9 most important Income tax changes which will occur from 1st April

There are certain most important Income tax changes which will affect you in the coming month.

Here is a quick read through them!

Tax rebate for taxpayers with income up to Rs 3.5 lakh (earlier Rs 5 lakh) is reduced to Rs 2,500 from Rs 5,000 per year. Because of the combined effect of change in tax rate and rebate, an individual with taxable income of Rs 3.5 lakh will now pay tax of 2,575 instead of 5,150 earlier.

Holding period for immovable property is now reduced to 2 years from 3  and is to be considered “long term”.This change will ensure that any immovable property which is held beyond 2 years is taxed at a reduced rate of 20 per cent and eligible for various exemptions on reinvestment.

Tax exemption on reinvestment of capital gains, this will be in notified redeemable bonds in addition to investment in NHAI and REC bonds.

Tax saving for taxpayers with income above Rs 1 croreof up to Rs 12,500 per year and Rs 14,806 (including surcharge and cess) and a decrease in tax rate from 10 per cent to 5 per cent fortaxpayers with total income between Rs 2.5 lakh and Rs 5 lakh.

Surcharge at 10 per cent of tax levied on rich taxpayers– people with income between Rs 50 lakh and Rs 1 crore. The rate of surcharge for the super rich, with income above Rs 1 crore, will remain the same i.e.15 per cent.

One-page tax return formfor individuals with taxable income up to Rs 5 lakh (excluding business income) is to be introduced. Those filing returns for the first time in this category will generally not be subject to scrutiny.

Time period for revision of tax return cut to one year (which was previously 2 years) from the end of the relevant FY or before completion of assessment, whichever is earlier.

The base year for indexation of cost (adjustment of inflation) has been shifted to April 1, 2001 ( which was previously April 1, 1981).Long term capital gains tax will result in a lower payout owing to beneficial amendments. This means lower profits on sale.

Fine for delay in filing tax return for 2017-18 is Rs 5,000 if filed by Dec 31, 2018 and Rs 10,000 if filed later. Such fee will be restricted to Rs 1,000 for small taxpayers with income up to Rs 5 lakh.

For more information on Income Tax, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

 

More Newsletter

Tax Reforms – Budget 2017

GST Registration Procedure

One India one Tax- GST

Save Tax through the following Tax Exemptions

Online Tax Filing

Taxation for Expatriate

 

BENEFITS OF ISO CERTIFICATION

International Standards acts as a symbol of surety that the product is safe to use and the quality is good. It ensures the consumer that the product is reliable and good for the environment. International Standards helps in setting up of standards and strategies for companies to overcome various challenges faced by them during the lifetime of the company. It helps in building up the image of the company and also develops it. International Standards also provide international expertise as it is worldwide recognizable as well as experience. ISO also helps in eliminating certain barriers in world trade by providing many agreements on which these trades take place.

Many companies have gained a lot of benefits from these International Standards as they help in making the work more effective and efficient by reducing cost and saving more than required. Some main benefits of ISO for a company are as follows:

BETTER IMAGE AND RELIABILITY

International Standards are accepted worldwide and when a company has been certified by this organisation then it increases the standards and reliability among the consumers.Most of the consumers are very particular with the kind of product they are working with which makes it necessary for them that the product is good and safe to work with that makes them confident. ISO will increase the clients as well as goodwill of the company among consumers.

CUSTOMER SATISFACTION

ISO increases customer satisfaction as most of the customers know that the product is certified, reliable and safe to use. ISO helps a company to fulfill customer requirements by improving and customizing work ethics. Customers will know the quality of the product that they are working with which will help the company to get more satisfied customers. This will also generate more revenues by keeping customer loyalty.

BETTER PROCESS INTEGRATION

ISO lets the company know about the product process integration which makes it easier for a company to make improvements in its product by focusing more on efficiency and also by reducing cost and saving more. ISO helps a company to eliminate waste which may occur during the process of a product by using efficiencies on fewer errors. Also with the help of this a company can set the price of a product accordingly and advertise the product in much better ways. ISO makes the product qualified and better to use than other products which gives a great advantage to the company.

EMPLOYEES ENGAGEMENT

Employees which are in the ISO product improvement need more training and development as the product will be certified. It helps employees as it provides them with information regarding instructions and procedures to complete particular tasks. Employees are mainly happy who work towards the improvement of the product. These employees will be more effective and will help the company to improve as they know that the quality of the product depends on them.

 DECISION MAKING

ISO helps a company in decision making as it lets a company to monitor its progress and what more is needed to make the product of the best quality. This lets a company to decide on the procedure of cutting cost, utilizing waste, savings and also on being effective. A company can decide on how to make a customer more satisfied with the product and also on employee’s satisfaction. A company can keep these things in mind while making a decision.

International Standards are of a few types and they are as follows:

ISO 9001:2008

This ISO is a document which maintains the necessary requirements for a quality management system. ISO 9001 provides customer satisfaction by helping a company to fulfil customer requirements. It also increases revenues and low chances of risk as the product is of good quality. It ensures good outgoing control and helps government as it provides expert opinion and opens world trade.

OHSAS 18001:2007

OHSAS lets the company to think about the future as it improves brand building. It focuses more on employee’s safety and satisfaction by attracting good human resource. This ISO reduces the administrative cost, public liability cost and insurance cost for the company. Production is also benefited from this because there is no accidents and disturbance in production.

ISO 14001:2004

In India, ISO 14001:2004 works towards a better environment and a better world by following certain necessary steps to cure these problems. This ISO helps an organisation to increase its profitability by using better ways of production such as through saving energy. Waste management must be of prime importance and ISO helps an organisation to reduce its waste management cost. It also reduces certain risks taken by the organisation which may affect the environment in the future.

ISO 22000:2005

ISO 2200:2005 is the certification provided to food companies which lets them to provide safe food products which are safe, reliable and easy to consume to the consumers.This ensures the consumers that the food is secure and safe for them to have and buy.

For more information on Benefits of ISO Certification, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

 

More Newsletters

How to apply for TDS Refund?

Limited Liability Partnership and its Incorporation

Activities to Be Performed after Incorporation Of Company

Private Limited Company and its Incorporation

One Person Company and its Incorporation

Tax Reforms – Budget 2017

 

Activities to Be Performed after Incorporation Of Company

If you have recently incorporated your private limited company or under the process of incorporation then you must get yourself familiar to the new provisions of Companies act 2013.

The most important things that every promoter or director of a newly incorporated private limited company should know after getting certificate of incorporation or before getting into the process of incorporation.

Checking Company’s Master Data after Incorporation

Certificate of incorporation for a private limited company is the last step in the process of incorporation. Once you received the certificate of incorporation, it means, all legal formalities required for company registration are completed in India.

At Gapeseed Consulting, we have legal consultants like chartered accountants and Company Secratories who help us in the process of company incorporation and do all such things that are required to complete the registration process.

Now the question is how to cross check to know that the company is incorporated with correct details like authorized share capital, registered office, category, CIN, paid-up share capital, status and date of incorporation etc.

These are the most important thing that every company should keep it right.

We suggest you to check these details in company’s master data by visitingthe website of Ministry Of Corporate Affairs  after getting certificate of incorporation.

If you find any changes or incorrect details then immediately inform to your chartered accountant or Company Secretary  to take necessary actions for its correction.

You need to check following things in company’s master data;

  • Authorized share capital
  • Paid up share capital
  • Registered office address
  • Status i.e. Active or Inactive
  • Date of incorporation

File E-Form INC22 For Situation Of Registered Office

Situation of registered office has to be intimated within 30 days from the date of incorporation to the registrar of companies. This can also be filed at the time of incorporation along with other e-forms if registered office of the company is going to be the director’s residence or owned house.

If it’s not filed at the time of incorporation then within 30 days from the date of incorporation, then it is a Non-Compliance u/s 22 of the Companies Act,2013

As per section 12 of Companies act 2013, a company shall, on and from the 15th day of its incorporation and all times thereafter shall have a registered office. This means the company should enter into a rent or lease agreement within 15 days from the date of incorporation and within 30 days from the date of registration should file INC-22 with ROC.

Display Company’s Identity And Other Details

After incorporation, it’s the duty of the company to display following things outside the company’s registered office;

  1. Name of the company
  2. Registered office address of the company
  3. Corporate identity number or CIN
  4. Telephone number, email ID
  5. Website address and fax number if any

These details are also required to be printed in all business letters, bill-heads and in all other official publications.

Putting CIN or corporate identity number in all official publications is a new requirement in Companies act 2013. This provision was not there in old Companies act 1956.

In case of failure to quote CIN number, penalty of Rs. 1,000 per day shall be imposed on the defaulting company and on every officer in default for every day during which such default continues up to a maximum limit of Rs. 1,00,000.

If company has changed its name in last two years then it shall paint or affix or print, as the case may be, along with its name, the former name or names so changed in all official publication including letter head and bill-heads.

Appointment Of Company Auditor

As per section 139(6) of Companies Act 2013, company has to appoint its first auditor within 30 days from the date of incorporation in a board meeting. If board of directors are not able to appoint then it has to be appointed within 90 days in a general meeting of members.

First auditor as appointed is required to hold office till the conclusion of first annual general meeting. Companies Act 2013 does not require any form to be filed with ROC but this is a requirement of law and it has to be complied within time.

Open A Bank Account And Issue Shares To Subscribers

Companies Act 2013 requires the company to allot and deliver share certificates within 2 monthsfrom the date of incorporation to all subscribers of MOA. It’s also mentioned that each subscriber will deposit subscription money as specified in MOA to company’s bank account by cheque or through net banking.

We suggest to open a bank account with the help of MOA, AOA and certificate of incorporation and then takecheque from each subscriber and deposit it in company’s bank account.

File Audit Report, Financial Statements And Annual Report Before Due Date

A private limited company is required to file its balance sheet, profit and loss account, auditor’s report and annual return every financial year before the due date with the registrar of companies. Non compliance to this provision will attract additional fee in addition to the normal fee that are charged while filing the e-Form.

Now you know mandatory things that promoter or directors of a private limited company should remember after incorporation of a private limited company. In case of any doubt or clarification please contact us by using our comment form.

For more information about Activities to Be Performed after Incorporation Of Company, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

Also read this:

Outsourced Accounting Services ,
5 Steps for Setting up a Business in India,
Importance of Accounting for Startups ,
Simple Tips to Design a Salary Structure for an Employee, 
Online Tax Filing ,
Tax Accounting Services for start-ups and small businesses, 
Procedures and Documentation For Startups,
Payroll Services for Startups.

IMPORTANCE OF WORK LIFE BALANCE

 WHAT IS WORK LIFE BALANCE?

Work life balance is all about creating and supporting a healthy work environment which will enable a worker to have balance between work and personal responsibilities. This will help in maintaining and strengthening employee loyalty and productivity towards the company. Workers have many responsibilities to take care of, such as work, family, housework and many more little things that matter to them. Balancing between work and life has become a major issue between workers as this conflict has been associated with numerous physical and mental health problems. Work-life conflict impacts workers, employees and their communities as well. A worker can only be productive when there is balance between its work and life.

COMPONENTS OF WORK-LIFE BALANCE

TIME MANAGEMENT

Time management is one of the major components to achieve work life balance. It is a way of organizing and planning effectively the time required to complete certain activities, it also helps in efficient use of your day. Time management can be done on the basis of your work, whether it is urgent or important. It helps in greater productivity and efficiency, less stress and better professional reputation.

STRESS MANAGEMENT

Stress management is a technique to reduce stress suffered by workers. As the world is growing and changing faster every day, work becomes more complex over time. Competition arises between workers to excel in the company. Workers then start working under pressure of promotion and preference, this results in stress of work. Workers must not come under stress while working rather than stressing over deadlines.

SELF-MANAGEMENT

Self-Management is a way of managing one own self. A worker must take care of its body, hygiene and nutrition. A worker must develop talents and potential to enhance their quality of life. A worker must get enough sleep and exercise to be productive and work effectively and efficiently for a company. If a worker excels in managing one own self, then they will become more capable of managing tasks.

CHANGE MANAGEMENT

In this growing world, change has to be adopted no matter whatever the consequences may be, continuously adopting new methods and re-adapting others is vital to a successful career and a happy home life. Effective change management involves making certain changes in your work and everyday life.

IMPROVING WORK-LIFE BALANCE

Role of an Employer

An employer must direct an employee towards the organisational goal and support them by providing them with necessary resources. Employers can arrange special workshops on this major issue and also programmes, initiatives for the betterment of the employees. Here are some decisions an employer must take to eradicate this problem.

Employer must see to it that the employee is not given any extra work after they have left their worksite. It means restricting number of hours which are expected of an employee in a given week. They should also see to it that their e-mail servers should stop after the working hours.

Employers must concentrate more on the outcome rather than the number of hours a working is working. A productive worker can complete its worker well before 8 hours and may not need to waste time.

They should also increase number of brakes while working, keeping in mind the stress factor of an employee. Lunch breaks, rest breaks must also be kept in mind while making such decisions. Also; providing breaks to workers increase their productivity which means effecting work.

Employer must also inform its workforce regarding work-life balance and its importance. This will help them in taking extra care of themselves and their families, resulting in less health problems both physically and mentally.

An employer must let the employees do certain things which make them happy and satisfied at work. This will help the employee in improving its mental state by providing them with happiness.

Getting inputs and feedback from employees keeps them connected to the company and makes them feel that they are a vital part of the organisation. This will keep them motivated and satisfied while working for the betterment and growth of the company.

Motivating its employees by fulfilling their basic needs, social needs and esteem needs. An employer must appreciate the work done by its employees and guide them if they go wrong.

Understanding the needs and problems of a worker must be kept in mind. Offering maternity leaves to new parents will help the employees to feel better about the organisation and make them believe that the organisation really do care for them.

The organisation must also provide employees with more number of vacation days so that they get to spend more time with their family and help them self-manage themselves.

Some examples of good work life balance in the world are:

1. Family is given more importance than work in the Danish Culture. The country focuses on fewer working hours so that workers get more time to spend with their families.

2. In Madrid, workers are allowed to have mid-afternoon breaks to avoid the sun and this cuts down their hours substantially.

3. Workers in Germany take an average of 29 days’ holiday every year just to celebrate Oktoberfest and be with their families.

4. In France, workers get mandatory pay leaves of 40 days and the government is forcing them to not use smart devices after work hours, also no checking and responding to e-mails after work.

5. In Netherlands people work an average of 27.6 hours a week. It is one of the few countries in the world to have such a low work week cycle but yet they have a very good GDP. It is also said that Netherlands has a 4-day work week.

6. Bulgaria is the best place for the people to work in who have kids as, the workers are given up to 410 days of paid maternity leave at 90 percent of the mother’s salary.

Work-Life balance is very important in a workers’ day to day activities as performing certain tasks may drain out their energy of doing other tasks for their family or for themselves. Balancing will help a worker to be productive and grow as a person. Good management of time, stress and change in the environment by an employee leads to effective and efficient work.

For more information on WORK LIFE  BALANCE, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

 

More Newsletter

The Evolving Role of Internal Audit in Growing Companies

GST Registration Procedure

Save Tax through the following Tax Exemptions

5 Steps for Setting up a Business in India

Online Tax Filing

The Evolving Role of Internal Audit in Growing Companies