Taxplaners Startup Bundle ~ Smart business owner

Is your startup ready to take on the world? If you're an entrepreneur, small business owner, or a partnership firm looking to take the next step in your company's growth and success, read on. Whether you're just getting started or you've been in business for a while, it's important to have the right resources in order to make your venture successful. That's why we've put together this Startup Bundle – so you can get everything you need all in one place. we've included expert advice from industry leaders on how to grow your business. So what are you waiting for? Get started today! 

Taxplaners Startup Bundle is the most comprehensive and affordable startup bundle available today. The bundle includes: 

1) Consultation with one of our tax advisors who will review your current situation and provide recommendations for how best to handle taxes this year; 

2) One hours of consulting time from CA  that specializes in startups; 

3) One hour of accounting services with a local accountant who can help set up or improve bookkeeping systems; 

4) Three months' worth of Service Advisory on Beginners guide to startup   -Startup Maintenance + Annual Compliance + E-File + Income tax and GST Compliance  

VIRTUAL CFO SERVICES

As CFO Service Provider (CSP). For start-ups, small and medium enterprises, keeping fixed costs at a low level is a primary requirement and outsourcing services provide them with the flexibility of choosing services as and when required and keep a tap on fixed costs.

5 Reasons why you should use Virtual CFO service?

1. Your company can save time, money, effort and infrastructure on setting up an in house statutory compliance team.

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2. You will save up to 70% on legal and statutory compliance

3. Our consultants will visit your office to set up an accounting system in place.

4. You will get a dedicated consultant on call to advise you on compliance-related matters.

5. Instant access to qualified chartered accountant.

 

INCOME TAX RETURNS ( ITR - 1 and ITR - 4 )

ITR 1:  Individuals having Income from Salary, House property, and other income (other than Business/professional Income)

For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs.5 thousand (Not for an individual who is either Director in a company or has invested in unlisted equity shares or in cases where TDS has been deducted u/s 194N or if income-tax is deferred on ESOP

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ITR 4: filing of Business and Professional Returns on Presumptive Basis

For Individuals, HUFs, and Firms (other than LLP) being a Resident having Total Income up to Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE (Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares or if income-tax is deferred on ESOP)

Benefits of filing of Income Tax Returns (ITR Filings)

 

1) Mandatory  Filing

In any of the following situations (as per the Income Tax Act), it is mandatory for you to file  Income Tax Return in India.

• Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs 2.5 lakhs in the Financial year (April to March of the Following Year). This limit is Rs 3 lakhs for senior citizens (aged above 60 but less than 80) or Rs 5 lakhs for super senior citizens (aged above 80). (In the Union Budget 2021, the finance minister Nirmala Sitharaman announced that senior citizens above the age of 75 years, who only have pension and interest as a source of income will be exempted from filing the income tax returns. During her budget speech, Sitharaman said, "In the 75th year of Independence of our country, the government shall reduce the compliance burden on senior citizens who are 75 years of age and above.")
• You are a company or a firm irrespective of whether you have income or loss during the financial year

  

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• You want to claim an income tax refund
• You want to carry forward a loss under a head of income
• You Want to Plan to Study Abroad or Settle Abroad 
• Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs) 
• If you are a Resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs)
• You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust (Other Entities).
• If you are a foreign company taking treaty benefit on a transaction in India
• Proof of return filing may also be required at the time of applying for a loan or a visa

2. Income Tax Return Filing for NRIs

NRI or not, any individual whose income exceeds Rs. 2.5 lakhs (for Financial year) is required to file an income tax return in India. Please note that for an NRI, income earned or accrued in India is taxable in India.

3. Why e-file income tax return

A significantly large number of returns are e-filed and gradually the income tax department is hoping to bring all returns online.

It is mandatory to file the income tax returns online for all the registered taxpayers whose taxable income. However, paper returns can be filed by those who are above 80 years of age and do not have any income from regular business or profession. (In the Union Budget 2021, the finance minister Nirmala Sitharaman announced that senior citizens above the age of 75 years, who only have pension and interest as a source of income will be exempted from filing the income tax returns. During her budget speech, Sitharaman said, "In the 75th year of Independence of our country, the government shall reduce the compliance burden on senior citizens who are 75 years of age and above.")

4. Penalties for non-filing income tax return

Under section 271F, the assessing officer may levy a penalty of Rs 5.000 when you have not filed your return. (applicable until FY 2016-17).

From FY 2017-18 onwards, penalties for non-filing an income tax return are as follows:

a. A penalty of Rs 5,000 is applicable if the return for the Financial year is filed after the due date but before 31 December of the Following Year.

b. A penalty of Rs 10,000 is applicable if the return for Financial Year is filed after 31 December of the Following Year but by 31 March. 

( Eg. For the Financial Year 2020-2021, a penalty of Rs 5,000 is applicable if the return for the Financial year is filed after the due date but before 31 December,2021.  and penalty of Rs 10,000 is applicable if the return for Financial Year 2020-2021 is filed after 31 December,2021 but by 31 March,2021. )

Note: Penalty is limited to Rs 1,000 for those with income up to Rs 5 lakhs. These provisions are covered under a New Section 234F.

5. Furnishing Details of Investments

In case your annual income is above INR 50 lakh, you are required to provide details of your investments,  as well as property holdings if any. You will need the original purchase documents for all these assets, for proof of valuation.

Advantages of filing Income tax return:

1. Easy Loan Approval

Filing the ITR will help individuals when they have to apply for Personal loan, Credit Card,  vehicle loan (2-wheeler or 4-wheeler), House Loan, etc. All major banks can ask for a copy of tax returns

2. Claim Tax Refund

If you have a refund due from the Income Tax Department, you will have to file an Income Tax Return to claim the refund.

3. Income & Address Proof

Income Tax Return can be used as proof of your Income and Address.

4. Quick Visa Processing

Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application.

5. Carry Forward Your Losses

If you file return within due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years. You have to Declare All Sources of income without withholding any details.

6. Avoid Penalty

If you are required to file your tax returns but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs.5,000 / 10000.

Thanks & Regards

CA NAVEEN KUMAR DIGUVA SADUM

NAVEEN KUMAR D S & CO

Chartered Accountants

Phone: 90590 95083

Email id: ca.naveenkumards@gmail.com

Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the authors whatsoever and the content is to be used strictly for educative purposes only. 

GST E-INVOCING

 

GST E-INVOICING IS MANDATORY  FOR THE TAXPAYERS WHO'S ANNUAL TURNOVER IS ABOVE  FIFTY CRORES W.E.F 1ST APRIL 2021

Sub-rule (4), (5), and (6) was inserted in Rule 48 (Manner of issuing Invoice) of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”) vide Notification No. 68/2019 -Central Tax dated 13th December 2019 in respect to generating e-invoice as under-

“Rule (4) The invoice shall be prepared by such class of registered persons as may be notified by the Government, on the recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Service Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.

Rule (5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than manner specified in the said sub-rule shall not be treated as an invoice.

Rule (6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4).”

Accordingly, in exercise of the powers conferred by sub-rule (4) to Rule 48 of CGST Rules, the Government, on the recommendations of the Council, vide Notification No. 70/2019- Central Tax, dated 13th December 2019, notified registered person, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice in terms of sub-rule (4) of Rule 48 of the said rules in respect of supply of goods or services or both to a registered person. This notification came into force from the 1st day of April 2020. 

However, before coming to the aforesaid Notification into force (i.e. Notification No. 70/2019- Central Tax, dated 13th December 2019), the Government, in supersession of this notification, vide Notification No. 13/2020- Central Tax, dated 21st March 2020 notified registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person. This notification came into force from the 1st day of October, 2020. 

However, before coming to the aforesaid Notification into force (i.e. Notification No. 13/2020- Central Tax, dated 21st March 2020), the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 61/2020-Central Tax, dated 30th July 2020 by which the limit of turnover was increased from “one hundred crore rupees” to “five hundred crore rupees”.

Again, the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 70/2020-Central Tax, dated 30th September 2020 by which it was notified that registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds five hundred crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person or for exports.

Once again, the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 88/2020-Central Tax, dated 10th November 2020 by which for the words “five hundred crore rupees”, the words “one hundred crore rupees” shall be substituted with effect from the 1st day of January 2021.

Now, the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 05/2021-Central Tax, dated 8th March 2021 by which for the words “one hundred crore rupees”, the words “fifty crore rupees” shall be substituted with effect from the 1st day of April 2021.

Therefore w.e.f. 1st day of April 2021, the Principal Notification No. 13/2020 – Central Tax, dated the 21st March 2020 shall be read as under-

“registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds fifty crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person or for exports.”

CA NAVEEN KUMAR DIGUVA SADUM
NAVEEN KUMAR D S & CO 

Chartered Accountants
email: ca.naveenkumards@gmail.com
Phone: 90590 95083

Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the authors whatsoever and the content is to be used strictly for educative purposes only. 

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