As per the provisions of income tax act 1961, an assesse is required to deduct tax at source for certain specific payments under section 192 to 196C if conditions as laid down in those relevant sections are satisfied. For example as per section 194C of Income Tax Act 1961, TDS has to be deducted from payments to contractor if such payment is more than Rs 75000 for a year … [Read more...] about Interest to be charged for failure to deduct and pay TDS – Section 201(1A)
Minimum persons required to form a company in India
As per companies act 2013, in India we can form three type of companies i.e. private limited, public limited and One Person Company or OPC. Section 3 prescribes minimum number of persons required to form a public, private or OPC in India. As per section 3 of Companies act 2013, a company in India can be formed for any lawful purpose by; seven or more persons where … [Read more...] about Minimum persons required to form a company in India
RBI Prudential norms for Income recognition in case of NPA and standard assets
Reserve Bank of India has introduced prudential norms for income recognition of the advances portfolio of the banks. These norms are used during the year by bank to recognize its income. At the end of the year, auditor is required to see whether these income recognition norms are followed or not, in addition to other requirements. As per the present norms introduced … [Read more...] about RBI Prudential norms for Income recognition in case of NPA and standard assets
How interest for default in furnishing return of income is calculated – Section 234A
In income tax, we have certain cases where the assessee is required to pay interest compulsorily either for default in furnishing return of income or payment of tax or failure to pay or deduct TDS. Today, through this write up, we are going to discuss how to calculate interest in case of default in furnishing return of income or is not furnished. This provision is specified … [Read more...] about How interest for default in furnishing return of income is calculated – Section 234A
Now you can claim your tax refund for six years and carry forward losses
As per the present tax laws, assessee is required to file return of income with IT department if his gross total income exceeds the amount of the basic exemption limit. It does not mean than those having income less that the gross total income cannot file their tax return. If you want to claim refund for the excess TDS deductions then it can be done by filing a tax return … [Read more...] about Now you can claim your tax refund for six years and carry forward losses
Quorum for meeting of the board of directors – Section 174
A quorum for board meeting means the minimum number of directors necessary to conduct the business of the company in a meeting of board of directors. Provisions related to quorum of board meeting are now specified in section 174 of Companies Act 2013 which replaced the old section 287 of Companies Act 1956. As per section 174 of Companies Act 2013, quorum of meeting of board … [Read more...] about Quorum for meeting of the board of directors – Section 174
Participation in Board meeting through video conference
As per section 173(2), a director may participate in the board meeting either in person or through video conferencing or other audio visual means. Such method of participation should have capability of recording and recognizing the participation of the directors and of recording and storing the proceeding of such meetings along with date and time. This means a director has … [Read more...] about Participation in Board meeting through video conference
Minimum Number of Board Meetings A Company should hold during the year
Provisions related to company Board meetings are specified in section 173 of Companies Act 2013. As per section 173, every company after incorporation shall hold the first meeting of the board of directors within 30 days from the date of registration. After the first board meeting, company is required to hold a minimum number of 4 meeting of board of directors every year … [Read more...] about Minimum Number of Board Meetings A Company should hold during the year
Maximum number of directorship an individual can hold – Section 165 of Companies Act 2013
As per section 165 of Companies Act 2013, no person shall hold office as a director including any alternate directorship, in more than 20 companies at the same time. Provided that the maximum number of public companies in which a person can be appointed as director shall not exceed 10. This means, total number of directorship an individual can hold has been fixed at 20 … [Read more...] about Maximum number of directorship an individual can hold – Section 165 of Companies Act 2013
Disqualification of Company Director – When an individual cannot take directorship
Section 164 of Companies Act 2013 has listed few disqualifications for director. If any person fulfills these criteria then he or she will not be eligible to get appointed as director of a company. As per section 164 (1) of Companies Act 2013, a person shall not be eligible for appointment as a director of a company, if- he is of unsound mind and stands so declared … [Read more...] about Disqualification of Company Director – When an individual cannot take directorship