Income Tax is a Tax that is imposed on Individual or entities (Tax-Payer) on their income or profits earned during a particular tax period. Income Tax is charged as a percentage of taxable income that varies on the basis income of the tax-payer. The Financial year (April to March in India) in which the income is earned by the tax-payer is known as previous year and the next financial year in which such income is taxed or assessed is known as assessment year. For the financial or previous year 2018-19 the assessment year is 2019-20.
Every individual tax payer & HUF whose income during a previous year exceeds the basic exemption limit (currently Rs.250000/-) is required to file Income Tax Return, in case of other tax payers filing of return is mandatory irrespective of their income.
Type of Taxpayers:
For the classification purpose,Tax payers are divided into following categories under income tax: –
Hindu Undivided Family
An Association of persons or a body of individuals
A Local Authority
Mode of Filing of Return
Every person is required to file his Income Tax Return electronically except following:
Individuals of the age of 80 years or more whose income does not exceed 5 lakh rupees and who does not claim any refund in his return may file return in paper form, if he is filing his return in Form ITR-1 & Form ITR-4. Everyone else is required to file his return electronically.
Heads of Income
Income earned by a tax payer is divided into following five categories or heads under income tax:-
Salary: – Existence of relationship of employer and employee is must between the payer and payee to tax the income under this head. Income under the head salaries includes the following;
Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages
Advance of Salary
Annual accretion to the balance of Recognized Provident Fund
Transferred balance in Recognized Provident Fund
Contribution by Central Government or any other employer to Employees Pension Account
House Property: The Income is taxable under this head if the tax-payer ownsa house property consisting of any building or land appurtenant thereto and the house property is not being used for the purpose of business or profession carried on by the tax-payer.
Capital Gains: The Income is taxable under this head if the tax-payer earns any profit or gains by the transfer of a Capital Asset during the previous year. Capital Asset includes the following:
Any kind of property held by tax-payer, whether or not connected with business or profession of the tax-payer.
Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992.
Income from Business or Profession:The Income is taxable under this head if it is earned by the tax-payer as a result of his Business (trading, manufacturing etc.) or profession (Doctor, Engineer, Advocate, Company Secretary etc.).
Income from other sources: Any income which cannot be charged under any of above heads will be charged under this head. Dividend Income, Interest on securities,Composite rental income from letting of plant, machinery or furniture with buildings if such income is not chargeable under the head business or profession are some example of such income.
Slab of Income:
For individual tax-payers tax is levied on the basis of slab system where different rates have been provided for different slabs and such tax slabs may change during every union budget. Income tax slab for all the tax-payers for the assessment year 2019-20 are summarized in below table: –
Income tax slab for Financial Year 2018-19
Type of Taxpayer
Health & Education Cess
Individual & HUF below 60 years of Age
Upto Rs.2.5 Lakh
Rs.250000 to 500000
4% of tax
Rs. 500000 to 1000000
4% of tax
4% of tax
Individual & HUF of age above 60 Years but Less than 80 Years.
Up to Rs 300000
Rs.300000 to 500000
4% of tax
Rs. 500000 to 1000000
4% of tax
Individual & HUF of age above 80 Years.
Up to Rs 5,00,000
500000 to 1000000
4% of tax
4% of tax
Gross Turnover Upto Rs. 250 Cr.
4% of tax
Gross Turnover exceeding 250 Cr.
4 % of tax
Due Dates for Filing Return of Income for AY 2018-19
Due dates for filing Income tax return are as follows:
Type of Taxpayer
Individuals, HUF, BOI, AOP. (Taxpayers with no audit requirement.)
31st July of relevant Assessment Year
Company, Taxpayers whose accounts need to be Audited, working partner (whose firm’s books need to be Audited)
30th September of the relevant Assessment Year
Individuals, HUF, BOI, AOP (Taxpayers with audit requirement)
Private Limited Company Registration procedure is becoming very simple now a days , any person who wants to carry out business operations with separate business entity is not required to wait for month or two just to get the legal formalities done. Even the PAN and TAN of the company is available just after the registration process is completed.
Procedure for Private Limited Company Registration :
Check whether the proposed name is available or not , this has to be check at MCA website at Check Company name option, It is advisable to check only first word of the name and not the full name, If Name is available , try out new name
Now Check the Trademark of the proposed in the product category on Trademark Public Search Website, if trademark exist try out new name
Prepare KYC Documents of Proposed Directors and Subscribers
Documents will be PAN , Aadhar/DL/Voter Id and Utility Bill/Telephone Bill/Bank Statement, Passport Size Photograph , Mobile Number , Email id , Digital Signature form and Video of Min 25 Sec that the applicant is applying for Class 2 Digital Signature
Documents for KYC of Office Address : Office Address of the Company KYC will be Rent Agreement, if rented premises, Electricity Bill and NOC form Owner
DSC Application to Certifying Authority
Incorporation Documents : INC-9 and DIR-2
Signing of Incorporation Documents
Preparation of Spice form
Preparation of SPice MOA
Preparation of SPICE AOA
Affixing of DSC on Form
uploading of E Forms on MCA portal
Payment of Incorporation Fee
Waiting for Reply form CRC ( Takes around 1 to 2 working days )
Approval or Re submission form CRC
Resubmit the e forms by making corrections
Wait for Approval
Get Company Registration Support form Fastlegal – call 9782280098 or email at [email protected]
As a Business Organisation you must be dealing with different organisations in India , that may be Sole Proprietorship, Some are Partnership Firms, Some are Private Limited Companies and LLP’s. Now it is must that you should know your vendor or customer correctly, for that you will be doing some research about proposed business through internet. Now you must be aware that you have one more option that let you know about Financial Position of Organisation(Checking of Financial Statements ), Directors of the Company, Annual Return of the Company etc.
To Check the Public Documents of any Company Registered in India, you need to pay Rs. 100 per Company
This process is very simple and can be checked at MCA website ( http://mca.gov.in) :
Create Account at MCA Website : You must have an MCA account to access public documents facility.
Login to your Account : Login to your Account by providing userid and password
Go to MCA services and Select Document related Services – and View Public documents
Type Company name or CIN of Company
Select the Company for which you want to access the public documents
Check the Company Documents according to Category and Year that the required documents are available or not.
If the required documents are available, Proceed to make payment of Rs. 100
Once the payment is confirmed, Download option will be available in the MCA My Workspace page
Documents the Required documents and check all the details.
Above steps will help you in doing preliminary due diligence of your prospective customer or vendor.
To carry on the manufacture, trade, sale, import and export of all types of optical fibre such as step index, graded index and mono mode and other types of fibres required for use in fibre optic systems and cables, for use in industrial applications, medical use, instrumentation, defense systems, signalling, telecommunication, multi-channel video communication, data communication and other communication and electronic applications.
To carry on the manufacture, trade, sale, import and export of equipment used for Fibre Optic Network such as Line Terminal equipment, Multiplexers, Opto-Electronic Instruments, Line Repeaters, Jointing and Terminating Equipment, Materials and Accessories, Laser Device, Light Emitting Device, Testing and Measuring Equipments.
To design, install, erect, lay, provide consultancy and management services or undertake turnkey projects for manufacturing, installing, laying, commissioning of Fibre Optic Systems, Electrical Transmission and Distribution Network.
To carry on the manufacture, trade, sale, import, export and repair of all types of Testing Equipments for all types of Cables and Conductors including Optical Fibres, Fibre Optic Cables and also Testing Equipments for Optical Fibre System and Optical Fibre Transmission and Distribution Networks.
To Carry on the manufacture, trade, sale, import, and export of all types of Telecommunication and Power Cables including Fibre Optic Cables, Dry Core Cables, Jelly Filled Cables, Coaxial Cables, Switchboard Cables, Radio Frequency Cables, Cables for PCM System, Electronic Cables, Telephone hand Set Cords, Computer Cords, cords required for Electrical Appliances and Defence purposes, Aerial Self-supporting Cables, Jumper wires, Drop Wires, Tinsel Conductors, Ribbon Cables, Control Cables, Instrumentation cables, Signalling Cables, WindingWires, Aircraft and Ship Wiring Cables and all other type of wires and Cables and raw materials used in optical telecommunications.
To carry on the business of manufacture, produce, process, buy, sell, import, export and otherwise deal in all kind of Optical Fibre Cables, Optical Fibre Ribbon, Power Cables including Solar and Wind Energy Cables, Radio Frequency Cables, Hybrid Cables, Composite Cables, Quad Cables, Railway Signalling Cables, Instrumentation Cables, Control Cables, Optical Fibre Ribbon Cables, Flexible Cables and Cords, Other Specialty Cables, Tactical Cables, Railway Catenary Wire, Grooved Contact Wire, Dropper Wire, Optical Fibre and all kinds of Preform of Silica Rods, Silica Rod and Tubes, Quartz Rods and Tubes, Fibre Reinforced Plastic (FRP) Rods, Glass Roving Filling/Flooding Compound, Aramid Yarn, Water Swellable Yarns, Colouring Inks, Oils, Chemicals, Heat Shrinkable Sleeves, all Gases, UV Resins, all other raw materials and inputs required for manufacture of all kinds of Optical Fibre, Optical Fibre Ribbon, Optical Fibre Cables, Telecommunication Cables, Power Cables, Radio Frequency Cables, Hybrid Cables, Composite Cables, Quad Cables, Railway Signalling Cables, Instrumentation Cables, Control Cables, Other Specialty Cables, Tactical Cables, Power Distribution Cables, Ribbon Cables and all other types of wires and cables, and other inputs, all kinds of equipments and products (electronic or otherwise) used inthe telecommunications networks, Power Distribution and Transmission~ networks, tactical communication solution systems, homeland protection systems, electronic warfare systems, network centric warfare enablers, optoelectronics, Military engineering systems including parts, connectors and accessories thereof.
Last Date for Filing Income Tax Return of Private Limited Company for Financial Year 2017-18 is 30th September, 2018
All companies registered in India are required to file income tax return on or before the 30th of September. Companies Incorporated During the 1st of Jan 2018 to March 2018 is also required to file within 30th Sept 2018.
To carry on the business of providing Manpower placement and recruiting, Selecting, Interviewing, Training and Employing all types of executives, Middle Management Staff, Junior Level Staff, Workers, Labourers Skilled/Unskilled required by various Industries and organizations including providing security services, Labour contractors, Industrial, Commercial, Housing and other security services and workers for office management and to conduct employment bureau and to provide consultancy and other services in connection with requirements of persons and manpower supply in India and abroad.
Nidhi Company is most popular form for giving loan to its members and accept deposits from its members. It is also called mutual benefit Company. For Providing Loan and Accepting Deposits you have to register Nidhi Company and with the Capital of Nidhi Company subject to Condition provided in Nidhi Rules you can lend money and accept deposit from Its members.
Nidhi Company will always be public limited company and its name should end with ‘Nidhi Limited”, Presently Nidhi Company is becoming very popular for lending business.
Nidhi Company Registration Procedure:
Obtaining DSC for All the members and Directors
Obtaining DIN for All the Directors
Application for Approval of name
Preparation and Drafting of Incorporation documents
Signing of Incorporation Documents
Application for Incorporation of Nidhi Company with ROC
Approval by ROC, after verifying all the required documents and information.
Basic Features about Nidhi Company for Registration: 1. Required Minimum 3 Directors and 7 Shareholders
2. Can Accept Deposits From its members
3. Body Corporate and Benifit of Limited Liability
4. Can Land Money to its Members
5. Can Provide Locker Faciltity to its members
6. Required to have Minimum 200 members within one Year
7. Best suited for Small lending and desposit Business
8. Minimum Capital Rs. 5 Lakh at the time of Incorporation and Thereafter required to have Rs. 10 Lakh.
Documents Required For Nidhi Company Registration
1. PAN of all Directors
2. Voter ID/DL/Aadhar Card/Passport of All Directors /members
3. Passport Photo of all Directors
4. Latest Bank Passbook/Statement or Electricity/Boradband Bill
5. Latest utility bill (electric bill/telephone bill) and Rent Agreement or latest tax receipt/ownership deep of the property for the property to be used for registered office
Foreign Direct Investment in India can be made through the following modes:
A. Issuance of fresh shares by the company
An Indian company may issue fresh shares /convertible debentures under the FDI Scheme to a person resident outside India (who is eligible for investment in India) subject to compliance with the extant FDI policy and the FEMA Regulation.
B. Acquisition by way of transfer of existing shares by person resident in or outside India
Foreign investors can also invest in Indian companies by purchasing / acquiring existing shares from Indian shareholders or from other non-resident shareholders. General permission has been granted to non-residents / NRIs for acquisition of shares by way of transfer in the following manner:
Transfer of shares by a Person resident outside India:
Non Resident to Non-Resident (Sale / Gift): A person resident outside India (other than NRI and OCB) may transfer by way of sale or gift, shares or convertible debentures to any person resident outside India (including NRIs but excluding OCBs). Note: Transfer of shares from or by erstwhile OCBs would require prior approval of the Reserve Bank of India
NRI to NRI (Sale / Gift): NRIs may transfer by way of sale or gift the shares or convertible debentures held by them to another NRI.
Transfer of shares/convertible debentures from Resident to Person Resident outside India
A person resident in India can transfer by way of sale, shares / convertible debentures (including transfer of subscriber’s shares), of an Indian company under private arrangement to a person resident outside India, subject to the following alongwith pricing, reporting and other guidelines
In the Present Startup Ecosystem most startup start their business operation by forming most liked business structure Limited Liability Partnership, while some startups run successfully while other have to shut down due no business in the market or any other reasons. Now Startup Founders left with confusion has what they have to do in order to get out of legal compliance they are mandatory required to do even with NIL revenues. Now they have three options to manage their LLP :
Change the Business Business Objects , Partners of LLP for Another Project : In this case if you have another project in Mind than you can continue that project in the Existing LLP by changing in Business Objects by Alteration in LLP Agreement , if in you new project you have new partner you may also change the partners at the same time. You may also change the name and business address of LLP.
Sell LLP to any other Person : In this case you may sell whole of LLP to any other person who are in need of LLP. Once all the formalities are completed you are free from all the liabilities of LLP and in future course you are not liable for any compliance or actions, simply because you are now not associated with LLP.
Closer of LLP : You may shutdown the LLP , for that your LLP must meet certain conditions as par recent rules notified by Ministry of Corporate Affairs. Here are the details of conditions required to be fulfilled by LLP
LLP is required to file form 24 with ROC.
LLP is required file overdue returns in Form 8 and Form 11 up to the end of the financial year in which the limited liability partnership ceased to carry on its business or commercial operations before filing Form 24.
Attachments required for Form 24: (a) a statement of account disclosing nil assets and nil liabilities, certified by a Chartered Accountant in practice made up to a date not earlier than thirty days of the date of filing of Form 24;(b) an affidavit signed by the designated partners, either jointly or severally, to the effect,—(i) that the Limited Liability Partnership has not commenced business or where it commenced business, it ceased to carry on such business from ………….(dd/mm/yyyy); (ii) that the limited liability partnership has no liabilities and indemnifying any liability that may arise even after striking off its name from the Register; (iii) that the Limited Liability Partnership has not opened any Bank Account and where it had opened, the said bank account has since been closed together with certificate(s) or statement from the respective bank demonstrating closure of Bank Account;(iv) that the Limited Liability Partnership has not filed any Income-tax return where it has not carried on any business since its incorporation, if applicable.(c) a copy of the acknowledgement of the latest Income-tax return filed under the Income-tax Act,1961 (43 of 1961) and the rules made thereunder for the time being in force, where the limited liability partnership has carried out any business and has filed such return. (d) copy of the initial limited liability partnership agreement, if entered into and not filed, along with changes thereof in cases where the Limited Liability Partnership has not commenced business or commercial operations since its incorporation.
Explanation.—The date of cessation of commercial operation is the date from which the Limited Liability Partnership ceased to carry on its revenue generating business and the transactions such as receipt of money from debtors or payment of money to creditors, subsequent to such cessation will not form part of revenue generating business.”