Whoever said wishes don’t come true hasn’t explored our offers!
  • Statutory Compliance

    What is Statutory Compliance?

    India has a complex web of laws applicable across various sectors. Statutory means ‘laws and regulations’ and compliance means ‘adhere to’. There are several rules and regulations in the country such as Income Tax, Service Tax, Companies Act 2013, Partnership Act and Value Added Tax (VAT) among many others. It is better to have a broad understanding of various important regulations in the country.

    Rules and Regulations:

    Below is the list of some important rules and regulations applicable in the country

    • Companies Act
    • Income Tax Act
    • Service Tax
    • PF and ESIC
    • Companies Act:

      The table below shows the list of incorporation related forms

      Purpose

      Form (public and private cos)

      Incorporation of company

      INC-7

      Reservation of name

      INC-1

      Nominee consent form

      INC-1 (OPC)

      Appointments of Directors

      DIR-12

      DIN Application

      DIR-3

      Notice - director resignation

      DIR-11

      Notice- Auditor registration

      ADT-3

      Statutory Report

      22

      Nominee consent form

      INC-3

      Change in Member

      INC-4

      Filing profit and loss account

      23ACA

    • Income Tax Act:

      The following table shows tax rates for individuals and HUF

      General/NRI

      Senior citizen

      Super senior citizen

      Rate

      Rs.2.5 to Rs.5 lakh

      Rs.3 to Rs.5 lakh

      -

      10%

      Rs.5 lakh to Rs.10 lakh

      Rs.5 lakh to Rs.10 lakh

      Rs.5 lakh to Rs.10 lakh

      20%

      Above Rs.10 lakh

      Above Rs.10 lakh

      Above Rs.10 lakh

      30%

      The following table shows tax rates for co-operative societies

      Rate

      Amount

      10%

      Up to Rs.10,000

      20%

      Rs.10,001 to Rs.20,000

      30%

      Over Rs.20,000

      The following table shows the rates for other assesses

      MAT Rate

      Rate

      Assesses

      18.5 %

      40%

      Foreign companies

      18.5 %

      30%

      Domestic companies

      -

      30%

      Firms/LLP

      E-filing of Returns:

      An individual who claims tax deduction under section 90A, 90 or 91 of the IT Act

      HUF and individual with assets located outside India

      Individual or HUF - income exceeds Rs.5 lakh in the previous year

      E-filing with Digital Signatures:

      Companies

      HUF/Firm under section 44AD/44AE/44AB

      Capital Gains:

      The following table shows the current capital gain rates

      Organisation

      Tax Rates (short-term)

      Domestic company

      30%

      Firms (LLP)

      30%

      Foreign companies

      40%

      Sale of an equity share

      15%

      The following table shows exemption related to capital gains

      Sold assets

      Section

      Exemption

      Long term asset

      Section 54F

      New asset X capital gain/net sale

      Residential House

      Section 54

      Capital gain or amount invested in new asset (whichever is less)

      Long term capital asset

      Section 54EC

      Investment must not be above

      Rs.50 lakhs

      Deductions:

      The following table shows deductions under various sections

      Section

      Particulars

      Amount

      Section 80CCC

      Pension Fund

      Rs.1.5 lakh

      Section 80C

      PPF

      ULIP

      NSC

      ELSS

      MF

      Rs.1.5 lakh

      Section 80D

      Mediclaim

      Rs.25,000 (general) and

      Rs.30,000 (senior citizen)

      Section 80EE

      Interest on housing loan

      Up to Rs.1 lakh

      Section 80E

      Interest on higher education loan

      -

      Section 80TTA

      Interest on savings account deposits

      Rs.10,000

      Section 80G

      Donation

      50% and 100% of donation

    • Service Tax:

      The following table shows service tax rates

      Basic exemption limit

      Registration Application

      Registration Certificate

      Rs.10 lakh (small service provider)

      ST-1

      c

      Service tax is paid using challan GAR-7.

    • PF and ESIC:

      The following table shows PF and ESIC rates

       

      Employee Contribution

      Employer Contribution

      ESIC

      1.75% of wages

      4.75% of wages

      PF

      12% of basic + dearness allowance + food concession

      12% of basic + dearness allowance + food concession +

      retaining allowance (maximum of Rs.15,000 per month)

    TAX
    Forms:
  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.