- Home
- Business Registrations
Tax Registrations
Other Registrations
Safeguard Registrations
Other Registrations
Safeguard Registrations
- Compliance Services
Labour Laws Compliances
- DSC
- Incentives
- Business Closure
- Other Services
- Blogs
Income Tax Return is a form which contains information about the income of a person and the taxes which is to be paid on the income during the year. The tax liability will be calculated as based on the income of a person. The income can be in the form of Salary, Business Profits, income from House Property, Capital Gains, income from other sources like dividend earned, interests, etc. Further if a person already paid excess tax in the form of Advance Tax and TDS then they will be eligible to get a refund from the Income Tax Department. The provisions related to this are governed by the Income Tax Act, 1961. As per the Income Tax Provisions, Income Tax returns have to be filed before thedue dates as discussed below. If a taxpayer fails to file the Income Tax Return by the due date, then Interest, Penalty and late fees will be levied as per the provisions laid down in the Income Tax Act, 1961.
Mandatory Requirement in Income Tax Act
There are various types of entities or businesses that are compulsorily required to file the Income Tax Returns as per the provisions of the Income Tax Act, 1961. The details of the same given below:
Gross Annual Income of Individuals exceeds the Basic Exemption Limit
In this case, there are two types depending on the taxation you opted:
Age of Individual | Basic Exemption Limit under Old Income Tax Regime |
Below 60 years | Rs 2.5 Lakh |
Above 60 years but below 80 Years (Senior Citizens) | Rs 3.0 Lakh |
Above 80 Years (Super Senior Citizens) | Rs 5.0 Lakh |
Mandatary to file Income Tax Return irrespective of the Basis Exemption Limit
There are some cases where even if income does not exceed the basic Exemption limit still you need to file the Income Tax Return if one of the following conditions met:
Levy of Penalty
If you are liable to file the Income Tax Return but you have not filed the return timely, then it will attract different types of penalties under the Income Tax Act.
Carry Forward of Losses
If you have losses in the financial year, then these losses can be adjusted with the income of next financial yearonly when you will file your Income Tax return timely.
Procurement of Government Tenders
Copy of the Income Tax Returnis must while applying for Government tenders. If anyone wants to apply for the tenders for undertaking any Government project then Copy of the Income Tax returns of last few years will be required for the same.
Easy Visa Processing:
If anyone want to apply for VISA to travel or shift to another country the proof of your income is required by the embassy. ITR is legitimate proof of one’s income and it helps in easy processing of visa application.
Under the Income Tax Act, different forms of ITR have been notified depending on the sources of the income of the Taxpayer, the amount of the income earned and the category of the taxpayer like individuals, HUF, Company, etc. Following are the forms which are notified:
ITR1 (Sahaj):This form can be used by the individuals who have Annual Income less than Rs. 50 Lakhs earned by way of Salary/pension and have one house property only.
This form can be used by the individuals who are having Annual Income more than Rs 50 Lakhs or having Capital gain Income, two or more house property, having income from foreign sources. Further individuals holding directorship in any company or holding unlisted equity shares will also required to fill this form.
This form will be used by the persons having income from business/professions or are partner in a firm.
This form can be filed by the taxpayers opted for the Presumption taxation scheme. Taxpayer having income less than Rs 2 Crore from business or less than Rs 50 Lakhs from profession are eligible to opt for the Presumption taxation scheme.
This form is applicable to the partnership firms, Limited Liability Partnerships (LLP), Association of Persons (AOP), Body of Individuals (BOI) to report their income.
This form is applicable to Companies to show their annual income.
This form is applicable to entities claiming exemption as Charitable/Religious Trust, Political Parties, Scientific Research Institutions and Colleges or Universities.
Filing Return is a sign that You are responsible
As we discussed above, Government make mandatary to file the Income Tax returns for some and others can file the Income Tax Returns voluntarily also.Filing the Income Tax Returns timely shows that you are a responsible person. Since the income has been processed by the department thereby makes easier for the businesses to enter into subsequent transactions.
Carry forward unabsorbed losses to subsequent years
To carry forward the losses of the current financial year to the next financial Year, one has to file the Income Tax Return timely. As per the Provisions laid down under the Income Tax Act, filing Income Tax return by due date makes it eligible to carry forward the losses in the subsequent year so they can be set off with the Income of the next financial year.
Adjustment of Capital gain Losses
As per the provisions of the Income Tax Act Capital Losses can be adjusted against the Capital Gains. Further you can carry forward the remaining losses for the next 8 consecutive financial years.
Prompt Processing and faster refund
Once the ITR has been filed, the acknowledgement of the same will be issued immediately after filing the same. The processing of the ITR will start immediately after filing the ITR. Thereby Processing of refunds are also much faster.
Bank Loans
Income Tax ReturnFiling serve as proof of business activity and create track record for a business. Banks and NBFCs lend to businesses based on Income Tax Return data. Hence, Income tax registration and filing can help you formalize your business and get credit.
Beneficial in case of no inheritance deed left by the deceased taxpayer
Income Tax Return filing serves as a record as all the data of filed returns are maintained on the Income Tax Portal. It provides the details of the assets and liabilities throughout the lifetime of the deceased taxpayer which in turn help in the right distribution of these assets to their legal heirs.
Home Loan –
Home Loan Interest and Principal amount repayment Certificate
Rent Deduction- HRA/80GG
Others
Associated Firm/Companies Details
Salaried
Business
Interest Income
Rental Income
Property Transfer
Shares/Mutual Fund
Among all, the first step involved for the process of company incorporation is ascertaining the availability of name. A company is identified through its name it registered on the Ministry of Corporate Affairs. Hence choosing an appropriate name is the important and crucial thing.
For the same, an application will be submitted for the reservation of name to the Ministry of Corporate Affairsby login to the sitehttps://www.mca.gov.in/mcafoportal/login.do and preference wise 2 names along with the business objective can be provided. Once the name gets approved, it’s reserved for 20 days within which applicant needs to complete all the remaining process for the incorporation of the Company.
Stakeholders shall ensure that the proposed name selected does not contain any word as prohibited in Section 4(2) & (3) of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2014.Points to be considered while suggesting the name:
-Check Trademark for your proposed name on the site https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx
– Check domain for your proposed name on the site https://www.registry.in/index
-Check the availability of Company Name on the site https://www.mca.gov.in/mcafoportal/viewCompanyMasterData.do
Therefore, choosing an appropriate name which does not prohibit any law will be the most important thing.
There is also another way to finalize the name of company and its incorporation in one go i.e., apply name and company incorporation together. However, if the same has been rejected by the MCA, then all the documentation will be done again
Once the name gets approved in PART A, the basic details will be automatically filled in all linked forms of PART B. There will be total 4 linked forms which will be generated such as AGILE-PRO, Spice+ MOA, Spice + AOA and INC-9. These linked forms will be filled up with the necessary details like capital subscription, name of shareholders and directors, percentage of holding among the shareholders, Interest of shareholders in other entities, etc.
For completion of the Part B, many other details and documents will be required which is discussed as below:
For the E-filing of all the forms, Digital Signature is a mandatory requirement. Digital Signature is in form of digital key containing all the information about the registered signatory like name, address, Contact No, Email ID and the authority detail which has provided the certificate. All the forms will signed digitally by the authorized signatory by proving its identity through the Digital Signature Certificates.
Director Identification Number is a unique identification number of 8 digits for the directors of a Registered Company.Every director will be provided a unique number with which he will be identified by the MCA. To become a director, one shall apply for getting the DIN from the MCA.To applying DIN, the applicant has to make an application in e-Form DIR-3 and shall follow the below mentioned process
This form is for GSTIN, Employees Provident Fund Organization registration, Profession Tax Registration, Opening of Bank Accounts, Shops and Establishment registration.
It is mandatory to register for ESIC, EPFO, Professional Tax (for Maharashtra) and bank account opening to obtain AGILE-PRO via e-form, However, GSTIN Registration is optional for the applicants.
MOA is a document which contains all the fundamental information about the company, the objectives of the company in brief, the share capital, type of Shares whether equity or preference and its shareholders details, details of allocation of shares among the shareholders along with their name, address and occupation, etc. Company can perform and undertake only those activities that are mentioned in the objectives of Memorandum of Association beyond which the company cannot undertake any other objective but the Memorandum of Association (MOA) can be amended with the approval of the shareholders.
As per Section 4 of the Companies Act, 2013, Companies shall form MOA as specified in Tables A to E of Schedule -I of the Act. Below is the list of tables with their meaning:
Table A: Company Limited by shares
Table B: Company limited by guarantee and not having a share capital
Table C: Company limited by guarantee and having a share capital
Table D: Unlimited Company and not having share capital
Table E: Unlimited Company and having share capital
Hence Company shall adopt an appropriate table applicable to it as there are various forms of tables for different companies.
AOA defines the rules and regulations that govern the internal management of the company for achieving its objectives.
Various forms in Tables F to J for different companies have been mentioned under Schedule I of the Companies Act 2013 and AOA must be in the respective form.
Table A: Company Limited by shares
Table B: Company limited by guarantee and having a share capital
Table C: Company limited by guarantee and not having a share capital
Table D: Unlimited Company and having share capital
Table E: Unlimited Company and not having share capital
Declaration shall be given by the subscribers and directors in the form INC-9 that:
Once all the above documents and details are ready, then the application for the incorporation of the company can be made via e-form Spice accompanied by Spice MOA and Spice AOA with the registrar under whose jurisdiction the address of the company is located. All these e-forms need to be affixed by the Digital Signatures of the respective persons.
The Registrar of Companies will grant a Certification of Incorporation along with the Copy of PAN, TAN, EPF, ESIC which will be used as for the identity of the company existence.
Once the company gets incorporated then there are many compliances which need to be performed by the company
The Company within thirty days of its incorporation shall furnish to the Registrar of Company regarding verification of its registered office by filing the e-form INC-22.
INC-22 shall be downloaded from the Ministry of Corporate Affairs site and any of the following document will be attached with this form:
Every Company incorporated shall within 180 days of its incorporation shall file the declaration for the Commencement of the Business with the Registrar of Company. It is the declaration regarding that all the subscribers to the MOA have deposited the total value of the shares agreed to be taken by them in the Company Bank Account. Proof for the same shall be attached while filing the form INC-20A. Bank Statement shall be used as the evidence for the same.
COMPLIANCESPRO has a separate team which is expert in completing this complex process very easily and helps you to get the company registered within 3 daysonly in a very reasonable price.
