Case breakdown: Movie Kahaani
The above scene shows, how Inspector Satyaki Sinha (played by Parambrata Chattopadhyay) is presenting a Saree (Indian dress) to Mrs. Bagchi (played by Vidya Balan). She, however refuses to accept this Saree, to which he tells her to consider this as a gift from her husband.
Inspector Sinha mentions that he has a receipt from Khadi emporium and her husband can pay him back.
In this blog, Learning Perspectives will explore about receipts.
What are Receipts?
When something of value is transferred from one party to another, a written acknowledgement is given to the purchasing party. Many a times, goods or services are refunded only if the receipt is shown. Receipts can be given by shopkeepers, vendors, suppliers etc. Receipts are also used for warranty purposes. For example, Let’s assume X purchases a Rolex watch, it comes with a warranty of 1 year. If X damages the product, he has to present the receipt and to avail the warranty benefit.
Shopkeepers give receipts when someone purchases anything of value. This receipt includes discount, credit and any other adjustment. Many a times, this receipt may also indicate the mode of payment undertook by the customer. Modes of payment may include debit or credit card, cheque, cash or digital wallet. This receipt also includes the invoice number. It may also include a message about refund indicating number of days. For example: A product, if damaged or expired can be returned within 3 days of purchase. This helps in refund of the money. Sometimes, special offers, advertisements, discounts etc can be showcased on this. For example: Get 1 free chocolate bar on purchase of 2 chocolate bars.
Receipts are used as a proof in any financial transactions. In businesses, transactions need to be supported by a receipt. Sales receipt is a common receipt and that serves as accounting records.
According to the Indian Income tax, Receipts are classified as below:
A) Revenue receipt
B) Capital receipt.
Revenue receipts are recurring in nature like salary, profit from business, interest income, etc. Capital receipts are generally of isolated nature like receipt on account of sale of residential building, personal jewellery, etc.
The general rule under the Income-tax Law is that all revenue receipts are taxable, unless they are specifically granted exemption from tax and all capital receipts are exempt from tax, unless there is a specific provision for taxing them.
Receipts Budget shows a detailed summary of the revenue and capital receipts of the government. This forms a part of annual financial statement.
Written by: Ms. Gitika Chandra