Author: Fastlegal Team

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How to file Form INC 22A (Active Company Tagging Identities and Verification)

Posted on by Fastlegal Team

Active Company Tagging Identities and Verification (ACTIVE) form INC 22A is required to filed by every Company incorporated on or before 31st December, 2017 to MCA.

Mandatory Requirements for Filing Form INC 22A: 

  1. Address of Registered Office of the company, Photo of Office Address is required to be uploading along with Director of the company who is signing the Form INC22A
  2. Company should file all its overdue returns before filing form INC22A
  3. Every Director of the company must be KYC complied ( Must have filed form DIR3KYC) 
  4. Email Id of the company ( to be verified through OTP) 
  5. List of Directors as on date of filing of Form INC 22A
  6. Details of Auditor of the company including Name of Firm, PAN, Membership Number , Period from which Appointed  
  7. Details of cost Auditors, if applicable  
  8. Details of Managing Director , CEO, Manager of the company 
  9. Details of company Secretary of the company , if applicable 
  10. Details of CFO of the company , if applicable 
  11. SRN of E form Filed for Financial Year 2017-18

Due Date for Filing Form INC 22A (ACTIVE) 

The E form INC22A is required to Filed on or Before 25th April, 2019 

Late Fee

Late Fee for Filing E form INC 22A after 25th April 2019 will be Rs. 10000/- 

Effect of Non filing 

Company Status will be Changed to “ACTlVE-non-compliant” and Company will not required to file other forms 

(i) SH-07 (Changc in Authorizr:d Capital);

(ii) PAS-03 (Changc in Paid-up Capital);

(iii)DIR- 12 (Changes in Director except cessation);

(iv) INC-22 (Changc in Registered Ofhce);

(v) INC-28 (Amalgamation, de-merger)

File ACTIVE (INC22A ) with Fastlegal – Call – 9782280098 or Email : mail@fastlegal.in 

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How to Respond to Income Tax Demand on Income Tax Portal

Posted on by Fastlegal Team

The Income Tax Department might notify you of an outstanding tax liability through a demand notice on the e-filing portal. This can arise for various reasons, such as a mismatch between your declared income and the department’s records, miscalculations in your Income Tax Return (ITR), or late filing of the ITR. In such cases we are required to respond to Income Tax Demand on Income Tax Portal within time period , here is How we can respond :

Responding to the Demand Notice

Here’s a breakdown of the steps to take upon receiving a demand notice:

  1. Access and Analyze the Demand: Log in to the e-filing portal using your PAN and credentials. Navigate to the “Pending Actions” section on your dashboard and select “Response to Outstanding Demand“. This will display a list of any outstanding demands against your PAN.

Carefully examine the details of the demand notice to comprehend the nature of the tax liability and the specific amount demanded. The notice typically includes information like:

Income Tax Demand
* Assessment year: The financial year for which the tax is due.
* Tax type: This could be income tax, interest on unpaid tax, or penalty for late filing.
* Calculation basis: How the department arrived at the demanded amount.
  1. Taking Action: Once you understand the demand, you can proceed with a response:
    • Agreeing with the Demand: If you acknowledge the tax liability as accurate, you can make an online payment immediately. Locate the specific demand and click “Pay Now” to settle the dues using the available payment options.
    • Disputing the Demand: If you believe the demand is incorrect, you have the right to contest it. Here’s what to do:
      • Locate the specific demand and click “Submit Response“.
      • Choose the option “Disagree with demand“.
      • Clearly explain your disagreement, providing a well-structured explanation with relevant calculations and supporting documentation (like bank statements or investment proofs) if applicable.
      • Explicitly state the amount you believe is not payable.

Additional Considerations:

  • Maintain Records: It’s crucial to keep copies of the demand notice, your response, and any supporting documents submitted for your reference.
  • Seeking Clarification: If you require further clarification on the demand or have difficulty navigating the e-filing portal, consider contacting the Income Tax Department’s helpline or regional office for assistance. Their contact details are available on the Income Tax Department website.
  • Professional Help: For intricate tax matters, especially those involving substantial amounts or complex calculations, consulting a qualified tax professional is highly recommended. They can guide you through the process, ensure your response is accurate, and represent you if necessary.

Timely Response is Key

It’s important to respond to an Income Tax Demand promptly to avoid accruing additional interest and penalties. By following these steps and addressing the demand efficiently, you can ensure a smooth resolution and minimize any potential complications.

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Mandatory Filings for Private Limited Companies in Current Financial Year 2019-20- ROC and Income Tax

Posted on by Fastlegal Team

IMPORTANT FORMS TO BE FILED

E-form Purpose of the Form When to File
DIR-3 KYC  Any person who has been allotted “Director Identification Number(DIN/DPIN) needs to file DIR-3-KYC to update KYC details On or before 30th June of every financial Year
Form DPT-3

 

 Return of Deposits

One time return of outstanding receipt of money or loan by a company which is not considered as deposits as per rule 2 (1) (c)

 

Filling is required to be done for both secured & unsecured outstanding money/loan not considered as deposits.

 

Period of outstanding loan/money shall be from April 01, 2014 till March 31st, 2019.

 On or before 29th June, 2019
MSME 1 Details of all outstanding dues to Micro or small enterprises suppliers –          within 30 days from the deployment of form on MCA i.e. 30th May, 2019 after that half yearly

–          For the period of April to September-by 31st October

–          For the period of October to March-by 30th April.
ADT-1 For appointment of Auditor Within 15 days of the AGM
Form INC 22A Active Active Form – for Verification of Office and Compliance 15th June

https://fastlegal.in/blog/company-law/active-form-inc-22a-date-extended-15th-june/
AOC-4 Financial Statement Within 30 days of the AGM
MGT-7 Annual Return Within 60 days of the AGM
DIR-12 Addition, cessation, or change in designation of directors Within 30 days of the Event
Income Tax Return Income Tax Return for Private Limited Company On or before 30th September, 2019
TDS Return Tax Deduction To be filed quarterly within 30 days of end of quarter, except in case of Quarter ending on March, in which return to be filed within 90days from the end of quarter?

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MCA Alert : Make Investment into Complaint Nidhi Companies Only

Posted on by Fastlegal Team

MCA has issued an advisory to Investors and depositors of Nidhi Companies, that they should invest only to Companies making regular Compliances of Nidhi Rules, 2014 and Companies Act, 2013

Following are the text from MCA Advisory to Investors and Depositors

In order to make regulatory regime for Nidhi Companies more effective and also to accomplish the
objectives of transparency & investor friendliness in corporate environment of the country, the Central
Government has recently amended the provisions related to NIDHI under the Companies Act and the
Rules (effective from 15.08.2019).
Under Nidhi Rules, 2014, Nidhi is a company which has been incorporated as a Nidhi with the object
of cultivating the habit of thrift and saving amongst its members, receiving deposits from, and lending
to, its members only, for their mutual benefit.
The amended provisions of the Companies Act (Section 406) and Nidhi rules (as amended
w.e.f. 15.08.2019) require that the Nidhi companies have to apply to the Central government for
updation of their status/ declaration as Nidhi Company in Form NDH-4.
2. The time-frame for applying to Central Government in form NDH-4 is as under:-
(I) Companies incorporated as Nidhi before Nidhi Amendment Rules, 2019 i.e. 15.08.2019 have
to apply within a period of one year from the date of its incorporation or within 9 months of the
Nidhi Amendment Rules i.e. 15.08.2019 whichever is later.
(II) Companies incorporated as Nidhi on or after Nidhi Amendment Rules, 2019 i.e. 15.08.2019
have to apply within 60 days of expiry of one year from the date of incorporation or extended
period (as granted by concerned Regional Director).
3. In case a company does not comply with the above requirements, it shall not be allowed to file
Form No. SH–7 (Notice to Registrar for any alteration of share capital) and Form PAS–3
(Return of Allotment).
4. Such companies are required to ensure strict adherence to provision of Companies Act,
1956/2013 and Nidhi Rules, 2014 as amended. In case of contravention of the provisions of
these Rules, the company and every officer of the company who is in default shall initially be
punishable with fine which may extend to five thousand rupees and further fine in case of
continuous violations.
5. Investors are advised to verify the status of Nidhi company from the notification issued by
Central Government in official gazette before making any investment or deposit.

 

Reference : http://www.mca.gov.in/Ministry/pdf/Nidhi_19032020.pdf 

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FLA Return Due Date Extended to 31st July 2020

Posted on by Fastlegal Team
FLA Return Due Date Extended to 31st July 2020 4

As per the information available on the flair portal of RBI for submission of the foreign asset and liabilities returns for the entities holding foreign investment and liabilities is now been extended to 31st July 2020.

All entities can file a return to the RBI for Foriegn Assets and Liabilities on or before 31st July 2020

FLA Return Due Date Extended to 31st July 2020 5
Screenshot From Flair Portal of RBI

Source FLA Portal

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Draft Trust Deed for Public Charitable Trust

Posted on by Fastlegal Team

Trust is created via trust declared by settlor , in the process of declaration of trust settlor is required to execute trust deed , so he can write the terms of creation of trust and anyone in future can act on the basis of trust deed executed by settlor, Trust deed should be drafted vary carefully so as the trust declared by the settlor can achieve its objectives.

Trust Deed is should be duly executed , signed by either settlor or settlor , trustees. To Register Public Trust under Public Trust act of any state Trust Deed is main and important document.

Important clauses in Draft Trust Deed of Public Charitable Trust

Clauses Included in Draft Trust Deed

  • Name of Settlor
  • Declaration of Trust by settlor
  • Object Clause of Trust
  • Declaration as Public Trust
  • Beneficiary Clause
  • Area of Operations
  • Properties of Trust
  • Number of Trustees and There Powers
  • Trust Administration and Power of Board of Trustees
  • Meetings of Board of Trustees
  • Remuneration /Allowances To Trustees & Office Bearers
  • Bank Account
  • Trust Fund
  • Accountability Of Trustees
  • Accounts and Audit of Trust
  • Amendments to Trust Deed
  • Irrevocable Clause
  • Dissolution Clause

Draft Trust Deed

Charitable Public Trust Deed

  • Ready Made Trust Deed Draft Copy in Word
  • Just Change Basic Details like Name , Address, etc or make any changes you want
  • Ready to Print on Stamp Paper
Get Now
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Top 3 Marketing Tips for A Startup

Posted on by Fastlegal Team
Top 3 Marketing Tips for A Startup

You have decided to start your business which you had kept on a burner for a long time. You are very excited and genuinely believe in your product. Having a marketing plan is very important when you are starting a business. Unless you have sales your business will die a slow and painful death.

Top 3 Marketing Tips for A Startup

Don’t worry, you can make sure that you to solve the issue of getting sales by using the 3 marketing tips we have mentioned below to kick start your startup marketing plan. Let’s get started.

1. Set up your website and legal formalities in place

Having a website to showcase your business to the world is one of the most important aspect for a startup. You won’t be able to market your ideas, goods, services, etc to the world without it.

There are many options when it comes to setting up your website. If you have an E-commerce website, Shopify is the best option for you. If you have a services business, WordPress is the best solution for you. If you have a location based website, you can set up a beautiful location based WordPress website.

You need to make sure though that your website is hosted on a robust and stable hosting server. If your business goes viral and you get a lot of visitors to your website, you don’t want your website to just because the hosting wasn’t strong enough. This has happened many times when a business idea went viral. For example, this has happened to businesses that were showcased on Shark Tank.

You can also opt for a local hosting service so that the website is shown to your audience faster. For example, if you are based in Australia, you can find a quality Australian web host to host your website.

Also, make sure that you have set up all the required legal formalities which include setting up your business as an LLC or a Private Limited Company, etc as per your requirements. File all the necessary tax and other declarations, etc. It is best to go with a professional company like us to ensure that there are no compliance issues in the future.

2. Get on social media

Getting your business of product or service viral is very important. You can do so by getting your website or your product viral on social media. Most startups have a very tight budget. To ensure that you make sales fast, social media is the best platform that you can leverage.

It is very easy to sell your products and create awareness for your product on social media platforms. Depending on your product or service, you can focus on various social media platforms.

Instagram and Pinterest are great for home décor, fashion, and retail businesses. LinkedIn is perfect if you want to target other businesses. If your product is visually appealing then you can go for Instagram or YouTube

3. Get Local Press

Using local press to your advantage is an excellent strategy that you can use as a business startup. Most local newspapers and magazines cover a local success story or an upcoming business. You will be able to expand your business and brand awareness with little to no cost. If you are lucky, the article may also be picked up by syndicated news publishers and your product or service can go viral.

Conclusion

Bootstrapping a Startup is difficult but not impossible. With the above three tips, you can easily get started and have sales which will lead to profits. You can use the profits to invest in paid advertising and other avenues which well get more sales and help your business grow.

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GST Return Late Fee Amnesty Scheme

Posted on by Fastlegal Team

Amnesty Scheme to provide relief to taxpayers regarding late fee for
pending returns:

Reduced GST Late fee for earlier periods


To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-
3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived
as under: –
i. late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST &
SGST) per return for taxpayers, who did not have any tax liability for
the said tax periods;
ii. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST &
SGST) per return for other taxpayers;
The reduced rate of late fee would apply if GSTR-3B returns for these tax
periods are furnished between 01.06.2021 to 31.08.2021.

Reduced Late Fee for Future Periods

Rationalization of late fee imposed under section 47 of the CGST Act:
To reduce burden of late fee on smaller taxpayers, the upper cap of late fee is
being rationalized to align late fee with tax liability/ turnover of the taxpayers,
as follows:
A. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-
1 to be capped, per return, as below:
(i) For taxpayers having nil tax liability in GSTR-3B or nil outward
supplies in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST +
Rs 250 SGST)
(ii) For other taxpayers:

For taxpayers having Annual Aggregate Turnover (AATO) in
preceding year upto Rs 1.5 crore, late fee to be capped to a
maximum of Rs 2000 (1000 CGST+1000 SGST);
b. For taxpayers having AATO in preceding year between Rs 1.5
crore to Rs 5 crore, late fee to be capped to a maximum of Rs 5000
(2500 CGST+2500 SGST);
c. For taxpayers having AATO in preceding year above Rs 5 crores,
late fee to be capped to a maximum of Rs 10000 (5000 CGST+5000
SGST).
B. The late fee for delay in furnishing of FORM GSTR-4 by composition
taxpayers to be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return,
if tax liability is nil in the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST)
per return for others.
C. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to
Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum
of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.
All the above proposals to be made applicable for prospective tax periods.

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How to Apply for 12A and 80G Registration of NGO under Income Tax Act

Posted on by Fastlegal Team

An NGO ( Society/Section 8 Company/ Trust ) can obtain registration under 12A so that no tax is levied on the Surplus Income of NGO and 80G registration can be obtained so that Donner can claim tax exemption up to 50% of amount donated subject to maximum 10% of Gross Total Income of Donner. 

What is 12A Registration of NGO 

Once NGO has obtained 12A registration, NGO gets Tax Benefits that the Surplus Income of NGO becomes non taxable. 

What is 80G Registration of NGO

An Institution having 80G Registration provides tax benefits to donor up to 50% of donation made to such institution, subject to maximum 10% of Gross Total Income of Donor    

Procedure for Registration under Section 12AA and 80G: 

  • The Application is required to be made in form 10A and 80G
  • The Application is required to filed with Correct Information as regard to Institution , Such as Name , Address and KMP, Date of Incorporation 
  • Details of Author(s)/Founder(s), like PAN , Name , Address 
  • Details of Trustees/Office Bearers/Directors as on the date of filing of application
  • Objects of Institution such as Relief to poor , Medical , Education etc  
  • The Application should be accompanied with
    • Annual Accounts of Last Three Year or Accounts from the Date of Incorporation or Formation Certificate of Incorporation, Registration or Trust Deed Note on Activities of Institution  

Once the Application is Submitted, the Income Tax Department Exemption ward will issue questionnaire asking for some more documents and 
Information: 

Sample Questionnaire : 

1 A declaration that no part of the income of the Trust/ Society/ Non Profit Company enures, directly or indirectly for the benefit of any person specified in section 13(1)(c) of the Income Tax Act, 1961 and that no part of the income or property of the Trust/ Society/Company was ever used or applied for the benefit of any person specified in section 13(1)(c) of the Income Tax Act, 1961, duly signed by the Authorized Signatory.

2 A note specifying the main area of your charitable/ religious activities and a projection/ plan for the main charitable/ religious activities to be undertaken in the next two years.

3 Please attach a ‘No Objection Certificate’ from the owner of the premises from which you are operating along with proof of his ownership.

4 Please attach a certified copy of annual accounts since inception/ during last three years.

5 Please attach a certified copy of the Trust Deed/ Memorandum of Assosiation and produce original copy for verification.

6 Please attach a copy of the proof of identity of the main Trustee/ President or Secretary of the Trust/ Society/ Non Profit Company.

7 Please attach a note on activities conducted since inception/ during last three years.

8 Please attach details of donations made since inception/ during last three years.

9 Please attach details of donations received, including corpus donation, received since inception/ during last three years.

10 Please attach details of your bank accounts including name of the bank, branch, type of account and number of account

11 Please file an undertaking that there will be no infringement to the 1st proviso to section 2(15) of the Income Tax Act, 1961.

12 Please specify the category of charitable purposes provided in section 2(15) of theIncome-Tax Act, 1961 in which your case falls, i.e., whether your objective is relief ofthe poor/ education/ yoga/ medical relief/ preservation of environment (includingwatersheds, forests and wildlife)/ preservation of monuments or places of artistic/historic interest/ advancement of any other object of general public utility/ religiousactivities.

13 Your Trust Deed/ Memorandum of Association does not have Irrevocability Clause.Please include this clause in your Trust Deed/ Memorandum of Association and file acertified copy of the amended Trust Deed/ Memorandum of Association.

14 Your Trust Deed/ Memorandum of Association does not have a clause that thebeneficiaries are a section of the public and not specific individuals. Please includethis clause in your Trust Deed/ Memorandum of Association and file a certified copyof the amended Trust Deed/ Memorandum of Association.

15 Your Trust Deed/ Memorandum of Association does not have any clause providingthat in the event of dissolution of Trust/ Society/ Non Profit Company,the funds/assets of the Trust/ Society/ Non Profit Company will be transferred only to someother Trust/ Society/ Non Profit Company having similar objectives. Please includethis clause in your Trust Deed/ Memorandum of Association and file a certified copyof the amended Trust Deed/ Memorandum of Association.

16 Your Trust Deed/ Memorandum of Association does not have any clause providingthat the funds/ property of the trust will be used only for the objectives of theTrust/Society/ Non Profit Company. Please include this clause in your TrustDeed/Memorandum of Assosiation and file a certified copy of the amended TrustDeed/Memorandum of Assosiation.

17. If the Trust Deed/ MOA etc. are in vernacular language, please furnish certified translatedcopy of entire Trust Deed/ MOA in English/ Hindi.

18. Photocopy of PAN card(s) of the organisation along with the original PAN card forverification.

19. Copies of Income Tax Returns filed for last three years along with computation and AuditReport in Form No. 10B.

20. If represented through authorized representative, duly discharged letter of authorityalongwith name, address, mobile no. and e-mail address may be furnished.

21. Details of charitable or religious activities actually carried out by the organisation since its inception. In case no such activities have been carried out in any of earlier financial years, please furnish such details for the current financial year till date along with the documentary evidence

22. In case of schools/ hospitals, whether necessary the permission from the State Govt./ Local bodies has been obtained? File a copy of same.

23. In the case of any change in trustee/ member/ principal officer/ address of the organisation, copy of relevant change report from Charity Commissioner/ Registrar of Companies may be filed.

24. If any donation from foreign country is received then submit the details of registration under FCRA alongwith donation received and purpose thereof.

25. Please furnish online Acknowledgement receipt of Form No. 10G/ If applied

A hearing is required to be attended for submitting the documents and information as per questionnaire.

Once the CIT, Exemption is satisfied about the Grant of Registration under Section 12A and 80G , he may grant the Registration or call for more such information to the satisfaction of CIT. 

Fastlegal Provides 12A and 80G Registration Services in Rajasthan , Please call 9782280098 or email at support@fastlegal.in