Category: Blog

ONLINE INCOME TAX RETUN

Income Tax Return is defined under Section 139(1) of the Income Tax Act, where an Income Tax Return is required to be submitted by every Individual where his income exceeds the minimum income chargeable to Income Tax.

E-filing or electronic filing is submitting your income tax returns online, using tax preparation software that has been pre-approved by the relevant tax authority.

 

WHO IS REQUIRED TO FILE INCOME TAX RETURN?

  • An individual, if gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs 2,50,000/-.
  • There is a limit ofRs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old).
  • A company irrespective of whether there is any income or loss or NILincome during the financial year, it is mandatory to file income tax return.
  • A firm irrespective of whether there is any income or loss or NIL income during the financial year, it is mandatory to file income tax return.
  • E-filing of Income Tax return is compulsory if you want to claim income tax refund.
  • If one wants to carry forward loss under any head of income, it is mandatory to file IT Return.
  • Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India.
  • One is required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
  • If tax has been deducted from your income, then you must file income tax return to avoid notice from the income tax department as it has information about your income.

PROCESS OF FILING INCOME-TAX RETURN

  • For any queries and any FAQs while filing Income tax return please feel free to contact Gapeseed Consulting Pvt. Ltd.

www.gapeseedconsulting.com

 

TYPES OF FORMS FOR DIFFERENT ASSESSEES

 

FORM SOURCE OF INCOME DUE DATES FOR FILING
ITR-1(SAHAJ) ·         INCOME FROM SALARY

·         OTHER INCOME SUCH AS INTEREST

·        INCOME FROM ONE HOUSE PROPERTY

 ·         31ST JULY
ITR-2 FOR INDIVIDUALS AND HUFs ·         INCOME FROM SALARY

·         OTHER INCOME SUCH AS INTEREST

·         INCOME FROM ONE HOUSE PROPERTY

·         INCOME FROME CAPITAL GAINS

·        INCOME FROM BUSINESS OR PROFESSION FOR HUFs, INDIVIDUALS AND PARTNERSHIPS

 ·         31ST JULY
ITR-3 FOR INDIVIDUALS  AND HUFs ·         INCOME FROM BUSINESS ·         31ST JULY
ITR-4 (SUGAM) ·         INCOME FROM SALARY/PENSION

·         BUSINESS INCOME WHERE INCOME COMPUTED ON PRESUMPTIVE INCOME BASIS

·         INCOME FROM NOT MORE THAN ONE HOUSE PROPERTY

·        INCOME FROM OTHER SOURCES

 ·         31ST JULY
ITR-6 ·         INCOME OF COMPANIES ·         30TH SEPTEMBER
ITR-7 ·         INCOME OF CHARITABLE AND RELIGIOUS INSTITUTE

·         INCOME OF POLITICAL PARTY

·         PERSONS CLAIMING EXEMPTIONS UNDER SECTION 10.

·         INCOME OF UNIVERSITY, COLLEGE OR INSTITUTION.

 ·         30TH SEPTEMBER

 

 

CONSEQUENCES OF NON-FILING OF RETURNS

Filing of Income Tax Returns helps an Individual to establish a standard proof of Income with the Income tax department. But there are certain consequences of Non-filing: –

  • Losses of business or profession and capital loss cannot be carried forward in the next year if one fails to file an income tax return for the same year.
  • Due to Non filing of return the assessee has to bear a penalty of Rs. 5000.
  • The Assessee will also be liable to charge Interest @ 1% for non-filing of return.
  • Company assesses are liable to prosecution as well in case of non-disclosure of income and non-filing of Income tax return.

All about Goods and services tax

What is GST?

The RajyaSabha has cleared a constitutional amendment to bring out a system of Goods and Services Tax (GST) in India. It is perhaps the most important economic reform on the NarendraModi government’s agenda. This is one reform which affects all of us.

Goods & Services Tax is a complicated, comprehensive, multi-stage, destination-based tax that will be levied on every value addition. Goods and Services Tax will be levied on all transactions happening during the entire manufacturing chain.
Earlier, when a product was manufactured, there would be an Excise Duty on the manufacture, and then the state would add a VAT tax when the item is sold to the next stage in the cycle. Then there would be a VAT at the next point of sale. The process has changed in the GST regime. Now, Goods and Services Tax will be levied at every point of sale.

Importance of GST

GST plays a significant role in redefining the current tax structure and thus the economy. Currently, the Indian tax structure is divided into Direct and Indirect Taxes. Direct Taxes are levied where the liability cannot be passed on to someone else. In the case of Indirect Taxes, the liability of the tax can be passed on. One can explain the impact of cascading taxes with an example. For example X sells goods to Y after charging sales tax, and then Y re-sells those goods to Z after charging the same tax. In this case while Y was computing its sales tax liability, it also included the sales tax paid on previous purchase, which is how it becomes a tax on tax. This is also referred to as taxes on taxes. This is where the need for GST arises to do away with the phenomenon.
Once the new regime is implemented, harassment of businesses by different authorities will end, and India will have one rate for one commodity throughout the country.

Four GST bills

With clear road map laid down by the Finance Ministry, the Government seems on course to fast track the entire process to achieve targeted GST implementation effective 1 July 2017.
On 12 April 2017, the Central Government enacted four GST Bills.
 Integrated GST (IGST)
 Bill to Compensate States
 Central GST (CGST)
 Union Territory GST (UTGST)

Indirect taxes that will be included under GST –

State taxes
 VAT/Sales Tax
 Entertainment Tax (unless it is levied by local bodies)
 Luxury Tax
 Taxes on lottery, betting and gambling.
 State Cess and surcharges in so far as they relate to supply of goods and services.
 Entry tax not on in lieu of Octroi.

Central Taxes
 Central Excise Duty.
 Additional Excise Duty.
 The Excise Duty levied under the medical and Toiletries Preparation Act
 Service Tax.
 Additional Customs Duty, commonly known as countervailing Duty (CVD)
 Special Additional duty of customs
 Surcharges
The above taxes dissolve under GST; instead all of these, only CGST & SGST exist.

Impact of GST on different Industries

Food Industry
The sales even under the GST regime would largely remain exempt due to small business registration threshold. Food has an exemption from CENVAT and 4% VAT, the GST under a single rate would lead to doubling of the tax burden on food.

Financial Services
India has followed the approach of bringing virtually all financial services within the ambit of tax where the consideration is in the form of an explicit fee. In most of the countries GST is not charged on Financialservices.

Pharma Industry
This sector generally has an inverted duty structure i.e. excise duty on raw material is around 12.5% whereas on finished goods it is around 6-7%, which thus leads to accumulation of refund dues from government. With GST, the Pharma sector is hopeful of making refund process fast and simple, this coupled with savings in warehousing and logistics cost may thus anticipate a positive impact.

Transportation Industry
The Road Transport and Highway ministry is considering an overhaul of around 80 border check posts across the country to ensure seamless flow of goods under the GST regime. Thus, it would be very beneficial for the transportation industry with higher moving time of wheels and lower transit time which will certainly boost the business, reduce inventory holding requirements, transportations cost and better utilization of assets.

Real Estate Industry
Sale or transfer of immovable property is outside the purview of GST, however, on procurement of materials for civil construction GST will be applicable and ITC of the same wouldn’t be admissible. This may impact negatively. Hopefully, this issue will be addressed appropriately while declaring the final law.

FMCG Sector
FMCG has seen a consistent growth in the past three – four years.When the GST will be passed and on the opening of FDI, the consumer will have a positive impact on this sector. At the same time, FMCG companies will save on logistics costs.

For more information on Goods and services tax, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

Read More:

Excerpts from GST Council’s 8th Meeting

GST Registration Procedure

 

AUDIT REQUIREMENT FOR LLP IN INDIA

 

What is an LLP?

LLP is a way between Company and Partnership. It takes the benefits of both i.e. less legal and regulatory formalities and a Corporate Entity form.Professionals who use LLPs tend to rely heavily on reputation. Most of them are managed by professionals who have a lot of experience and clients. By pooling their resources, the partners tend to lower the costs of doing business while increasing the LLP’s capacity for growth. They can share office space, employees and so on. Reducing costs allows the partners to realise more profits from their activities than they could individually. The partners in an LLP can also be junior paid partners with future probability of turning into normal partners. These junior partners are paid a salary and often have no stake or liability in the partnership. They are designated professionals qualified to do the work that the partners bring in. This is another way that LLPs help the partners scale their operations. Junior partners and employees take away the detailed work and free up the partners to focus on bringing in new business.LLP can be more profitable since it has the ability to bring partners in and let partners out. Because a partnership agreement exists for an LLP, partners can be added or retired as outlined by the agreement. This comes in handy as the LLP can always add partners who bring existing business with them. Usually, the decision to add requires approval from all the existing partners.

Maintenance and filing of Accounts

 An LLP shall be under obligation to maintain annual accounts reflecting true and fair view of its state of affairs. A “Statement of Accounts and Solvency” in prescribed form shall be filed by every LLP with the Registrar every year.

Exemption from Audit

The accounts of every LLP shall be audited in accordance with Rule 24 of LLP, Rules 2009.

Such rules, inter-alia, provides that any LLP, whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty five lakh rupees, is not required to get its accounts audited. However, if the partners of such limited liability partnership decide to get the accounts of such LLP audited, the accounts shall be audited only in accordance with such rule.LLPs have to appoint auditor within 30 days before the end of the financial year. In other words auditor has to be appointed before 1st March every year.

Appointment by designated Partners

The designated partners may appoint an auditor:

  • At any time for the first financial year but before the end of the Financial Year.
  • Within 30 days before the end of the Financial Year.

This can be done to

  • To fill a casual vacancy in the office of auditor.
  • To fill up the vacancy caused by removal of an auditor.

Appointment by Partners

If the designated partners have not appointed then the Partners can assume this responsibility.

Holding Office

An Auditor shall hold office from the day the previous auditor ceases to hold office and upto the end of the next period for appointing a new auditor, unless re-appointed.

Penalty

Any LLP which fails to comply with the requirements shall be punishable with a fine which shall not be less than Rs. 25,000 but not exceeding Rs. 5,00,000. Every designated partner shall be punishable with fine which shall not be less than Rs. 10,000 but not exceeding Rs. 5,00,000.

Annual Returns

Every LLP would be required to file annual return in Form 11 with ROC within 60 days of closer of financial year. The annual return will be available for public inspection on payment of prescribed fees to Registrar.

Documents available for public inspection in the office of Registrar

The following documents/information will be available for inspection by any person:-

  • Incorporation document,
  • Names of partners and changes, if any, made therein,
  • Statement of Account and Solvency
  • Annual Return

The fees for such inspection of an LLP is Rs 50/- and fees for certified copy or extract of any document u/s 36 shall Rs. 5/- per page.

 

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

 

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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

 

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One India one Tax- GST

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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

 

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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

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PAYROLL ACCOUTING

What is Payroll Accounting?

Payroll accounting is a method used to calculate aggregate expenditure on wages and salaries of employees incurred by a business in an accounting period. This method of accounting for payroll includes the company’s recording of its employees’ gross wages, salaries, bonuses, commissions and other benefits as well. Payroll accounting distinguishes between employee taxes which are deducted from employees pay and employer taxes which are paid by employers. This accounting also keeps records of employer’s fringe benefits such as health insurance, vacations, paid holidays, workers compensation insurance as well as pension and savings. Payroll not only is responsible for employee’s salary compensation but also plays a vital role in protecting the company’s reputation.

Payroll Accounting Procedure

Payroll accounting helps businesses to ensure that their employees’ receive their pay on time. Here is the procedure on how this is carried out by a business:

TIME REPORTING

There are many tasks involved in payroll accounting but the first task is to collect necessary data regarding the time worked by an employee on a daily, weekly and monthly basis. Companies must issue time cards to every individual to record exact working hours of that employee. This helps the accountant to measure the pay of the employee accurately. The task of time reporting also helps a business to curb payroll tax burdens and workers compensation premiums.

PAY COMPUTATION

As payroll accounting is done to calculate the compensation owned to each employee. By knowing the hours worked by an employee and multiplying it with the pay rate, it becomes much easier to calculate the pay of that particular employee. Also review your pay policies and procedure to look for inefficient workflow patter. Changes regarding salary structure and pay grade will be initiated in case of promotion of a worker.

TAX COMPUTATION

Employees must submit payroll tax as well as income tax to its employer so that they fill and submit it to the tax authorities. The accountants hired by a business calculates the exact amount of income tax owned by every employee after the gross compensation owned. Then the total tax collected will be given to the Internal Revenue Service so that there is no tax burden on the business.

OTHER BENEFITS

Many businesses provide their employees with certain benefits such as paid vacations, pensions and many more such things. These things make it more difficult for the company accountant to calculate the payroll amount as most of them get paid for holidays also. Any other contributions offered by the employer must also be done in payroll accounting.

PAY DISTRIBUTION

After every task has been completed, that is, working hours of every employee has been recorded with their income and payroll tax been given to the tax authorities. The net pay is given to every worker in the form of cheques, direct deposit into their accounts or through cash.

IMPORTANCE OF PAYROLL ACCOUNTING

MORALE OF EMPLOYEES

Payroll accounting impacts the morale of the employee as they need to feel assured that they will get paid on a timely basis. When the pay is on time then the employee will be motivated to work more efficiently to get bonuses with their pay but if the pay is late then the employee will feel that the company is not financially stable. This will result in bad performance of employees in q business, so the organisation must keep in mind the importance of its employees.

COMPANY’S REPUTATION

The business must see to it that the payroll activities followed by them are adhering to the tax policies and also complying with employment legislations. The business will uphold its reputation only when they are efficient in meeting tax obligations on time. This will attract more worker in the market to work in the business as the business will provide timely pays to them.

 RE-ALLOCATION OF RESOURCES

Payroll accounting has to be performed regularly to ensure more precise payroll calculations. Payroll can be very time consuming, so it needs more resources to work with and regular activities help the business to know the required resources. As payroll is now automated, it allows organisations to save on costs in the long run. Furthermore, it frees up valuable resources for the organisation to focus on other business activities.

It is advised for any new business that they should take help from a financial consultant as there are many laws regarding payroll accounting. This will help them to stay out of trouble and also to devote their time on something else. An efficient payroll department reflects the organisation’s way of working and how they respect their workforce.

Checkout our Payroll Management Services to know more about the Payroll Management. You can also connect to us through mail or form incase of further queries.

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

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8 Tips to retain the best of your employees

In any business, big or small, one of the major tasks is to retain the best and most skilled employees. There’re a lot of things a person must keep in mind, when handling employees. For a long term stay in an organisation, any employee would have certain expectations from the organisation. Let us check the,

8 tips on how to retain the best of your employees

Gapeseed Consulting emphasizes on Employee Motivation, Engagement and Appreciation as the prime factor in retaining an organisational culture. Any culture is defined by the people, the employees and the teams. And to turn people into employees and then team, you need to create a culture and the following tips shall help:

• Reward, Recognition and Appreciation

If an employee works up to the standard, or does something out of the box for organizational benefit, he / she in return expects and deserves appreciation. This appreciation could be done in the form of rewards, like increments, trophies, bonus, monetary awards, additional perks. The employee should get due recognition for the hard work and dedication.

• Equitable treatment

Every employee, working on the same level, putting the same amount of effort deserves equal opportunities and equal treatment. For example, if in an organisation, ‘A’ is paid more than ‘B’, working on the same level because he’s connected to the senior, it will automatically pull B’s morale down. If there’s any discrimination against an employee, he would probably start finding other opportunities for growth.

• Proper Supervision

People leave managers and supervisors more often than they leave companies or jobs. The expectations for employees should be well defined to prevent confusions and agony in the future.
There should be clarity about expectations,earning potential,feedback about performance, scheduled meetings.

• Freedom of expression

Any employee wouldn’t want to leave an organization where he is free to express his thoughts and ideas, sometimes employees can come up with brilliant strategies and ideas and when they are left unheard or ignored, it lowers the employees morale. Their expression can prove to be very beneficial.

• Don’t threaten employees’ job or income

A threat to an employee’s job or income makes him feel as if he needs to search for a new platform to exploit his potential. Under any circumstances, this shouldn’t be done to the hardworking and dedicated employees.

• Clean out the dead weight

This sounds tough, but works for an organization’s benefit. There may be people in the organisation who hold other employees back in certain ways like negativity, unethical work, politics, gossips etc. Great people need to work with other great people. Do the hard work of removing those who slow everyone else and the organisation down.

• Friendly Competition

Employees can be put into friendly competition; this could be done by building teams and framing equal time spans for completion of certain tasks. These tasks could fetch the employees awards in form of monetary rewards, trophies etc. Such competitions, help employees work harder to increase their potential and opportunities.

• Above market Standard Rate

When some employees work beyond their boundaries, beyond their comfort for the benefit of the firm, they deserve more than the rate established by the market. This doesn’t imply that they need to be given sky high salaries, somewhere 20%-30% above the standard rate for the job so that they value doing it in the firm.

The above are 8 tips to retain the best of your employees, the same can be picked individually or one at a time. The idea is to make stronger and more approachable workplaces by creating an appropriate environment. You can connect with Gapeseed Consulting for processes or interim HR services through consultants to create HR Systems and align them with your organisational goals.

Feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

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Importance of Accounting for Startups

Significance of Accounting for Startups

Accounting must be given prime importance in any business entity as it is most required, especially for controlling and for providing financial reports at the end of the year. Accounting will help a Startup to determine its productivity and its profit from the initial stages of the company. This provides entrepreneurs a method for maintaining accounting information. The accountant hired by the company will keep track of the money spent for business use as well as for personal use, this will help in strategizing on how the money can be saved. In the initial stages of a Startup, the company must hire consultants or interim CFOs to maintain simple accounts rather than spending more on in-house professional resource.

Benefits of Accounting for Startups in Initial Stage

Forecasting Financial Estimates

Every Startup needs to provide information regarding its financial estimates to banks, investors or lenders to obtain funds in return from them. Accounting helps the business to make a business plan which includes estimated monthly expenditure, economic forecast, projected rate of growth of the Startup. This information is really important for a Startup to lure more and more investors to invest in their idea. The investors also ensure that the entrepreneur has a reliable projection of its company’s financial expectations.

Determine Profitability

Accounting helps an entrepreneur to determine its profitability in the future. It helps in monitoring the progress of the company and also to make necessary amendments where necessary. Through accounting, entrepreneurs will get to know where they need to use their assets to generate profit. An entrepreneur also needs to provide financial information to its investors to ensure them that they will be paid in a timely manner. A monthly statement such as a balance sheet and an income statement shows how if a business is blooming or not, these statements helps in determining a business general profitability.

Budget Expenses

Accounting helps an entrepreneur in setting up a Budget for expenditure on various aspects affecting a Startup. Accounting helps in maintaining records of the cashflow in the business, capital is used in hiring of employees, advertising, purchasing of inventory, petty items. Budget helps an entrepreneur is reducing expenditure on not so essential items and by saving the capital for future purposes.

Payroll Accounting

Accounting for startups help an entrepreneur to record its employees’ compensation such as salaries, bonuses, commissions and any other means earned by an employee. It also maintains employees’ portion of Health insurance premium, Social security taxes, paid holidays. This creates a database for the company consisting of all of its employees. Entrepreneurs must consult accounting professionals during the incorporation of its business. This is a must for an entrepreneur as outsourcing will help a company to grow much faster with the help of a trained professional. Outsourcing helps in many ways such as:

Tax Specialization

Taxation is a main aspect where a Startup may face some difficulties beyond the areas of fund raising and finance. This is where trained professionals like Chartered Accountants play a crucial role in the growth of the Startup. A trained professional who knows the tax laws whether it may be direct tax, indirect tax or any other tax involved will smoothen the working of the business. Well managed and transparent taxation is one of the most required aspect in Accounting for Startups.

Focus on Business

An accountant helps an entrepreneur by letting them focus on their product rather than worrying about the finance. The entrepreneur can create partnerships, create relationships, market its product with the help of an accountant. It will provide valuable information to the business to make it grow and earn profits. An accountant will also help in covering the cost as well as reducing the expenses incurred by the company.

Secretarial Duties

A professional accountant can also perform duties of a company secretary as they are specialist in company law. They also see to it that the company is complying and adhering to the laws laid by the Company Act, 2013. Start-ups strictly need to follow these rules from the start as it may result in the dissolution of the company.

Valuable Business Partner

Outsourcing accounting gives a huge importance to start-ups as these outsourcing firms have wide range of expertise working under them. This support from such firms will be very valuable for the Startup as it has a lot more experience when it comes to raising funds, financial planning, financial reporting. It is better to get financial assistance from trained professionals at the early stages of a Startup as it makes the business develop and grow faster. Many entrepreneurs lack accounting skills and tend to make wrong decisions regarding accounting which acts as a negative aspect in accounting for startups.

For more information on Importance of Accounting  for Startups, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

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