Saturday, February 2, 2019

POINTS OF INTERIM BUDGET 2019-2020

No income tax for income up to Rs. 5 lakhs. Once income exceeds, the effective tax slabs and rates will be as follows;

Effective income tax slab for individuals	Rate (s) of Income Tax
Income upto Rs 5,00,000	Nil

Once income Exceeds Rs 5,00,000/-
Income From 2,50,000 to 5,00,000	5%
Income From 5,00,000 to 10,00,000	20%
Income from 10,00,000 and above	30%

2

Standart Deduction for Salaried Persons has been increased to Rs. 50,000

3

Long term Capital gain exemption under section 54 for sell of residential house has been extended to two residential houses from one earlier, for capital Gains upto Rs. 2 Crores.

4

Exemption of interest income on bank deposites raised to Rs. 40,000/- from Rs. 10,000/- Earlier for TDS Deduction

5

No tax of Notional Rent income of second self occupied Residential House

6

Rs. 6000 will be provided to farmers to every year, owning lands upto 2 hectares.

7

Rs. 3 thousands Pension provided to all persons working in unorganized sector, having monthly income upto Rs 15000/- after they complete 60 years of age subject to rules and contribution in this Regard

8

Composition scheme for GST for turnover upto Rs. 1.5 Crore of Business (GST @ 1%) and Rs. 50 Lakhs for professionals (GST @ 6%)

9

Single Window clearance for film shootings for Indian Film-makers/Director/Producers.

10

Complete Digitalization of income tax matters including Filings, Refund and scrutiny, without face to face meeting with income Tax officers this will be beneficial for people and professional on the move/change in there residential/business addresses

email - bittu.sharma@outlook.com

Friday, January 18, 2019

Transfer of Provident Fund

Transfer of PF Funds

The Government and EPFO has recently introduced various initiatives to streamline and quicken various services associated with the management of PF funds. Prior to the introduction of the Unified Portal, withdrawal and transfer of PF funds used to be a painstaking activity, requiring the approval of the previous employer. However, with the introduction of the Unified Portal and UAN, the EPFO has streamlined the process for transfer of PF funds and made it completely online. In this article, we look at the process for transfer of PF funds in detail.

Transfer of PF Funds vs Withdrawal

Transfer of PF funds is initiated when an employee changes employment. Previously, to initiate transfer of PF funds, the employee would have to obtain signature from the old employer for transfer of PF funds. However, under the new Unified Portal, employees having UAN can easily transfer PF funds online without the approval of the previous employer.

Transfer of PF funds is different from withdrawal of PF funds. In case of PF withdrawal, money in the PF account is paid out to the employee for certain types of events like marriage, illness, retirement, etc.,

Benefits of Transferring PF Funds

Transfer of PF funds instead of withdrawal will help the subscriber reap the fruits of labour without any tax-cut whatsoever, as closing a PF account before the expiry of five years will result in the PF amounts being taxed. Hence, for most subscribers, its better to transfer instead of withdraw from their PF account before the end of 5 years.

Process of Online Transfer of PF Funds

To complete online transfer of PF funds as mentioned below, the employee must have an UAN that is linked with Aadhar, bank account details and mobile number. Further, EPFO Unified Portal must contain the account numbers of both the PF accounts i.e. the previous and the present.

Steps to Transfer PF Funds Online

Follow the steps below to transfer PF funds online.

Login to the official website of the Employees Provident Fund Organization using the UAN and password allotted to you.
Click on the Online Transfer Claim Portal under the category “For Employees”.
Check your eligibility with respect to online transfer. If ineligible, you have to rely on the alternative method of filing physical copy of Form 13, either to the present or former employer.
If found eligible, under the online service dropdown box of the claim section, select ‘Request for transfer of funds”.
The online version of Form 13 will now be displayed on the screen. Here, PF numbers should be filled with both current and former employers.
Select the option ‘click here to get details’. Details pertaining to the employee, organization and the EPFO account will be displayed in the screen. These details must be duly verified.
You will be inquired whether you want to get the claim attested to the present or former employer.
After confirming the same, an OTP will be sent to the registered mobile number, which must be verified.
After the OTP verification and agreeing to the declaration form, the transfer request will be submitted, and the tracker ID will be generated.
This form must be signed by the subscriber, after which it shall be sent to the present or former employer within a period of 15 days.
Electronic verification will be processed by the current and former employers.
Funds will be credited to the member’s account after the concerned employers approve the transfer.

Once the PF transfer request is submitted online, the status can be checked online.

BITTU SHARMA AND ASSOCIATES

Office No. 10, 3rd Floor, Satyam Complex,

Alpha - 2, Greater Noida, Gautam Buddha Nagar,

Uttar Pradesh - 201308

Mobile No. 9953024107

Business Registration

Proprietorship
Joint Hindu Family
Partnership
One Person Company
Limited Liability Partnership (LLP)
Private Limited Company
Nidhi Company
Public Limited Company
Setting Up Joint Venture In India
Society
Section 8 Company

Government Registration :

Employees State Insurance (ESI)
Employee Provident Fund (EPF)
Import Export Code (IEc)
Food Safty And Standard Authority of India (FSSAI)
Real Estate Regulatory Authority (RERA)
Trade Licence
Micro, Small and Medium Enterprises

Compliance

1. Annual Compliance:

Annual Compliance of LLP
Annual Compliance of Private Limited
Annual Compliance of Public Limited
XBRL Filing

2. Conversion:

Private Limited To Public Limited
Partnership To Limited Liability Partnership (LLP)
Proprietorship To Private Limited

3. Change In Business:

Change in Direcctor
Change in Registered Office
Share Transfer
Increase in Authorized Share Capital
Winding Up of a Company

Taxation

ESI Return Filing
PF Return Filing
Income Tax Return Filing
Income Tax Notice
Tax Audit
TDS Return Filing
GST Registration
GST Return Filing

One Person Company In India

Features of One Person Company as per Companies Act 2013

Salient Features of One Person Company (OPC) as per companies act 2013

OPC is defined u/s 2(62) of the companies act 2013.

OPC must have 1 director; the sole shareholder can himself be a sole director. The OPC may have a maximum of 15 directors by passing a special resolution.

Minimum and maximum no. of shareholders is only 1.

The MOA of an OPC must indicate the name of other person as a nominee. Who shall, in the event of subscriber’s death or incapacity to contract, become the member of an OPC. (Nominee may withdraw his consent at any time or the subscriber may change his nominee at any time by giving notice in the prescribed form.)

OPC must require affixing One Person Company in brackets under the name of the company.

Only natural person who should be an Indian citizen and resident in India for more than 182 days preceding the calendar year shall be eligible to incorporate an OPC shall be nominee for OPC

A person can be a member or a nominee in only 1 OPC.

A minor cannot become a member or a nominee of OPC.

OPC cannot be converted into Sec. 8 companies.

An OPC cannot carry out non-banking financial investments activities including investment in securities of anybody corporate.

An OPC cannot convert in any type of other company unless 2 years have been expired from the date of its incorporation.

OPC can be registered as a private company not as a public company.

Minimum and maximum paid up share capital of the OPC is Rs. 1 to 50 lakhs.

Where the paid-up share capital of OPC exceeds 50 lakhs or its average annual turnover exceeds to 2 crore immediately 3 consecutive financial years, such company shall required to convert itself into either private or public company.

At least 1 Board Meeting must be held in each half of the calendar year and the gap between 2 meetings should not be less than 90 days.

The provision of AGM is not required.

An OPC can be registered as

- limited by shares

- imited by guarantees

GST registration is required if the Company is doing inter-state Business or the turnover is more than 20 Lakh.

An OPC can have a subsidiary, but that subsidiary cannot be an OPC. It has to be a private / public company since only a natural person can be a shareholder of OPC.

An existing private company other than a company registered under section 8 of the Act which has paid up share capital of Rs. 50 Lakhs or less or average annual turnover during the relevant period is Rs. 2 Crores or less may convert itself into one Person Company by passing a special resolution in the general meeting.

If the One Person Company or any officer of the One Person Company contravenes the provisions of the rules, the company or any officer shall be punishable with fine which may extend to Rs. 10,000/ and with a further fine which may extend to Rs. 1000/ for every day after the first during which such contravention continues.

Income tax Deduction For Interest on Education Loan Section 80E

Introduction

Section 80E allows deduction in respect of payment of interest on loan taken from any financial institution or any approved charitable institution for higher education for the purpose of pursuing his higher education or for the purpose of higher education of his spouse or his children or the student for whom he is the legal guardian

Eligibility and Amount of deduction-

If you are interested in higher education (for self, spouse & children), then you can take loan and claim tax benefits on repayment of interest on Education loan.

1. There is no restriction on limit of deduction amount.

2. Deduction is allowed for maximum of 8 years or until the full amount of interest is repaid, whichever is earlier.

.3. Deduction is available to an Individual not to HUF.

4. Loan should be taken from Registered Financial Institutions or Charitable institutions

recognized by Central Government.

5. Loan taken to pursue higher education in India as well as abroad qualifies for deduction.

6. Loan can be taken for higher education for himself, spouse and children only.

7. Deduction is only available if interest is paid out of income chargeable to tax (i.e., deduction

under this section cannot exceed the taxable income).

Deduction Period-

The deduction for the interest on loan starts from the year in which you start repaying the loan. It is available only for 8 years starting from the year in which you start repaying the loan or until the interest is fully repaid whichever is earlier. It means if entire payments are done in 5 years only, then tax deduction will be allowed for 5 years and not 8 years.

It should also be noted that if your loan tenure exceeds 8 years, then you cannot claim a deduction for the interest paid beyond 8 years. So it is always advisable that an education loan is paid within eight years.

For the purpose of this section -

(a) "approved charitable institution" means an institution established for charitable purposes and approved by the prescribed authority section 10(23C), or an institution referred to in section 80G(2)(a);

(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

(c) "higher education" means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so;

Example-

Mr. Hari has taken an education loan of Rs.5, 00,000/- for her daughter Miss tara, from bank on 01.04.2016. The loan has a moratorium period of 3 years. No installments have been paid during the moratorium period; the bank has charged Rs.1, 35,000/- towards interest during the year falling from 2016-2018. If Mr. Hari has paid Rs. 2, 00,000 (Rs. 1, 35,000 towards principal and Rs. 65,000 towards interest) as installment during the year 2018-19, what will be the amount of deduction under section 80E?

Answer-

During the financial year 2018-19, Mr. Hari has paid Rs.2, 00,000 as installment, out of which Rs.1, 35,000 towards principle repayment and Rs. 65,000 towards interest. So, the deduction is available under section 80E will be Rs.65, 000/- only.