Every person whose estimated tax liability for the year is Rs.10,000 or more is required to pay advance tax. (Section 208).

A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax. (Section 207).

Assessee has to estimate his income for the current financial and compute tax there on as per rates in force for the financial year. This computed tax shall be reduced by taxes deducted or collected at source. (Tax referred to as estimated annual tax).

Due dates for payment of advance tax:

1. By 15th of June :  to pay not less than 15% of estimated annual tax as  advance tax.

2. By 15th of September :  to pay not less than 45% of estimated annual tax as advance tax as reduced by amount, if any, paid in earlier installment.

3. By 15th of December :  to pay not less than 75% of estimated annual tax as advance tax as reduced by amount, if any, paid in earlier installments.

4. By 15th  of March :  to pay 100% of estimated annual tax as advance tax as reduced by amount, if any, paid in earlier installments.

For taxpayers who have opted for presumptive taxation scheme of section 44AD or section 44ADA have to deposit 100% of estimated annual tax as advance tax by 15th of March of the financial year.

Note: Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax.

A complete guide on Incorporation of a Foreign Subsidiary Company/ Registration of a Foreign Subsidiary Company in India without any hassle, get in touch with us at Chhota CFO.

PRE-REQUISITES FOR INCORPORATION OF FOREIGN SUBSIDIARY IN INDIA AS PER COMPANIES ACT, 2013:

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The Articles of Association is similar to a rule book, within a company. This document contains internal detailed governing aspects of the company’s organisation. These include shares, details in manner of holding the company meetings, the role and powers of the directors.

Every company formed in India under Companies Act is required to have articles, without which a company cannot legally be formed. This requirement applies to all types of Companies.

Features of Articles of Association:

1. It is a part of the constitution of an organization.

2. A contract between the members and among the members themselves.

3. It lays down the duties of shareholders.

4. Few statutory clauses should be included in the article of associations. Other clauses can be chosen to make the bye-laws of the organization.

5. Article of Association can be inspected by anyone as they are a public document.

The article of a company is an important document which is company’s rule book, defines the responsibilities of its directors, the different means by which the shareholders may exert their control over the directors and the company. While the memorandum defines the objectives of the company, the articles lay down the rules through which the objectives are to be achieved.  In cases of conflict, Act overrides the Articles.

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The literal meaning of Form FC-TRS is Foreign Currency Transfer of Shares. This form is filed in case of transfer of shares of an Indian Company from a resident to a Non-Resident/Non-Resident Indian or body corporate outside India and vice versa through its authorised dealer bank.

Time Limit: The form FC-TRS shall be filed with the Authorised Dealer bank within Sixty days of transfer of capital instruments or receipt/remittance of funds whichever is earlier.

Step 1: Registration under FIRMS Portal of RBI as entity user and Creation of Master Data in Single Master Entity Form.

Authority Letter is required to be prepared for personnel authorizing him/her for registering as an Entity user for the entity.

Step 2: Registration as business user on FIRMS portal.

Authority Letter is required to be prepared for personnel authorizing him/her for registering as an Entity user for the entity.

Step 3: Reporting of Form- FC-TRS.

Any company can   accept amount from a person who is its director at the time of receipt of the   amount out of his own funds or from the existing Directors. For this purpose,   the director will have to submit a declaration with the Company that amount   is not being given out of funds acquired by him by borrowing or accepting   loans or deposits from others. Such amount are not deposits as   per Companies (Acceptance of Deposit) Rules, 2014. For more details visit our blog : https://bit.ly/3hBsKO6

DIR 3 KYC Filing is a yearly compliance to be filed by all the DIN holders irrespective whether the DIN holder is a Director in any Company or not/Designated Partner in an LLP or not.

The following shall not be able to do KYC web-based verification service and will be required to e file the E-Form DIR 3 KYC:

Requirements for filing of Form- DIR-3 KYC for Foreign Director:

1. Identity Proof- Copy of Passport

2. Proof of Address (Any one)- Copy of Driving License / Bank  Statement / Telephone Bill / Electricity Bill / Water Bill / Gas Bill

3. Translation of Documents- All the documents that are not  in English has to be translated to English by an accredited translator.

4. Notarization and Legalization  or Apostilisation of Documents- Copies of Passport and Address  Proof with translations, if any, must be Notarized and Apostilled /  Consularized by the competent authority of that foreign country

5. Validity of the Address Proof- Utility bills like electricity,  water, gas, telephone bill, Bank Statement shall be the name of the applicant  and should be a recent one not older than 2 months from the date of  application

6. Validity of the Notarized or  Apostilled Documents

7. Notarial Affidavits denotes  verification of person making a legal declaration. It is used as a  documentary evidence before the Court of Law. However, a specific declaration  before any concerned authority like LIC, Bank or any govt office is valid for  a period of six months from the date of swearing in.

Key Points:

1. Form shall be verified by Mobile OTP and Email OTP.

2. The form should be filed by every Director using his own DSC and should be duly certified by Practicing professional.

3. No KYC Fees if filed before 30th September of the Financial Year.

4. Every Individual DIN will be marked as deactivated, who does not intimate his/her particulars E-Form DIR-3KYC within stipulated time.

5. The de-activated DIN shall be re-activated only after E-Form- DIR-3 KYC is filed along with fees of Rs. 5000/- as prescribed under Companies (Registration Offices and Fees) Rules, 2014

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Food Licensing and Registration System provides the Food License also known as FSSAI License, which authorises to sell food under the Company or Brand name for which license is being obtained. As per Section 31(1) of FSS Act 2006 Food Licensing is mandatory for Food Business Operators in India.

Types of Food Safety License

Penalty for selling food without a license

To know more about FSSAI Registration and Licensing cost you can contact our expert team, just share your query on [email protected]

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A one-person company (OPC) is a business formed by a single individual. A single person could not form a business prior to the implementation of the Companies Act of 2013. If a person wished to start a business, he or she could only do so as a sole proprietorship because forming a company required a minimum of two directors and members.

OPC registration process:

Step 1: Apply for DSC

Step 2: Apply for DIN

Step 3: Application of name approval

Step 4: Documents needed

Step 5: Filing forms with MCA

Step 6: Issue of certificate of incorporation

Only a natural person who is an Indian citizen and also resides in India is qualified to serve an OPC as a member and nominee. The phrase “resident in India” refers to a person who has spent at least one hundred and eighty two days in India during the previous financial year.

What is income tax exemption?

A tax exemption is the right to have all or part of one’s income free from federal or state taxation. The majority of taxpayers are eligible for numerous exemptions that lower their taxable income and select persons and organisations are fully tax free.

Tax exempt organizations:

When organizations serve the public good, such as religious or philanthropic groups, the government usually exempts them altogether from paying income taxes. The government relieves certain organizations of their tax burdens, allowing them to continue to promote public welfare.

Individual tax exemptions:

An individual can claim one tax exemption if he or she is not listed as dependent on another taxpayer’s return. This is a yearly rise in a fixed amount. The exemption decreases taxable income in the same way that a deduction does, but with fewer limitations. Both spouses receive an exemption if the taxpayer is married and submits a combined tax return.

Decoding income tax exemptions:

Exempt, Exempt and Exempt: EEE stands for Exempt, Exempt and Exempt and it has 3 types. Exempt 1, Exempt 2 and Exempt 3.

Exempt, Exempt, Taxed: The acronym EET stands for exempt-exempt-taxable, which means an investor can get two exemptions on their assets.

Exempt, Taxed, Exempt: The first exemption means that investment qualifies for exemption. The term taxable denotes a taxable return during the holding period. The final exemption means that any lump sum payment at maturity or withdrawal is tax free.

Normally, a tax saving five year fixed deposit fits into this category, where the investment qualifies for an exemption, but the interest income is taxable and the maturity is exempt. National saving systems are another example of this group. Section 80C of the Income Tax Act allows for a tax deduction on these items.

The Income Tax Return (ITR) is a document that must be submitted to the Income Tax Department of India. It comprises information on a person’s earnings and the taxes that must be paid on those earnings throughout the year. The information in an ITR must be for a certain financial year, which begins on April 1st and ends on March 31st of the following year.

Documents required for filing ITR:

1. Form-16

2. Interest certificates from banks and post office

3. Form-16 A/ Form-16 B/ Form-16 C

4. Form-26AS.

The TRACES website has form 26AS. available for download. Login to your account on the e filing website, www.incometaxindiaefilling.gov.in, to download your form 26AS. After logging in, go to “my account” page and select “view 26AS.”. To download the form, the website will take you to the TRACES website.