Changes in Income Tax Website w.e.f 22.09.2017

To enable effective communication between the tax payer and the income tax department the income tax portal has made certain changes. Anyone logging in to the income tax portal after 22.09.2017 have to fill in a form before accessing any facility in the portal.

Change #1 : Bank Account Details – Data of one of the bank account is now made mandatory.

Change #2: Email Ids & Mobile No : Single Mobile No. or Email Id cannot be used for more than 3 logins which was earlier 10. The problem now is any email id or mobile number which has been used earlier for more than 3 numbers is not being allowed. Hence change of number or email id has become imperative. Hopefully the department will change this requirement to allow atleast registration for 3 ids.

Change #3: OTP verification : it is not just sufficient to fill in the form but now you also need to approve the details of the mobile number / email id by authenticating it using an OTP that will be sent to email / mobile .

Click on this link to know more Update Profile Details

 

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Appointment of Auditor

Appointment of auditor  – First Auditor

  • To be done by the Board of Director within 30 days of incorporation of the company.  If Board fails to appoint auditor then Extra Ordinary General Meeting (EGM) shall be called for within 90 days and auditor shall be appointed.
  • Tenure shall be from the date of appointment till the end of the First AGM

 

Appointment of auditor  – Subesequent Auditor

  • To be appointed at the AGM
  • Tenure shall be for 5 years block period subject to ratification at the AGM

 

Steps :

  1. Intimate the auditor regarding the intention of the company to appoint him or her as the statutory auditor of the company and ask whether he is eligible and not disqualified to be appointed as auditor of the company.
  2. Obtain letter of consent for the auditor
  3. Call board meeting
  4. Approve appointment of auditor in the first meeting
  5. Intimate the appointment of first auditor to the MCA within 30 days of board meeting in Form No. ADT 1
Please email any concerns at mrpraveenca@gmail.com about this posting and take advice of your CA / CS before acting on the content of this blog.

Compliance for Private Limited Companies

default

ATTENTION: Over 4 Lakh Companies have been struck off by ROC and over 1 Lakh directors will be made directors in default. 

The main reason for these directors to be called defaulting is non compliance with basic ROC Compliance. Few of the compliance that needs to be considered are as follows:

  1. Appointment of Statutory Auditor and filing of Form ADT 1 [has to be filed within 15 days of appointment] – Know More
  2. Preparation of financial statements at the end of the Financial Year [31st March of every year] and getting the same audited by a Chartered Accountant.
  3. Filing of annual returns with ROC in Form MGT 7 – [Due date within 6 months of end of Financial year which is 30.09.2017] – Has to be filed within 30 days of AGM
  4. Filing the audited annual statements with the ROC in Form AOC 4 – Has to be filed within 60 days of AGM.

Each of the above compliance will be elaborated in the posts to come.

Please email any concerns at mrpraveenca@gmail.com about this posting and take advice of your CA / CS before acting on the content of this blog.

 

Incorporation of a Private Limited Company

Steps involved in incorporation of a new private limited company – these steps are applicable only if the number of promoters are less than 7.

Step No.1 – Obtain Digital Signature Certificate (DSC) : Every director / shareholder is required to obtain a DSC. There are many vendors available generally DSC will be done through either sify or emudhra.

Step No.2 – Obtain Director Identification Number (DIN) : Every person wishing to act as director in a company should obtain DIN. A Certification from Chartered Accountant or Company Secretary or other authorised professionals will be required to file the same. PAN Card copy, DIR 4 declaration, Photo of the director and an address proof has to be attached with this form. Generally the number gets generated immediately.

Step No.3 – Filing of Name Approval Form (this is an optional step but most of the professionals take this route) : A minimum of 1 name and a maximum of 6 names can be provided in this form in order of priority. The ROC will check the name availability and give an approval generally communicated via email.

Step No.4 – Preparation of documents – Following documents has to be prepared.

  1. DIR 2
  2. INC 10
  3. INC 8
  4. INC 9
  5. Declaration for director
  6. Address Proof and ID proof of the proposed promoters

Most of the documents require certification from a Practising professional like a Chartered Accountant etc. Kindly consult before taking any decisions. 

mrpraveenca@gmail.com

 

Post Incorporation Procedures

You have now successfully incorporated a company what next ?

A lot of websites do tell you how to incorporate a company but many fail to tell the post incorporation procedures which are pretty important too.

  1. Open a Bank Account and deposit the share capital.
  2. Hold a board meeting and appoint an auditor
  3. Obtain Common Seal for the company
  4. MBP 1 to be signed by all the directors indicating the interests in any other organisations.
  5. Print Share Certificates in Form SH 1
  6. Pay Stamp duty for the shares issued by the company
  7. Obtain the stationery for the company. Please ensure that the CIN is mentioned on all the stationery.
  8. Also ensure that INC 21 has been filed
  9. Obtain statutory registers for the company and fill in the relevant details .

In case this article has helped kindly leave a comment. Please obtain advice from your Chartered Accountant / Company Secretary / Advocate before taking any action based on our blog. 

Section 80C: Tuition Fees

Circular 1/2017 dated 02.01.2017 has been issued by the Income Tax Department which deals with computation of TDS for income tax assessees.

A part of the circular deals with tuition fees. There is an important clarification provided by the department which clears a lot of questions on tuition fees deduction under section 80C. The extract of the circular is reproduced as below:

Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the employee.

Full-time education includes any educational course offered by any university, college, school or other educational institution to a student who is enrolled full-time for the said course. It is also clarified that full-time education includes play-school activities, prenursery and nursery classes.

It is clarified that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature.

Hence following can be noted for deduction

  1. Full-time education
  2. Play school activities, prenursery and nursery classes are covered.
  3. All fees paid towards education including computer fees, exam fees, library fees etc is covered.
  4. Donations or Capitation Fees or Development fees or similar fees only is excluded (generally what is taken into specific fund by the educational institution is not allowed. Since there is no income tax on such receipts to the institutions generally in the nature of trust)
  5. Education expenditure of self is not allowed.
  6. Education expenditure upto Rs.1.50 Lakhs is allowed as deduction under Section 80C  (expenditure should not be for more than 2 children) 
  7. Fees can be partly claimed by both the parents.
  8. Fees paid for education outside India is not allowed as deduction
  9. Deduction is available irrespective of the fact that the children of the assessee has attained 18 years.
  10. Transportation Fees, Uniform Fees, Hostel Fees, Mess Fees etc which are not directly associated with education is not allowed.