Tuesday, November 25, 2014

Deduction under section 80c

 Deduction under section 80c 

    Deduction under section 80c is allowed to an individual or HUF. However deduction is not allowed from Long term Caears pital Gains / casual income / Short Term Capital Gains under secton 111A.Deduction under section 80c is allowed in case of investment /expenditure listed below :-

- Investment in National Savings Certificate issued by Post Office
           National Savings Certificates are issued for 5 years / 10 years and interest is allowed at the rate of 8.6% p.a / 8.9% p.a and is taxable every year on accrual basis and also deduction for interest is allowed u/s 80 c considering it to be reinvestment but no deduction is allowed for the interest for last year .
             National Savings Certificate can be purchased in the name of self / spouse / minor child and HUF can purchase in the name of any of its member. Principal amount received on maturity is exempt from income tax.

- Investment in Public Provident Fund (PPf) and account can be opened in the name of self / spouse / children and HUF can open the account in the name of any of its member and account can be opened in bank / Post office and payment is allowed after   years and interest is allowed at a rate of 8.8% p.a and  interest is exempt from income tax and no deduction is allowed for accrued interest of PPF .
       Prinipal amount and interest received on maturity shall be exempt from income tax .

- Investment in Fixed Deposit with a schedule bank for a period of at least 5 years and investment should be in th name of self and HUF can invest the amount in name of any of its member . The assessee has the option to receive interest either at periodical intervals or at maturity and in either case it is txable . Deduction u/s 80c is not allowed for interest .
     Amount received on maturity shall be exempt from income tax.

- Premium for life policy taken in the name of self / spouse / children and HUF can take policy, in the name of any of its memeber. Deduction shall be allowed for the premium paid but maximum to the extent of 10 % of sum assured (20% if policy have been issued before 31.3.2012)
        Amount reeived on maturity shall be exempt from income tax u/s 10(10D) but if premium is exceeding 10 % of sum assured in any of the years, entire amount received on maturity shall be taxable but if the policyholder has edxpired, amount received after his death shll be exempt.

- Repayment of Housing loan provided loan was taken for purchase or construction pf residential house and loan should be taken only from notified instituion.

- Payment of tuition fee to any school / college / University etc for full time education of children and further for maximum two children and also education should be in Inia.
        No deduction is allowed for donation or any other payment.

- Investment in units of Unit Trust of india or in the units of Mutual Fund including Unit Linked Insurance Plan of UTI.

- Investment in eligible issue i.e investment  in equity shares or debenture of Infrastructure developement companies.

- Five years post office time deposit account and interest shall be paid on yearly basis and interest is taxable . 
  Pre-mature payment is allowed but it will be considred to be income of the year in which assessee has received pre- mature payment . Interest is allowed at a rate of 8.5% p.a .

- Employees contribution to Recognised Provident Fund / Statutory Provident Fund / Super annution Fund. 

- Investment in notified Deposit Scheme of National Housing Bank.

- Investment in notified bond of NABARD.

- Senior citizens savings scheme and account can be opened in post office (interest rate is 9.3%p.a)

- any other investment notified under section 80c.

   Deduction shall be allowed if the assessee has made the payment  i.e amount is due but not paid, deduction is not allowed.

 No deduction is allowed for Kishan vikas Patra (KVP)  or Indira Vikas  Patra (IVP) (also it is not now discontinued)

 No deduction is allowed for capital investment bond issued by central Goverment, however interest is exempt from income tax.

 No deduction is allowed for Relief Bond issued by RBI, however interest is exempt from income tax.       

Monday, November 24, 2014

Intergrated circuit(IC)

Intergrated circuit(IC) in Modern Electronics

An intergrated circuit is an electronic circuit in which allthe active and passive components are fabricated on a single crystal chip.
The area of Silcon Chip is 50 X 50 mils*
*mil = 25/1000000 m.

Analog IC(Linear IC)

An Analog IC is one which performs amplification or other essentially linear operations on signals. Hence it is also known as linear IC. An analog IC deals with continuously varying quantities such as temperature, pressure.
Examples : Simple amplifier, Operational amplifier etc.

Digital IC(Non-Lineae IC)

In digital IC, information is represented by binary digits, bits. A bit assume either one of two values : 0 or. It is based on a mathematical system that uses that uses only two digit and is called a binary system. Digital circuit generally require only "on-off" operation of transistors, the design requirements for digital ICs are often less stringent than for analog circuits.
Examples : Computers, Calculators

Advantage of ICs

Size and Weight

IC technology offers reduction in size i.e. miniaturization and weight of the circuit. This is obvious because a circuit made of large number of discrete components can be deposited on a chip which is housed in a package similar to that used for the encapsulation of discrete transistor. Such equipments can be suitably, employed in many apllications where weight and space are critical, such as aircraft or space vehicles and medical electronics.

Increase of Reliability

Unlike discrete component circuits where individual transistor and other components wired together or placed on a circuit board, IC allows many extra components to be included economically. This back up circuitry can be included in the product, making it more reliable. Such extra addition of component does not raise greatly the cost of the product.

Reduction in Circuit Cost

The processing steps for the wafer may be involved and expensive, the larger number of resulting circuits makes the ultimate cost of each fairly. The processing steps are essentially the same for a circuit containing 1000 transistors as for a simple 100 transistor circuit. This means that the number of components in each circuit is relatively unimportant in terms of the ultimate cost of the system.

Reduction in Power Consumption

It is something difficult to fully appreciate the revolutionary changes that were made possible through the development of ICs. For example, the largest early computers occupied a volume of hundreds of cubic meters and required many kilowatts of electrical power and a sizable air-conducting plant to allow this amount of energy to be dissipate without raising the room temperature to undesirable values. This drastic reduction in power consumption is not only due to IC technology but also due to on-off switching operation.

Improvement in speed

The signal propagation time is longer on connections made on printed circuit board than on connections inside, the chip. Also, by making the physical size of the entire digital system small, the speed is improved.

Types of IC

There are several ways of categorizing ICs as their use and methods of fabricates. The most common categories based on fabrication are
(1)Monolithic IC
(2)Hybrid IC

(1)Monolithic Circuits

Intergrated circuits which are included entirely in a single chip of semi conductor are called Monolithic circuit. The word monolithic literally means "one stone" and implies that the entire circuit is conducted in a single piece of semiconductor.

Hybird Circuits

Hybird circuit one or more monolithic circuit or individual transistors bonded to an insulating substrate with resistors, capacitors or other circuit elements with appropriate inter-connections. When resistors and capacitors are made external to monoliyhic silicon chip, basically two types of technolgy are used, the passive elements are fabricated and interconnected by thick-film process. The dividing line between thin and thick films is not precise. In thick-film type hybird circuits, the resistors and interconnection patterns are printed on a ceramic substrate. Thin film interconnection patterns and resistors can be deposited vacuum evaporation technique on a glass ceramic substrate.

Application of Linear or Analog IC

1)In DC Amplifier
2)In video Amplifier
3)In Modulator
4)In Voltage regulator

Application of Non-linear or digital IC

1)In logic circuit
2)In computer
3)In memory
4)In calculatorss


Saturday, November 15, 2014

Computer Memories

 Computer Memories


The memory of computer is where the program and data are stored before the calculations begin. The memory is therefore one of the most active parts of the computer. The memory is equivalent to thousands of registers, each storing a binary word.

Memory Cell

A device or electrical circuit a single bits is called a memory cell.

For Example : Flip flop,a charged and a single spot on a magnetic tape or disk.

Memory Word

A group of bits in a memory that represent instrucion or data of same type is called a memory word.

Example : If  Register has 8 Flip flop, It stores 8-bit word.
In the computer word size range is 4 to 64 bit.


A group of 8-bits is termed as byte.

Memory capacity or Density

By memory capacity, we mean that how can we specify the number of bits that can be stored in th memory.

Example : Memory stores 512 word in the 8-bit,memory capacity will  be  512 X 8. 512 is the no of words and 8 is word-size. The memory of big-size is represent in the "Kilo" or "Mega". 1k = 2 = 1024 and 1M = 2=1,048,576.
If the size of memory is 2048 X 8. It writes 2k X 8.


Address is a number that identifies the location of word in the memory. Each word stored in the memory has a unique binary address.
 To store 8 word store, each location address will be 3 Bit.

                                                 Address                            Words
                                                  0 0 0                                Word 0 

                                                  0 0 1                                Word 1

                                                  0 1 0                                Word 2

                                                  0 1 1                               Word 3               

                                                  1 0 0                               Word 4

                                                  1 0 1                               Word 5

                                                  1 1 0                               Word 6

                                                  1 1 1                               Word 7     


 Read Operation

Read opration is the by which the binary word stored in a specific memory location is sensed and then transfered to another device.The read operation says fetch operation.

Write Operation

The operation where a new word is placed or stored into a particular memory location is called a write operation.

Access time

It is a measure of operating speed of the memory. It is amount of time required to perform a read operation. It is the time between memory receiving a new address input and data becoming available at the memory output.

Volatile Memories

Volatile memories can store information with electrical power.

Non-Volatile Memories

Non volatile memories can store information without electrical power. All magnetic memories are non-volatile.

Random Access and Sequential Memory(RAM and SAM)

Ram is a type of memory in which the access time is same for any address in the memory. SAM is a type of memory in which the access time is not constant but varies depending on address location.

Read/Write Memory and Read only Memory (RWM and ROM)

Any memory that can be read from or written into with equal ease is called a Read/Write Memory. In a ROM, the data is written into only once, and this operation is performed at the factory (or by programmer). Thereafter, the information can only be read from the memory.

Static memory 

Semiconductor memory devices in which the stored data will remain permanently stored as long as the power is applied, wihout the need for periodically rewritting the data into memory, are called static memory.

Dynamic memory
Semiconductor memory devices in which the stored data will not remain permantently stored, even with power applied, unless the data are periodically rewritten(refreshed) into the memory are called dynamic memory.

Internal memory

Internal memory stores instruction and data CPU is currently working on.

Auxiliary memory or External memory

Auxiliary memory stores massive amount of information eternal to internal memory.

Semi conductor and Non-semi conductor memory

Semi conductor memory is made of semiconductor materials while non-semiconductor memory is made of magnetic materials. The example of magnetic memory are Floppy disc, Cassette, Hard disc, Magnetic tapes, Magnetic core and Magnetic drums.

Destructive memory

During read operation, if data is lost from the memory than the read out is called a destructive read out. Memories with destructive read out are called destructive memories.

Non-destructive memory

Memories having a non destructive read out i.e, data remains intact during a readout are termed non destructive memories.



Friday, November 7, 2014




Jan 12 Natonal Youth Day(BirthDay of Swami Vivekanand)

Jan 15 Army Day

Jan 26 Republic Day

Feb 14 St.Valentine's Day

Mar 8 International Women's Day

Mar 21 World Forestry Day

Mar 22 World Day for Water

April 14 B.R Ambedkar Rememberance Day

April 22 World Earth Day

May 1 International Labour Day(May Day)

May 31 World No Tabacco Day

June 5 World Envrionment Day

July 4 American Independence Day

July 11 World Population Day

Aug 15 India's Independence Day

Aug 29 Sports Day(Dhyachand's birthday)

Sept 5 Teacher's Day

Sept 14 Hindi Day, World First Aid Day

Oct 2 Gandhi Jayanti/Non Violence Day

Oct 8 Indian Airforce Day

Oct 24 United Nations Day

Nov 14 Childern's Day/World Diabetics day

Nov 17 Guru Nanak Dev's Birth Anniversary

Dec 1 World AIDS Day

Dec 4 Navy Day

Dec 10 Human Rights Day



The First President of Indian Dr Rajendra Prasad

The First Prime Minister of Pt Jawahar Lal Nehru
Free India

The First Indian to win Rabindra Nath Tagore
Noble Prize

The First President of
 Indian National Congress              WC Bannerjee

The First British Governor Lord William Bentinck
General of India 

The First British Viceroy Lord Canning
of India

The First Governor General     Lord Mountbatten
of  Free India

The First and the Last Indian to
 be Governor General of Free India   C Rajgopalachari

India's First man in space Rakesh Sharma

The First Indian Commander-in-         
Chief of  India                                       General Cariappa

The First Indian to receive Bharat
Ratan  Award                                         Dr Radhakrishnan

The First Speaker of the Lok      
Sabha                                                      Ganesh Vasudeva Mavalankar

The Vice-President of India Dr Radhakrishnan

The First Education Minister Abdul Kalam Azad

The First Home Minister of India Sarder Vallabh Bhai Patel

The First Indian Air Chief Marshal S Mukherjee

The Fimrst Chief Election Commissioner Sukumar Sen

The First person to receive Magsaysay Acharya Vinba Bhave

The First Chinese traveller to visit India Fahein

The First Foreigner to receive Bharat  Abdul Ghaffar Khan

The First Chief Justice of supreme Court  Justice Hiralal J Kania


The First and the last Muslim Woman ruler    Razia Sultan
of Delhi 

The First lady to become 'Miss World' Rita Faria

The First woman judge in Supreme Court Meera Sahib Fatima Bibi

The First woman Governor of a State in free   Mrs Sarojini Naidu

The First Woman Prime Minister Mrs Indra Gandhi

The First woman President of the Indian 
National Congress Mrs Annie Besant

The First woman chief justice of a High Court  Mrs Leela Seth

The First woman president of the United
 Nations General Assembly Mrs Vijaya Laxmi Pandit

The First woman I.P.S Officer Mrs Kiran Bedi

The First woman to cross English Channel Arti Saha

The First woman to receive Noble Prize Mother Teresa

The First woman to receive Bharat Ratan Mrs Indira Gandhi

The First woman President of India Mrs Pratibha Patil


Dance State

Bharat Natyam Tamil Nadu

Bhangra          Punjab

Chhau Bihar,Orissa,West Bengal and Jharkhand

Garba       Gujarat

Kathak       North India

Kathakali       Kerala

Kutchipudi       Andhra Pradesh

Mohiniattam        Kerala

Manipuri                Manipur

Odissi        Orissa

Rauf       Jammu & Kashmir


Thursday, November 6, 2014

Explanation of Various Ratios

Explanation of Various Ratios

1. Stock turnover Ratio  =  Cost of Goods sold / Average Stock
                                                Sales / Average Stock 

The ratio explains the efficiency level of converting inventor into sales.The ultimate objective of any business organization is to achieve higher amount of sales but still mainting lower amount of stock.This ratio is best indicator towards aforesaid objective.

If stock turnover ratio of a company is 35 times,it means that the company is able to achieve sales of Rs35 during the year at average stock level of Rs1.Hence,high ratio certainly indicates efficient perfomance in the context of attaining higher sales at low inventory levels.
2.Working Capital Turnover Atio  =  Sales / Average Working Capital

This ratio represents the firm's ability to generate sales as compared to the working capital employed in the business.If the ratio is 23 times,it means that the firm is able to maintain sales of Rs23 during the year desipte the fact only Rs.1 is the average investment made in the working capital during the year.

There are many business houses where working capitial plays an important role in achivement of sales.Hence,working capitial turnover provides useful information to the management regarding efficient utilizatio of working capital for achieving sales.Thus,higher the ratio the more effective utilization of working capitial has been made and vice-versa.

3.Capitial Employed Turnover Ratio  =   Sales / Average capitial Employed

The objective of this ratio is to determine the efficiency with which the capitial employed is utilized for achieving sales.

It is a well established fact that sales achieved by any business organization is the result of combine effect of investment made in fixed assets and working capitial.Hence,capitial employed turnover ratio plays very important role in deciding the effectiveness of sales being achieved.

If the capitial employed turnover ratio of any business organization is 48 times,it means that the sales of Rs48 has been achieved by employing investment of Rs1 in fixed assets and working capitial.Therefore,higher the ratio, the more effective utilization of capitial employed has been made and vice-versa.

4.Earnings Per Share(EPS)  =   Earnings available to equality shareholders / No.of equity shares

The objective of this ratio is to measure the profitability of the company on per equity shares     basis.Hence,higher the EPS better it is and vice-versa.

Another point to be noted is that EPS helps in determining the market price of the equity shares.It also helps in estimating the company's capacity to pay dividend.

5.Divided Per Shares(DPS)  =   Dividened to equity sharesholer / No.of equity shares
The obective of this ratio is to measure the dividened distributed per equity share.Hence,higher the DPS,better it is and vice-versa.
It is to be noted that low Dividend per Share may not be considered undesirable if the company utilizes its accumlated profits for the purpose of growth and investment in the new projects.

6.Dividend-Payout(D/P) Ratio  =  DPS * 100 / EPS
This ratio indicates the proportion of earnings that has been distributed as dividend by the company to the equity sharesholders.If EPS of a company is Rs10 and DPS is Rs4,it means that 40% of earnings is distributed as dividend to equity sharesholders.To judge whether the ratio is satisfactory or not, it should be compared with its own past ratios or with of similiar enterprises in the same industry.

7.Price-Earnings Ratio  =   Market Price per share / EPS

The objective of this ratio is to find out the expectations of the sharesholders about the earnings of the company as compared to the market price of the share.
This ratio indicates the payback period within which the investment in the shares can be recovered by ways of EPS.High level of P/E ratio is very favourable to the existing shareholders as it indicates the fact that the company is growing and has good earnings prospects.

8.Earnings Yield  =   EPS * 100 / Market Price per Share

The objective of this ratio is to measure the earnings of the company as compared to the market price of the share.If earnings yield of a company is 20%, it means that the return to the shareholder is 20% of investment.Hence,higher the ratio,better it is.

9.Dividend Yield  =   DPS * 100 / Market Price per share

The objective of this ratio is to measure the dividend as compared to the market price of the share.If Dividend Yield of a company is 20%, it means that the dividend paid to the shareholder is 20% of the investment.

10.Net Profit Ratio  =  PAT * 100 / Sales

The objective of this ratio is to compute the overall profitabiity obtained by the business as                        to the sales.Higher the ratio, greater is the capacity of the company to pay dividend and create reserve.

11.Operating Cost Price  =   Operating Cost * 100 / Sales

This ratio indicates the average operating cost incurred on sale of goods worth Rs100.This ratio is desired to be maintained as low as possible it will automatically mean higher operating profits to the company.

12.Return on shareholders'Funds  =  Profit after tax * 100 / Shareholder'Funds

This ratio represent the firm's ability to generate profit which is attributed to shareholder's        funds.Hence,higher the ratio, the more efficient will be the management, in utilization of shareholder's funds.

13.Return on total Assets  =  EBIT * 100 / Total Assets

The objectives of this ratio is to find out how efficiency the total assets have been used by the management in generating the profits.Hence,higher the ratio,the more efficient will be management in utilization of total assets.

14.Return on Equity Shareholders'Funds  =   Earnings to equity shareholder *  100 / EquityShareholders'Funds

This ratio represent the firm's ability to generate profits which is attributable to equity shareholdrs'funds.

Hence,higher the ratio, the more efficient will be the management in utilization of equity shareholders'funds.

15.Quick Ratio(Liquid Ratio)  =   Quick Assets / Current Liabilities

This ratio indicates the quick assets available for each rupee of current liability.Traditionally,quick ratio 1:1 is considered to be satisfactory as it denotes the facts that the liquid assets of the company are sufficient to meet the current liabilities.High Quick Ratio may represent excess investment in quick assets and low quick ratio may represent inadequate investment in quick assets.Therefore, it is always recommended to maintain quick ratio as near to its idea of 1:1.

16.Gross Profit Ratio  =   Gross Profit * 100 / Sales
The main objective of this ratio to determine the efficiency with which the production and selling operation are carried on.
   The ratio indicates-
1.Gross Margin earned as % of sales; and
2.The portion of sales that is le ft over to cover operating expenses other than cost of goods  sold and non-operating expenses like interest on borrowed funds and to pay dividend to shareholders 

17.Debt Service Coverage Ratio  =   EBIT / interest + (Loan Repaid / 1-Tax Rate)

The ratio shows the number of times the amount of interest on long-term debts and principal loan repaid is covered by the profits out of which such amount has to be paid.


18.Current Ratio  =   Current Assets / Current Liabilities 

The ratio indicates the current assets available for each rupee of current liability.If this ratio is 2:1, it means that the firm is having current assets of Rs2 for every Rs1 of current liability.It also means that even if current assets become half, the firm can still meet its short-term obligations.
Traditionally, the current ratio of 2:1 is considered to be satisfactory as it denotes the fact that the firm is adequately liuid in order its short term obilgations.

However, too high current ratio may represent excess investment in current assets which may result in idle funds and which may further result in low profitability since idle funds earn nothing.Similarly, too low current ratio may represent indequate investment in current assets which may result in low liquidity and may threaten the solvency of the enterprise.

Wednesday, November 5, 2014

Analog and Digital Signal

Basic Difference Between Analog and Digital Signal

Analog Signal

An Analog signal has a continue of values (infinite number of levels) over a defined interval of time.

Digital Signal

A digital signal can take one of the two values 1 or 0, high or low.An information can be represented in digital from using digital signals.

Analog and Digital System

Analog System

An analog system contains devices that manipulated physical quantities that are represented in analog form.In the analog system,the quantities can vary over a continuous range of values.

Digital System

A digital system is a combination of devices designed to manipulated physical quantities or information that are represented in digital form.

Advantages of Digital Signal

1) Digital system are easier to design.

2) Information storage is Easy.

3) Accuracy and Precision are greater.

4) Operation can be Programmed.

5) Digital systems are less effected by noise and distortion.

6) More digital circuitry can be fabricated on IC chips.

7) Error detection and correction is possible in digital communication.

8) Secure communication is possible due to decryption and spectrum provides anti-jamming

9) Compression of data is possible.

10) Use of VLSI(Very Large Scale Integration) technology has made transceivers small in size 
      and weight,handy and mobile.                            

11) Digital circuits are more reliable.   

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