Neeraj Bhagat & Co. - Chartered Accountants

January 25, 2022 / Others

Budget 2022 | From tax break to endowment funds, a pre-budget wish list of some Indian startups

In the last two years, startups in our country faced unprecedented challenges due to the ongoing pandemic. Funds dried up for most, many entrepreneurs reeled under the multiple taxes, and quite a few shut down operations.

Now, all eyes are on Finance Minister Nirmala Sitharaman as this year’s Union Budget is about to be unveiled. Start-ups are looking for policy changes that will help them surge ahead and boost recovery from the long drawn-out pandemic.

Let’s take a look at …

January 20, 2022 / Taxation

NRI Taxation in India

The income of a non-resident Indian (NRI) earned in India is taxable. Whether a person will be classified as NRI or not will depend on the number of days he or she has stayed in India and the quantum of income earned.

Tax on an individual’s income depends on the source of such income and the residential status in India. The residential status of an Indian citizen needs to be determined individually for every financial year which may vary from …

January 17, 2022 / Goods and Services Tax (GST)

GST Rate Structure for Real Estate Sector

Real estate sector is one of the major economic sector for any country, especially India where this sector is getting the attention in the recent years. In this article we are going to discuss about GST implication in Real estate sector more predominantly real estate residential housing sector.

Following are some of the activities which are treated as supply for charging GST in Real Estate –

Renting of residential property
Construction of a residential complex, building including a complex or

…

January 8, 2022 / Others

Delhi High Court dismisses 1,346 reassessment notices issued after March 31, 2021

The Division bench of the High Court of Delhi in the case of Mon Mohan Kohli Vs Assistant Commissioner of Income Tax & Anr. quashed all reassessment notices on 15^th Dec, 2021 issued by taxmen under the old regime on or after April 1, 2021, bringing in a huge relief for the taxpayers. They made it clear that the revenue cannot use the administrative power ‘undermining the expression of Parliamentary supremacy in the form of an Act of Parliament.’ …

December 30, 2021 / Goods and Services Tax (GST)

Deadlines extended for ROC & GST compliances and its effect on Government’s revenue

ROC Compliances: Extension of deadlines
In addition to the Ministry’s General Circular No.17/2021 dated 29.10.2021, it has been decided that no additional fees will be levied for the filing of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 Non-XBRL up to 15.02.2022 and up to 28.02.2022 for the filing of or filing of e-forms MGT-7/MGT-7A for the financial year ended on 31.03.2021, in light of various requests received from stakeholders During this time, only normal fees will be charged for …

December 23, 2021 / Others

How to cancel an SRN No. Approved by ROC?

An approved SRN can be cancelled and the entire process is offline and consists of following steps and documentation: –

Visit the respective ROC of the States, where the registered office of the Company is situated.
Submit few documents such as an

application,
Affidavit,
Undertakings
Declaration duly signed by any of the director of the company along with the challan which needs to be cancelled.

After submitting the aforesaid documents, the ROC will scrutinise the form in respect of which …

December 14, 2021 / Taxation

TDS on fee for Professional and Technical Services

Section 194J of The Income Tax Act 1961, pertains to deduction of tax at source in case of fees for professional or technical services. It applies to TDS on payment of any sum by way of –

a) fees for Professional services
b) fees for Technical services
c) Remuneration or fees or commission paid to directors (excluding salary)
d) Royalty
e) Non-compete fee

Threshold Limit for each of the above payments except for payment to directors is Rs. 30,000 i.e. …

November 10, 2021 / Foreign Investment

A brief on Foreign Contribution Regulations in India

FCRA i.e. Foreign Contribution Regulation Act was earlier enacted in year 1976 by Ministry of Home Affairs (MHA) to regulate the foreign funding that received by various charitable institute, political parties, print and other media and to prevent the foreign organizations or individuals from influencing the social, political economic and religious matters in India. The 1976 Act allows the Indian Organizations and political parties to accept the foreign donation freely but by reporting the same to the MHA.

In 1984 …

October 26, 2021 / Others

Electoral Trust (ET)

As per Section 17CA of Income Tax Rules (1962), an Electoral Trust (ET) is a non-profit organization established for orderly receipts of voluntary contributions from any person for distributing the same to political parties, registered under Section 29A of the Representation of People Act, 1951.

Objective of Electoral Trust
Electoral Trusts are designed to bring in more transparency in the funds provided by corporate entities to the political parties. The objective of an Electoral trust is not to receive …

September 29, 2021 / Taxation

Income Tax Return (ITR)- Impact of Delay in filing ITRs

The Government of India has framed Income Tax laws governing the taxes to be levied on the taxable income of all persons who are Individuals, HUF’s, Companies, Firms, LLP, Association of Persons, Body of individuals and any other juridical person. Every individual who qualifies as the resident of India is required to pay tax on the taxable income. Every financial year, tax payers are required to file Income Tax Returns (ITR) in adherence to the laid down rules and guidelines.…