Services
Income Tax Return
Income Tax Return or ITR is a form used to show your gross taxable income for the given fiscal year. The form is used by taxpayers to formally declare their income, deductions claimed, exemptions and taxes paid. Therefore, it calculates your net income tax liability in a fiscal year.
According to the Income Tax Act of 1961, a person under 60 years of age must file tax returns if a part of their income is taxable. If your taxable income exceeds Rs. 5 lakh in a financial year or you have paid advance tax, you also need to file an ITR. When filing tax returns, you also have to pay your due taxes as decided by your applicable income tax slabs.
Types of ITR Forms
There are nine different types of ITR forms which you can use during ITR filing. According to the Central Board of Direct Taxes in India, you must use the relevant form to file your income tax. Here is a brief about the forms:
- ITR 1 or Sahaj
ITR 1 or Sahaj is a form for those individuals who have income of up to Rs. 50 lakh from pension, salary, income from other sources and one house property. However, all salaried persons can not use this form to file taxes.
- ITR 2
This form can be used by resident individuals or Hindu Undivided Families (HUF) who cannot file the ITR 1 or Sahaj form. However, if your income comes from a business or profession, then you cannot use ITR-2.
- ITR 2A
This is a newly launched ITR form created for HUFs and individuals who own more than one house property without any capital gains income and have salary income. If you have long-term capital gains and you have paid Securities Transaction Tax, this form is for you.
- ITR 3
This form is for individuals or HUFs having income from proprietary business or profession. In short, Hindu Undivided Families or individuals who are ineligible for ITR 1, ITR 2, and ITR 4, can file ITR 3. Anyone receiving interest, bonus, salary or commission from a partnership firm as business income must also file ITR 3.
- ITR-4 or Sugam
ITR 4 or Sugam is for all types of professions, businesses, HUFs and undertakings. You can file ITR-4 if your total income includes business or professional income u/s 44AD, 44ADA or 44AE, income from one house property, salary income, and income from other sources. However, you can not file this form if your income is more than Rs. 50 lakh in a financial year.
- ITR-4S
ITR-5 is for LLPs (Limited Liability Partnerships), firms, business trusts, Artificial Juridical Persons (AJP), Estate of deceased, BOIs (Body of Individuals), AOPs (Association of Persons), estates of insolvents and investment funds.
- ITR 5
Co-operative societies, firms, Artificial Juridical Persons, Associations of Persons, local authorities, and Bodies of Individuals are eligible to file their income taxes with this form.
- ITR 6
This form can be filed by any company only through online mode. Firms and organisations can use this form only if they are not claiming tax exemption under Section 11.
- ITR 7
This form can be used only by political parties, religious or charitable trusts, colleges, universities, etc. to claim tax exemption.
GST
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words,Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.
There are Four Types of GST in India: namely Integrated Goods and Services Tax (IGST), State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), and Union Territory Goods and Services Tax (UTGST).
Business Setup
Sole Proprietorship Registration
A sole proprietorship registration is nothing but a business managed by a single person. The firm and its operator are treated as a single entity. Usually, in sole proprietorship companies, the owner is responsible for all profits or losses. It’s an individual company, and pretty easy to set up the business.
One-person Company Registration
One Person Company is a corporation or business entity with a single individual director and member. As a result, the firm’s operations will be managed by a single person without having all the personal liabilities.
Partnerships Firm Registration
Two or more partners who have already determined their role and profit-sharing can enter into a partnership and conduct business activities. For a Partnership Firm Registration, you need to use a binding agreement referred to as the Partnership Deed. You can specify duties, commitments, responsibilities, and the number of shares owned under business registration.
Limited Liability Partnership (LLP) Company Registration
LLP is an alternative corporate firm form that gives the benefits of the limited liability of a firm and the flexibility of a partnership. Since LLP contains elements of a corporate structure and a partnership firm structure, LLP is called a hybrid between a company and a partnership. Low registration fees and easy maintenance make LLP a first choice for many small businesses in India.
Private Limited Company Registration
A Private Limited Company (PLC) is one of India’s most common types of legal entity. A Private Limited Company is governed by the Companies Act 2013 and requires a minimum of 2 Directors and 2 Shareholders, with one of the Directors being an Indian Resident and Indian Citizen.
To register a company in India, the following are the minimum requirements:
- 2 Directors – 1 Person should be an Indian National and Indian Resident
- 2 Shareholders – The Directors can be shareholders
- Registered Office in India
100% Foreign Direct Ownership (FDI) is permitted in most sectors in India, and there is no restriction on foreign shareholding of a private limited company. Hence, most foreign subsidiaries are established in India as a private limited companies.
Public Limited Company Registration
The public limited company registration is identical to private limited company registration. The sole distinction is that the company’s shares can perform trading activities on the stock exchange. Therefore, it allows the transfer of shares from one member to another.
Section 8 Company Registration
Commonly called a non-profit organization, Section 8 company registration work for charitable purposes. The purpose is to promote arts, science, literature, education, caring for the needy, and protecting the environment. Moreover, all their profits are used to achieve these objectives, and the members do not take dividends for themselves
NGO
A non-governmental organization (NGO) is a group that functions independently of any government with the objective of improving social conditions. NGOs are typically non-profit institutions. They are sometimes called civil society organizations and are established on community, national, and international levels to serve a social or political goal such as a humanitarian cause or the protection of the environment.
For example, NGOs might focus on activities in areas involving health or health emergencies, education, infrastructure, advocacy of minority rights, support of the poor, and the reduction of crime.
Trust Registration
Trusts are a business structure created with noble intentions to promote the development of sciences, literature, and other worthy causes. They serve purposes such as alleviating scarcity, providing education to those in need, and offering medical support. Trust registration is officially registering a trust under the Trusts Act of 1882. This legal step ensures that the trust is recognized and operates within the framework of the law. Registering a trust provides legal validity and establishes its existence as a separate entity.
If you are contemplating the creation of a trust for non-profit or charitable purposes, registration of a trust is vital to ensure its effective operation and compliance with legal obligations. At IndiaFilings, we have a dedicated team of professionals ready to support you every step of the way during the trust registration process. We clear up your doubts and confusion on how to register a trust in India. Our aim is to provide you with a seamless and efficient experience.
Contact us today to discuss your registration needs and benefit from our expertise in establishing legally compliant and effective trusts.
Financial Services
Financial accounting is the process by which an organization’s revenue, receivables and expenses are collected, measured, recorded and finally reported into a financial statement. This process is designed to accurately reflect business activity; help companies meet legal, fiscal and statutory requirements; present financial accounts to business owners; allow for in-depth financial analysis; and facilitate efficient resource allocation. The main purpose of financial accounting is to allow third parties to assess the value of a company.
Across financial accounting, companies have two basic ways that they can structure their business’s accounting policy. Publicly traded companies must use the accrual accounting method which is standardized under generally accepted accounting principles (GAAP). The accrual method reports revenues as they are accrued as opposed to when they are received and expenses are reported as they are incurred rather than when they are paid. Many private companies also use GAAP but they are not required to do so. Private companies also have the option to use the cash accounting method
Payroll accounting
Payroll accounting refers to an organization’s record of an employee’s compensation, including benefits, payroll taxes and money deducted from wages. All this information is placed in financial journal entries to get an overview of payroll expenses and details about each transaction, such as date of compensation, compensation amount and where compensation was delivered. Each journal entry is recorded on a general ledger (GL) that keeps a record of financial transactions for financial reporting purposes.
Here’s a list of information that should be included in your payroll accounting:
- Employee compensation, such as salary, overtime pay, commission and bonuses
- Employee and employer tax withholdings, including FICA and Medicare taxes and unemployment taxes
- Benefits withholding, such as health insurance premiums and 401(k) retirement plan
- Other benefits, such as tuition reimbursement
- Employer benefit costs, such as the cost of administering healthcare benefits, paid sick leave and more
Wondering how payroll accounting differs from cost accounting? Get the complete breakdown of cost accounting to find out.
Business Registration
Food License
FSSAI registration is one of the most important registration required by every person involved in the food business, such as persons who wish to open a restaurant, bakery, hotel, cloud kitchen or food stall in India. Every Food Business Operator (FBO), such as entities or persons involved in manufacturing, preparation, selling, transportation, distribution and storage of food articles/products, are also mandatorily required to have an FSSAI registration to carry on their food business.
FSSAI stands for Food Safety and Standards Authority of India. It is an organisation that monitors and governs the entire food business in India. It is an autonomous body that is established under the Ministry of Health and Family Welfare, Government of India.
The FSSAI has been established under the Food Safety and Standards Act, 2006 (FSS Act) which is a consolidating statute related to food safety and regulation in India. It ensures the food products undergo quality checks thereby curtailing the food adulteration and sale of sub-standard products. It is responsible for the registering and licensing of the FBOs in India and it lays down the rules and regulations for running the food business in India.
RERA REGISTRATION
The acronym RERA stands for Real Estate Regulatory Authority (“RERA”) which is established under the Real Estate (Regulation & Development) Act (“Act”). This Act was introduced in the year 2016 to regularise the problems existing in the real estate sector. The Act will be implemented at the State level, and the governing authorities are responsible for the following:
- Registration and other related approvals for the registration under RERA of commercial properties and residential flats.
- Regulating the sale and purchase transactions of real estate properties.
RERA registration brings about transparency in these contracts and benefits all the parties to the transaction. It also brings about accountability by reducing the chances of delay in real estate contracts. The main aim of the registration is to protect buyers of real estate and simultaneously uplift the investment in the real estate sector.
