Income Tax Return

Income Tax Return or IT-Return is a statement that every taxpayer of the country has to file with the Income Tax Department stating the sources of the income, amount of income earned and taxes paid during that financial year.

How Does Income Tax Return Filing Online Work For You?

This form contains the information of the income tax paid by an assessee, filing of which helps in easy acquiring of loans, visa application and also helps avoid penalties.

Information Collection

Our agents will set up a seamless process for data collection.
Step 1

Return Preparation

Your return will be prepared as required.
Step 2

Return Filing

Before you know it, your return will be ready for filing.
Step 3

Why should you file ITR?

It is compulsory to file income tax returns (ITR) in India if any of the conditions given below are applicable to you:

1.If your gross annual income is more than-

Particulars Amount
For individuals below 60 years
₹ 2.5 Lakh
For individuals above 60 years but below 80 years
₹ 3.0 Lakh
For individuals above 80 years
₹ 5.0 Lakh

2. If you have more than one source of income like house property, capital gains etc.

3. If you want to claim an income tax refund from the department.

4. If you have earned from or have invested in foreign assets during the FY.

5. If you wish to apply for visa or a loan

6. If the taxpayer is a company or a firm, irrespective of profit or loss.

Statutory Audit of Company (1st Year)

An annual statutory audit is a complex process and a very taxing process due to the examination of micro transactions and financial records. However, if a company plans its audit well it becomes a part and parcel of the company’s routine and helps to improve the company financially and functionally. With this part, we aim to guide you through your annual process of meeting all audit requirements.

Let us first understand the term statutory audit. Statutory falls under the rules laid down by the government. Audit basically means an inspection. Therefore, a statutory audit is an inspection carried out in accordance with the rules laid down by a government authority. This is basically done to assess the financial condition of the company.

What is the Purpose of statutory audit?

The purpose of a statutory audit is to determine whether an organization provides accurate representation of its financial position by examining information such as account books, bank balances, and financial statements.

All public and private limited companies must undergo a statutory audit. Regardless of the nature of the business or turnover, these companies are required to audit their annual accounts each fiscal year.

Meanwhile, a limited liability partnership (LLP) is required to undergo a statutory audit only if its turnover exceeds INR 4 million (US $ 55,945) in a financial year or from its capital contribution of US $ 2.5 million (US $ 34,963).

The statutory audit is governed by the Companies Act, 2013 and the Companies (Audit and Auditors) Regulations, 2014.

What does the audit report include?

The Company Auditor Report Order (CARO), 2016 requires the auditor to report on various aspects of the organization, such as fixed assets, inventions, internal audit standards, internal controls, statutory dues etc.

The auditor should adhere to the auditing standards recommended by the Institute of Chartered Accountants of India (ICAI). If the auditor reveals any fraud during the audit, he should report it to the government immediately.

Upon completion of the audit, the auditor shall submit the audit report to the members and shareholders of the organization.

Balance Sheet Preparation

What is a Balance Sheet?

Balance Sheet is part of any financial statement which provides the financial condition on a given date. An entity’s balance sheet provides a lot of information which can be used to analyze the financial stability and business performance. The balance sheet is a report version of the accounting equation that is a balance sheet equation where assets always equal liabilities plus shareholder’s capital. Investors and creditors generally look at the balance sheet and infer as to how efficiently a company can use its resources and how effectively it can finance them.

The three important sections of any balance sheet are:

  • Assets – Anything that has value and owned by a company 

  • Liabilities – This provides a list of debts a company owes to others

  • Capital or Equity- This is the amount invested by the Shareholders

Importance of Balance Sheet

Balance sheet analysis can reveal a lot of important information about a company’s performance. Importance of balance sheet is listed below:

  • It is an important tool used by the investors, creditors and other stakeholders to understand the financial health of an entity.

  • The growth of an organization can be known by comparing the balance sheet of different years.

  • It is an essential document required to be submitted to the bank to obtain a business loan.

  • Stakeholders can understand the business performance and liquidity position of the entity.

  • Ability to undertake expansion projects and meet unforeseen expenses can be determined by analyzing a company’s balance sheet

  • If the company is funding its operations with profit or debt can be known.

Annual Filing (Form Aoc-4) 1st Year

What is AOC 4 Form in MCA?

The Board of Directors and shareholders can evaluate the performance of the company through its financial year. Form AOC 4 is for filing the company’s financial statement for every financial year with the Registrar of Companies. The company is responsible for duly furnishing the form within 30 days of its Annual General Meeting.

What Documents are Needed with Form AOC 4?:

  • Balance Sheet with its Notes

  • Profit and Loss Statement with its Notes

  • Cash Flow Statement.

  • Statement of Change in Equity.

  • Reports from the Auditor

  • Reports from the Board

  • Corporate Social Responsibility Report, if Any

  • Statement of Subsidiaries in Form AOC-1, if Any

  • Other Relevant Documents,if Any Required

Other than a small company, OPC certification professional is required i.e. practicing Company Secretary (CS) or Chartered Accountant (CA). for Filing form AOC-4

Annual Filing (Form MGT-7) 1ST Year

What is MCA MGT 7 Form?

MGT 7 is an electronic form that is allocated to all the companies by the Ministry of Corporate Affairs for filing details of their annual return. The Registrar of Companies uses to maintain this e-form via electronic mode and on the basis of the statement of correctness given by the company. It is a popular form among the companies which are required to file the form as per the norms and regulations of the ministry of corporate affairs.

Who Need to File the MGT 7 Form?

All the registered companies in India must file this e-form every year doesn’t matter if the company is private or public. The requirement of filing the Form MGT 7 by the company is for its annual return. 

What if the Company does not File MCA Form MGT 7?

If any company does not file Form MGT 07 on time, it would attract a penalty of INR 100 per day as default. The levied penalty was remarkably increased in 2018. So, it should be a good approach to file an annual return in this form before the last date.

Director KYC (2 Directors for 1st Year)

In the backdrop of new MCA guidelines, it is now mandatory to conduct Director KYC in respect of each person who holds Director Identification Number (DIN).

What is DIR 3 KYC?

DIR3 KYC is a form that must be filed by each director who has been alloted a DIN (Director Identification Number). Accepted / disqualified, all directors must comply with their status. Moreover, the DIN holder who submitted the DIR-3 KYC-WEB in the previous fiscal year uses DIR-3-KYC eform and no update is required in its statement.

Who Should File?

  1. Every Director who has allotted DIN  on or before the end of the financial year

  2. DIN Status – Approved /Disqualified

What documents are needed to file it?

  • Email ID

  • Mobile Number

  • Self-Attested PAN

  • Self-Attested Aadhaar card (with Mobile number updated)

  • Self-Attested Electricity Bill/ Bank statement with present address

  • Passport size photograph

  • Director Digital Signature

Points to ponder

  • There is no government fee of filing DIR3 KYC.

  • If you are holding a DIN, it is mandatory that you file your DIR3 KYC. 

  • If the same is filed after the due date, penalty of Rs. 5,000/- shall be levied by the Ministry. This is a mandatory penalty and can not be avoided.

  • The DIN shall be deactivated. This means that you are disqualified to act as a director in any company.

Company KYC

INC -22A is a KYC Form for companies. The purpose of the MCA behind this form is to identify shell companies and update the information of all active companies.

Which companies are exempt from filing INC-22A?

  • Struck off Companies (Whether by ROC or sue motto)

  • Companies under the process of Strike off

  • Companies under amalgamation

  • Companies Dissolved

AGM

The Annual General Meeting (AGM) is the annual mandatory gathering of interested shareholders of an organization. At an AGM, the company’s directors submit an annual report containing information to shareholders about the company’s performance and strategy.

Shareholders with a voting right then vote on contemporary issues such as appointments to the Board of Directors of the Company, executive compensation, dividend payments and selection of auditors.

 

Points to Ponder

  • Shareholders who do not attend the meeting in person may usually vote by proxy, which can be done online or by mail. 

  • At an AGM, there is often a time set aside for shareholders to ask questions to the directors of the company.

  • Activist shareholders may use an AGM as an opportunity to express their concerns.

 

[ Summary ] Private Limited Company (PLC) is a company for small and medium enterprises. It limits the owner’s liability and restricts them from publicly trading shares. A maximum of 200 shareholders can be there at one time. 

[Benefits/ Features]

  • Limited risk to non-public assets, The shareholders have limited liability. This means that you are only liable to pay for the contribution you make as a shareholder.

  • PLC is a separate legal entity. It is fully responsible for the management of its assets and liabilities, creditors and debtors. Therefore, The creditors cannot go against you and withdraw money from you.

  • PLC registration comes with compliance requirements, the businessman preferred this because it helps to raise, expand, and at the same time increase funding through equity and limit the liability.

  • Trusted companies in India are registered with the Registrar of Companies (ROC) under the Companies Act 2013. Company details can be checked by the Ministry of Corporate Affairs (MCA). Also, details of all the directors will be given at the time of formation of the company. Therefore, the PLC type of business is more reliable.

  • Persistence is the ‘Perpetual succession’ of an organization that continues to exist permanently  till it is legally dissolved. An organization, being a separate legal entity, is not affected by the death or termination of any member, but remains there despite the change of membership.

FAQs

Income Tax Return or IT-Return is a statement that every taxpayer of the country has to file with the Income Tax Department stating the sources of the income, amount of income earned and taxes paid during that financial year.

An individual is eligible for filing Income Tax Return when his or her annual income is above Rs. 2,50,000. However, this limit is more in the case of senior citizens.

The Income Tax Return of a taxpayer for the financial year 2019-20 should be put in by 30/11/2020.

A taxpayer needs to provide his or her name, date of birth, address of correspondence, PAN, Aadhar number, bank account details. Any other details which are being required depend on the source of your income.

The main purpose of filing GST returns are:

  1. Compliance verification program of tax administration.
  2. It gives input in taking policy decisions
  3. Management of audit and anti-tax evasion programs of tax administration
  4. Finalization of the tax liabilities of the taxpayer within the specified period.

Everybody registered has to file GST returns every month in Forms GSTR-1, GSTR-2 and GSTR-3. To facilitate the ease of filing for small and medium sizes businesses whose turnover does not exceed 1.5 crore, such taxpayers can opt to file returns quarterly through GSTR-1, GSTR-2 and GSTR-3.

No, there is no GST return which is to be filed on a half-yearly basis.

According to Section 44 of the GST Act, annual return should be filed on or before 31st December of every financial year. We will assist you in filing your returns timely.

No, every registered person has to file an annual return for the financial year except as provided in section 44(1).

FORM GSTR-9 is called the annual return form.

FORM GSTR-9 is available on the GST common portal.

There are only requirements for filing GSTR-9:

  1. The taxpayer should have an active GSTIN number during the financial year.
  2. The taxpayer should have already filed all applicable returns i.e. FORM GSTR-1 and FORM GSTR-3B during that financial year before filing the annual returns.

Yes, it is important to file IT-Return even if TDS is fully deducted as Income Tax Return is a statement of your income earned and taxes paid. TDS is a part of your IT-Return.

ITR-V is an acknowledgement you get on your registered e-mail id that IT-Return has been successfully filed.

ITR-V has to be printed, signed and sent to the Central Processing Centre, Bengaluru through an ordinary post. This is known as verification of return. One has to do this within 120 days of filing your IT-Return. In case you do not do this, your return will be treated as invalid. However, you can also conveniently do this online.

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