December 7, 2023

Search and Seizure Case Income Tax Act 1961

Income Tax / /

ind something the presence of which is suspected etc. Seize means to take possession of goods, contrary to the wishes of the owner or to take forcible possession. From income tax point of view, in common parlance search is referred to as ‘RAID’. However, there is no such term as raid anywhere in income tax law.Search and Seizure is a very powerful tool available to Income Tax Department (ITD) to unearth any concealed income or valuables and to check the tendencies of tax evasion thereby mitigating the generation of black money. Search operations are exploratory exercises on the basis of information with the Income Tax Department to find hidden income and wealth in cases of tax payers, who have not disclosed their true financial state of affairs in discharge of their tax obligations. Seizure implies taking possession of assets, which have not been disclosed to the Income-tax Department and of accounts/documents, papers which contain details of unaccounted wealth/income not disclosed to the income tax authorities. The Income Tax Department resorts to search and seizure only in cases where there is sufficient reason to believe that the person concerned would not disclose the true picture of his income in the normal course of filing of return and regular assessment. Search & seizure-from income tax perspective Search operations are exploratory exercises on the basis of information with the income tax department to find hidden income and wealth in cases of tax payers, who have not disclosed their true financial state of affairs in discharge of their tax obligations. Seizure implies taking possession of assets, which have not been disclosed to the Income-tax Department and of accounts/documents, papers which contain details of unaccounted wealth/income not disclosed to the income tax authorities. Thus, search and seizure is a very powerful weapon in the armory of income tax department to unearth any concealed income or valuables and to check the tendencies of tax evasion thereby mitigating the generation of black money. Who can authorize (i.e., issue search warrants) proceedings u/s 132 Sec.132 empowers the Principal Director General or Director General or Principal Director or Director or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner to authorize proceedings under this section. Who can conduct search? Income tax authority, having power to initiate search u/s 132, can authorize its subordinate(s) (not below the rank of Income tax officer) to conduct search. Following subordinates can be authorized Authorized Officer who can conduct search Authorized from Additional Director or Additional Commissioner or Joint Director, Joint Commissioner, Assistant Director, Deputy Director, Assistant Commissioner, Deputy Commissioner or Income tax officer Principal Director General or Director General or Principal Director or Director or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner Assistant Director, Deputy Director, Assistant Commissioner, Deputy Commissioner or Income tax officer Additional Director or Additional Commissioner or Joint Director or Joint Commissioner (on the basis of authorization from above authority and being empowered by the Board) Power of authorized officer While conducting search, authorized officer has following powers – 1. Enter and search any building, etc.: Enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept. 2. Break open the lock of any door, etc.: Break open the lock of any door, box, locker, safe, almirah or other receptacle, where the keys thereof are not available. 3. Search person: Search any person who – has got out of; or is about to get into; or is in, the building, place, vessel, vehicle or aircraft if the authorised officer has reason to suspect that such person has secreted about his person any books of account, other documents, money, bullion, jewellery or other valuable article or thing. 4. Require any person to facilitate the authorised officer: Require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record, to afford the authorised officer the necessary facility to inspect such books of account or other documents. 5. Seizure: Seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search. 6. Place marks of identification: Place marks of identification on any books of account or other documents or make extracts or copies therefrom. 7. Make inventory: Make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing. 8. Examine on oath: Examine on oath any person who is found to be in possession or control of any books of account, documents, money, bullion, jewellery or other valuable article or thing. Any statement made by such person during such examination may thereafter be used as evidence in any proceeding. The examination of any person may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under Act. Time limit for release of asset Asset or any portion thereof shall be released within a period of 120 days from the date on which the last of the authorisations for search u/s 132 or for requisition u/s 132A, as the case may be, was executed. Interest payable to the assessee Where the aggregate amount of money (either seized or realized through sale of assets) seized exceeds the aggregate of the amount required to meet the liabilities, Government shall pay simple interest at the rate of ½% p.m. The interest shall be payable from the date immediately following the expiry of the period of 120 days (from the date on which the last of the authorisations for search u/s 132 or requisition u/s 132A was executed) to the date of completion of the assessment u/s 153A. Discharge of excess money After discharging

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GST Portal – GST GOV IN

Goods & Service Tax / /

GST login on the GST portal is crucial for every taxpayer to file GST returns, claim refunds, or reply to notices. In this article, let’s understand the GST login portal, services available before and after GST login, steps to obtain GST login and steps to log in to the GST portal successfully. GST.GOV.IN is the official Government Portal for GST in India. The GST.GOV.IN portal is owned by the GSTN, which is a Government-owned entity created solely for managing all aspects of GST in India. GSTN has outsourced the development and maintenance of GST.GOV.IN to Infosys. In this article, we look at the various aspects of the Government GST Portal in detail. GST.GOV.IN (GST Portal) Login GST portal is a PAN-India government website for GST compliance. The GST government website or portal is hosted at https://www.gst.gov.in/. The government portal for GST is a website where a taxpayer can carry out all the compliance activities under GST before and after GST login. They can take actions such as GST registration, return filing, payment of taxes, application for a refund, etc., Any person who has GST registration can access the GST.GOV.IN portal. During the GST registration process, the applicant is first provided with a Temporary Reference Number (TRN) for completion of the registration process. On obtaining registration, the Temporary Reference Number (TRN) is converted into a GST Username and Password. Using the username and password, the persons having GST registration can perform various functions to manage all aspects pertaining to GST. Registration at GST Portal Visit the gst.gov.in website and make an application for GST Registration. On submission of all the details and documents, an acknowledgement number is allotted for GST login.  After due verification by the GST officer, the registration process is completed by allocating a GST Identification Number (GSTIN). In the process, you will also get a username and can set a password for the official GST login. All taxpayers who require GST registration must apply and obtain GST registration through the GST.GOV.IN portal. GST registration is mandatory in India for all entities having an aggregate turnover of more than Rs.20 lakhs per annum. In addition, entities having inter-state sales or sales through e-commerce platforms may also have to obtain GST registration, irrespective of the turnover criteria.  The entire GST registration process can be completed online on the GST.GOV.IN portal within 20 minutes. Step 1: To begin a GST registration application on the GST.GOV.IN portal, go to https://www.gst.gov.in/ URL. Step 2: Click the Services > Registration > New Registration option. GST Return Filing All aspects of GST return filing can be completed through the GST.GOV.IN website. The GST.GOV.IN portal allows for the uploading and viewing of the following types of GST Returns: GSTR-1 GSTR-1A GSTR-2 GSTR-2A GSTR-3B GSTR-3B Nil Return GSTR-5 GSTR-5A GSTR-6 GSTR-6A To file GST returns, the taxpayer must have the GST portal username and password, as shown above. Also, any person authorized by the Authorised Signatory of a business as its GST Practitioner will be able to access the GST Portal on behalf of the business for filing GST returns. To begin filing GST returns on GST.GOV.IN, follow the steps below:  Access the www.gst.gov.in URL. The GST Home page is displayed. Login to the GST Portal with valid credentials i.e., your user id and password. Click the Services > Returns > Returns Dashboard command. Select the Month and Year and the Type of Return to be filed. Know more about GST return due dates and procedure for filing GST returns: Guide to GSTR-3B return filing Guide to GSTR-1 return filing GST Refunds ll GST refund applications are processed through the GST.GOV.IN portal. Any person who has overpaid GST or has unutilized input tax credit can apply for a refund through the GST Portal. Also, GST LUT or Export Bond can be filed online on the GST Portal. The following types of GST refunds applications can be submitted on the GST Portal: Refund on Account of Export of goods (with payment of Tax) Filing GST FORM RFD-01 A Applying for Refund on Account of Assessment/ Provisional Assessment/ Appeal/ Any Other Order Applying of Refund By Embassies/ International Organizations GST Payment All GST payments have to be initiated on the GST.GOV.IN Portal. The system has facilities for: Creating Challans Viewing Saved Challans Making Online GST Payment Creating Making Offline Payment Tracking GST Payment Status Canceling Over the Counter (OTC) Challan To initiate a GST Payment, follow the steps below: Access the https://www.gst.gov.in/ URL. The GST Home page is displayed. Click the Services > Payments > Create the Challan command. The Create Challan page is displayed. In the GSTIN/UIN/TMPID field, enter your GSTIN. In case UN Bodies, Embassies, Government Offices, or Other Notified persons wants to create a Challan in pre-login, they need to provide Unique Identification Number (UIN). If the Tax Return Preparers wants to create a Challan in pre-login, they need to provide Tax Return Preparer Identification Number (TRPID). In case an unregistered dealer having temporary ID wants to create a Challan in pre-login, they need to provide Temporary Identification Number (TMPID). Click the PROCEED button. How to check your GST status? One can check the GST registration status either before or after GST login. A GST registration form is processed after 15 days of making an application but one can track the GST portal registration status online on the GST portal. Follow the steps given in the article “How to track GST status” for complete details. GST.GOV.IN Support Help Desk Number: 0120-4888999 To submit a grievances/complaints regarding GST Portal, perform the following steps: Access the GST Portal by visiting the URL www.gst.gov.in Log in with your credentials. Click the Services > User Services > Grievance / Complaints command. Grievances can be submitted either before or after logging-in to the GST Portal. However, payment related grievances can only be submitted by registered users or Taxpayers, since they are required to mention the GSTIN. FAQs Q: When GST registration is required? GST registration is required or compulsory when the person earns turnover during the financial year exceeding the basic threshold defined under the GST law, depending upon the state of principal place of business. Q: How to get GST login details? If one is trying to find their

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How much tax does a Private Limited Company pay in India

Companies Act 2013 / /

A private limited company is the most preferred type of business entity in India. Each year nearly a lakh companies are incorporated in India. All private limited companies registered in India are required to file income tax returns in ITR-6 return filing or ITR 7 each year mandatorily, irrespective of turnover or profitability. Hence, even private limited companies incorporated and not having any business activity are required to file income tax returns. In this article, we look at the income tax rate applicable for private limited companies during the assessment AY 2022-2023. A business organization held by a small group of people is known as a Private Limited Company. It’s owned by a group of members called shareholders. Startups and businesses with high growth aspirations popularly choose the private company as the appropriate business structure. The business entity is recognized as a company through registration under the Companies Act of 2013 in India. Ministry of Corporate Affairs is the governing body, widely known as the MCA. In this article, we will discuss the taxation criteria for a Private Limited Company in India. What is Taxation for Private Limited Company? A tax authority or government levies or imposes a tax on private limited companies. We apply income tax to Good and Services Tax (GST) to all levels. State and central governments play an important role in determining taxes. To streamline the taxation process and ascertain transparency in the country, the state and central governments have introduced several policy reforms over the years. One such change was the Goods and Services Tax (GST), which simplified the tax regime on the sale and distribution of goods and services in the country. Taxation of governments or authorities has been a mainstay of civilization since ancient times. A corporate is an entity that has a separate and independent legal entity from its shareholders. Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act. While a domestic company is taxed on its universal income, a foreign company is only taxed on the income earned within India i.e. is being accrued or received in India. How many types of Taxation for Private Limited Company? Corporate Tax: It is a tax imposed on the profit of a business. Income Tax: It is that tax which is imposed by Governments on financial income produce by all entities within their jurisdiction, including individuals and businesses. Capital Gains Tax: These are imposed on capital gains made by businesses from the sale of particular assets including stocks, agreements. Property Tax: It is paid by the owner of the property. This is calculated as per the value of the land. Inheritance Tax: It is paid by the owner of the property. This is calculated as per the value of the land. Sales Tax: This is a consumption tax imposed by the government on the sale of goods and services. It can take in the form of a Value Added Tax (VAT) and Goods and Services Tax (GST), a state sales tax, or an excise tax. What is the Income of a company? The rate of taxes and how the tax will be calculated on income of the companies, we should learn about the types of income which a company earns. Here it is : Profits earned from the business Capital Gains Income from renting property Income from other sources like dividend, interest etc. Tax rates applicable The Tax Rate for Private Limited Company for Assessment Year 2022-23 Tax rate for Domestic Company if Turnover > Rs. 400 Crore. Income Slab % of Tax Surcharge Upto 1 Crore 30% Nil Above 1 Crore but upto 10 Crore 3,00,000 + 30% 7% Above 10 Crore 3,00,00,000 + 30% 12% Health & Education Cess is fixed @4% on all income slab. Tax rate for Domestic Company if Turnover < Rs. 400 Crore. Income Slab % of Tax Surcharge Upto 1 Crore 25% Nil Above 1 Crore but upto 10 Crore 2,50,000 + 25% 7% Above 10 Crore 2,50,00,000 + 30% 12% Health & Education Cess is fixed @4% on all income slab. Tax rate for Foreign Company is @ 40% fixed and Cess @ 4% on total income tax + surcharge. Tax Benefits for Private Limited Company in India Salary to founder or directors: For any person who is the founder or director of the company then the motive of that person is to earn maximum profit. Profit amount is to be taken by the founder of directors in the profit-sharing ratio which is pre-decided as a dividend.For the purpose of saving tax, directors can receive profit as salary instead of dividend. Salary to founder or directors is an expense of the private limited company. Sitting fees to the director: A company may pay fees to the director for attending meetings on the board. Director’s sitting fees should not more than Rs. 1,00,000/- and it is decided by BOD. It may be claimed as the expense and in hands of the director, it is exempted to the limit provided. Preliminary expenses: These are incorporation expenses that are raised before and after the incorporation of the private limited company. These are to be paid by the founder or director of the company in the form of professional charges for the creation of AOA and MOA, fees paid to the registrar, stamp duty, etc.We can save tax with these expenses if we have proper documentation.  Rent expenses: The registered address of the company is on rent on the name of the director or name of a relative then this rent may be booked in the books. So, we can book rent expenses and can take tax benefits freely. FAQs Q: Are there any Goods and Services Tax (GST) implications for Private Limited Companies? Private Limited Companies are also subject to GST on their taxable supplies of goods and services. The GST rates can vary based on the nature of the supplies. Q: Are there any incentives for startups or new businesses? The government of India has introduced various incentives and exemptions for startups, including

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