Income tax FAQs

Common Income Tax Return FAQs Answered

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There are many questions related to check income tax refund status and types of income tax return.

My income tax return has not been submitted in the last two years. Can I submit it now?

Those who skipped submitting returns in the past sometimes cite ignorance as one of their excuses for not doing so. Some claim that the discrepancy in their ITRs was caused by them being on sabbatical and not working. Or they simply forgot to file because they were too busy. 

The tax department may have sent a notification to some of these defaulters. Some are hesitant to make changes because they believe doing so will draw attention to themselves and result in a warning. In fact, if you do not make corrections, your chances of receiving a notification are increased “says Caonweb Mr. Sanket Agarwal.

The tax division doesn’t want to bother a taxpayer who is ready to cooperate. The CBDT recently provided taxpayers with an opportunity to complete outstanding ITR V verifications for the preceding 6 assessment years. Even if you have never submitted a tax return or have failed to file in the last several years, you shouldn’t be concerned. Make this year a new beginning.

Who should file an income tax return?

Individuals or businesses who earn taxable income above the minimum threshold set by the government need to file an income tax return. Furthermore, individuals who receive income from investments, rental income, or foreign income, are also required to file their tax returns.

How can I know if an ITR was submitted successfully?

There may be delays if you file on the final day since the servers are busy. Hence, confirm that the tax agency has provided you with an acknowledgment number. This acknowledgment was sent to the email address you provided.

Watch for an email with the subject “Confirmation on Filing of IT Return” that comes from DONOTREPLY@incometaxindiaefiling.gov.in. The ITR V, which contains the acknowledgment number, is typically attached. If you don’t receive this email, your return might not have been correctly submitted, in which case you might need to resubmit. Your ITR V must still be verified. After 120 days of submitting the return, you can electronically verify or mail the signed ITR V to the processing center.

Do I need to provide any supporting documentation with my ITR?

Yes, you need to submit certain documents along with your online income tax return. The documents you need to submit mainly depend on the type of income you have earned during the financial year and the deductions you have claimed.

The following are some typical papers you could be required to submit to ITR:

  1. Form 16 – This is provided by your employer if you are a salaried employee. It shows your salary, TDS deducted, and other details.
  2. Form 26AS – This is a tax credit statement that shows the taxes you have paid during the financial year. It can be downloaded from the income tax e-filing portal.
  3. Bank statements – You may need to submit bank statements to show the interest earned on your savings or fixed deposits.
  4. Proof of investments – If you have claimed deductions under Section 80C, you need to submit proof of investments such as PPF receipts, LIC premium receipts, etc.
  5. Capital gains statement – If you have sold any assets such as property or shares during the financial year, you need to submit a capital gains statement.
  6. Rent receipts – If you are claiming HRA (House Rent Allowance) exemption, you need to submit rent receipts.

It is important to note that you should keep all the documents related to your income and expenses for a minimum of six years. These documents may be required by the tax authorities for any future reference.

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What are the numerous standard errors made while filing income-tax returns? 

There are several common errors made by taxpayers while filing their income-tax returns:

  1. Incorrect personal information: This includes incorrect name, PAN details, address, and email address. It is important to double-check such information as it can lead to complications in the processing of tax returns.
  2. Incorrect TDS details: It is common for taxpayers to make errors while entering TDS details such as tax deducted at source, TAN details, and the name of the deductor. This can lead to issues while applying for refunds.
  3. Incorrect calculation of income: Errors in computing income can lead to incorrect tax liability declaration. Taxpayers should ensure that all sources of income are declared correctly and all deductions are claimed.
  4. Failure to declare all sources of income: It is important to declare all sources of income, including interest income, capital gains, and rental income. Charges and interest costs may result from failure to comply.
  5. The incorrect claim of deductions: Taxpayers can claim deductions under various sections such as Section 80C, Section 80D, and Section 80G. However, some taxpayers make errors while claiming such deductions, which can lead to incorrect tax liability calculation.
  6. Incorrect bank account details: Incorrect bank account details, including bank name, branch name, and account number, can also lead to complications in the processing of tax returns.
  7. Late filing of tax returns: Failure to file tax returns on time can lead to penalties and interest charges.
  8. Ignoring tax notices: Taxpayers sometimes ignore notices issued by the tax department. This can lead to further complications and legal issues if not addressed in a timely manner.

What are the consequences if you don’t submit the ITR on time?

If you do not file your income tax return, you may face penalties and interest charges eventually. The income tax department may also send you a notice asking for the reasons for non-filing or non-payment of taxes. Filing an income tax return is an essential part of financial planning and ensures that you comply with the Income Tax Act. By understanding these frequently asked questions, you will be better equipped to manage your finances and avoid any tax-related issues.

How is income tax calculated?

Based on a person’s taxable income, income tax is estimated. The taxable income is determined by subtracting all allowable deductions from an individual’s gross income.

Calculating taxable income:

  • Start by calculating gross income. Gross income includes all income earned from all sources including:
  1. Wages and salaries
  2. Tips and bonuses
  3. Interest and dividends
  4. Rental income
  5. Business income
  6. Capital gains
  • Subtract all allowable deductions to determine adjusted gross income (AGI). Allowable deductions include:
  1. Standard deduction or itemized deductions
  2. Qualified contributions to retirement accounts
  3. Health insurance premiums
  4. Student loan interest
  5. Alimony payments
  6. Certain business expenses
  • Calculate taxable income by subtracting the personal exemption and any additional exemptions from AGI. The personal exemption is a set amount that is subtracted from AGI for each taxpayer and dependent claimed.
  • Determine the tax rate based on taxable income. Tax rates increase as taxable income increases. Tax brackets can change each year and are determined by the government.
  • Calculate the total tax owed by multiplying the taxable income by the applicable tax rate. This will give you the total amount of federal income tax owed.
  • Subtract any applicable tax credits from federal income tax owed. Tax credits are dollar-for-dollar reductions in the amount of tax owed and can be applied to various expenses such as childcare costs, education expenses, or energy-efficient home improvements.
  • The final amount is the individual’s net income tax liability, which must be paid to the government on an annual basis by April 15th.

Can I file a revised income tax return?

Yes, you can file a revised income tax return if you have made any mistakes in the original return or need to make any changes. You can file a revised tax return within a stipulated timeframe after the original return is filed.

What are the types of the income tax return in detail?

ITR stands for Income Tax Return, which is a document that individuals and businesses in India are required to file with the Income Tax Department every year. There are different types of ITR forms that correspond to different sources of income and other circumstances.

Here are the different types of ITR forms and the situations for which they are applicable:

  1. ITR-1 (SAHAJ): This form is for individuals who have a salary or pension income, income from one house property, and income from other sources such as interest or dividends. It is not applicable to individuals who have capital gains or business income.
  2. ITR-2: This form is for people who have incomes from capital gains, more than one home property, or foreign assets, as well as HUFs. It is also applicable for NRIs who have income in India.
  3. ITR-3: This form is for individuals and HUFs who are self-employed professionals or have a business. It is not applicable to individuals who have income from capital gains.
  4. ITR-4 (SUGAM): Individuals and HUFs with probable income from a business or profession should use this form. It is applicable for small businesses or professionals who have a turnover of up to Rs.2 crores.
  5. ITR-5: This form is for partnerships, LLPs, and the Association of Persons (AOPs). It is not applicable to companies.
  6. ITR-6: This form is for companies other than those that claim an exemption under Section 11 of the Income Tax Act.
  7. ITR-7: This form is for entities such as trusts, political parties, religious institutions, or colleges that are eligible for exemption under Section 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act.

It is important to file the correct ITR form based on your source of income and other circumstances to avoid any penalties or legal issues.

Related Blog: How to Calculate Your Income Tax Liability

What is the Procedure to file types of income tax return?

The procedure to file types of income tax return is as follows:

  1. Registration: For filing ITR, an individual must first register on the e-filing website of the Income Tax Department. Once logged in, under the ‘My Account’ tab, one can click on the ‘Register Yourself’ button and obtain a user ID and password.
  2. Collecting documents: One must collect all relevant documents like Form 16, salary slip, bank statement, TDS certificate, and investment details.
  3. Choosing the right form: There are different ITR forms for different types of taxpayers. Choose the appropriate ITR form based on the sources of income.
  4. Filing ITR: One can file ITR either online or offline. For online income tax return filing, log in to the e-filing website and select the ‘e-file’ option. Fill in the details in the ITR form and upload supporting documents, if any. Submit the form and download the acknowledgment. For offline filing, one can download the ITR form from the e-filing website or obtain it from the Income Tax Department. Fill in the details, attach supporting documents, and submit it to the Income Tax office. A stamped acknowledgment will be given.
  5. Verification: The final step is verifying the ITR. A taxpayer can verify the ITR electronically through Aadhaar OTP, Net Banking, or EVC. Alternatively, one can download the ITR-V from the e-filing website, sign it, and send it to the Income Tax Department by post within 120 days of filing.

Is it essential to connect your Aadhar number when filing your online income tax return?

Yes, it is mandatory to link the Aadhaar number while filing an income tax return. The government has made it compulsory to link Aadhaar with a PAN card for filing income tax returns. In a bid to curb tax evasion and duplication of tax returns, the Central Board of Direct Taxes (CBDT) has made it mandatory for individuals to link their Aadhaar number with their PAN card.

Related Blog: PAN TO AADHAAR LINK

Here are some reasons why it is necessary to link the Aadhaar number while filling online income tax return:

  1. It helps in simplifying the online income tax return process: Linking your Aadhaar number with your PAN card simplifies the income tax filing process. This is done to ensure that there are no duplicate PAN cards under the same name.
  2. It helps in avoiding tax fraud: Linking Aadhaar with PAN helps in avoiding tax fraud by ensuring that the same person is not holding multiple PAN cards. This helps in identifying fraudulent taxpayers easily.
  3. It helps in faster processing of tax refunds: Linking Aadhaar with PAN helps in faster processing of tax refunds. This is because it enables the Income Tax Department to verify the authenticity of the taxpayer’s details easily.
  4. It makes availing government subsidies easy: Linking Aadhaar with PAN makes it easy to avail of government subsidies like LPG subsidies, scholarships, etc. This is because it helps in identifying the right beneficiary easily.

How do Check income tax return status?

To Check income tax return status in detail follow these steps:

  • Visit the official website of the Income Tax Department at https://www.incometaxindia.gov.in/Pages/default.aspx
  • Login to your account using your PAN number and password.
  • Once you are logged in, you will see a dashboard with various options.
  • Under the “My Account” tab, select the “e-File” option.
  • Click on the “View Returns Forms” button.
  • Select the relevant assessment year for which you want to check the status.
  • You will be able to see the status of your return under the “Status” column.
  • If the status shows “Processed,” it means that your return has been processed, and the refund, if any, has been credited to your bank account.
  • If the status shows “ITR-V received,” it means that your return has been successfully filed, but you have not yet verified it.
  • If the status shows “ITR-V received and accepted,” it means that your return has been filed and verified successfully.
  • If the status shows “Defective,” it means that there are errors in your return, and you need to rectify them.
  • If the status shows “Initiated,” it means that your return has been received by the Income Tax Department but has not yet been processed.

Related Blog: How To Choose A Financial Advisor in India

HOW TO OPEN SMALL BUSINESS IN INDIA

HOW TO OPEN SMALL BUSINESS IN INDIA

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Whether you are holding a million dollar company or small business in India, business compliance is one big thing which needs to be followed. India holds one of the most lucrative business environments not just for Startups but also for small business enterprises in India. MSME’s & small business in India hold more than 80% of market share collectively.

But most of the potential business Startups drops the idea of actually forming their business venture because of compliance barriers & lack of business know-how. In the light of these issues, we will discuss one of the easiest processes to start small business in India.

PROCESS TO START SMALL BUSINESS IN INDIA

Establishing a small business in India is not a difficult process as it looks like. But it requires expert consultation all the time to set-up your MSME in most effective & efficient way. Follow the steps listed down below to establish small business in India.

 📢 Register your Company 3999₹

1.) Choose the business format

Various business categories in India are as follows:

  • Limited Liability partnership [LLP]: Partners of an LLP bears limited liability as compared to private limited partnership or OPC. Under LLP, Liability is limited to the assets of the partnership firm & partner’s liability is limited to the agreed contribution. No partner will be liable for any actions of other partners.
  • Private Limited Company [PLC]: Private limited companies require less rigorous protection for their shareholders for company incorporation in India. In terms of ownership, risk & reward they possess a different relationship as compared to other form of company registration in India.
  • Public limited company: A public limited company refers to those companies who offer shares to general public in exchange of a stake in the company. Buying & selling of stock can be processed through an Initial public offering (IPO) via stock exchange.

2.) Name for your business

Most crucial stage is finalizing the name of company that will be your business identity. It could be a tough job to choose a name in every business incorporation in India. It’s the name that goes along with the business throughout its lifetime; therefore one must keep it simple & give due importance in selecting company’s name. Choosing the right name of your business will make or break your company future.

3.) Apply for digital signature certificate (DSC): It is important to apply for Digital signature certificate (DSC) since it is the most trusted way of authorising and verifying the documents. As compared to a hand signature chances of tempering with a DSC are minimal.

📢 File GST Return 999₹

4.) Source of funding: Funding is just another step where both private players & the government seek their interest. Private players want to invest in the best business plan and acquire a stake in that business; whereas the government looks forward to ease the credit process for this small business in India to improve the economy. Popular methods of business funding in India are:

  • Business incubators & accelerators
  • Bootstrapping i.e. Self-financing
  • Loan from commercialised bank
  • NBFC financial assistance
  • Venture capitalist
  • Crowd-funding
  • Angel investor

FREQUENTLY ASKED QUESTIONS (FAQ’s)

Q.) How much does it cost to start a business in India?

There is no fixed cost to start a business in India; depending on the type of business & the net investment capacity the average cost to start a business in India can be decided.

Q.) What is the best way to open a small business?

The most effective & efficient way to start small business in India is to do a cost-benefit analysis >>> choosing an appropriate business model >>> consult best chartered accountant >>> find the best source of raw materials >>> start your business.

Q.) Should I start my own business?

Yes, one should start their own business in their individual investment capacity & according to their business plan should move in that direction. To start your own business, you just need to have an innovative business idea and the rest business compliance will be taken care of by business experts such as chartered accountants, company secretary & compliance experts.

Microfinance Company in India

Microfinance Company in India

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How to Start a Microfinance Company In India

First way:

Register a Micro Finance institution/ NBFC incorporated through RBI Rules

–       Eligibility: Must have INR 5 CR net owned fund(that is investment at the beginning)

–       Govt Fees: 11 lakhs other than professional charges of consultants

–       All microfinance companies are not entitled to accept public deposits. Only those who have approval from RBI and have an investment grade rating are allowed to accept/ hold public deposits to a limit of 1.5 times of its Net Owned Funds.

In India, there are more than 17000 NBFCs RBI is not giving permission easily to new microfinance companies. Though, if all formalities are complete and pre-conditions are satisfied, there is no reason for the RBI not to permit registration, nevertheless, the process takes a very long time at least 9 months to one year.

Second way:

Section 8 company incorporated under companies Act, 2013

–          Cannot accept deposits from public

–          Limit of loan that can be provided is: 50,000 for a business enterprise and Rs. 1,25,000 for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living

–          Loan to be extended without collateral.

–          Eligible borrower: Rural household with annual income not exceeding 1,00,000 or urban and semi-urban household income not exceeding 1,60,000

–          Loan amount should not be more than 60,000 in the first cycle and 1, 00,000 in subsequent cycles.

–          Total indebtedness of the borrower should not be more than 1, 00,000.

–          For loan amount more than 30,000 tenure of the loan not to be less than 24 months

–          Aggregate amount of loans, given for income generation, is not less than 50 per cent of the total loans given by the micro finance institutions

–          Loan is repayable on weekly, fortnightly or monthly installments at the choice of the borrower.

–          No RBI approval on registration or to provide loan. But must follow guidelines for interest rates and processing fees.

To Incorporate Section 8 Company

–          Minimum 2 directors required.

–          Documents Required :


PAN Card of Directors (Copy), ID Proof of Directors (Prefer Aadhaar Card), Passport size photograph of all the Directors, Residential Proof of registered office (Telephone or Mobile Bill/ Electricity or Gas Bill), Landlord NOC (we will provide the format), Bank statement/Utility bill of Director

–          Time Taken: 30-45 days

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HOW TO REBUILD YOUR BUSINESS AFTER COVID-19

HOW TO REBUILD YOUR BUSINESS AFTER COVID-19?

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COVID-19 outbreak has not just weakened the health of humans rather it is worsening the economic growth all-round the globe. Big Corporates, MSME’s, MNC’s and the unorganised sector which are the drivers of the Indian economy are the ones worst affected. As per IMF statistics, the growth rate in Asia is likely to be stalled at 0% for the F.Y. 2020-21 which is the worst performance ever recorded in the past 60 years. Even during the times of global financial crises & Asian financial crises the growth performance of the Asian continent was 4.7% & 1.3% respectively.

How Do You Plan to Rebuild Your Business After COVID-19

Big corporates & MNC’s will revive and get their business back on track because they have various sources to generate fresh funds, which will help their business to gain momentum again. But tough times will come for MSME registrations, New company registrations & business in the unorganised sector. The only thing which differentiates between these two types of a business venture is the source of funds they possess and the management of these funds.

Having a post-lockdown strategic plan ready for your business will help to revive it from any major setbacks. If you don’t have a strategic plan for your business then it is the right time to think in that direction and revive your business from the effect of COVID-19.

Some points which we will analyze to bring your business on track:

1.            ASSESSMENT & IDENTIFICATION

Just as the doctor does before recommending any medicine to its patients, in the same manner, you must first diagnose the problem which your business is facing. Therefore assessment is the fundamental stage for the revival of your business. Check which area of your business is worst affected and find the best alternative solution for it.

Cost-benefit analyses of your business with the help of cash-flow statement, sources of revenue, and cost of customer acquisition will help you to maximize efficiency in the acquisition and utilization of financial resources. Consulting a chartered accountant will help you to reduce cost and save taxes.

Not just sales, revenue, profit & cash flows but also consider non-cash measures, which has affected your business such as; stock loss, customer loss, loss of goodwill in the market etc. these factors should also be factored in while computing the loses.

2.            RESTRUCTURING BUSINESS PLAN

The economy and the market will not be the same as it used to be earlier therefore it is imperative to bring some hair-cuts in your business structure. Analysing the complete trend in your the business industry will help you to devise a competitive strategy for your business.

New company registrations
New company registrations

3.            ADDITIONAL FUNDS

Unless you have a large chunk of liquid funds in your business available, you need to figure out the sources through which you can raise the funds for your business. It is most likely that most businesses, MSME Registration, Start-ups will face a huge shortage of working capital to kick-start their business. Since we know now that it’s a the tedious process to get your business loan sanctions from financial institutions and the long duration it takes to get the funds in your hands, therefore it is advisable to get all these preparations beforehand so that when the time arrives you do not need any extra time to arrange those funds.

Various modes of funding through financial institutions are:

•             Working capital financing

•             Inventory financing

•             Fixed capital financing

•             Business lines of credit

•             Other modes of financing

Even borrowing is competitive in the market and you cannot risk your business by borrowing funds from a non-competitive source. For example; suppose you have a loan from Bank A @10% whereas your competitor is having a loan from Bank B @ 9%. Even if you have a product/service of utmost quality you will not be able to compete because your funds are borrowed at a higher rate as compared to your competitor.

Every other option has different rates of interest applicable and each option have a different set of pros & cons attached to it. Let a financial domain expert and a chartered accountant who is also a provider of CA services online, decide this for you.

4.            SPECIFIED TIMELINE

“Unless you have defined time-line, you will always be lack of time”.

Prioritizing the work and setting a realistic timeline to achieve the goals is much needed in the times of COVID-19. Instead of taking the entire task, an ideal businessman should take step by step growth to achieve their business goals. Initially, your goal is to secure funds for your business and then only you can start your business operation so one must consider securing their funds as their priority.

During the initial period of COVID-19 recovery process looks at whether you are able to meet the specified timeline and check what is working in your plan and what needs modification.

5.            CONTINGENCY PLAN

This pandemic seems more like once in a lifetime event but in a business, there are certain external factors which will disrupt the smooth functioning of your business. So before any such situation arises in future a rational businessman must start to establish some safeguards to prevent their businesses from future shocks.

Such as establishing liquidity provisions, increase your online presence; clear your debt as early as possible, cutting down non-essential expenses etc. By making these changes you can not only secure your business from future crises but it will also improve your business functioning in contemporary times. Prepare your business plan A, B, C until your business future is secured.

HOW CAONWEB WILL HELP TO REVIVE YOUR BUSINESS IN THE TIMES OF COVID-19

CAonWEB have most experienced and trusted professionals on board. Our expert professionals are trained to work in a highly controlled and pressurized situation. We have a highly effective and efficient team having specialization in diverse fields and they will be interested to help your enterprise during this phase of COVID-19 crises.

Our trusted expert professionals are focused on creating value to your business by delivering you the most accurate information and the future path for your business. our experts with deep industrial knowledge brings in most developed, innovative, technology-driven solutions for the business of our clients and help them to smoothly operate their business even in the challenging times.

–          Increase adaptability against disruptive market forces.

–          Transforming your weakness into your advantage.

–          Optimizing the compliance cost of your business.

–          Analysing the company’s financial statements.

–          Establish a strategic plan for your business.

–          Preparing a contingency plan.

Source- https://www.caclubindia.com/articles/how-to-rebuild-your-business-after-covid-19-41490.asp

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Income Tax Due Date Extension

INCOME TAX DUE DATE EXTENSION

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I hope you are safe, well-prepared and taking adequate measures against the Coronavirus pandemic. At CAonWEB, we have all transitioned to “Work from Home” mode and available 24 x 7 to help our clients. 

The shutdown in India due to Coronavirus, the Government has extended various compliance due dates. The announcement for the extension was made by the Hon’ble Finance Minister Smt. Nirmala Sitharaman today as under:

Income Tax Due Date Extension

FY18-19 last date for filing income tax return has been extended to 30th June 2020. For delayed income tax payment made till 30th June 2020, delayed payment on income tax will be reduced to 9% from 12%. 

No due date extension for TDS deposit, but delayed deposit of TDS – will attract only a reduced interest of 9% till 30th June 2020. The current rate for delayed deposit of TDS is 18%.

Various other income tax due date extensions have been extended to 30th June 2020.

  • Aadhaar PAN Linking Due Date will be 30th June 2020.
  • Vivad se Vishwas Scheme has been extended till 30th June 2020. From now till 30th June, there will be no additional 10% charge as well after 31st March 2020.
  • Due date for issue of notice, intimation, appeal, furnishing of returns, reports and any other documents/compliance by the taxpayer including investment in savings investment or roll-over capital gains benefit or Wealth Tax Act or Benami Act or Black Money Act or STT Law or CTT Law or Equalisation Levy where the time limit expired on 20th March 2020 will be 30th June 2020.

GST Due Date Extensions

Last date for filing March, April and May 2020 GST returns and composition returns have been extended to 30th June 2020 – as per staggered return filing due dates for states.

Related Blog: Coronavirus –Due Dates Extension

For companies with a turnover of less than Rs.5 crore turnover, no interest, no late fee or no penalty will be charged.

For larger companies, no late fee and penalty will be charged. Interest on late payment will be charged at a reduced rate of 9%. 

The date for opting for composition scheme is extended to 30th June 2020. 

Sabka Vishwas scheme extended till 30th June 2020 with no interest payable for late payment. 

MCA Due Date Extensions

There is a from 1st April 2020 to 30th June 2020. There will not be any fees for late filing.

There will be no requirement for holding board meeting for 60 days and no physical requirement is now required for conducting board meetings. 

Applicability of Companies Auditors Report Order (CARO) 2020 will be applicable from 2020-21 instead of 2019-20. 

For the year 2019-20, if the independent Director of the company has not been able to conduct even one meeting – it will not be held as a violation. 

For newly incorporated companies, there is a requirement to file Commencement of Business within 6 months. This compliance deadline has now been extended to 12 months. 

If there no Director in a company who does not comply with minimum residence requirement (182 days or more), this was earlier treated as a violation. This violation is now removed.

There is an requirement to invest 15% of debenture before 30th April 2020. This can now be done till 30th June 2020. 

Insolvency & Bankruptcy

The threshold for default classification under Insolvency and Bankruptcy is Rs.1 lakh currently. This has been immediately increased to Rs. 1 crore to prevent usage of the IBC Act against MSMEs. If COVID-19 situation continues after 30 April, 2020, various provisions of IBC would be suspended by the Government to protect businesses.

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Advance Tax और Advance Tax पेमेंट के लिए Due Dates क्या है?

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एडवांस टैक्स(Advance Tax) क्या है?

आयकर अधिनियम, 1961 की धारा (208) ” Advance Tax ” को परिभाषित करती है, जिसका अर्थ है कि कोई भी Tax जो वित्तीय वर्ष(financial year) की समाप्ति से पहले भुगतान किया जाता है। एक निर्धारिती रुपये से अधिक की आय अर्जित करता है। एक वित्तीय वर्ष(financial year) में 10,000 और उससे अधिक अग्रिम आयकर(advance income tax) का भुगतान करने के लिए उत्तरदायी है। वर्ष के अंत में सभी प्रत्यक्ष(direct ) कर(tax ) राजस्व प्राप्त करने के बजाय, अग्रिम कर भुगतान(advance tax payment) सरकार को समय पर अपने दायित्व को पूरा करने में मदद करता है।

Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS

अग्रिम कर(advance tax payment) भुगतान के लिए तारीखें

F.Y. व्यक्तिगत / कॉर्पोरेट करदाताओं(Individual/corporate taxpayers) दोनों के लिए 2019-20

करदाताओं के लिए किसी भी स्रोत(source ) से आय अर्जित(earning ) करना (वेतन, किराया, व्यवसाय पेशा, पूंजीगत लाभ आदि)

अंतिम तिथि (DUE DATE)  अग्रिम टैक्स का भुगतान(PERCENTAGE OF ADVANCE TAX)
15 जून को या उससे पहले   15%
15 सितंबर को या उससे पहले 45%
15 दिसंबर को या उससे पहले 75%
15 मार्च को या उससे पहले 100%

करदाताओं के लिए निर्धारित योजना (यू / एस 44 ए डी या 44 ए डी ए) के तहत  filing ITR  करना

अंतिम तिथि (DUE DATE)    अग्रिम टैक्स का भुगतान(PERCENTAGE OF ADVANCE TAX)
15 मार्च को या उससे पहले 100%

अग्रिम टैक्स की प्रयोज्यता (APPLICABILITY OF ADVANCE TAX)

Advance Tax सभी कर दाताओं पर लागू होता है चाहे आप वेतनभोगी पेशेवर हों या  freelancer या व्यवसायी।

अपवाद(Exception):

  • यदि आपके नियोक्ता ने पहले ही आपके वेतन से TDS  काट लिया है, तो आपको advance tax payment के लिए परेशान नहीं होना पड़ेगा।
  • हालांकि, अगर इस तरह के निर्धारिती के पास आय का कोई अन्य स्रोत है। पूंजीगत लाभ, घर की संपत्ति और निवेश पर ब्याज, तो उसे  advance tax  देयता शर्त को पूरा करना होगा।

Now Register Your Company in Dubai

पूछे जाने वाले प्रश्न

क्या होगा अगर अग्रिम कर(advance tax) का भुगतान वास्तविक कर दायित्व से अधिक या कम है?

  • यदि भुगतान किया गया अग्रिम कर(advance tax) वास्तविक दायित्व से अधिक है तो आयकर विभाग द्वारा निर्धारित समय के भीतर आपके पंजीकृत बैंक को अतिरिक्त राशि वापस कर दी जाएगी।
  • यदि भुगतान किया गया अग्रिम कर( advance tax) वास्तविक कर से कम है तो निर्धारिती को शेष राशि का भुगतान करना होगा और प्रति माह @ 1% जुर्माना भी बकाया राशि पर लागू हो सकता है।

Read other blogs: TAX AUDIT LIMIT FOR BUSINESS/PROFESSION IN INDIA

अगर मुझे अग्रिम(advance tax) कर भुगतान की समय सीमा याद आती है तो क्या होगा?

  • यदि आप अपने अग्रिम कर(advance tax) का भुगतान करने में विफल रहते हैं या आपके द्वारा भुगतान की गई राशि पहली समय सीमा (25 सितंबर) तक कुल देयता के 30% से कम है, तो आप राशि पर ब्याज का भुगतान करने के लिए उत्तरदायी होंगे। तीन महीने के लिए बकाया राशि पर प्रति माह 1% साधारण ब्याज।
  • यदि आप दूसरी समय सीमा (15 दिसंबर) तक राशि का भुगतान करने में विफल रहते हैं तो यह लागू होगा। तीसरी और अंतिम किस्त(instalment ) (25 मार्च) का भुगतान करने में विफल रहने पर हर महीने के लिए defaulted राशि पर 1% साधारण ब्याज का जुर्माना लगेगा जब तक कि कर पूरी तरह से भुगतान नहीं किया जाता है।

मुझे चालू वित्त वर्ष के लिए अग्रिम कर (file advance tax) कैसे दाखिल करना चाहिए?

  • Advance Tax का भुगतान किसी भी अन्य कर भुगतान की तरह ही किया जाता है। 280 चालान दाखिल करके। अग्रिम कर(Advance tax) जमा करने के तरीके के बारे में अधिक जानने के लिए कृपया निम्नलिखित चरणों का पालन करें:
    • NSDL में लॉगिन करें – “सेवाओं” पर क्लिक करें
    • फिर “ई-भुगतान(“e-payment)” पर जाएं
    • प्रासंगिक चालान( relevant challan) का चयन करें [अग्रिम कर के मामले में चालान 280 का चयन करें]
    • अन्य अनिवार्य विवरण जैसे पैन / टैन( PAN/TAN), करदाता का पता और बैंक जिसके माध्यम से भुगतान किया जाना है आदि दर्ज करें।
    • दर्ज की गई जानकारी की पुष्टि करने पर, आपको भुगतान पृष्ठ पर निर्देशित किया जाएगा।
    • सफल भुगतान पर चालान, एक बॉक्स प्रदर्शित किया जाएगा जिसमें CIN, भुगतान विवरण और बैंक का नाम होगा, जिसके माध्यम से ऑनलाइन भुगतान किया गया था।

Read other blog: What is Advance Tax and Due Dates for Advance Tax Payment

सरकार के पास Advance Tax कैसे जमा करें?

इस संबंध में निर्धारित चालान का उपयोग करके भारत सरकार के साथ अग्रिम कर(Advance Tax) जमा किया जाना है। चालान को www.incometaxindia.gov.in से download किया जा सकता है और Tax का भुगतान नामित बैंकों में 2 मोड में किया जा सकता है। भौतिक मोड(physical mode ) (नकद / चेक) या online mode,   debit card या net banking का उपयोग करके । यदि कोई भुगतान के बाद भी challan download  नहीं कर पाता है, तो कुछ दिनों के बाद चालान विवरण उनके फॉर्म 26AS में अपडेट किया जाएगा।

Company incorporation

भारत में व्यवसाय शुरू करने के लिए कदम?

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भारत में व्यवसाय शुरू (starting a business in India) करने से पहले पहला कदम सही व्यवसाय संरचना का चयन करना है। एक सही व्यवसाय संरचना वह है जो व्यवसायी के व्यवसाय की प्रशंसा करती है। भारत में उपलब्ध व्यावसायिक संरचनाएं(business structures) इस प्रकार हैं:

  • व्यक्तिगत स्वामित्व(Sole Proprietorship)
  • साझेदारी पंजीकरण(Partnership Registration)
  • कंपनी पंजीकरण(Company Registration)
  • सीमित दायित्व भागीदारी(Limited Liability Partnership)

सबसे महत्वपूर्ण कदम होने के नाते सही व्यावसायिक संरचना का चयन करने के लिए एक पेशेवर से परामर्श करना आवश्यक है। एक प्राइवेट लिमिटेड कंपनी भारत में व्यवसाय शुरू करने के लिए सबसे अच्छी और अत्यधिक अनुशंसित व्यवसाय संरचना है। कंपनी पंजीकरण के लाभ इस प्रकार हैं:

  • अपने शेयरधारकों(shareholders) को सीमित दायित्व प्रदान करता है
  • निदेशक अलग-अलग रूप में हो सकते हैं, शेयरधारक(shareholders) यानी मालिक
  • कर लाभ(Tax benefits)
  • बैंक ऋण(loans) प्राप्त करने में आसानी
  • कानूनी मान्यता
  • शाश्वत(Perpetual) उत्तराधिकार(succession)
  • निवेशकों द्वारा पसंद किया गया

एक बार व्यवसाय संरचना(business structure) तय हो जाने के बाद अगला कदम वही पंजीकृत होना है। कंपनी का समावेश( Company incorporation) व्यवसाय का लोकप्रिय रूप है जो निम्नलिखित कंपनी पंजीकरण प्रक्रिया(Company registration process) का उल्लेख कर सकता है:

  1. अनोखा नाम(UNIQUE NAME): प्रस्तावित कंपनी(proposed Company) के लिए एक अनोखा नाम खोजने के लिए नाम पंजीकरण(registration) / अनुमोदन की आवश्यकता है। जिसके लिए कॉर्पोरेट मामलों के मंत्रालय के साथ नाम लागू करने से पहले संबंधित वर्ग में एमसीए डेटाबेस(MCA DataBase) और ट्रेडमार्क (trademark) की गहन जाँच की जानी चाहिए।
  2. डिजिटल हस्ताक्षर प्रमाण पत्र(DIGITAL SIGNATURE CERTIFICATE): डिजिटल हस्ताक्षर( digital signatures) के लिए आवेदन को सरकारी अधिकृत एजेंसियों(government authorised agencies ) के साथ दर्ज करना होगा जो प्रमाणन एजेंसियों के नियंत्रक द्वारा सत्यापित हैं। DSC कंपनी पंजीकरण प्रक्रिया(Company registration process) में प्रयुक्त पासवर्ड(password ) संरक्षित टोकन है।
  3. अगला संबंधित दस्तावेजों और रूपों को तैयार करना है जिसके लिए कोई पेशेवरों से सहायता ले सकता है या ऐसी सीए सेवाओं(Ca services) के लिए उन्हें किराए पर ले सकता है। निगमन(incorporation) प्रत्र (forms) जुड़े हुए रूप हैं जिनमें निम्नलिखित शामिल हैं:
    • फार्म नं. INC-32 (कंपनी को इलेक्ट्रॉनिक रूप से शामिल करने के लिए सरलीकृत प्रोफार्मा): जैसा कि नाम से पता चलता है कि यह एक एकीकृत रूप है जो आवेदक को निम्नलिखित फाइल करने में सक्षम करेगा:
    • कंपनी का नाम
    • निदेशक पहचान(Identification ) संख्या
    • निगमन(Incorporation ) प्रमाण पत्र
    • पैन(PAN)
    • टैन(TAN)

Related Blog : ALL ABOUT COMPANY REGISTRATION IN INDIA

फार्म नं. INC-33 (e-Memorandum of Association): इस फॉर्म में कंपनी की मुख्य व्यावसायिक गतिविधि के साथ-साथ ग्राहकों के विवरण के साथ ज्ञापन यानी कंपनी के शेयरधारकों(shareholders) और अधिकृत पूंजी की राशि शामिल है।

फार्म नं. INC-34 (e-Articles of Association): बैठक आयोजित करने, शेयरों के हस्तांतरण, मतदान के अधिकार आदि के लिए सभी नियमों और विनियमों को कंपनी के लेखों में सूचीबद्ध किया गया है। इसमें कंपनी अधिनियम, 2013 के अनुसार कंपनी चलाने के लिए आवश्यक नियम शामिल हैं।

फार्म नं. INC-35 (माल और सेवा कर पहचान संख्या के लिए आवेदन, कर्मचारी का राज्य बीमा निगम पंजीकरण और कर्मचारी भविष्य निधि संगठन पंजीकरण): एक ही फॉर्म के माध्यम से GSTIN / EPFO / ESIC के लिए आवेदन कर सकते हैं।

एक बार फॉर्म दाखिल करने के बाद कंपनी की पंजीकरण प्रक्रिया(company registration process) पूरी हो जाती है।

व्यवसाय पंजीकरण(business registration) के बाद पैन(PAN ) यानी स्थायी खाता संख्या(Permanent Account Number) और टैन(TAN) यानी कर खाता संख्या(Tax Account number) प्राप्त करने की आवश्यकता होती है। दोनों को NSDL वेबसाइट के माध्यम से क्रमशः 49A और 49B फॉर्म भरकर आवेदन किया जा सकता है।

सभी व्यवसाय जहां कारोबार 20 लाख से अधिक है, उन्हें जीएसटी पंजीकरण(GST registration) लेने की आवश्यकता है। यह ई-कॉमर्स व्यवसायों के लिए भी अनिवार्य है।

पंजीकरण प्रक्रिया में लगभग 7-12 कार्य दिवस लगते हैं। व्यवसाय पंजीकरण(Business registration) एक आसान काम नहीं है इसके लिए हर कदम पर पेशेवर इंटरफ़ेस की आवश्यकता होती है।

ब्रांड पंजीकरण(Brand registration) लोगो और Brand नाम के लिए आवश्यक है। जिसके लिए ट्रेडमार्क पंजीकरण(trademark registration) के लिए आवेदन किया जा सकता है। एक बार आवेदन दायर करने के बाद TM शब्द का उपयोग लोगो के साथ किया जा सकता है और अनुमोदन के बाद R मार्क का उपयोग किया जाता है।

कंपनी पंजीकरण(Company Registration) के लिए आवश्यक दस्तावेज क्या हैं?

आवश्यक दस्तावेज़:

  • Promoters का पैन कार्ड
  • दोनों promoters के पासपोर्ट साइज फोटो
  • Promoters के आधार कार्ड / वोटर I.D.
  • दोनों प्रमोटरों का बैंक स्टेटमेंट / यूटिलिटी बिल
  • किराया समझौता(Rent agreement), यदि व्यवसाय का पंजीकृत स्थान किराए पर लिया गया आवास है
  • बिजली बिल / पानी का बिल (व्यवसाय का पंजीकृत स्थान)

Related Blog: What entities are eligible for MSME Registration & Document for MSME?

मैं भारत में घर पर एक छोटा व्यवसाय कैसे शुरू करूं? प्रारंभिक चरण में एक udyog adhaar registration or GST registration. प्राप्त करके घर पर परिचालन शुरू कर सकते हैं।

Original Source: Steps for starting a business in India?

Foreign Direct Investment

WHAT IS Foreign Direct Investment (FDI)?

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Foreign Direct Investment (FDI) is an investment from a party in one country into the business/corporations of another country with the intention of having a “lasting interest”. Here the “lasting interest” is determined when the investing party acquires a share of at least 10% voting right in other organisation. Therefore, the element of control is the key differentiator between Foreign Direct Investment & Foreign portfolio investment (FPI).

According to the organisation of economic co-operation & development (OECD), an investment of 10% or above in the foreign country can be termed as a Foreign Direct Investment. FDI in India is regulated by the apex bank viz. Reserve bank of India (RBI) under the Foreign exchange management act, 2000 (FEMA).   

Since the liberalisation of the Indian economy in 1991, the climate of Investment has improved exponentially. This is more or else because of ease in FDI reforms across sectors. To attract a huge chunk of investors from outside, Government of India (GOI) has made policy of FDI in India in such a way that it is more transparent & easy to understand for any investors.

 Business Setup In Dubai

Company Registration In Dubai

FDI in India is not just restricted to the movement of capital across borders but it also includes movement of other elements such as skills, technology, process & management etc.

WHAT ARE THE TYPES OF FDI?

On the basis of Investment-

  1. Horizontal FDI: When a business expands its operational activities in the same product/service to a foreign country then it is termed as Horizontal FDI. For example: If a local manufacturer in USA opens up their manufacturing branch in India, then this is a classic case of Horizontal FDI.
  2. Vertical FDI: When the style of your business activities is changed while investing in host country as compared to your home country. This could be to provide support service to their actual business or does not relate to it at all. For example: MacDonald’s opens up a meat production house in Australia to support their actual business of food restaurants in India.
  3. Conglomerate FDI: Acquiring an unrelated business in a foreign country. This is not commonly opted for because of certain barriers which are associated with this such as i) entering in a foreign country ii) unrelated industry & market iii) leaving comfort zone.

On the basis of entry routes-

These policies are different from region to region. Considering FDI in India, these are the two routes through which one can enter into Indian market.

Company Registration In China

Company Registration in China

1.Automatic route

Under this investment type of FDI in India, an entity does not need to take prior approval of the Government of India or the Reserve Bank of India, in all activities which are specified in the FEMA regulation number 16. This brings in convenience to the investors who are planning to invest in Indian market.

2. Government route

  • Activities which are not covered under the automatic route of Foreign Direct Investment require prior approval of the Government of India/Reserve bank of India.
  • A single point of contact for all government approval is being initiated by the government through a Foreign Investment facilitation portal (FIFP) under Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
  • Click on the link mentioned to understand the standard operating procedure (SOP) and the approval of various ministerial departments for different categories of business {http://fifp.gov.in/Forms/SOP.pdf}
Corporate Secretarial Services

Top Reasons for Outsourcing Corporate Secretarial Services

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Corporate secretarial services contribute to being one of the most important services an organization needs. Corporate secretarial services are required as a specialist team of highly qualified Company Secretaries offers support and advice to clients and also make sure that obligations of clients relating company law compliance services are met timely in a cost-effective manner. Nowadays you can easily find online company formation services, company secretarial services or company law compliance Services through our online platform of CAONWEB.

Outsourcing Corporate Secretarial services were not considered as an equally feasible activity as other functions of business, because organizations always had a fear of sharing their business information with outsiders and believed that it can be managed with the in-house team.

Get  Import Export Code Online on lowest cost.

However, the majority of companies these days prefer outsourcing company secretarial services because of the reasons/ benefits it offers.

Read other blog : Online Income Tax Return Filing

Here are the top reasons for outsourcing corporate secretarial services:

  • Knowledge and Experience: The outsourced team of Company Secretaries has in-depth knowledge and experience in handling all corporate law compliances applicable to a company. Therefore, all the processes are done more easily and efficiently with expert knowledge. They also execute work within the stipulated timeframe and help to reduce the penalties and other monetary loss and enhances the goodwill of an organization.
  • Reliability: Having knowledgeable, well-trained and experienced team of Company Secretaries lets you have expert advice and feedback on how you can improve your business operations. You can rely on them to meet all your requirements without any worry as they will always have a solution to your problems.
  • Accurate and Consistent Handling: There is timely and consistent handling of administrative requirements of an organization when these services are outsourced. It enables an organization to have a team of experts who keep a track of records and save the organization from being charged for non-compliance, late document submission or inaccurate reports.
  • Time-Saving: The Companies Act 2013 prescribes various compliances for Companies and managing the day to day operations of your business along with complying the corporate laws can be difficult for any entrepreneur. Therefore, it is essential to take the help of a professional for company law compliance services so that you can focus on your main business activities. 
  • Cost Effective: Outsourcing company secretarial services save you the cost of hiring and training of in-house team without any compromise on quality. The cost spent on infrastructure, employment taxes and other overhead costs are saved by outsourcing services to third-party. And, the money saved can be used to expand the business.

Also Read this blog: Are you looking for a Chartered Accountant online in India?

In order to help our clients in all the corporate secretarial services, we at CAONWEB provide you option of hiring the best Company Secretaries having expertise in the company formation services, company secretarial services or company law compliance services. 

You can contact professionals through CAONWEB for company secretarial services, company formation services, company law compliance services and other legal & regulatory compliance in India.