Legal Complainces for StartUps

Startups are prone to go haywire in terms of delivery, execution, and setup costs. Amongst everything, it gets taxing to think and execute tasks related to tax. But this is an important financial element that one can not afford to overlook. A startup may incur losses in initial years and those go unaccounted. But then there are chances to save a new business from further financial losses by shielding it with tax benefits.

Here are five important tax tips for startups useful at many levels – from starting to each stage of progress.

1. Compliance With Tax Norms Makes Life Easier

As a startup, you would want to focus all your efforts and energies in offering better solutions to your customers. The entire concept of compliance is to set you free from other legal requirements and do what you do best – focus on core business. Tax norms help businesses to get clarity on implications of tax in the finances. Once done, the aim should be to have better financial planning by keeping in mind the applicable taxability and other compliance-related expenditures.

2. Hire/Consult Tax Professionals

Professionals in the industry can help you to execute all the necessary formalities, ensuring completion of all those nitty-gritty of the subject matter involved. For some, you will also need advice from tax experts on how to plan your finances by incorporating the tax implications concerned.

Opt for business professional services to ensure complete control over tax-related compliance. Having a professional consultant on-board will also help you prepare for any unforeseen contingencies. Expert opinion in the case of compliance is recommended in case of tax-related compliance queries.

3. Learn About the Broad Norms

Awareness plays a major role when it comes to knowing the legalities involved in running a business. And since the tax is one of the core concerns that new businesses have, an overall & general know-how becomes indispensable. It is essential that startups get acquainted with the applicable laws and provisions. Complying with such standards may prove to be a daunting task given the wide scope and comprehending deeper aspects involved. The Income Tax Act of India, 1961, allows legal authorities to strictly govern income tax along with rigorous checks and harsh penalties imposed upon defaulters.

4. Know Your Rights and Benefits as a Taxpayer

Tax regulations will certainly impact your business as it has its own set of implications that your business cannot escape from. The best thing is to know the rights that you enjoy as a taxpayer. For example, 100per cent tax exemption on profit gains for the first three years with the exception of Minimum Alternate Tax (MAT, 18.5per cent). Then there are exemptions on capital gain tax, the abolition of angel investment tax, and SEBI directed Funds of Funds. Such benefits must be observed and startups should leverage plenty such tax laws and regulation. Doing so will also improve the acceptability levels with VCs, investors, and banks.

5. Deeper Insights for Future Planning

Allocating resources is the key to the streamline all the other business activities and accordingly channelize the finances for the team. For better returns and future financial goals, avoiding taxation can prove disastrous. Startups should dwell deeper to gain important insights that will help those at the helm of affairs to take right decisions. You will learn to allocate resources – channel your finances for better returns – envision financial goalkeeping taxability in mind. There are chances that your future launch may get affected by the tax norms and other requirements. Ensure a tight watch over every minuscule change in the tax regime and align it for your business requirements.

Most of the new startups are stringent with taxation but they lack clear information since the subject has many branches associated with it. Startups should also ensure a pervasive compliance management system with Chartered Accountants, lawyers and tax professionals mentoring it. Try incorporating technology to manage all the compliances with utmost diligence to ensure timely tax payments and completion of all legal formalities pertaining to it.

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Website : http://www.vidyasunilassociates.com

Cell No. : +91 9739834819

Karnataka Apartment Owners Association

In Karnataka, there are three types of apartment communities that can be formed. A promoter can float a company or cooperative society under KOFA. These are two options. Alternatively, the third option envisaged in KOFA is for the builder/promoter to form an association of owners under the KAOA.

What is the Apartment Owners Association?
Apartment Owners Association is a voluntary organization that is formed by the owners of the apartment. The association is responsible for providing services such as maintenance of amenities and enforcing regulations. It also works for the welfare of the residents by initiating events. The association may or may not be registered.

Apartment Owners Association is formed under the respective city government association act. At the time of registration, all owners of the apartment should gather in one place. The owners can give a power of attorney to the builder to register the association. The registered association enjoys legal benefits and protects its members.

What are the things required to form the Apartment Owners Association?
Key things to remember while forming the association:

To form the association, a minimum of seven members are required. This association includes an apartment owner, a general body, associate member, and a management committee that includes a president, vice president, secretary, and treasurer.
Create a memorandum which states the name of the society, its objectives, name, and occupation of the residents
By-laws which is used to govern the society
The by-laws and memorandum should be printed and duly signed by the members. It is filed with the register of the society and should pay a nominal registration fee.

What are the documents required for registration?
The following documents are required for registration:

Society name and address
Duly signed proposal letter by the executive committee that is addressed to the Registrar of Societies
Associations memorandum
Proceedings of the first general body meeting
A standard fee

What are the benefits of registering the association?
A registered association enjoys all legal benefits. Some of the advantages of a registered association are:

Rules violation – If the association is registered, action can be taken against residents who violate the apartment rules such as delay in payment of maintenance fee, late-night partying, residential space used for commercial purpose, etc.
Addressing grievance – Grievances such as security, maintenance, new requirements, etc. can be addressed. The registered association can also promote and start cultural activities, community activities, and charitable drives.
Safety of residents – The association is responsible for ensuring residents security by implementing laws. Which in turn, results in maintaining harmony and discipline within the society. E.g. – Limiting the number of visitors entering the apartments due to the pandemic
Legal action against builder – The association can settle disputes with the builder regarding poor construction, for violating building codes, etc. The case can be filed at the National Consumer Disputes Redressal Commission (NCDRC).
Record maintenance – It is important to maintain the details of common facilities and ownership schemes to ensure transparency and smooth functioning. The information is carried in the Deed of Declaration for future legal purposes.
Taxation – Paying taxes which includes property taxes, applicable GST, and other taxes becomes easy for a registered association.
Banking – It is easy for a registered association to open a bank account and carry out banking procedures.

What are the contents of by-law?
The by-law includes the following:

The objectives and aims of the society
The rules and regulations that have to be followed by the residents of the society
Details of income and expense account
Details about maintenance fees, penalties, transfer charges, common area expenses, etc.
Minutes of the apartment general meeting which is held once in six months
Details about selecting an association member and office-bearers. It also includes a list of office bearers who can take care of monetary transactions and issue cheques.
Details on how the association aims to help and maintain harmony among residents
Any other FAQ’S

Who has the right to cancel the AOA?
The Registrar has the right to cancel the AOA when the association fails to meet statutory obligations and in case of huge disputes among the members of the association.

What is the timeline to get the association registered?
The association should be registered under the respective state’s Society Registration Act within 3 months and is exempted only in some serious situations.

How are the members of the association elected?
The members of the association are elected unanimously by the members of the apartment. The elected members of the association hold office for one year and re-elections are conducted once a year or mid-year if all the members give mutual consent.

For the local governments such as BBMP, there are additional hidden gems. The KAOA says that each apartment owner is liable to pay local taxes for his or her apartment and proportional undivided share. So that resolves the question of who pays property tax on the common areas. That is not to say the KAOA is perfect. It is a 40 year old law to which many improvements can be made. However, the key point is that a very logical framework already exists.

Reality

Unfortunately, the ground reality today is that very few builders do things the right way. Most apartments have associations registered under the societies act. Banks continue to give mortgages despite the fact that clear title is not passed on to the buyers due to the manner in which transactions are conducted. The registrars and sub-registrars continue to register any document that purports to be an apartment sale deed without paying heed to the requirements placed on them by the KAOA.

Advice for contact :

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. 9739834819 / 9480633382

Angel Tax

However, it is time for startups to breathe at ease as angel tax is about to be a thing of past. As per media reports, the income tax department has notified about 120 startups that they are exempted of angel tax.

Business daily Livemint reported that about 150 firms had applied for tax relief of which 120 have received the tag of ‘startup’. The intimation was sent to startups in the last few days under a new scheme announced in February which brings an end the much talked about angel tax in the startup community.

On February 19 this year, the Department for Promotion of Industry and Internal Trade (DPIIT), in an announcement, broaden the definition of a ‘startup’ and exempted investors and entrepreneurs from the so-called ‘draconian’ angel tax. As per the new norms, an entity is a startup up to 10-years of its establishment and its turnover hasn’t exceeded INR 100 crores.

Anuj Golecha, Co-Founder, Venture Catalysts says with the relaxation of angel tax norms, the government has given a major relief to startups. Earlier there were a lot of redundancies, stretched timelines, and red-tapism due to the procedures, which will now be eliminated.

“This move will further ensure a conducive environment and enable quick processes for budding entrepreneurs. These numerous measures have widened the scope of startups and eased investment in startups across the network, which is a very positive development,” he said.

Even though the government has addressed the problem, investors are now keen to understand if they could implement the notification smoothly. Anil Joshi from Unicorn Ventures is sure these reforms will evolve and the government will actively keep making changes as system demands.

“However, if they are not implemented properly then I fear that angels may dissociate themselves from investments as no one wants to get into scrutiny for investment from tax paid income,” he added.

What Next?

Now that angel tax will have been relaxed and it will haunt fewer startups, can India truly be startup nation? Well, honestly – there is a long way to go.

Presently, India stands tall among the top countries as a startup nation. However, at the ground, the government and ecosystem have a lot of work to do to truly call India a startup nation.

From StartupIndia to DigitalIndia, there have been several initiatives that have been kicked off by the central government while on the other side even states have tried to nurture entrepreneurship in their regions. But often while discussing regulator related issues, we often forget to seek Indian Inc’s participation to develop the ecosystem.

“We need active participation from corporates to make the ecosystem more vibrant. They need to actively involve with startups for a solution and also actively scout for acquisition,” Joshi says.

On the other hand, Lakshmi Potluri-CEO, DCF Ventures says the efforts of both the state and central government have started to show. Having said, rural and non-tech entrepreneurs still need a lot of nurturing and handholding to grow into scalable businesses.

“Entrepreneurs outside tier I cities with great ideas are yet to be tapped and nurtured as access to information/mentors is limited or nonexistent. The ecosystem should look at creating opportunities to showcase a variety of startups to the industry in different domestic, industry shows, global platforms, etc. Lastly, more cross border best practices exchange from successful ecosystems such as Israel, Germany etc., will be a wonderful opportunity and insight for those who are running such startup/entrepreneurship facilitation ecosystems,” she adds.

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Website : http://www.vidyasunilassociates.com

Legal Complainces for StartUps

Here are five important tax tips for startups useful at many levels – from starting to each stage of progress.

1. Compliance With Tax Norms Makes Life Easier

2. Hire/Consult Tax Professionals

3. Learn About the Broad Norms

4. Know Your Rights and Benefits as a Taxpayer

5. Deeper Insights for Future Planning

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Website : http://www.vidyasunilassociates.com

Cell No. : +91 9739834819

VidyaSunil & Associates

VidyaSunil & Associates is into practice of Tax Compliance, Company / Corporate Law Compliance, Accounts, Audit, Fund Raising, GST, Start Up Consultancy established with a objective to provide wide Spectrum of Activities under One Roof.

We aim to be part of your team & provide value added services in a smooth and efficient manner while leaving you to focus on developing your business. We provide a long-term solution that understands your business through personalized “Solution Based Consulting”.

Professional Services are catered in below mentioned expertise fields:

We provide the best advise & practice for Startups / SME / MSME on matters relating to Business Planning & Development, Mergers & Acquisitions (M&A), Business Valuation, Tax Compliance – (Direct & Indirect Taxes).

We are specialized in catering to IT / Non IT / Health Care & Startups – Out Sourced CFO Services / Virtual CFO Services: Accounting / Book Keeping (complaint with I GAAP / IFRS) including Implementation. MIS Reports, Cash Flow Analysis, Financial Modeling, M&A, Costing & Budgeting.

Tax Compliance includes Direct & Indirect Taxes ( including Handling of Litigations/ Attending to Personal Hearings ) Expertise services in Commercial Taxes – GST / KVAT, Central Excise, Service Tax, SEZ, STPI, Import Export Consultations, FEMA & Allied taxes.

Acting Consultant / Advisor & Mentor to various Startups / SME & MSME Ventures.

We are founded by a team of experts in accounting, auditing and taxation services as now grown and diversified into a multi-dimensional consulting firm having footprint not just in the conventional areas like Statutory Audit, Internal Audit, GST Audit, Investigation but also in new sphere as well.

Our Services:

We offer a wide array of professional services in the areas mentioned below:

Accounting and Payroll Services

︎Setting up of accounting system

︎Book keeping and general accounting services

︎Preparation of Financial Statements

︎Cash Forecasting

︎Budgeting

︎Financial reporting & Analysis

︎Liaison with Financial Institutions and Banks

Strategizing, Planning and Compliance, Advisory and Representation

︎Direct Taxes (Income Tax, TDS, Wealth Tax)

︎Indirect Taxes (GST, PT & Others)

︎Assistance in Statutory Compliances

︎Filing of Income Tax Returns for Individuals, Partnership forms, LLP, Private Limited companies

︎Calculation, Review, Reconciliation, Payment & Filing of GST, PT, TDS, e-TDS, PF, ESI, etc.,

Statutory Registrations and Compliances

︎Registration of entities as a proprietary concern, partnership firm, private limited company, public limited company, trust, AOP etc

︎Registration with different Statutory bodies of PAN, TAN, GST, Professional Tax, Shop & ︎Establishment (Labour Licence), Provide

︎Export & Import Licence, MSMED, etc.

︎Assistance for compliance with the procedures of company law including maintenance of statutory registers, filing of statutory return

︎Meetings and other day to day operational matters.

Looking forward to hear back from you for any support/assistance

Advice for Connect :

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. : 9739834819 / 9480633382

Outsourced Accounting Services

We are a 10 year old company based out of Bangalore and engaged in providing a range of services to our clients who are mainly drawn from the IT and services sectors.

Our team includes professionals of diversified fields from post graduates, who are well versed in the services sector and manufacturing, construction sector.

We cater to the needs of many IT , Services and Manufacturing Companies including MNCs. You can find the complete list of detailed professional services in our website.

We provide services in terms of the following :

Virtual CFO services
Accounting and book-keeping services
CFO/Controller support services
On-line payroll and statutory compliances
Direct and indirect tax compliance services
GST related services including filing of multiple returns, etc
Obtaining GST refunds including filing of refund claims, follow up with the Department, etc.
Handling of service tax/GST/VAT audits, replying to show cause notices, filing of appeals, etc
Handling issues related to VAT/service tax including pending re-assessments, investigations, etc
Transfer pricing related services
Company Secretarial services including maintenance of minutes, ledgers, etc
Due Diligence related services

We can also help in obtaining refunds for exporters, under the GST regime.

Our delivery team is well trained to handle recognized packages like SAP, TALLY, SAGE and QUICKBOOKS.

We would be pleased to offer our services to your Company, on highly competitive rates.

At a time when your cash flows could have been impacted due to the prevailing Covid situation, we could be of value to you.

Advice Connect :

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. : 9739834819 / 9480633382

File your Income Tax Returns

As per current tax laws, the basic tax exemption limit applicable to an individual depends on the tax regime chosen by him/her. If an individual opts for the new tax regime, then basic exemption limit will be Rs 2.5 lakh irrespective of his/her age.

However, if an individual opts for the old tax regime, then basic exemption limit depends on the age of the person. Currently, the basic exemption limit for resident individuals below the age of 60 years is Rs 2.5 lakh. For senior citizens aged 60 years and above but below 80 years, income up to Rs 3 lakh is exempted from tax.
For super senior citizens (those above the age of 80 years), the basic exemption limit is up to Rs 5 lakh.
Individuals who fall under seventh proviso to Section 139(1) are as follows:

a) who have deposited an amount or aggregate of the amounts exceeding Rs 1 crore in one or more current accounts maintained with a banking company or a co-operative bank; or

b) who have incurred an expenditure of an amount or aggregate of the amounts exceeding Rs 2 lakh for himself or any other person for travel to a foreign country; or

c) who have incurred expenditure of an amount or aggregate of the amounts exceeding Rs 1 lakh rupees towards consumption of electricity or;

d) who full-fill such other conditions as maybe prescribed.

Therefore, if you are required to file ITR mandatorily due to any of the conditions mentioned above, then ensure that you have filed your tax return before the deadline or else late fee will be levied even if your gross total income is below the taxable limit.

Advice for contact :
VidyaSunil and Associates
Web : http://www.vidyasunilassociates.com

File your Income Tax Returns now to avoid interest penalty !!!

The tax department has extended deadline for filing income tax returns to 31 December from 30 September. If a taxpayer didn’t file her ITR on or before 31 July and has outstanding tax to be paid, she will be charged a monthly interest of 1% on the outstanding tax amount.The income tax department, last week, extended the deadline for filing income tax returns to 31 December from 30 September. However, there is no relief on interest penalty for taxpayers who have an outstanding tax liability above ₹1 lakh and are late in filing their returns.

On 9 September, a notification by the Central Board of Direct Taxes (CBDT) said “the extension of the dates … shall not apply to explanation 1 to section 234A of the (IT) Act.”What this means is that if a taxpayer didn’t file her ITR on or before 31 July and has outstanding tax to be paid to the IT department, under section 234A she will be charged a monthly interest of 1% on the outstanding tax amount. This penalty will be levied only on those whose outstanding tax is above ₹1 lakh after removing advance tax or TDS that might have already been paid.Hence, it is advised that you pay your pending tax, if any, at the earliest.

“It’s advisable to compute tax immediately even if ITR may be filed later. This may help us in saving interest. After paying the outstanding tax, which is done through net banking, one can file ITR anytime before 31 December,”. This move does not impact small taxpayers who are likely to have tax liability under ₹1 lakh.

Advice for contact :

VidyaSunil and Associates

Web : www.vidyasunilassociates.com

#vidyasunilassociates #vidyasunil #Avbg #incometax #incometaxreturn #incometaxreturn #income

VidyaSunil & Associates – Services Offered

Professional Services are catered in below mentioned expertise fields:

Acting Consultant / Advisor & Mentor to various Startups / SME & MSME Ventures.

Our Services:

We offer a wide array of professional services in the areas mentioned below:

Accounting and Payroll Services

︎Setting up of accounting system

︎Book keeping and general accounting services

︎Preparation of Financial Statements

︎Cash Forecasting

︎Budgeting

︎Financial reporting & Analysis

︎Liaison with Financial Institutions and Banks

Strategizing, Planning and Compliance, Advisory and Representation

︎Direct Taxes (Income Tax, TDS, Wealth Tax)

︎Indirect Taxes (GST, PT & Others)

︎Assistance in Statutory Compliances

︎Filing of Income Tax Returns for Individuals, Partnership forms, LLP, Private Limited companies

︎Calculation, Review, Reconciliation, Payment & Filing of GST, PT, TDS, e-TDS, PF, ESI, etc.,

Statutory Registrations and Compliances

︎Registration of entities as a proprietary concern, partnership firm, private limited company, public limited company, trust, AOP etc

︎Registration with different Statutory bodies of PAN, TAN, GST, Professional Tax, Shop & ︎Establishment (Labour Licence), Provide

︎Export & Import Licence, MSMED, etc.

︎Assistance for compliance with the procedures of company law including maintenance of statutory registers, filing of statutory return

︎Meetings and other day to day operational matters.

Looking forward to hear back from you for any support/assistance

Advice for Connect :

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. : 9739834819 / 9480633382

Due Date for filing your Income Tax Returns

The deadline for ITR filing for the financial year 2020-21 has been extended upto 30 September 2021, keeping the Covid situation in view.

Only a few weeks are left to file your income tax returns (ITR). So, if you have still not filed your ITR, do it now. It is always recommended to complete the task as soon as possible and not to wait until the last minute to avoid chances of any error and technical snags in the Income Tax Website, which might happen due to server traffic.

Advise for Connect

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. 9739834819 / 9480633382