Statutory audit under companies act Foreign companies having a place of business in India must comply with provisions of the Companies Act. These entities are required to file audited financial statements with the Registrar of Companies. Financial statements must be...
Timely filing of income tax returns Filing tax returns before the due date helps companies avoid late fees and interest. It also ensures eligibility for carrying forward losses and claiming refunds. File the income tax return on or before the statutory deadline...
Incorrect selection of return form Using the wrong income tax return form leads to defective filing. Companies must ensure that they use the correct ITR form based on their legal status and income sources. Companies should use ITR six for regular filings under company...
Basic distinction between gst and income tax registration GST and income tax are governed by different laws and registration processes. While they serve different purposes, both are required for businesses meeting threshold criteria. GST registration is governed by...
Eligibility under startup recognition scheme To avail tax exemption, a business must be recognized as a startup by the Department for Promotion of Industry and Internal Trade. Recognition is a prerequisite for claiming benefits under the Income Tax Act. The entity...
Income tax exemption under startup scheme Recognized startups in India may claim a tax holiday under section eighty IAC of the Income Tax Act. This incentive helps startups reinvest profits and scale their business operations. Eligible startups can claim exemption for...
Exemptions for units in special economic zones Companies operating in notified Special Economic Zones may claim tax exemptions under specific conditions. These benefits are provided to promote exports and industrial growth. Section ten AA allows a phased deduction on...
Personal expenses of directors or employees Expenses incurred for the personal benefit of directors, employees, or their family members are not allowable. These are treated as non-business in nature by tax authorities. Personal travel or leisure expenses are...
Classification of interest income for companies Interest income earned by a company is treated as part of its total income. It is generally reported under the head income from other sources unless it is part of core business activity. Interest from fixed deposits and...
Tax treatment of dividend income received by companies Dividends received by a company from another domestic company are taxable as income. This income is included under the head income from other sources. Dividend income is fully taxable in the hands of recipient...