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  • Public / Private Limited Company

  • What is the general procedure of Name application for all types of companies registered under Companies Act 2013?

    General procedure of name application for all types of companies registered under Companies Act 2013 is as follows:-

    1. Apply for DSC (Digital Signature Certificate) of the Applicant for the name of the proposed company.

    2. Apply for DIN (Director Identification Number, is require to be a director) of the applicant in form DIR-3 and attach therewith

    a) ID proof

    b) PAN

    c) Address proof

    d) DSC of the Applicant

    e) DSC of a Professional

    And pay fees prescribed for such to ROC. (Dir-4 is not required now)

    3. Download form INC-1 from www.mca.gov.in and apply for the Name of the Company, in which you can provide maximum six names in the order of priority basis, fill the details required and attach DSC of the Applicant along with payment of fees prescribed for such to ROC.

  • What is the incorporation (registration) procedure for registration of the companies under Companies Act 2013?

    After name availability of the proposed company prepare documents required for incorporation and shall be filed within 60 days in form INC-7 (for filing incorporation documents) and DIR-12 (for filing information regarding directors of the company) to ROC (Registrar of Companies). Following are the mandatory documents required for incorporation:-

    For INC-7

    1. Memorandum of Association of the proposed Company

    2. Articles of Association of the proposed Company

    3. INC-8 (declaration by professional )

    4. INC-9 (declaration by subscriber to memorandum )

    5. INC-10 (specimen signature of the subscribers)

    6. PAN card of all the promoters

    7. Identity proof of all promoters (only Driving License /Passport/Voter id /Aadhar card is accepted)

    8. Address proof of all promoters (only electricity bill/bank statement/utility bill is accepted)

    9. Power of Attorney (optional)

    For DIR-12

    1. Pan Of Directors

    2. Address Proof Of Directors

    3. DIR-2 ( consent to act as director)

    4. ID proof of directors

    5. Appointment letter of directors

    6. Affidavit declaration (declaration by first directors)

  • How many persons require to form a company as per law?

    In case of a public company at least 7 persons are required and in case of private company at least 2 persons are required, who will subscribe the initial capital of the company

  • How many directors are required while incorporating a company?

    In case of public company at least 3 directors and in case of a private company at least 2 directors are required while incorporating a company

  • what are the requirement of initial capital to form a company?

    As per Companies (amendment) Act 2015 requirement of initial capital has been removed, now no minimum capital is required to form a company whether public or private. Earlier it was Rs. 100000 for private company and Rs. 500000 for public company

  • whether information regarding address of registered office is mandatory to provide at the time of incorporation?

    Information regarding address of the registered office of the company is not mandatory to provide at the time of incorporation it can be filed after incorporation but company must have Registered Office within 15 days of incorporation and company shall furnish the details of registered office in INC-22 for the verification of ROC within 30 days of incorporation.

  • Whether a Body Corporate can be subscriber to memorandum in a company?

    Yes, a Body Corporate can be a subscriber to memorandum in a company, Body corporate shall appoint one of its director/officer/employee by passing Board resolution in that Body Corporate

  • Can a Foreign National or an NRI be a Director in a Private Limited Company?

    Yes, a Foreign National or an NRI can be a Director in a Private Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident India

  • OPC

  • What is OPC?

    Section 2(62) of the Companies Act 2013 provides for the definition of OPC, OPC stands for One Person Company, the name itself suggests the company form with one person only. An OPC cannot have more than One Member and One Nominee who will take the place of member in case of any incapacity or death of the member.

  • What is the eligibility criteria to become a member and a nominee in an OPC?

    Both Member and Nominee shall fulfill the following Eligibility criteria:-

    a) Must be an individual

    b) Must be Citizen of India

    c) Must be Resident in India (i.e. who have stayed in India for at least 182 days during immediately preceding calendar year)

    A person can become a Member or Nominee in one OPC only at a time, if a Nominee becomes the Member accidentally then he shall have to nominate a person as a Nominee who shall act as a Member in case of any of his incapacity or death.

  • what is the process to apply for the name of the OPC?

    Name application of an OPC shall be make in INC-1

  • What is procedure to incorporate an OPC?

    Following is the procedure to incorporation of OPC

    1) Prepare the documents for incorporation

    a. Memorandum of Association of the proposed Company

    b. Articles of Association of the proposed Company

    c. Pan card of all the promoters

    d. Identity proof of all promoters (Driving License /Passport/Voter id)

    e. Address proof of all promoters (electricity bill/bank statement/utility bill)

    f. Consent to act as nominee INC-3

    g. Specimen signature in INC-10

    h. Consent to act as director in DIR-2

    i. Declaration by professional in INC-8

    j. Particulars of subscribers to memorandum

    k. Affidavit from subscribers and first director to memorandum in form INC-9

    2) And within 60 days of name availability file incorporation document in INC-2 along with prescribed fees

  • LLP

  • What is LLP?

    LLP stands for Limited Liability Partnership which have the status of both a company and partnership firm too, it has separate legal entity, perpetual succession, it can sue and be sued in its own name, can hold property in its own name and have

  • What are the formalities to apply for name of the LLP?

    For the name application of the LLP

    1) Apply for DSC of the applicant

    2) Apply for DIN of the applicant

    3) Apply in FORM-1,provide maximum 6 names in order of preference

  • Whether Partners in the LLP require DIN OR DPIN?

    Designated Partners in the LLP are required to obtain DIN (DIRECTOR IDENTIFICATION NUMBER) that can be used as DPIN (DESIGNATED PARTNER IDENTIFICATION NUMBER).Via MCA general circular No. 44/2011 on 08.07.2011 with effect from 09.07.2011 removed ambiguity in respect of the requirement for partner in the LLP to have DPIN and for director in a company to have DIN, now person is require to obtain DIN only that can be use as DPIN also. For those who have obtain DPIN already it shall stand cancelled via given notification and they will be require to have DIN.

  • How to incorporate LLP?

    After name approval applicant shall prepare incorporation documents which are as follows:-

    1) Proof of address of registered office of the LLP(electricity/ telephone/property tax bill) not older than two monthsself-attested by one partner

    2) Incorporation documents & Subscribers sheet of the LLP signed by each designated partner and witnessed by professional

    3) No Objection Letter from the owner of the premises (if the premises is in the name of person other than partners)

    4) Detail of LLP(s) and/ or company(s) in which partner/ designated partner is a director/ partner, if any

    5) In principal approval of regulatory authority, if required

    And shall file these documents in FORM-2 along with fees prescribed

  • In how many days LLP agreement should be prepared and filed?

    After receiving Certificate of Incorporation of the LLP, draft LLP agreement duly printed on stamp paper with the amount applicable to LLP agreement (which varies from state to state depend upon the contribution of LLP) and signed by each designated partner and two witnesses which shall be filed in FORM-3 within 30 days.

  • Which form is required to file the information about designated partners of the LLP?

    Earlier FORM-4 was filed for the information of designated partners in the LLP but now there is no requirement to file FORM-4 in respect of the partners information about which have already been filed in FORM-2.

  • Section 8 company

  • What is SECTION 8 Company?

    SECTION 8 company is the Non-profit making company earlier it was known as SECTION 25 Company under Companies Act 1956. It is the association of minimum two persons form as a limited company and which

    a) has in its objects clause the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.

    b) intends to apply its profits, if any, or other income in promoting its objects.

    c) intends to prohibit the payment of any dividend to its members, The Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”

  • How to apply for the name of the Section 8 Company?

    For application of the name of the Section 8 company

    1) Apply for DSC (Digital Signature Certificate) of the Applicant for the name of the proposed company.

    2) Apply for DIN (Director Identification Number, is require to be a director) of the applicant form DIR-3 and attach therewith

    1. ID proof

    2. PAN

    3. Address proof

    4. DSC of the Applicant

    5. DSC of a Professional

    3) And pay fees prescribed for such to ROC. (Dir-4 is not required now)

    Download form INC-1 from www.mca.gov.in and apply for the Name of the Company, in which you can provide maximum six names in the order of priority basis, fill the details required and attach DSC of the Applicant along with payment of fees prescribed for such to ROC.

  • What are the formalities for incorporation?

    After name approval of the company applicant shall prepare documents of incorporation which shall include the following:-

    1. File Form INC-12 {pursuant to Section 8 (1) of the Act and Rule 19 of Company (Incorporation) Rules, 2014} (the Rules)

    2. Attachments in Form INC-12 (for filing documents of incorporation to ROC)

    a). Draft Memorandum of Association of the proposed company in Form INC-13

    b). Draft Articles of Association of the proposed company

    c). Declaration by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant in Form INC-14

    d). Declaration from each person making application in Form INC-15

    e). Estimated Income and Expenditure for next 3 years

    (Note: Form INC-12 is in physical mode and the e-form is not yet available on MCA 21 Portal. Thus, the same needs to be filed in Form RD-1 with prescribed fees).

  • Can a partnership firm be a member in Section 8 Company?

    As per section 8(3) a partnership firm may become a member of the non-profit making company registered under section 8. Membership of such firm shall cease upon dissolution of the firm. However, partners of the dissolved firm may continue to be the members of such company in their individual capacity

  • Indian subsidiary Company

  • What is Subsidiary Company?

    A subsidiary, subsidiary company or daughter company is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company The subsidiary can be a company, corporation, or limited liability company. In some cases it is a government or state-owned enterprise. Subsidiary can sue and be sued separately from its parent and its obligations will not normally be the obligations of its parent

  • What is Holding Company?

    Holding company is the company that holds majority of shares (more than half of the total share capital) or voting rights in or control over any other company by its own or through one of its subsidiary in respect of business policies and management of that other company. Holding Company may also be a corporation, limited partnership or limited liability company.

  • Can a Foreign Parent Company incorporate a Subsidiary in India?

    Yes, Foreign parent or holding Companies, including USA parent companies, can incorporate a subsidiary, as a 100% owned Private Limited Company (wholly own subsidiary) in India subject to Foreign Direct Investment (FDI) Guidelines.

  • What is wholly owned subsidiary (WOS)?

    A wholly owned subsidiary or WOS can be defined as an entity whose 100% share capital is held by foreign corporate bodies. A WOS can be formed as a private, limited by shares or guarantee, or an unlimited liability company. This is possible only in the case where 100% Foreign Direct Investment is permitted no prior approval of Reserve Bank of India (RBI) is needed. It is treated as domestic company under Income Tax Law and is eligible for all exemptions, deductions benefits as applicable to any other Indian Company.

  • How to incorporate Indian Subsidiary?

    Following is the procedure for incorporating an Indian subsidiary company:-

    1. As per statutory requirement at least two promoters and at least two directors are required to incorporate the Indian subsidiary

    2. First step is for name application of the company which is same as applicable to a normal company registered under companies act 2013

    a) Apply for DSC (Digital Signature Certificate) of the Applicant for the name of the proposed company.

    b) Apply for DIN (Director Identification Number, is require to be a director) of the applicant form DIR-3 and attach therewith

    1. ID proof

    2. PAN

    3. Address proof

    4. DSC of the Applicant and

    5. DSC of a Professional

    c) And pay fees prescribed for such to ROC. (Dir-4 is not required now) Download form INC-1 from www.mca.gov.in and apply for the Name of the Company, in which you can provide maximum six names in the order of priority basis, fill the details required and attach DSC of the Applicant along with payment of fees prescribed for such to ROC.

    3. File FORM INC-7 (Application for Incorporation of Company (Other than OPC)), FORM DIR-12 (Particulars of appointment of directors and the key managerial personnel and the changes among them) and FORM INC-22 (Notice of situation or change of address of the registered office of the company) along with Memorandum and Articles of Association of the Company.

    4. After filing of the incorporation documents, you are required to pay online ROC fees and Stamp duty. (This is based on the authorized capital of the company).

    Required Attachments in the

    For INC-7

    1. Memorandum of Association of the proposed Company

    2. Articles of Association of the proposed Company

    3. INC-8 (declaration by professional )

    4. INC-9 (declaration by subscriber to memorandum )

    5. INC-10 (specimen signature of the subscribers)

    6. PAN card of all the promoters

    7. Identity proof of all promoters (only Driving License /Passport/Voter id /Aadhar card is accepted)

    8. Address proof of all promoters (only electricity bill/bank statement/utility bill is accepted)

    9. Power of Attorney (optional)

    For DIR-12

    1. Pan Of Directors

    2. Address Proof of Directors ( electricity bill, telephone bill, bank statement or passbook or rent agreement and latest electricity bill in case of rented accommodation)

    3. DIR-2 (consent to act as director)

    4. ID proof of directors (only Driving License /Passport/Voter id /Aadhar card is accepted)

    5. Appointment letter of directors

    6. Affidavit declaration (declaration by first directors)

    For foreign national

    1. Passport (mandatory).

    2. Address Proof (electricity bill, telephone bill, bank statement or passbook or rent agreement and latest electricity bill in case of rented accommodation. Document must be certified by the Indian Consulate).

    3. Photo ID Proof (Any government license or document containing name in full, photo and date of birth. Document must be certified by Indian Consulate).

  • Employee State Insurance

  • What is Employee State Insurance (ESI)?

    Employee State Insurance is the social security benefit provided for the employees by their employers. It is administered by Employee State Insurance Corporation which is a corporate body, which has members representing the employers, employees, the Central Government, The State Government, Medical Professional and the Parliament. The Director General is the Chief Executive Officer of the corporations and is also an ex-officio member of the corporation.

  • How to make registration under ESIC (Employee State Insurance Corporation)?

    For DELHI based Employers to get themselves registered under ESIC firstly an enterprise shall get itself registered under LABOUR DEPARTMENT under Shop and Establishment

    1. Go to URL www.labour.delhigovt.nic.in

    2. Click on online registration of shop and establishment

    3. Click on online registration

    4. Fill the required details given in FORM C

    5. After you have successfully submitted the information a Certificate Number will be generated for your reference

    5. The occupier is required to notify the Chief Inspector of any change in respect of information contained in respect of information contained in this form.

    After registration under LABOUR DEPARTMENT employer shall do the following steps for its registration under ESIC

    1) Go to URL www.esic.in

    2) Click on click here for login and do sign up with your email id

    3) A username and password will be sent on this email id, login with that username and Password

    4) Fill the details given in the FORM-01

    5) After submitting the form a registration number will be generated for your reference, print this certificate keep it for your records

  • how a person can be registered under Employees Provident Fund organization (EPFO)?

    For registration under EPFO follow the given steps:-

    1) Go to the URL www.epfindia.com

    2) Click on our services for EMPLOYERS

    3) Click on ONLINE REGISTRATION OF ESTABLISHMENT (OLRE portal)

    4) Click on Applying For Online Pf Code Number

    5) Click on Register and fill the given details and submit the form

    6) You will get a username and password on the email with which you have register yourself

    7) Login with that username and password and apply for your PF code, if a person have digital signature, get itself register first in your account

  • What are the documents required for ESI registration ?

    1. Documents relating to the constitution of the Factory/Firm/Establishment.

    2. PAN Card and Address Proof of the Factory/Firm/Establishment.

    3. Evidence in support of the date of commencement of production /business.

    4. List of partners / directors with their address, address proof like pan card / passport/voter identity card.

    5. Month wise employment position etc. are the essential documents.

    6. Rend Deed / Leases Deed.

    7. Copy of Shop & Establishment Act, Factory License, Trade License etc.

    8. Copy of Service Tax & First Sale Bill/Invoice.

    9. Memorandum of Association and Article of Association.

    10. Copy of Bank Account Statement.

  • What are requirements for the applicability of this Act?

    If an enterprise is having at least 10 members it shall have to get itself registered under ESIC. And employees salary must not be more than Rs15000.

  • What is the wage ceiling limit on the employer contribution under EPF?

    As per Employee Provident Fund and Miscellaneous Act 1952 the wage ceiling limit has been increased from INR 6,500 to INR 15,000 means that the employer is now obliged to make contributions for the employees who have salary of upto 15000 INR.

  • TRUST

  • What is Trust?

    Trust is a kind of relationship between two persons, known as trustor and trustee, form for the benefit of a third party who is known as the beneficiary

    In this one person creates the trust, appoint one person and give them right to hold the property for the benefit of other person.

  • Society form of organization

  • What is Society?

    Society is an association of persons form for the purpose of promoting charitable activities like literature, science, imparting education and knowledge, art, culture, music, sports, religion, social welfare etc. In another way we can say that society is meant for upgrading the society or social development.

  • What is the requirement to form a society?

    Any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose can subscribe the memorandum of association and register their society. There is no limit on maximum number of members. Registration of society is the matter of State.

  • What does the memorandum of association of society provides for?

    Major contents of the Memorandum of Association of society are:-

    a) Name of the Society

    b) Working area

    c) Address of registered office of society

    d) Aims and object of society

    e) Name, address, occupation of governing body members

    f) A copy of the rules and regulations of the society, certified to be a correct copy by not less than three of the members of the governing body.

  • What are the documents required to be filed with MOA?

    Documents required to be certified by at least three members of governing body and should be filed along with MOA are as follows:-

    a) Proof of identity and address of governing body members

    b) Address of registered office and consent

    c) No Objection Certificate of the owner of the registered office premises.

    d) A fees of Rs 50 or such smaller fees as the state government may specify from time to time

  • Who can be a member in society?

    Person of India, any foreigner, companies and other registered societies can be a member in society.

  • Whether it is mandatory to get a society registered?

    No it is not mandatory to register a society, it can be registered or unregistered like partnership firms, provided only registered firms can hold vested properties and can sue anyone or be sued by anyone

  • What are the parameters regarding name selection of the society?

    As per Societies Registration Act 1860 name of the society shall not be similar or identical with the name of any other existing registered society and it must not suggest a name of any patronage of the Government of India or any State Government or attract the provision of Emblems and Names Act 1950.

  • Is society a Body Corporate?

    Societies registered under Societies Registration Act, 1860 are not a body corporate

    a) Entry 32 in List II of Schedule to Constitution itself uses the words unincorporated

    b) As per section 5 of Societies Registration Act, 1860, property of society vests in governing body, if not vested in trustees. Thus, property does not vest in society as such.

    c)Section 6 of Societies Registration Act, 1860, states that suit by or against society can be only in name of President, Chairman, Principal Secretary or Trustees, as determined by rules of society. Thus, suit cannot be in name of society as such.

  • FSSAI

  • What is FSSAI?

    FSSAI stands for Food Safety and Standard Authority of India, is the agency of government of India for the purpose of regulating and supervising the food products produced and consumed in India. It is basically an organization made for prevention of food adulteration, contamination and enforcing the oragnisation in food industry.The FSSAI has been established under the Food Safety and Standards Act, 2006 which is a consolidating statute related to food safety and regulation in India.

  • Is it mandatory to obtain FSSAI Licence?

    FSSAI certificate has now become mandatory for all manufacturers, traders, restaurants and those who are involved in food related business, which are known as Food Business Operators (FBOs).

  • Which Acts or Orders in relation to food industry which are repealed through FSSAI2006?

    a) Prevention of Food Adulteration Act, 1954

    b) Fruit Products Order, 1955

    c) Meat Food Products Order, 1973

    d) Vegetable Oil Products (Control) Order, 1947

    e) Edible Oils Packaging (Regulation) Order, 1998

    f) Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967

    g) Milk and Milk Products Order, 1992

    And any other order under Essential Commodities Act, 1955 relating to food

  • On the basis of which categories licence under FSSAI is allotted?

    Licence under FSSAI is allotted on the basis of annual turnover in the following categories

    a) FSSAI Registration – turnover below 12 lakhs annually

    b) FSSAI State License – turnover between 12 lakhs to 20 crores annually

    c) FSSAI Central License – turnover above 20 crores

  • Whether there is different licence for different products produced in the same premises by the same manufacturer in the food industry?

    Yes there would be seperate licence required under FSSAI for each different products produced in the same premises by the same manufacturer. But in case of activities connected with each other no separate licence is required like in case of processing of fruits and vegetables.

  • What are the benefits through FSSAI to consumers?

    consumer is prevented from unhealthy products as consumer may have a sample of food for analyzing it on payment of fees and there are representative of consumer organizations who are the member of Food Authorities and Central Advisory Committee to represent the consumer.

  • What is FBO?

    FBO stands for Food Business Operator, they may be hawker, manufacturer, trader, re-packer, relabeller, distributor, importer, exporter, etc. involved in the activities related to Food industry

  • What is FDA?

    FDA stands for Food & Drugs Administration office is an Enforcement arm of the FSSAI.

  • Tax

  • What is income tax?

    An income tax is a tax imposed on individuals or entities (as companies’ tax or corporate tax, Partnerships generally are not taxed) that varies with the income or profits (taxable income) of the taxpayer. Income tax generally is computed as the product of a tax rate times taxable income. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

  • What is VAT?

    VAT stands for value added tax which is an alternative to a sales tax and is meant to deal with a specific problem. VAT is applied to the difference between the seller-purchased price and the resale price. In this ultimately only the end consumer is taxed. Tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, on the other hand, collections, remittances to the government, and credits for taxes that are already paid occur each time a business in the supply chain purchases products.

  • What is service tax?

    Service tax refers to tax collected by the government of India on certain services provided by one person (service provider) to another (service receiver) for consideration. The person who pays service tax can be either a service provider or a service receiver or any other person who is responsible for providing certain services.

  • What is excise duty?

    An excise duty or tax is an inland tax charged by the Central Government on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation.

  • What is advance tax?

    Advance Tax refers to paying a part of your taxes before the end of the financial year. Also called 'pay-as-you-earn' scheme, advance tax is the income tax payable by all those who have income other than salary and your tax liability is more than Rs. 10,000 in a financial year. It should be paid in the year in which the income is received. When a person has income only from salary then he is not required to pay any advance tax as his employer deducts TDS from his payments. However in case his TDS is deducted less than what is required to be deducted, then there will be an advance tax liability that needs to be paid.

  • What is income tax return?

    A tax return is the tax form or forms used to report income and file income taxes with tax authorities such as the Internal Revenue Service (IRS) in the United States. Tax returns allow taxpayers to calculate their tax liability and remit payments or request refunds, as the case may be.

  • What will happen if I will not file an income tax return?

    Filing of return is every taxpayers duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.

    You may also receive notices and demands for non-filing of income tax returns if you do not file your returns in time

  • Why filing is mandatory when income tax has been deducted by my company?

    Filing your individual tax return is mandatory by Income tax Law if the gross total income exceeds the basic exemption limit. Even if TDS is deducted from your salary by the employer, income tax filing is a proof that these taxes have been deposited in the government account. In many cases you are eligible for refunds and you can claim these only when you file your returns with the ITD.

  • What is the administrative framework of income tax?

    Filing your individual tax return is mandatory by Income tax Law if the gross total income exceeds the basic exemption limit. Even if TDS is deducted from your salary by the employer, income tax filing is a proof that these taxes have been deposited in the government account. In many cases you are eligible for refunds and you can claim these only when you file your returns with the ITD.

  • Why filing is mandatory when income tax has been deducted by my company?

    The revenue functions of the Government of India are managed by the Ministry of Finance. The Finance Ministry has entrusted the task of administration of direct taxes like Income-tax, Wealth tax, etc., to the Central Board of Direct Taxes (CBDT). The CBDT is a part of Department of Revenue in the Ministry of Finance.

    CBDT provides essential inputs for policy framing and planning of direct taxes and also administers the direct tax laws through the Income-tax Department. Thus, Income-tax Law is administrated by the Income-tax Department under the control and supervision of the CBDT

  • How will I know that how much income tax I have to pay?

    You can take the help of tax professionals or the help of Public Relations Officer [PRO] in the local office of the Income-tax Department. You may also take assistance from Tax Return Preparers [TRPs]. You can locate your nearest TRP at www.trpscheme.com

  • When do I have to pay income tax?

    Generally, the tax on income crystallizes only on completion of the previous year. However, for ease of collection and regularity of flow of funds to the Government for its various activities, the Income-tax Act has laid down the provisions for payment of taxes in advance during the year of earning itself. It is called as ‘pay as you earn’ concept. Taxes may also be collected on your behalf during the previous year itself through TDS and TCS mode. If at the time of filing of return you find that you have some balance tax to be paid after taking into account the credit of your advance tax, TDS & TCS, the shortfall is to be deposited as Self-Assessment Tax.

  • What are the precautions I should take while filing up the tax payment challan?

    While making payment of tax, apart from other things, one should clearly mention following:

    a) Head of payment, i.e., Corporation Tax/Income-tax (other than companies)

    b) Amount and mode of payment of tax

    c) Type of payment [i.e., Advance tax/Self-assessment tax/Tax on regular assessment/Tax on Dividend/Tax on distributed Income to Unit holders/Surtax]

    d) Assessment year

    e) The unique identification number called as PAN [Permanent Account Number] allotted by the IT Department

  • What is exempt income and taxable income?

    : An exempt income is not charged to tax, i.e., Income-tax Law specifically grants exemption from tax to such income. Incomes which are chargeable to tax are called as taxable incomes.

    E.g., Dividend income from an Indian company is granted specific exemption and, hence, the same is not liable to tax in the hands of the shareholders. However, dividend from a foreign company is taxable.

  • If I win a lottery or prize money in a competition, am I required to pay income tax on it?

    Yes, such winnings are liable to flat rate of tax at 30% without any basic exemption limit. In such a case the payer of prize money will generally deduct tax at source (i.e., TDS) from the winnings and will pay you only the balance amount.

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