In a technology driven society today again the course of commerce activities is heading for a cashless system through e-commerce which means business activities enabled through electronic modes like Online trading, Mobile banking and e-marketing.

It can be established under three different ways namely,
(i) Foreign Investors buying an interest in local company
(ii) Local firm acquiring an interest in the existing foreign firm
(iii) Both the foreign and local firms jointly forming a new enterprise.

According to Section (3) of Income Tax Act 1961, "The year in which income is earned is called previous year". It is also normally consisting of a period of 12 months commencing on 1st April every year and ending on 31st March of the following year. It is also called as financial year immediately following the assessment year.

The following tax rates have been prescribed under Income Tax Act.
1. Tax on long term capital gain @ 20% (Section 112).
2. Tax on short term capital gain on shares covered under STT @15% (Section 111A).
3. Tax on lottery income @ 30% (Section 115BB)

Income tax is an annual tax because it is the income of a particular year which is chargeable to tax.

1. Entrepot trade means importing of goods from one country and exporting the same to foreign countries.
2. It is also known as 'Re-export trade'.
3. E.g. Indian diamond merchants in Surat import uncut raw diamonds from South Africa.
4. They cut and polish the diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam..

Export trade means the sale of domestic goods to foreign countries.
Examples:
(i) Export of Iron ore from India to Japan.
(ii) Selling of Tea from India to England.
(iii) Export of Jasmine flowers from Madurai to Singapore.

(i) Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period up to the amount specified in the policy.
(ii) A claim for loss by fire must satisfy the following two conditions :
(1) There must be actual loss; and
(2) Fire must be accidental and nonintentional.
(iii)The Essential elements of Fire Insurance Contract are:
(1) The insured must have insurable interest both at the time of insurance and at the time of loss.
(2) The contract is based on utmost good faith.
(3) It is based on the principle of strict indemnity,
(4) Fire must be the proximate cause of damage or loss.

Limitations:
1. Economic Dependence
2. Inhibition of Growth of Home Industries
3. Import of Harmful Goods
4. Shortage of Essential Goods in Home Country
5. Misuse of Natural Resources
6. Political Exploitation
7. Rivalry among the Nations
8. Invasion of Culture

(i) The central Government constituted the Central Board of Direct Taxes.
(ii) In India all direct taxes are levied and administered by central Board of direct taxes.
(iii) Income-tax is administered by the Central Government (Ministry of finance) with the help of income tax department.

Crop Insurance:
This policy is to provide financial support to farmers in case of a crop failure due to drought or flood. It generally covers all risks of loss or damages relating to production of rice, wheat, millets, oil seeds and pulses etc.

There are two types of taxes direct taxes and indirect taxes,
(i) Direct Tax:
(1) If a tax levied on the income or wealth of a person and is paid by that person or his office directly to the Government, it is called direct tax.
(2) E.g: Income tax, wealth tax, capital gain tax, etc.
(ii) Indirect Tax:
(1) If tax is levied on the goods or services of a person (seller), it is collected from the buyers and is paid by seller to the Government, it is called indirect tax.
(2) E.g. GST

Out of Gross Total Income, Income tax Act, 1961 allows certain deductions under section 80. After allowing these deductions the figure which we arrive at is called 'Total Income' and on this figure tax liability is computed at the prescribed rates.

(i) Any rent or revenue derived from land which is situated in India and is used for agricultural purpose.
(ii) Agricultural income is fully exempted from tax u/s 10(1) and as such does not form part of total income.

These five heads are :
(i) Income from salaries (sections 15-17) 
(ii) Income from House Property (sections 22-27)
(iii) Income from 'Profits and gains of Business or Profession' (sections 28-44)
(iv) Income from capital gains (section 45-55) and
(v) Income from other sources (section 56-59)

Income aggregated after adjusting past and present losses and the total so arrived at is known as 'Gross Total Income'.

(i) A minor is a person who has not completed 18 years of age, where a guardian is appointed by a court, his age majority extends to 21 years.
(ii) Legally, a minor cannot become a Partner because he is incapable of entering into a contract.
(iii) He may however be admitted to the benefits of Partnership with the consent of all partners.

In a Joint Hindu Family firm even a new born baby can be a co-parcener.

Big cities like Poompuhar had two towns called 'Maruvurappakam' (inland town) and Pattinapakkam (Coastal town) had market and bazaars where many merchants met one another for the purpose of selling or buying different kinds of commodities and food stuff.

Low Cost Labour:
MNC set up their facilities in low cost countries and produce goods/service at lower cost. Because of MNCs, poor host countries also begin to develop technically.
Proper Use of Idle Resources :
Because of their advanced technical knowledge, MNCs are in a position to properly utilise idle physical and human resources of the host country.
Technical Development :
MNCs carry the advantages of technical development of 10 host countries.
Managerial Development:
MNCs employ latest management techniques. People employed by MNCs do a lot of research in management,
Improvement in Standard of Living:
By providing super quality products and services, MNCs help to improve the standard of living of people of host countries.