
Techniques available while applying SAP:
(a) Trend analysis: Trend analysis is most commonly used technique which involves comparison of current data with the prior period balance or with a trend in two or more prior period balances.

(b) Ratio analysis: Ratio analysis involves analysing revenue and capital items forming part of balance sheet and profit and loss account. Ratios can also be compared over a period of time or to the ratios of other entities within the industry.

(c) Reasonableness tests: Unlike trend analysis, this analytical procedure does not rely on events of prior periods, but upon non-financial data for the audit period under consideration. These tests are generally more applicable to income statement accounts and certain accrual or prepayment accounts.

(d) Structural modelling: A modelling tool constructs a statistical model from financial and/or non-financial data of prior accounting periods to predict current account balances (e.g., linear regression).

Question 10.
Explain the commonly used technique in the comparison of current data with the prior period balance or with a trend in two or more prior period balances. [RTP-May 20]
Answer:
Commonly used technique in the comparison of current data with the prior period balance:

• Trend Analysis is commonly used technique for the comparison of current data with the prior period balance or with a trend in two or more prior period balances.
• With this technique, a person can evaluate whether the current balance of an account moves in line with the trend established with previous balances for that account, or based on an understanding of factors that may cause the account to change.

Question 11.
The decision about which audit procedures to perform, including whether to use substantive analytical procedures, is based on the auditor’s judgment. Explain. [RTP-Nov. 20]
Answer:
Use of Substantive Analytical Procedures:

• The substantive procedures at the assertion level may be tests of details, substantive analytical procedures, or a combination of both.
• The decision about which audit procedures to perform, including whether to use substantive analytical procedures, is based on the auditor’s judgment about the expected effectiveness and efficiency of the available audit procedures to reduce audit risk at the assertion level to an acceptably low level.
• The auditor may inquire of management as to the availability and reliability of information needed to apply substantive analytical procedures, and the results of any such analytical procedures performed by the entity. It may be effective to use analytical data prepared by management, provided the auditor is satisfied that such data is properly prepared.

Question 12.
If analytical procedures performed in accordance with SA 520 identify fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount, explain how would the auditor investigate such differences. [RTP-May 19]
Answer:
Investigation of Identified fluctuations:
If analytical procedures performed in accordance with SA 520 identify fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount, the auditor shall investigate such differences by:
(a) Inquiring of management and obtaining appropriate audit evidence relevant to management’s responses; and
(b) Performing other audit procedures as necessary in the circumstances.

• Audit evidence relevant to management’s responses may be obtained by evaluating those responses taking into account the auditor’s understanding of the entity and its environment, and with other audit evidence obtained during the course of the audit.
• The need to perform other audit procedures may arise when, for example, management is unable to provide an explanation, or the explanation, together with the audit evidence obtained relevant to management’s response, is not considered adequate.

Question 13.
The relationships between individual financial statements items traditionally considered in the audit of business entities may not always be relevant in the audit of governments or other non-business public sector entities. Analyse and Explain. [RTP-Nov. 18]
Answer:
Considerations Specific to Public Sector Entities

• The relationships between individual financial statement items traditionally considered in the audit of business entities may not always be relevant in the audit of governments or other nonbusiness public sector entities; for example, in many public-sector entities there may be little direct relationship between revenue and expenditure.
• In addition, because expenditure on the acquisition of assets may not be capitalised, there may be no relationship between expenditures on, for example, inventories and fixed assets and the amount of those assets reported in the financial statements.
• Also, industry data or statistics for comparative purposes may not be available in the public Analytical Procedures sector. However, other relationships may be relevant, for example, variations in the cost per kilometer of road construction or the number of vehicles acquired compared with vehicles retired.

Objective Type Questions (True/False, Correct/Incorrect)

Question 1.
As per SA 520 the term “analytical procedures” means evaluations of financial information through analysis of plausible relationships among financial data only.
Answer:
Statement is incorrect.
SA 520 “Analytical Procedures” defines the term analytical procedures as evaluations of financial information through analysis of plausible relationships among both financial and non-financial data.

Question 2.
Auditor can depend on routine checks to disclose all the mistakes or manipulation that may exist in accounts.
Answer:
Statement is incorrect.

• Auditor cannot be depended on routine checks to disclose all the mistakes or manipulation that may exist in accounts.
• Certain other procedures like trend and ratio analysis also have to be applied in addition to routine checks.

Question 3.
Only purpose of analytical procedures is to obtain relevant and reliable audit evidence when using substantive analytical procedures.
Answer:
Statement is incorrect.
Analytical procedures are being applied:
(a) To obtain relevant & reliable audit evidence when using substantive analytical procedures; &
(b) To design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion as to whether the F.S. are consistent with auditor’s understanding of the entity.

Question 4.
Analytical Procedures are required in the planning phase only.
Answer:
Statement is incorrect.
Analytical Procedures are applied not only during planning phase but also applied

• during the audit and
• near the completion of audit.

Question 5.
Substantive analytical procedures are generally less applicable to large volumes of transactions that tend to be predictable over time.
Answer:
Statement is incorrect.
Substantive analytical procedures are more appropriate when an account balance or relationships between items of data are predictable. A predictable relationship is one that may reasonably be expected to exist and continue over time.

Question 6.
Analytical procedures are unable to help the auditor in determining nature, timing and extent of other audit procedures at the planning stage. [Nov. 09 (2 Marks)]
Answer:
Statement is incorrect.
Analytical procedure are applied during planning stage and hence helps the auditor in determining nature, timing and extent of other audit procedures. Application of Analytical procedures during planning is governed by SA 315.

SA 520 “Analytical Procedures” deals with the auditor’s use of analytical procedures as substantive procedures (“substantive analytical procedures”), and as procedures near the end of the audit that assist the auditor when forming an overall conclusion on the financial statements.

Question 7.
Analytical procedure is a part of routine audit checking. [May 17 (2 Marks)]
Answer:
Statement is incorrect.

• SA 5 2 0 “Analytical Procedures” defines the term analytical procedures as evaluations of financial information through analysis of plausible relationships among both financial and non-financial data.
• Auditor cannot be depended on routine checks to disclose all the mistakes or manipulation that may exist in accounts. Certain other procedures like trend and ratio analysis also have to be applied in addition to routine checks.

Question 8.
A modelling tool constructs a statistical model from financial data only of prior accounting periods to predict current account balances. [MTP-March 18, March 19]
Answer:
Statement is incorrect.

• A modelling tool constructs a statistical model from financial and/or non-financial data of prior accounting periods to predict current account balances

Question 9.
While designing audit procedures to address an inherent risk or “what can go wrong”, auditor should consider the nature of the risk of material misstatement in order to determine if a substantive analytical procedure can be used to obtain audit evidence. [MTP-March 18, Oct. 18, March 19]
Answer:
Statement is correct.

• While designing audit procedures to address an inherent risk or “what can go wrong”, auditor should consider the nature of the risk of material misstatement in order to determine if a substantive analytical procedure can be used to obtain audit evidence.
• When inherent risk is higher, auditor need to design tests of details to address the higher inherent risk. In case of higher inhered risk, audit evidence obtained solely from substantive analytical procedures is unlikely to be sufficient.

Question 10.
During the audit process, the auditor can easily identify all mistakes or manipulations that may exist in the accounts through routing checking processes. [May 18 (2 Marks)]
Answer:
Statement is incorrect.
Auditor cannot be depended on routine checks to disclose all the mistakes or manipulation that may exist in accounts. Certain other procedures like trend and ratio analysis also have to be applied in addition to routine checks.

Contingent Assets and Contingent Liabilities – CA Foundation Accounts Study Material is designed strictly as per the latest syllabus and exam pattern.

Contingent Assets and Contingent Liabilities – CA Foundation Accounts Study Material

Question 1.
Contingent liability.
Answer:
Contingent liability:
(a) A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.

Possible obligation – An obligation is a possible obligation if, based on the evidence available, its existence at the balance sheet date is considered not probable or

(b) A contingent liability is a present obligation that arises from past events but is not recognised because:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
• a reliable estimate of the amount of the obligation cannot be made.

It is said to be ‘probable’ if chances of its happening are more than not happening i.e. probability is more than half.

Question 2.
Contingent Assets
Answer:
Contingent Assets:

• A contingent asset is a possible asset that arises from past events the existence of which will be confirmed
• only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.
• An example is a claim that an enterprise is pursuing through legal processes, where the outcome is uncertain.
• An enterprise should not recognise a contingent asset.
• However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
• A contingent asset is not disclosed in the financial statements.
• It is usually disclosed in the report of the approving authority (Board of Directors in the case of a company, and, the corresponding approving authority in the case of any other enterprise), where an inflow of economic benefits is probable.

Question 3.
Provision and Contingent liability.
Answer:
Provision and Contingent liability:

True or False

Question 1.
Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as contingent liability.
Answer:
False: Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as provision.

Question 2.
In the financial statement, contingent liability is recognized.
Answer:
False: In the financial statement, contingent liability is not recognized.

Question 3.
If an inflow of economic benefits is probable then a contingent asset is disclosed in the financial statements.
Answer:
False: If an inflow of economic benefits is probable then a contingent asset is disclosed in the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).

Question 4.
Contingent asset usually arises from unplanned or unexpected events that give rise to the possibility of an outflow of economic benefits to the business entity.
Answer:
False: Contingent asset usually arises from unplanned or unexpected events that give rise to the possibility of an inflow of economic benefits to the business entity.

Steps to Paying Property Tax: Everybody and every entity owning any property will have to pay a tax known as Property Tax. A Property Tax is a mandatory contribution to the state revenue. There are mainly four different types and forms of property taxes. Several essential and significant factors affect the calculation of Property Tax.

This article will tell you about when to pay property tax in India. There are different meaningful ways in which you can pay your Property Tax. You can pay your Property Tax through both the offline mode and the online mode. The article will also tell you about the methods with the help of which the municipal corporation of your locality calculates your Property Tax.

The article will tell you how to pay Property Tax through the offline method and online process. The article will tell you about the steps to paying Property Tax. The article will tell you about property tax per square foot and tell you about house tax details.

The article will also tell you why it is important to pay Property Tax and what will happen if you fail to or refuse to pay Property Tax. So let us begin.

Steps to Paying Tax on Property

• What is Property Tax?
• Types of Property Tax
• What are some of the factors which affect the calculation of Property Tax?
• Why do we really have to pay Property Taxes?
• How do you calculate Property Tax?
• Where can you pay Property Tax?
• What are the steps to pay Property Tax Offline?
• What are the steps to pay Property Tax Online?
• What will happen if any individual does not pay Property Tax?
• The Takeaway from the Article

What is Property Tax?

A tax is a mandatory contribution to the state revenue. The government imposes it. Property tax is a type of tax paid on the property owned by a person or an entity. It is a tax that is based on the value of the property.

Property tax is also known as the millage rate. It can be defined as an ad valorem tax based on the value of the concerned property.

The Property Tax is imposed by the government in which the concerned property is located. The governing authority in which specific property is located can be a municipality, a county, a federated state, a geographical region, or a national government. Multiple jurisdictions can also tax a particular property.

Types of Property Tax

There are mainly four different types and forms of property taxes. The first type of Property tax is the tax imposed by the governing authority on the value of the land owned by an individual or an entity. The second form of Property tax is the tax imposed by the governing authority on the value of the improvements to the land owned by an individual or an entity.

The third type of Property tax is the tax imposed by the governing authority on the value of the personal property owned by an individual or an entity. The fourth type of Property tax is the tax imposed by the governing authority on the value of the intangible property or the incorporeal property owned by an individual or an entity.

There is a type of Property tax imposed by the governing authority on the actual value of the real estate owned by an individual or an entity. Real estate is also known as real property or realty. It is a combination of the land and the improvements to the land concerned.

What are the factors that affect the calculation of Property Tax?

Several significant factors affect the calculation of Property Tax. The most important factors that affect the calculation of Property Tax are the state municipal corporation, the locality, the type of property, the occupancy status of the individual or the entity that owns the concerned property, and the infrastructure offered.

Some other factors that also affect the calculation of Property Tax and are also very important are the carpet area, the floor area, the number of floors, the base value, and the age factor.

Why do we really have to pay Property Taxes?

The payment of Property tax is vital for the critical services that are provided by the municipal corporation of your locality.

The primary services and the essential services provided by the municipal corporation of a locality are services such as the cleanliness of the locality, the maintenance of the local roads, the maintenance of the local drainage system, the water supply, and many other services and facilities.

How do you calculate Property Tax?

In order to calculate the Property tax, the concerned governing authority uses some critical and specific methods. The three most essential and valuable methods that help us to calculate property tax are the Capital Value System, the Rateable Value System, and the Unit Area Value System.

Where can you pay Property Tax?

You have to go to the municipal corporation office of your locality in order to pay your Property Tax in an offline mode. In some states, the Property Tax can also be paid to the designated branch of a bank.

You can also visit their main website of the municipal corporation authority of your locality in order to pay your Property Tax through the online mode.

What are the steps to pay Property Tax Offline?

You have to go to the municipal corporation office of your locality in order to pay your Property Tax in an offline mode. In some states, the Property Tax can also be paid to the designated branch of a bank.

When you go to the municipal corporation office, you will be given a token and a token number. There will be several counters. You will have to be patient and kindly wait for your turn.

When you are called, you will have to go to the specific counter that shows your token number. There, you will have to tell your assesse number, and the person sitting inside the counter will give you your bill and tell you the amount that you have to pay as your property tax.

You can also make use of the Property Tax bill that had already been sent to you beforehand by the municipal corporation authority office. Then you have to deposit the given amount in the counter of the municipal corporation office, and you will receive a receipt of the amount that you deposit.

And that is it. You will have successfully paid your Property Tax through the offline mode.

What are the steps to pay Property Tax Online?

You will have to visit the main website of the municipal corporation authority of your locality in order to pay your Property Tax through the online mode. After visiting the main website, you will have to select the option of “Pay Property Tax.”

Then you will be re-directed to another page that will ask you to enter your assesse number. You will have to enter your assesse number and click on “ok” or “next.” As soon as you enter the assesse number, you will be directed to the page that will show you your Property Tax along with all the other essential details.

You will then have to pay the amount that will be shown on the bill using the method of online payment. And that is it. You will have successfully paid your Property Tax through the online mode.

What will happen if any individual does not pay Property Tax?

The payment of Property tax is essential for the major and the vital services that are provided by the municipal corporation of your localities, such as the services like the cleanliness of the locality, the maintenance of the local roads, the maintenance of the local drainage system, the water supply, and many other services and facilities.

The municipal corporation will refuse to provide you with all these vital services if you fail to or refuse to pay your Property Tax. You will be penalized by the governing authority if you delay or fail to pay your Property Tax.

The Takeaway from the Article

Everybody and every entity owning any property will have to pay a tax known as Property Tax. The article tells you about what a Property Tax is. A Property Tax is a mandatory contribution to the state revenue. It also tells you about the four major and different types and forms of property taxes.

The article has also told you about the methods with the help of which the municipal corporation of your locality calculates your Property Tax. The article will tell you about the several important and significant factors that affect the calculation of Property Tax. This article will tell you about the different ways in which you can pay your Property Tax through both the offline mode and the online mode.

The article will tell you about where you have to go in order to pay your Property Tax through the offline method and also through the online process. The article will also tell you about the steps to paying Property Tax.

The article will also tell you about why it is imperative and compulsory to pay Property Tax, and also about what will happen if you fail to pay or refuse to pay Property Tax.

Ghaziabad Property Tax: Taxes are one of the various significant sources of income for the Government, which supports them in funding multiple amenities that are to be provided to the general public of a specific country.

These taxes are put on several things such as income tax on wages, Goods and Commodities Tax or Service Tax on goods or such aids, etc. Certain taxes are administered centrally, whereas several other taxes are state-specific, and those states that levy these taxes receive revenues to support the State budget.

All citizens of UP’s Ghaziabad have to pay their Ghaziabad Nagar Nigam Vasundhara property tax if they are commercial or personal property owners. If one receives fraudulent copies of Nagar Nigam house tax bills, one must Nagar Nigam Ghaziabad complaint must be registered.

Ghaziabad Property Tax Meaning

• What is Ghaziabad Property Tax
• How to Calculate Ghaziabad Property Tax
• Processes to pay Ghaziabad Property Tax
• How to get Ghaziabad property tax receipt/challan

What is Ghaziabad Property Tax

The basic definition of property tax is it is the tax levied on the property. The tax is set on the property by the governing authority of the jurisdiction under which the property is located. It can be any governing authority like the National Government, the Federal Government, the municipality etc.

Ghaziabad Nagar Nigam collects the Ghaziabad Nagar Nigam property tax once in the year, i.e. annually. All citizens that own property in this locality are eligible and are bound to make this payment every year. The exact location of the property, along with occupancy and type of property, are factors that determine the tax rate.

Ghaziabad Nagar Nigam uses the money acquired from taxes to pay for the upkeep and maintenance of schools, roads etc. It is not just the residential properties, but commercial properties also have to pay taxes to the Government.

How to Calculate Ghaziabad Property Tax

The state government of Ghaziabad calculates its property tax based on annual rateable value. This calculation method is used for both industrial and residential properties. However, the process used to calculate property tax for empty and open plots is settled by the property’s capital value.

The formula for calculating the property tax of Ghaziabad is given below:

• Property tax that is to be paid = Net unit area value of the property in question after reduction* 20%
• Net unit area value of the property in question after the reduction being done = Gross unit area value – reduced amount
• Reduced amount = Gross unit area value*percentage of the rate of reduction/100
• Gross unit area value = Tenanted area of property x per square ft. rate of property x ten months + vehicle parking area x rate of vehicle parking area per square ft. x ten months + self-occupied area x rate of property per square ft. x ten months.

Besides the formula, one must keep in mind a few important points one need to understand before making the payment for Ghaziabad house tax. Firstly, The zone of the property determines the rate per square ft.

Secondly, one needs to understand the concept of depreciation of the value of a specific plot and fill out the form accordingly.

Thirdly and lastly, one also needs to keep in mind the details of the various zones of Ghaziabad Nagar Nigam.

It is crucial for the taxpayer, i.e. a resident of Ghaziabad, to understand what they are paying the tax. Thus, it is paramount to understand and know these concepts before making the payment.

Processes to Pay Ghaziabad Property Tax

Preceding the widespread use of the internet, people would go to a specific place to pay their property tax, but one can now pay it online and in-person, offline.

Online Process to Pay Ghaziabad Property Tax

For the benefit of all citizens of Ghaziabad during the pandemic, the Government rolled out its new website for tax payment. Every citizen can use the online portal to complete the payment of tax for property or commercial purposes.

Step 1: The primary thing one needs to do is visit the Nagar Nigam website and click on the Tax Payment for the portal. The link for the website: https://onlinegnn.com/.

Step 2: One must click on the link given below to reach the payment of tax portal https://onlinegnn.com/SearchHouseDetailsF.aspx.

Step 3: After entering the tax portal, among various options, one must pick the “Zone” in which their property is based and then click on the right choice. One must make sure that they click on the correct zone as it might change the amount of tax and affect other factors.

Step 4: After one has selected the zone for the property they own and clicked on it, a new window opens with a form like structure. One must carefully fill out the form and put in the relevant details for their property, and then click on “Search.”

Step 5: Once one has clicked on the search and the window opens into another tax, one should be able to see the details of your property on the screen. Double-check the details and make sure it is your property that you are paying the tax for.

Once you have double-checked and made sure that it is your property, you can select the “Pay Tax” option and click on it.

Step 6: Upon clicking the “Pay Tax” option, the website redirects you to another window with a wide variety of payment options from UPIs to payment via debit and credit card. Please choose a payment option from the menu and then click on it to start the payment.

Step 7: After you choose the payment option, you would again be asked to put in the details for the method you are paying with. Once you are done with putting in the details, click on Make Payment to complete your payment.

Step 8: It is essential that after making the payment, one must take a printout of the Ghaziabad e-challan for property tax payment or have an e-challan on your mobile phone that is to be printed out later. This is integral as it is the only form of documentation proving that one has paid the tax.

Thus, by following these few simple steps, one can pay the tax for their property from the comfort of their own homes with the use of the website and it’s tax portal.

Offline Process to Pay Ghaziabad Property Tax

In order to pay the property tax offline, one needs to visit the municipality office of the Ghaziabad Nagar Nigam and complete the entire procedure starting from the filing of the form to making the payment in person. One will have to get hold of the form, fill it, make the required payment and then get a physical receipt.

How to get Ghaziabad property tax receipt/challan

If one makes the payment in online form one will find the e-challan downloadable from the website in pdf form that is to be printed.

However, if one has paid the tax in person they receive a physical receipt directly after making the payment.

Thus, this concludes the article about Ghaziabad property tax. It is very essential for anyone living in Ghaziabad to understand how to pay their property taxes and hence this article details the methods how one can do so easily.

Pravara Sahakari Bank Personal Loan: Pravara Sahakari Bank Ltd. is a cooperative bank in India (CFI). The corporate headquarters are located in Mumbai. This bank was founded in 1975. Savings accounts, fixed deposits, and recurring deposits are all available, as are home equity loans, personal loans, and gold loans. As well as all of these services are the Atal Pension Yojana and the Pradhan Mantri Suraksha and the Pradhan Mantri Janta & Pradhan Suraksha Yojana. All kinds of programs, including the Bima Yojana, are available.

Information about Pravara Sahakari Bank Ltd. can be found here, including the bank’s official website, ATMs and branches in India, phone numbers and email addresses for Pravara Sahakari Bank Ltd., as well as the bank’s corporate headquarters and address. Pravara Sahakari Bank Ltd.’s loan eligibility, margin, repayment terms, and required documentation may all be found in the sections that follow.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

Pravara Sahakari Bank

• Pravara Sahakari Bank Personal Loan Features
• Pravara Sahakari Bank Personal Loan Application Procedure
• Pravara Sahakari Bank Ltd. Offers
• Repayment of a Personal Loan from Pravara Sahakari Bank, Inc
• Reasons for Rejection of Pravara Sahakari Bank Personal Loan
• Factual information about Personal Loans

Pravara Sahakari Bank Personal Loan Features

Pravara Sahakari Bank Ltd.’s Personal Loan offers the following special features:

• There are some options for loan repayment, including:
• Thanks to online loan applications, getting a personal loan is quick and straightforward.
• The bank doesn’t demand a guarantor for a loan.
• Competitive and enticing interest rates
• Special programs and discounts for large-company employees may be available, and personal loans often do not require assets to be put up as security.

Pravara Sahakari Bank Personal Loan Application Procedure

Pravara Sahakari Bank Ltd.’s Personal Loan application procedure is as follows:

You can apply for a job at Pravara Sahakari Bank Ltd online by providing personal and professional details and uploading supporting documentation. Using after confirming your loan eligibility is possible. Fill out an application in person at a Pravara Sahakari Bank Ltd branch with all of the necessary paperwork, and you’ll begin the loan application process.

For Pravara Sahakari Bank Ltd. Personal Loans, you don’t have to put up any collateral or valuables as security for anything from paying for a trip to transferring your home or settling your credit card debt.

Pravara Sahakari Bank Ltd. Offers

• Personal loans are provided to individuals between 21 and 58.
• Long-term employees might come from either a public or private sector organization.
• Self-employed/Salaried with a regular income.
• A minimum of three years of current job, business, or professional experience is required.
• Pravara Sahakari Bank, Ltd. Requires Specific Documentation for Personal Loans.
• The application for a personal loan has been submitted with the required information and signatures.
• Photographs
• The following acceptable forms of identification are provided: passport, voter identification card, driver’s license, PAN card, Aadhar Card, and government department ID card.
• Wage certificate and most recent pay stub or a Pay Stub or a Form 16 indicating all deductions (for salaried individuals)
• a copy of your most recent two years of tax returns serves as evidence of your earnings (for other than salaried individuals)
• Acceptable address evidence includes the most recent gas or electric bill, phone bill, or credit card statement.
• In the recent six months, there were transactions on the bank statement or bank passbook.

Repayment of a Personal Loan from Pravara Sahakari Bank, Inc

Paying back a personal loan can be spread over up to 60 months. With just 12 EMIs, it all begins. Your credit rating also influences the duration of the payback period. Priya Sahakari Bank Ltd.’s Equated Monthly Installments (EMI)

Several options exist for repaying the debt, including:

• You can create a “standing order” at your bank.
• ECS Payment (Electronic Clearing Service) via Internet banking or the bank’s mobile banking app, if accessible.

Reasons for Rejection of Pravara Sahakari Bank Personal Loan

Rejection of a personal loan application for the three most typical reasons

A poor credit history

As a measure of a person’s creditworthiness, their credit score is considered. Your score on the credit report largely determines your capacity to pay back a loan on time and in full. To assess a borrower’s risk of defaulting on a loan, lenders utilize credit scores. Many people have their loan applications turned down by lenders because of their poor credit history. A personal loan application may be denied if your credit score is less than 750.

High loan-to-income ratio

A high loan-to-income ratio of more than 40 per cent may disqualify you from getting a new loan from a lender.

Loan applications are being submitted at an increased rate.

When you apply for a loan, the lender runs a credit check, known as an inquiry, to see if you’re creditworthy. Credit bureaus classify these kinds of inquiries as “hard” and note them on your credit report. There is no need to ask too many questions, even if the information is free. Excessive credit inquiries might damage a poor credit score.

Factual Information about Personal Loans

There is always a charge for prepayments on personal loans

Contrary to popular belief, there is not always a penalty for early repayment of a Personal Loan. Prepayment penalties are imposed solely at the discretion of the lending institution. Several lenders do not charge a fee for early repayments.

A personal loan with the lowest interest rate is the most advantageous option.

It is not always preferable to take out a personal loan with the lowest possible interest rate. For the best individual loan provider, other aspects must be considered. This list includes servicing concerns and any additional loan terms that may apply to the borrower. It’s not enough to look for the lowest interest rate.

When the interest rate on a personal loan rises, make the monthly payments.

When interest rates rise, fixed-rate loans will not be affected. To avoid increasing monthly payments on a floating-rate loan, you might extend the loan period.

Your loan application will be refused if you don’t have a stable source of income.

Even if you don’t have a steady source of income, you may still be eligible for a personal loan. If you can find a co-borrower with a regular income, you may be able to get authorized for a loan.

It’s better to get a loan with a lengthier repayment period.

Even though lengthier payback periods are often associated with lower monthly payments, this isn’t necessarily true in all cases. A longer payback time is associated with a higher interest rate, and you will ask for paying interest for an extended period.

There is no way to change interest rates.

A borrower’s creditworthiness affects the interest rate on a personal loan. Customers with good credit and stable income are more likely to get lower interest rates from lenders.

Having a good credit score is not difficult for A Personal Loan Approval

Lenders consider various factors when considering whether or not to give you a personal loan even if you have a good credit score.

You won’t get a personal loan if you have a bad credit score.

There are many other criteria to consider when applying for a home loan, and your credit score is just one of them. Your credit rating may not be enough to secure a home loan, regardless of how strong it is. You may be eligible for a house loan, but the interest rate will likely be higher if you have a low credit score. Loan approval is affected by various factors, including the borrower’s age and income. In many cases, cooperative banks and non-bank financial institutions (NBFCs) can help people with poor credit scores secure a mortgage.