Archives November 2020

‘Income tax return (ITR)’ is a form in which taxpayers declare details of income, deductions, exemptions, and taxes payable on their taxable income. ITR are governing by the Rules of Income Tax Act, 1961. ITR must be filed in a prescribed format and should be submitted to the Income tax department on or before the due date to avoid the penalties. For filling returns first have to register in https://portal.incometaxindiaefiling.gov.in with the help of valid PAN card.

Different types of ITR forms which a taxpayer has to file:

FORM	PARTICULARS
ITR-1	Individuals having income from salary, House property & other sources Total income upto 50 lacs.
ITR-2	Individuals/HUF not carrying business or profession under proprietorship.
ITR-3	Individuals/HUF earning income from proprietorship
ITR-4	Opting for Presumptive tax scheme
ITR-5	LLP, Firm, Trust, Co-operative society etc. Those covered under ITR-7 shall not fill this form.
ITR-6	Companies other than those claiming exemption under section 11 of Income tax act.
ITR-7	Requires to furnish details u/s 139 [4A, 4B, 4C, 4D, 4E] of Income tax act, 1961

Benefits:

1. Improve your loan documentation process:

Filing ITR will help you in your loan application, Banks asks for ITR prior to review your application for any kind of loan. Banks ascertain your loan repayment capacity with the help of ITR.

2. Carry forward of Losses:

If anyone has suffered losses in a year, then by filing income tax return he can carry forward that loss for next eight subsequent years to set off the same by the future income as per the provision of Income Tax Act, 1961.This can help reduce the burden of tax in future years.

3. Processing of VISA:

If you are traveling overseas, foreign embassies ask you to furnish ITR return of the last couple of years at the time of the visa interview. Some embassies may ask for ITR receipts of previous three years, while some others may ask for the most recent one. ITR receipts VISA processing team to assess your income and ascertain that you will be able to looking after of the expenses on the trip.

4. Avoid Interest and penalties by Tax Authority:

Any person liable to file tax returns does not file returns within the due date, and then he is liable to pay penalty of up to Rs. 10,000 for non-filing the return within the due date. If you don’t file ITR, then belated return could be filed with extra cost to you lead to extra interest on monthly basis for the remaining tax payable.

5. Claim Income Tax Refund:

There are various banks and Companies do tax deducted at source (TDS) in a financial year. So in order to claim TDS refund, one will have to file the ITR to claim refund of the same.

A private limited company is requires to file certain forms as an annual Compliance.

Form MGT-7

Form MGT-7 which includes information about the company, its shareholders, Directors, KMP etc. as on 31st March and filed with ROC. As per Section 92 & Rule 11, 12 of Companies (Management & Administration) Rule 2014 all class of Companies included small company and one Person Company (OPC) must file this form within 60 days from the date of Annual General Meeting of the company.

Form AOC-4

Filing of form AOC-4 for submitting financial statements (Profit & Loss and Balance Sheet) along with Board’s report, Auditors’ report, Statement of subsidiaries in Form AOC-1, details of CSR policy etc. AOC-4 must be certified by Company Secretary or Practising Chartered Accountant  and filed with the ROC.

Form MGT-8

Form MGT-8 is a certification given by a Practising Company Secretary, under Section 92(2) of Companies Act 2013.

MGT-8 filling is applicable on Companies:

• A listed company or
• A company with paid-up share capital of Rs 10 crore or more or
• Turnover of Rs. 50 crore or above

Form DPT-3

DPT 3 is a form to file details of deposits or say transaction not considered as deposit under rule 2(1)(c) of the Companies (Acceptance of Deposit) Rules, 2014.

DPT-3 filling is not applicable on:

• Government companies
• Banking companies
• NBFC

Form ADT-1

Filing form ADT-1 regarding appointment or change in auditor if any during the year

Form DIR-3

Filing  DIR-3 KYC Form for KYC of directors having a Director Identification Number (DIN No.).

Filing of KYC of company on yearly basis.

All the above form need to file within time allowed as per Companies Act. 2013

Some more activities need to be done

• All the Director have to provide MPB-1 to the company specify their interest in other entities in the first board meeting of financial year.
• Dir-8 is to be given by directors to the company every year in the initial board meeting about their disqualification.
• Minutes book of Board Meeting and Annual General Meeting should be maintained in writing, signed and kept by company.
• Apart from all above if there is a change in anything, the company had to take note of it and if required to file the form to ROC, then it should be filed on time.

What is a Producer Company?

A producer company is a body of farmers/ agriculturists, Incorporation of producer company is for benefits given to Farmers Under Companies Act 1956, a Producer Company can be formed as per Section 581C of Chapter II of Companies Act, 1956 by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective as per Section 581B as one of the follows:

• Procurement
• Production
• Harvesting
• Grading
• Pooling
• Handling
• Marketing
• Selling, or Export
• Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members
• Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members
• Providing education on the mutual assistance principles to its Members and others
• Rendering technical services, consultancy services, training, research and development
• Insurance of producers or their primary produce
• Promoting techniques of mutuality and mutual assistance
• Any other activity, ancillary or incidental to any of the activities mentioned above.

 

Registration Procedure

The process of Registering a Producer Company is similar to register a Private Limited Company.

• First step is to obtain Digital Signature (DSC) and Director Identification Number (DIN) for the proposed first Directors of the company.
• An application for name reservation in Form INC-1 is to be filed with the relevant Registrar of Companies (ROC) along with 6 names in the order of preference.
•  As per the Act the name of a producer company must end with the words “Producer Company”.
• an application for incorporation is to be filed in the prescribed format for the incorporation of the Producer Company along with following documents:
• Memorandum of Association
•  Articles of Association
•  A Declaration by a professional in Form- INC-8
• The directors consent Letter in the Form DIR – 2 and details in DIR – 8
• All the drafted documents must be attached to Forms INC – 7, INC – 22 and DIR – 12 and uploaded to the ROC website.
• When Registrar is verified with the application and the documents filed for incorporation of Producer Company, he will approve the same and issue Certificate of Incorporation.

Benefits for Producer Companies

In Indian Economy more than 60% of population depends upon agriculture activities for their livelihood. But our Farmers are struggle a lot to cop of this problem Government of India introduced the Producer Company’s concept to the Indian economy. IN this concept many farmers and Primary Producers come together and get many benefited as follows:

1.    Limited liability and separate legal entity.

2.    Acceptance of deposits

3.    Easy management and Registration

4.    Tax Benefits

5.    More Credibility.