ITR-1 OR SAHAJ

This Return Form is for a resident individual whose total income for the assessment year 2018-19 includes:
• Income from Salary/ Pension; or
• Income from One House Property (excluding cases where loss is brought forward from previous years); or
• Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
• Agricultural income up to Rs.5000.

Who cannot use ITR 1 Form?

• Total income exceeding Rs 50 lakh
• Agricultural income exceeding Rs 5000
• If you have taxable capital gains
• If you have income from business or profession
• Having income from more than one house property
•  If you are a Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Owning assets (including financial interest in any entity) outside India) if you are a resident, including signing authority in any account located outside India
• If you are a resident not ordinarily resident (RNOR) and non-resident
• Having foreign assets or foreign income
• If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.
• ITR- 1 : Resident individuals having income < 50 lakhs from:
• 1.Salary/pension

  2.Other sources

  3.One house property

  ITR-2

  ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2018-19 includes:

  • Income from Salary/Pension; or
  • Income from House Property; or
  • Income from Other Sources (including Winnings from Lottery and Income from Race Horses).

  (Total income from the above should be more than Rs 50 Lakhs)

• If you are an Individual Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Being a resident not ordinarily resident (RNOR) and non-resident
• Income from Capital Gains; or
• Foreign Assets/Foreign income
• Agricultural income more than Rs 5,000

Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

Income From

1.Every income from ITR -1 >50 lakhs

2. Capital Gains

3.More than one House Property

4.Foreign Income /Foreign Assets

5.Holding Directorship in a Company

6.Holding Unlisted Equity shares

ITR-3

The Current ITR3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on profession. The persons having income from following sources are eligible to file ITR 3 :

• Carrying on a business or profession
• If you are an Individual Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Return may include income from House property, Salary/Pension and Income from other sources
• Income of a person as a partner in the firm

Income From:

1. Every income from ITR -2
2. Business/Profession
3. As a partner in a firm
4. Presumptive income > 50 lakhs

ITR-4 or Sugam

The current ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also include those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

Income From

Every income from ITR- 1 Presumptive income under

1.Salary /Pension

2. Other Sources
3. One House Property

4.Income From Business

Total income > 50 Lakhs

Who cannot use ITR 4 Form?

• If your total income exceeds Rs 50 lakh
• Having income from more than one house property
• If you have any brought forward loss or loss to be carried forward under any head of income
• Owning any foreign asset
• If you have signing authority in any account located outside India
•  Having income from any source outside India
• If you are a Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Being a resident not ordinarily resident (RNOR) and non-resident
• Having foreign assets or foreign income
• If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

ITR-5

ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

Applicable to-

1.Firms

2. LLPs

3.AOPs

4.BOIs

ITR-6

For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.

ITR-7

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

• Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
• Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
• Return under section 139(4C) is required to be filed by every –
  • Scientific research association;
  • News agency ;
  • Association or institution referred to in section 10(23A);
  • Institution referred to in section 10(23B);
  • Fund or institution or university or other educational institution or any hospital or other medical institution.
• Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.
• Return under section 139(4E) must be filed by every business trust which is not required to furnish return of income or loss under any other provisions of this section.
• Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish return of income or loss under any other provisions of this section.

Persons / Company  Under

1.Section 139(4A)

2.Section 139(4B)

3.Section 139(4c)

4.Section 139(4D)

• Secion 80 Deductions
• Income Tax for NRI
• Capital Gains Income
• House Property
• Income Tax Verification
• Income Tax Refund status
• File TDS Returns
• Tax Filing for Professionals
• Tax Filing for Traders

B. all gst RETURN E FILING

• GST Software
• New GST Returns
• E-Invoicing
• E-Invoicing Software
• Input Tax Credit
• GST Returns
• GST Invoice
• GST Services
• GST Training
• GST Calendar
• GST News
• E -Way Bill

C . MCA RELATED RETURN FILING (ROC RETURN AND COMPLIANCES FILING)

Every company is required to file the Audited financial statement and annual return as per The Companies Act, 2013 within 30 days and 60 days respectively from the conclusion of the Annual General Meeting date. Filing of Audited financial statement is governed under Section 129 and 137 of The Companies Act, 2013 read with Rule 12 of the Company (Accounts) Rules, 2014 and annual return is governed under Section 92 of the Companies Act,2013 read with Rule 11 of the Companies (Management and Administration) Rules, 2014.

The procedure of ROC filing the annual return and Audited financial statement can be easily understood by the following process:

1. Hold a Board Meeting to

• Authorize the auditor for the preparation of financial statements as per Schedule III of the Companies Act, 2013.
• Authorize the Director or Company Secretary for preparation of Board Report and Annual Return as per the Companies Act, 2013.

2. Hold another Board Meeting for approving the draft financial statements, Board Report and Annual Return by the directors of the company.
3. Conduct the Annual General meeting of the Company and pass the necessary resolutions. Please note that the financial statements are considered final only when the same is approved by the shareholders at the General Meeting.

Documents Required for ROC Annual Filing

Every company has to attach some documents important while filing the ROC and it includes:

• Balance-Sheet:Form AOC-4 to be filed by all companies while ROC filing
• Profit & Loss Account:Form AOC-4 to be filed while ROC filing by all companies
• Annual Return:MGT 7 to be filed by companies
• Cost Audit Report: Form CRA 4 to be filed by the companies

E-Forms required to be Filed with ROC

• Board Minutes

EPF REgistration RETURN (EMPL0YEE PROVIDENT FUND )

The Government of India will pay the employer and employee contribution to EPF account of employees for another three months from June to August 2020. The benefit is for establishments with up to 100 employees and where 90% of those employees draw a salary of less than Rs 15,000 per month. The contribution to EPF is reduced to 10% from 12% for non-government organisations.

Employees Provident Fund [EPF] is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of Employees’ Provident Fund Organisation (EPFO) which is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization.

Documents Required For EPF Registration

The list of documents required for PF registration would vary as per the type of entity who wishes to register themselves which are as follows 

For All Other Entities

• First sale bill.
• First purchase bill of raw material and machinery.
• GST Registration Certificate, if registered
• Bankers details- name, address, branch, IFSC code
• Record of a monthly strength of the number of employees.
• Register of salary and wages, all vouchers, all balance sheets from day one to current date of provisional coverage.
• Salary and PF Statement.
• Cross canceled cheque.

A.       ESI RETURN  ( EMPLOYEE

Registration and Filing of Returns

An employer who is eligible to be registered as per the Employee State Insurance Act 1948 (“Act”) must do so by abiding by the following steps:
– An employer needs to keep all documents ready for reference.
– Next, an employer must file Form 1, which is available in PDF format on the ESIC website.
ESIC will verify all the details and issue a 17 digit unique number. This unique number is required for all filings.
– Every employee will receive an ESI card post submission of the form stating all details by the employer.

The documents required for registration are :

• PAN card of the business.
• Address proof of business.
• The license obtained under Shop and Establishment Act or Factories Act.
• Basic documents required as per the nature of entity – Articles of Association, Memorandum in case of a company, partnership deed in case of a partnership and Limited Liability Partnership.
• Details of all directors, partners, and shareholders.
• Details of all employees along with their salary information.
• Bank details.

On successful registration of the establishment, returns can be filed online by the employer.

TDS RETURN AND DUE DATES

Tax Deducted at Source or TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.

In case of payment of salary or life insurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the Income Tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion.

Tax is deducted usually over a range of 1% to 10%.

What is TDS Return?

Apart from depositing the tax, the deductor should also file a TDS return.

TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time. The details required to file TDS returns are:

• PAN of the deductor and the deductee
• Amount of tax paid to the government
• TDS challan information
• Others, if any

Eligibility Criteria for TDS Return

TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments

mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments :

• Payment of Salary
• Income by way of “Income on Securities”
• Income by way of winning lottery,
•  puzzles and others
• Income from winning horse races
• Insurance Commission
• Payment in respect of National Saving Scheme and many others

TDS Return Filing

AUDIT REPORT 

1.Unqualified Opinion (Clean Audit Report)

Often called a clean opinion, an unqualified opinion is an audit report that is issued when an auditor determines that each of the financial records provided by the small business is free of any misrepresentations. In addition, an unqualified opinion indicates that the financial records have been maintained in accordance with the standards known as Generally Accepted Accounting Principles (GAAP). This is the best type of report a business can receive.

Typically, an unqualified report consists of a title that includes the word “independent.” This is done to illustrate that it was prepared by an unbiased third party. The title is followed by the main body. Made up of three paragraphs, the main body highlights the responsibilities of the auditor, the purpose of the audit and the auditor’s findings. The auditor signs and dates the document, including his address.

2.Qualified Opinion

In situations when a company’s financial records have not been maintained in accordance with GAAP but no misrepresentations are identified, an auditor will issue a qualified opinion. The writing of a qualified opinion is extremely similar to that of an unqualified opinion. A qualified opinion, however, will include an additional paragraph that highlights the reason why the audit report is not unqualified.

3.Adverse Opinion

The worst type of financial report that can be issued to a business is an adverse opinion. This indicates that the firm’s financial records do not conform to GAAP. In addition, the financial records provided by the business have been grossly misrepresented. Although this may occur by error, it is often an indication of fraud. When this type of report is issued, a company must correct its financial statement and have it re-audited, as investors, lenders and other requesting parties will generally not accept it.

4.Disclaimer of Opinion

On some occasions, an auditor is unable to complete an accurate audit report. This may occur for a variety of reasons, such as an absence of appropriate financial records. When this happens, the auditor issues a disclaimer of opinion, stating that an opinion of the firm’s financial status could not be determined.

Advantages of Audit Reports:

·         Provide assurance on Financial Statements. Audit reports issued by a professional and independence auditor which is operational independence from the management of the entity. The report issued from them could help the users of the financial statement to assure that financial information is correct or not.

·         Prove management integrity on their shareholders. As auditor is independence from management, the report could prove whether managements are honest to their shareholders or not. This is related to principle and agency theory.

·         It is the requirement of law and regulation. Most of the countries required the entities which have the specific criteria to have their financial statements audited by independent auditors. Those criteria like annual turnover, the value of assets, and the number of employees. The auditor is the evidence that could prove to the government that the entity is complying with the law.

·         It is the requirement of shareholders. Most of the corporate shareholders want their entity’s financial statements to be audited. This report is examined by the experts and express into the easy words that could be understood by most of the shareholders who do not have financial or audit background.

·         Parent company’s requirement. Many parent companies that have subsidiaries operating in other countries or even in the same country normally required their subsidiaries’ financial statements to be audited. This report could help them manage the subsidiary even more effectively.

·         Help stakeholders to understand about entity’s financial and operational situation. This is probably the most important point. The auditor is required to state the auditor report whether the entity has any going concern problem or not. This includes financial and non-financial problems that could lead the entity to face bankruptcy in the next foreseeable period from the audit report date.

Limitation of Audit Reports:

·         The scope of the audit might be limited by management. This is a popular discussion about audit’ issues. In the audit standard, auditors should have the full right to access any kind of information that could help them to obtain audit evidence to express their opinion. However, in practice, management might try their best to prevent auditors to obtain some sensitive information. These are probably the management don’t fully trust auditors ethic related to confidentiality or management themselves have integrity problems. These problems might prevent auditors to provide the best quality of audit opinion that it should be.

·         Time too constraints for auditors. In practice, auditor normally faces time constraints which do not provide them enough time to perform their testing as they should be.

·         Auditors’ Independence. The code of ethics required auditors to stay independence from their audit clients. This is to make sure that auditors do not bias when they perform their works as well as when they issue audit opinion.

·         Risks that might not detect by auditors: Inherent Risks and Fraud Risks. Audit standard requires auditors to have proper audit planning as well as risks assessment. This is to make sure that the auditing quality is maintained, and audit risks are identified and minimize. However, these things could not auditor to eliminate all kind of risks of material misstatement from financial statements. For example, inherent risks and fraud risks.

·         Auditors Qualification and Competency. This is also an important point. We all know that in order to run an audit firm, someone who represents the firm needs to hold CPA qualification. But the thing is because of the competition, and because of the number of works, the quality of the audit report might have some problems. As you may know

ACCOUNTING ,BOOK KEEPING

PAYROLL & RETAINER-SHIP

AUDITING & ASSURANCE ,INTERNAL AUDIT & SPECIAL AUDIT

CMA  DATA & PROJECT REPORT PREPARATION

CIBIL/CREDIT RATINGS

PAN/TAN/