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There are two forms of taxes broadly, direct and indirect taxes. The income tax forms a major portion of the direct tax portion. Income tax as the name suggests is a portion of tax based on the income of the company/individual or any business entity or any entity which is recognized in the eyes of law. Income tax filing may be subject to certain thresholds and while some people might have a filing requirement, it is always a best practice to file one anyway. With the more and more electronic inclination of the taxing authorities and the Government of India, e-filing has been something that one should be used too. E-filing Income Tax People or businesses not up to date with technology certainly have a tough time getting through the e-filing procedures and the medium. However, it makes the process more transparent, less cumbersome and cost-effective in many ways. This is why it is beneficial to consider e-filing even with paper file options still available. However, it might not...

The partnership firm is a very reasonable alternative to sole proprietorship that allows better access to funds, resources, and manpower efficiently. The partnership is governed by a partnership deed agreement that has to be amended or updated with every change or major event that takes place during the life of the partnership. It may be a change in the distribution of profits or change in capital contribution or addition of new partners or transfer of ownership within partners, death of a partner, etc. All these scenarios need an amendment in the partnership deed to proceed further. Regulations for a Partnership Firm Even though the partnership in itself isn’t a legal entity as all the income earned by the partnership is taxed at the individual level, there can be various regulations under which the partnership has to function. Some of these can be termed as Annual Compliances for Partnership Firm as well. These can be listed as follows:- • GST Returns The partnership fir...

Proprietorship is one of the most popular and widely used business setups in India. With a smaller number of suits in India for various personal damages, sole proprietorship becomes an obvious choice for all professionals like chartered accountants, lawyers, doctors, etc. This might not be the case in the United States where people can be sued for every penny with unlimited liability in case they opt for proprietorship. Hence, proprietorship becomes a very risky option and a great liability limiting option for professionals abroad. Proprietorship Firm Compliance in India The Proprietorship Compliance India is pretty straight forward. There is no formal registration required. Even the basic book of accounts without formal audit works under some thresholds. This is why the packages offering Annual Compliance for Proprietorship companies are the cheapest compared to any other business entity's compliance. However, as the investment and risk increase, it is suggested to have...

In India, the two most popular and common form of performing business is through a partnership or a proprietorship firm. The Proprietorship Compliance in India is the simplest form of performing business with minimum paperwork and is perfect for businesses that are in initial stages or need less capital. On the other Partnership Firm Compliance is slightly advanced but has a host of benefits on offer compared to proprietorship, which is worth the little extra effort of setting up the partnership. Key Benefits of a Partnership Firm over a Proprietorship • More people mean more capital to function. 2 or more people may fund more money than a single individual. • Allows for pooling resources of different individuals with respect to cash, assets, knowledge, labor, etc. • The income from the partnership is directly reported on the personal income tax return and does not require a host of compliance at the partnership level. • Risk and profits are diversified. One individual ...

Startups are the mainstream in today’s business. They present a disruption in the market and are loved by most investors. Most of the startups turn into a fortune in the long run and hence, investing in startups is one of the most lucrative options for most retailers as well as major investors. However, the challenges for startups are a lot. They are usually short of money and always need more money to operate, they might have operating knowledge/industry knowledge, but there is still a gap with respect to legal and compliance knowledge. A cost-effect comprehensive Startup Compliance Package is what every startup is looking for. A startup or its founders are always more dedicated and worried about funds, business opportunities, and operations. Finding resources and time for compliance and legality can be a challenge. This is why the Annual Compliance Package has become quite popular among startups. This saves them from unnecessary hiring and uncompromised professional services ...

Every business setup must deal with a challenge to identify the most beneficial business entity registration type. There are several options but two of the most common considerations are Partnership Firm and Private limited company. To analyze the key distinctions and potential benefits based on the business type, it is worthy to analyze a few factors to make a wise decision. These factors can be listed as follows:- •          Registration The Partnership firm is registered under the 1932 Indian Partnership Act. There can be registered or unregistered partnerships. Both are considered as legal entities. However, it is suggested to opt for registered partnership. On the other hand, the Private Ltd Company should be registered under the Companies Act, 2013. There is no option to set up a registered or unregistered and all the Private Ltd companies should comply with the Companies Act of 2013. •    ...

Limited Liability Partnership is a form of business association. The benefit of LLPs is that it poses dual benefits of a partnership as well as of a corporate company. Registrar of companies with the Ministry of Corporate Affairs regulates or set a framework for the functioning of the LLPs. Why LLPs are preferred over other business association options can be understood by evaluating the benefits. The benefits can be listed as follows:- •          Limited Liability means Limited Risk LLPs enjoy a distinct entity and hence, the liability of the entity may be enforced on the partners or investors only to a certain extent. This prevents unlimited liability or risk for investors. •          Ability to perform buying, selling or holding transactions By having a distinct legal setup, the LLPs can engage in buying or selling of assets movable or immovable in nature. They may also ind...

Proprietorship is the simplest form of setting up a business, with minimum registration or formality requirement. Proprietorship is often termed as One Person Company since it is a one-man/woman show and has no partners or investors. Some of the key features of this type of business setup can be listed as follows:- •          No capital threshold to start In order to be a private limited or an LLP, you might have a minimum or maximum capital limit. However, for a Proprietorship Firm , there is no such ceiling for a minimum or maximum amount of capital. •          Legal entity concerns The proprietor and the proprietor firm are considered to be a single entity in the eyes of law. Any liability on the proprietor firm is a direct liability for the proprietor. The same is true with respect to the assets as well. For income tax purposes or Proprietorship Firm Compliance purposes, ...

Other companies are growing. Everything is the same in yours: the software, the economy, the education, the knowledge. Still, other firms and moving faster in the growth sector and also your clients are getting snatched away by them. These might be some of the concerns you might be facing. There can be multiple reasons why this is happening. One of the major reasons can be Accounting and Bookkeeping Services . Many people are of the assumption that bookkeeping services and accounting services are only about saving costs. But this is not true. Here are the some of the major advantages of outsourcing the Bookkeeping and Accounting Services are as mentioned below: ·         Your firm grows fast and becomes more sustainable and strong The outsourcing bookkeeping and accounting are entertained for the biggest reason and that is to assist you in maximizing the return on the competencies. Also, you can use this valuable time in making your co...

A company since its inception becomes subjected to different statutory regulations and ROC Annual Firm Compliances Process Online . A company registered in India needs to comply with all the Online ROC Annual Firm Compliances as per the Companies Act, 2013. With majority of startups getting them registered as companies, to keep up with Online ROC Annual Firm Compliances Process is the most asked issue faced by the companies, the failure to do which results in falling under the scrutiny of the MCA thus, creating numerous hindrances like heavy penalties and in case of repeated violations, reduced chances of business’ survival. Therefore, it is important to understand the different ROC Annual Compliances Online India of a company in India that must be filed with the ROC. Online ROC Annual Firm Compliances The compliances of a company are of two types, mandatory ROC Annual Compliances Online India and ROC event based compliances online India. These must be filed with the regi...

While we engage in any of the business entities, there is a common confusion in our minds regarding the compliances that need to be followed in order to run the business smoothly. Here, we are going to discuss the required Annual Compliances for Partnership Firm along with the Annual Compliances for Proprietorship Firm . Annual Compliance for Partnership Firm Before we get into the details about the Annual Compliances of a Partnership Firm , let’s first understand what partnership is. Basically, partnership, as the name suggests, is an agreement that is signed between two or more people who agree to share all the profits and losses of the business that they are the part of. Collectively they are called firm and all people are termed as partners. There are three major elements within the partners: •          An agreement among all the partners •          Agreed to share all profits...

Sole Proprietorships of India have only the smallest legal acquiesced, which are much lesser than those applicable to the private or public limited corporations. It is essentially owing to the fact that a sole proprietorship has no disparate certified entity distinct from its owner or proprietary, and this form of industry existence does not make use of the benefits of limited liability. The annual revenue of the possessor is measured the annual earnings of the sole proprietorship firm. Henceforth, like other business or service entities that are listed and enrolled under the MCA, i.e., the Ministry of Corporate Affairs, the sole proprietorship firms are not required to record an annual statement or budgetary declarations with the MCA. The main and important statutory compliances to be executed by these proprietorship firms are consequently tax-related recurring and year-long compliances. Nonetheless, some more recurrent or annual compliances may also be required for the goal...

Sole Proprietorships of India have only the minimum legal acquiesced, which are much lesser than those relevant to the private or public limited corporations. It is essentially owing to the fact that a sole proprietorship has no disparate authorized entity distinct from its owner or proprietary, and this form of business existence does not make use of the benefits of limited liability. The annual revenue of the possessor is considered the annual earnings of the Sole Proprietorship Firm . Henceforth, like other business or service entities that are listed and enrolled under the MCA, i.e., the Ministry of Corporate Affairs, the sole proprietorship firms are not obligated to record an annual statement or budgetary declarations with the MCA. The main and significant statutory compliances to be executed by these proprietorship firms are consequently tax-related recurring and year-long compliances. Nonetheless, some more recurrent or annual compliances may also be needed for the goa...

Finance minister Nirmala Sitharaman presented the 2020 Union Budget today in Parliament. The budget speech went for 2 hours and 30 minutes and covered everything from fiscal target to expenditure and income tax to direct tax announcements. She has announced the launch of the new regime for the income tax which is definitely going to help the middle-class people in saving taxes and she scrapped the DDT (dividend distribution tax). She also committed to double the income of the farmers by the year 2022 and the launch of many new ideas for enhancing the growth of the agricultural sector. Finance Minister’s roadmap to the economy of USD 5 trillion Today, the entire nation looked upon Nirmala Sitharaman with the hope of development and a lot of expectations. With the GDP constantly falling down and major economic indicators turning red, India expected a blockbuster union budget for 2020. The budget offered great relief for all the individual taxpayers. All the payers falling in...