Changes in Salary Return Form 24Q

by Sanjeev Archak Sanjeev Archak No Comments

The Income Tax Department by way of its Notification No. 30/2016 dated April 29th, 2016 had introduced a new section 192(2D) of the Income-tax Act, (‘the IT Act’) wherein the employer responsible for making the payment of salary was obliged to collect the necessary proof or evidence in Form 12BB to allow any claim for any deduction and/or tax saving investments.

In the Income-tax Rules, 1962, after rule 26B, the following rule was inserted namely:-

“26C. Furnishing of evidence of claims by employee for deduction of tax under section 192.- (1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source. Read more

Mandatory ROC Compliances For Private Limited Company

by Sanjeev Archak Sanjeev Archak No Comments

Any private limited company registered in India and successfully operating their business needs to follow the various compliances laid down by the Companies Act, 2013. Failure to adhere to these ROC compliances and regulations would lead to lawsuits and penalties that could severely damage your business and harm the brand that you have worked so hard for.

Following the various ROC Compliances not only makes you a legal entity as per the government norms but also makes you trustworthy for your investors, shareholders, and customers. Read more

The Capital Structure of a Private Limited Company in India

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In our previous posts, we have examined the pros and cons of registering a private limited company in India. In this post, we shall examine the capital structure of a private limited company.

Kinds of Share Capital:

A private limited company can have –

1. Equity Share Capital with voting rights  and equity share capital with differential rights as to dividend, voting or otherwise

2. Preference Shares

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5 Reasons to Register a Private Limited Company in India

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Previously we spoke about the fundamental differences between a Pvt Ltd company and an LLP and the factors one needs to take before choosing the right entity for your business. Today we go 2in depth about the important reasons why one should register a Private Limited Company in India.

The most popular choice of corporate legal entity in the country, a private limited company is registered under the governance of the Companies Act, 2013 and the Companies Incorporation Rules, 2014. A minimum of 2 directors and 2 shareholders are needed to register a company under a private limited entity. A corporate legal entity can be a shareholder only while a natural person can be both a shareholder and a director. Read more

What is Better for a Startup – LLP or Pvt Ltd

by Sanjeev Archak Sanjeev Archak 1 Comment

The first legal step towards starting a new startup venture is choosing the right entity for registering their business. Be it a Private Limited Company or a Limited Liability Partnership (LLP). Founders often find themselves stuck at making this kind of decisions as the right choice would determine the nature of the ownership and the management process. It would further set the tone of the various compliances that needs to be followed, be it LLP or Pvt Ltd.

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Attention Startups! The MCA Now Wants To Know How You Handled Cash During Demonetization

by Sanjeev Archak Sanjeev Archak No Comments

The financial year 2016 – 2017 would go down in the economic history of India for one primary reason. The ‘Demonetization’ scheme introduced by our Prime Minister Shri Narendra Modi and his government. This scheme took the entire nation by storm on November 8, 2016. The advantages and disadvantages of enforcing this scheme is a topic of huge debate for every Indian, and it would continue to be so for years to come.

The Government of India vide their Notification no. 2652 dated November 8, 2016, decided to cancel the legal tender character of the high denomination bank notes of Rs. 500 and Rs. 1000 denominations (hereafter referred to as Specified Bank Notes) issued by the RBI. The scheme was necessitated to tackle counterfeiting Indian banknotes, to effectively nullify black money hoarded in cash and curb funding of terrorism with fake notes. Read more

5 Ways To Save Tax For Salaried Employees in FY 2017-2018

by Sanjeev Archak Sanjeev Archak No Comments

The Union Budget for the Financial Year 2017 – 2018 proposed some new income tax rates and deductions that have been applicable and in effect since 1st April 2017.

Finance Minister Arun Jaitley brought cheers of joy and relief to the individual taxpayers when he reduced the income rate by half to 5 percent for the people having the income taxable between 2.5 lakhs to 5 lakhs compared to the 10 percent that was applicable before. An additional surcharge of 10% has been added to the 30 percent tax amount for individuals having the taxable income Rs. 50 lakh and Rs. 1 crore.

Even though the income tax exemption limit for the primary income remains at 2.5 lakhs, the Income Tax Act provides many tax exemptions that can be leveraged for the further reduction of your tax liabilities. Here the new income tax slabs for the general category (Up to 60 years of age) as per the Budget 2017. Read more

6 Things About the GST Bill and How It Affects Your Startup

by Sanjeev Archak Sanjeev Archak No Comments

India’s biggest tax reform known as The Goods and Services Tax(GST bill) has been making headlines since the day it was first introduced. It is touted to be the biggest revolution in the history of the Indian Tax System since Independence.

On April 13th, 2017 the President of India, Shri Pranab Mukherjee signed four enabling bills related to the GST. Thus making it into law and bringing the country a few steps closer to its dream of ‘One nation, one tax’ reform.

The four legislative bills passed were the Central GST Act, 2017, the Union Territory GST Act, 2017, the Integrated GST Act, 2017 and the GST (Compensation to States) Act, 2017. Everyone is now looking forward towards the State governments to pass the State GST bill at their respective assemblies. Read more

What is the Startup India Project and How To Be a Part of It

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The Startup India Project is an ambitious flagship initiative of the Government of India under our Prime Minister, Shri Narendra Modi. The whole purpose of this initiative is to empower startups and build a robust ecosystem by nurturing them to grow through innovation and design. This will, in turn, drive sustainable economic growth and bring in large-scale employment opportunities within the country.

“I see startups, technology, and innovation as exciting and effective instruments for India’s transformation.”
– Shri Narendra Modi, Prime Minister Of India

The project was first introduced by the prime minister on the 15th August 2015 while he was addressing the nation through his speech on the occasion of India’s 69th Independence Day. Read more