Govt to further simplify ITR forms, sets up committee

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The government is looking to further simplify income tax return forms to help taxpayers fill them without seeking help from experts and the revenue department has set up a committee in this regard.

The committee, according to sources, will be headed by a joint secretary level officer and would include chartered accountants and tax experts.

“The tax department is trying to further simplify the return form so that no outside help is needed by those who want to file returns on their own,” a source said.

The effort would be to come out with a simple formula for indexation to help assessees compute capital gains on sale of assets, the source added.

“The Committee would also look into the possibility of reducing the number of pages in the return form,” the source said.

The Income Tax department had in June come out with a simplified tax return form for salaried class. Filers now have to disclose the total number of savings and the current bank accounts held by them at any time during the previous year (excluding dormant accounts).

The form also has space to fill up the IFSC code of the bank and in an additional feature, tax filers have been given an option to indicate their bank accounts in which they would want their refund credited. The ITR also has sought the Aadhaar number of filers.

The tax department had come out with simplified ITR after experts raised objections to the 14 page form which was notified earlier in the year.

The earlier form sought details of bank accounts and foreign visits and following controversy, the Revenue Department announced putting them on hold.

Source: http://www.business-standard.com/article/pti-stories/govt-to-further-simplify-itr-forms-sets-up-committee-115112200147_1.html

Additional Fees for delay in e-filing under Companies Act, 2013

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MCA had changed the structure of Additional Fees to be levied for delay in filing E Forms over the companies while filing their Balance Sheet and Annual Returns with concerned Registrar of Companies through MCA Portal. Such change of Additional Fee Structure encouraged the Corporate to file their returns as early as possible so that they can avoid the heavy additional fees. That has resulted in increase the percentage of filing within the due time.

Pursuant to rule 12 of the Companies (Registration of Offices and Fees) Rules, 2014, following table of additional fees shall be applicable for delays in filing of the forms other than for increases in Nominal Share Capital

Sl  No. Period of delay  Additional fees for the period of delay
01 Up to 15 days (sections 93,139 & 157)         One time
02 More than 15 days and up to 30 days (Sections 93, 139 & 157) and up to 30 days in remaining forms.         2 times of normal filing fees

 
03 More than 30 days and up to 60 days         4 times of normal filing fees
04 More than 60 days and up to 90 days         6 times of normal filing fees
05 More than 90 days and up to 180 days         10 times of normal filing fees
06 More than 180 days and up to 270 days         12 times of normal filing fees

 

Further Note:

1) The additional fee shall also applicable to revised financial statement or board’s report under sections 130 and 131 of the Act and secretarial audit report filed by the company secretary in practice under section 204 of the Act.

(2) The belated filing of documents /forms (including increasing in nominal capital and delay caused thereon) which were due to be filed whether in Companies Act, 1956 Act or the Companies Act, 2013 Act i.e due for filing prior to notification of these fee rules, the fee applicable at the time of actual filing shall be applicable.

(3) Delay beyond 270 days, the second proviso to sub-section (1) of section 403 of  the Act may be referred.

MCA asks companies to submit annual filings on time

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To ensure that there is no last-minute congestion on its e-filing portal, the Ministry of Corporate Affairs (MCA) has asked companies to submit their financial statements and annual returns at the earliest.

The Ministry’s message assumes significance as this would also be the first year that corporates would be making their filings under provisions of the Companies Act, 2013 — which came into effect from April 1, 2014.

“To avoid last minute rush and system congestion on the MCA 21 portal on account of annual filings during month of October/November 2015, companies are requested to file their financial statements and annual returns at the earliest without postponing it to the last few days permitted for the same,” the Ministry said in a notice.

MCA 21 is the portal for companies to submit their filings electronically to the government under the Companies Act.

A raft of provisions have been introduced in the new law that replaces the nearly six-decade old Companies Act, 1956.

In terms of compliance, companies have slightly different requirements under the new Act and new electronic forms (e-forms) have been issued by the Ministry.

The Ministry, which is implementing the Companies Act, had earlier faced glitches with respect to functioning of MCA 21 due to various factors.

Most provisions of the Companies Act, 2013 came into force from April 1.

Among others, corporates are now required to furnish Permanent Account Number (PAN) while submitting their annual returns to the government, a move that would help in sharing of information between different departments.

So far, companies were not asked to provide PAN in the electronic form used for filing annual returns.

A new column has been inserted for providing PAN in the MGT-7 form — which is used for submitting the annual returns.

Meanwhile, the Ministry has already made a draft of changes to the Companies Act, 2013. Besides, various rules have been amended.

Amid concerns expressed in various quarters about certain provisions in the new Act, a high-level panel has also been set up to look into the issue.

Income Tax E-Filing Process – At a glance

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Steps for Income Tax E-Filing:

 

 

  1. Select appropriate type of Return Form – ITR and download appropriate Return Form from https://incometaxindiaefiling.gov.in/
  2. Fill your particulars of name, address. PAN Number, date of incorporation (date of birth, in case of individuals), sources of income and the amounts and other details in the ITR return offline and generate a XML file
  3. Register and create a user id/password. User id is always your PAN number.
  4. Login and click on relevant form on left panel and select “Submit Return”
  5. Browse to select XML file and click on “Upload” button
  6. On successful upload, acknowledgement details would be displayed. Click on “Print” to generate printout of acknowledgement/ITR-V Form.
  7. In case the return is digitally signed, on generation of “Acknowledgement” the Return Filing process gets completed. You may take a printout of the Acknowledgement for your records.
  8. Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same.
  9. The e-verification can be done using Aadhar number or through online banking. A duly verified ITR-V form should be submitted with the local Income Tax Office within 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.
  10. For any assistance in filing the paper copy of the return please contact the Public Relations Officer of the local Income Tax Office.

Incorporation of Companies under Companies Act, 2013

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Steps for Incorporation of company under Companies Act, 2013

 

  1. Obtaining Digital Signature Certificate

For the Directors of the company, we have to obtain the Digital Signature Certificate (DSC).

For the DSC, the following documents are required:

  • For Indian Nationals: PAN Card (mandatory) and Voter’s identity card or Passport copy or Driving License copy
  • For Foreign nationals and Non Resident Indians: Passport Residential proof such as Bank Statement, Electricity Bill, Telephone / Mobile Bill; Provided that Bank statement Electricity bill, Telephone or Mobile bill shall not be more than two months old. Foreign director’s specimen signature and latest photograph duly verified by the banker or notary.
  1. Obtaining Director Identification No. (DIN)

Application in Form DIR-3 is to be e-filed for getting the Director Identification Number for all the proposed directors.

  1. Application for Reservation of Name

Application in Form INC -1 to be e-filed for the proposed company, giving 5-6 options of the main name with combination of coined words. The same shall be reserved for a period of 60 days.

  1. Drafting of Memorandum of Association

The main lines of business to be pursued on formation of the company to be mentioned. The secondary or incidental objects also to be furnished.

  1. Drafting of Articles of Association

The bye-laws of the company to be drafted as Articles of Association in line with the provisions of the Companies Act, 2013.

  1. Filing Incorporation Form

The e-filing of Form No. INC.7 to be made alongwith,

(a) The Memorandum and Articles of the company duly signed by all subscribers;

(b)   A declaration in Form No.INC.8 by an advocate or Practicing professional (CA, CS, CA) who is engaged in incorporation, and a person named as Director, Manager or Secretary, that all requirements related to incorporation has been complied with;

(c)   An affidavit in Form No. INC.9 from each subscriber and from each person named as first director in the articles that, he is not convicted of any offence in connection with promotion, formation or management of any company, he is not been found guilty of any fraud or misfeasance or of any breach of duty to any company during preceding five years, and all the documents filed with the Registrar contain correct, complete and true information to the best of his knowledge and belief;

(d)  The address for correspondence till its registered office is established;

(e)  The particulars of every subscribers along with proof of identity;

(f)   The Particulars of first directors along with proof of identity; and

(g)  The particulars of interests of first directors in other firms or bodies corporate along with their consent to act as directors.

 

  1. Registered Office to be established

A company shall have a registered office within 15 days of Incorporation and it shall file Form No.INC.22 to verify the same.

Thus all the documents can be filed on-line to incorporate the company.

As initiative of ease of doing business, incorporation can be done through e-filing of single integrated Form 29, as well.

How to read the Corporate Identification Number CIN of a company

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How to read the CIN of a company:

You would have come across some long alphanumeric numbers of companies called CIN.

The CIN (Corporate Identification Number) of a company is given as unique code of alphanumeric characters, which, every company that is incorporated in India is given as unique code at the time of its incorporation and this is the Corporate Identification Number (CIN) of that company. This code is given irrespective of whether the company is a private company, public company or listed company or One Person Company.

 

What CIN represents:

​CIN is an alphanumeric 21 digit code given to companies. It stores vital information to represent a company.  For example, a CIN would read something like this: U72300MH2014PTC097368. The CIN Number given in the above example is divided into 6 parts. Each part contains information about the Company:

 

  1. First Digit represents the listing status – A Company may be either listed or unlisted. First Digit of the CIN indicates the Listing status of the company. If the company is listed, it will be mentioned “L”, if the company is unlisted, it will be mentioned “U” as the first digit of the CIN.

 

  1. Next Five Digits represents the Industry Code – Depending on the business line the company belongs to, the Company selects an industry in which it operates. Accordingly, a relevant industry code is allotted to the company.

 

  1. Next Two Digits represents the State Code – These digits represent the State in which the registered office of the company is situated. This helps us know which Registrar or ROC is applicable with respect to the company.

 

For Example: If the company has been registered in Tamil Nadu in the above example “TN” and in case a company is situated in the state of Maharashtra, the Code would be “MH”. In case, the company shifts its registered office to some other place later, the CIN would change due to change in the State Code.

 

  1. Next Four Digits represents the year of incorporation of the Company – These digits represents the year in which the company was incorporated. By looking at the CIN of the company, one can tell that the year in which the company was incorporated.

 

  1. Next Three Digits represents the type of the company – These three digits identify the type of the company. A company may be any of the following:

– Public Limited Company (PLC)

– Private Limited Company (PTC)

– Government of India Company, Centre (GOI)

– One person Company (OPC)

– Company of State Government (SGC)

– Section 8 Company – Not for Profit (NPL)

 

  1. Last Six Digits – These last 6 digits represent the ROC Registration Number of the company. They are unique numbers given to every company at the time of incorporation by the ROC in which they are registering. This number depends on the ROC in which the company is registering and also the Industry to which has been associated with.

 

This is what the 21 digit CIN Code comprises of. Next time, you see CIN of a company, there would be many things that you should be able to read easily.

You can look for CIN of the companies in a corporate directory. CIN is also mentioned on the letter head of the company.

 

Would a Company’s CIN ever change?

 

Yes. CIN is the number with which we identify a company. Typically CIN is to remain with the company for a lifetime but in, few cases, the CIN of the company could change:

* Change in State where registered office of the company is situated

* The listing status of the company changes

* The industry of the company changes

* The company becomes public limited from private limited or vice versa