May 1, 2024

Profits and losses are integral parts of any business. Set off and carry forward of losses is a way provided under income tax which taxpayers can use to reduce their taxable income. As the financial year 2023-24 approaches, understanding the regulations of set-off and carry forward of losses can help make well-informed financial decisions. Delve into the intricacies of set-off and carry-forward losses in India for the FY 2023-24. When a business or trade occurs, it could result in profit or loss. The trader or businessman can incur losses or enjoy the benefits of gain. But laws of income tax in India give the taxpayers who have incurred losses some advantages. Set-off and carry forward of loss means making adjustments of losses against the profit of that particular year. However, the losses that cannot be set off against income of the same year are carried to subsequent years. This is the meaning of set-off and carry forward of loss. What is Set Off of Losses? Set-off loss means deducting the losses against any other profits of the same financial year. In other words, reducing the taxable Income against such losses saves taxes. Even If losses are not set off against income or profits in the same year in which losses were incurred, they can be carried forward to the future assessment years (with some limitation and set off against income of subsequent years).A set-off could be an intra-head set-off or an inter-head set-off. Intra-head set off Inter-head set off Intra-Head Set Off of Losses- Intra-Head Set Off of Loss allows taxpayers to set off losses from income from one source against income from another source under the same head of income. For example, if a taxpayer has a business loss from one source of income, they can set it off against the profit from another business source of income under the same head. Exceptions to Intra-head set off Losses from the speculative business can only be set off against the income from the speculative business. And cannot be set off against income from any other businesses. Losses from owning and maintaining horse races can be set off against income from owning and maintaining horse races. Long-term capital losses can only be set off against long-term capital gains. Short-term capital losses can be set off against long-term and short-term capital gains. Losses from the specified business can only be set off against profit from the specified business. However, losses from other professions and businesses can be set off against profit and income from specified businesses. Loss from the exempted source of income cannot be adjusted against taxable income, E.g., Agricultural income is exempt from tax; hence, if the taxpayer incurs a loss from agricultural activity, then such loss cannot be adjusted against any other taxable income Inter-head Set off of Losses- After adjusting the Intra-head set-off losses, the remaining losses can be set off against income from another head within the same financial year. For example, losses incurred from house property can be set off against income from salary. However, Speculative Business loss, Specified business loss, Capital Losses, and Losses from owning and maintaining racehorses cannot be set off against any other head of profit and income. This concept was introduced to provide relief to taxpayers who incur losses in a particular financial year. The Set-off and carry forward of loss assist taxpayers to settle the losses they incurred against the income they gained or the profit they made. Sometimes, all the losses do not settle against this year’s profit if the losses are high compared to the gains. In such cases, those losses can be carried forward into the profits of subsequent years. Set-off and carry forward of loss happens when you calculate your capital gains, and the capital gains appear to be lesser than the cost of acquisition. Set-off and carry forward of loss can be measured by adjusting the gain or loss of that specific year. However, the rule is that the losses from capital gain cannot be set off against income in any other way. It could only be settled with capital gains. For example, loss from property investment can only be settled against the profit of another property investment. You cannot fix these losses with other income, such as bonds and stocks. This is the set-off and carries forward of losses meaning. What is Carry forward of losses? Rules to carry forward losses: Losses under Income from house property- If losses under house property are not fully adjusted in the same financial year in which losses were incurred, they can be carried forward to the next 8 years. Such losses can be adjusted only against income from house property and can be carried forward even though ITR is filed after the due date {Section 139(1)}. Losses from Non-speculative Business- If losses under business or profession (Non-speculative business) are not fully adjusted in the same financial year in which losses were incurred, they can be carried forward to the next 8 assessment years. Such losses can be adjusted only against income from business or profession and can only be carried forward if the ITR is filed on or before the due date as per {Section 139(1)}. It is not necessary that the business from which such loss is incurred should be in continuance to carry forward losses. Losses under specified Business (35AD)- If losses under specified business are not fully adjusted in the financial year in which losses were incurred, they can be carried forward to infinite numbers of years. Such losses can be adjusted only against income from the specified business under 35AD and can only be carried forward if the ITR is filed on or before the due date {Section 139(1)}. Losses from speculative business-If losses under speculative business are not fully adjusted in the same financial year in which losses were incurred, they can be carried forward to the next 4 assessment years. Such losses can be adjusted only against income from the speculative business and can only

Corporation Bank was established more than a century ago in Udupi. The bank was nationalised in 1980 and now the bank has branches all over the country. The bank was established as a way of inculcating the habit of saving among the Indian public and has now branched out greatly in terms of the services it offers customers. One of the services that Corporation Bank offers its customers is the current account. A current account is a type of bank account that provides account holders with high liquidity. The account is usually held by individuals who run businesses. The account permits the account holders to make unlimited withdrawals and provides significantly higher limits on the deposits made. Corporation Bank has 4 variants of the current account. Each of these accounts differs in terms of the types of services that they offer the customer. The following are the current accounts offered by Corporation Bank: Corporation Bank Current Account- The following are the features and benefits of the current account: The quarterly average balance to be maintained in this account is Rs.5,000 for accounts held in urban and metro branches and Rs.2,500 for accounts held in semi-urban and rural branches. Account holders are charged a penalty fee of Rs.250 for non-maintenance of the quarterly average balance. The bank provides its sweep facility to its customers free of charge. Account holders receive a free monthly email statement for transactions made against their account. Account holders receive a concession on the rates for Demand Drafts and Pay Orders. The bank provides account holders with 100 free cheque leaves per year. Individuals who are above the age of 18, sole proprietors, partnership firms, Hindu Undivided Families (HUFs), schools, trusts, societies, and associations are eligible to open this type of account. Corp Bank Corp Club Current Account- The following are the features and benefits of the Corp Club Current Account: Corp Club Current Account holders are expected to maintain a quarterly average balance of Rs.1 lakh. Account holders will be charged a penalty fee of Rs.1,000 for non-maintenance of the quarterly average balance. Individuals who are above the age of 18, sole proprietors, partnership firms, Hindu Undivided Families (HUFs), schools, trusts, societies, and associations are eligible to open this type of account. Account holders have the privilege of availing the bank’s multiple account sweep facility without having to incur any additional charges. Corporation Bank provides account holders with monthly email account statements and SMS alerts free of charge. The bank provides account holders with a discount on its payment gateway facilities. Corporation Bank issues 200 cheque leaves free of charge per year to its Corp Club account holders. Corp Global Current Account- The following are the features and benefits of the Corporation Bank Corp Global Current Account: The account comes in 2 variants that are differentiated based on the quarterly average balance requirement. The quarterly average balance requirements for variant 1 and variant 2 of the accounts are Rs.1 lakh and Rs.2.5 lakh, respectively. The non-maintenance charges for these accounts are Rs.1,000 and Rs.2,000, respectively. The bank also provides its FOREX services to the account holders. Account holders who hold variant 1 and variant 2 on the Corp Global Current Account receive a rebate in the service charges levied on import and export transactions in two slabs. This is applicable when the transaction value is up to US $50,000 and the second slab is applicable for transactions above US $50,000. Customers who have the second variant of the account are entitled to avail free collection of their export bill, import bill, and outward remittance charges, while for the second variant, they can be availed at Rs.1,000 for transactions up to US $50,000. Individuals who are above the age of 18, sole proprietors, partnership firms, Hindu Undivided Families (HUF), schools, trusts, societies, and associations are eligible to open this type of account. Corp Privilege Current Account- The following are the features and benefits of the Corp Privilege Current Account: Account holders are expected to maintain a quarterly average balance of Rs.2.5 lakh. Account holders will be charged a fee of Rs.2,000 for non-maintenance of the quarterly average balance. Account holders receive free SMS alerts and monthly email statements for transactions made against their account. The bank provides its payment gateway facility at a discounted charge to its Corp Privilege account holders. The bank’s outstation cheque collection facility, internet banking facility, Demand Drafts, and pay orders are free of charge. Individuals who are above the age of 18, sole proprietors, partnership firms, Hindu Undivided Families (HUFs), schools, trusts, societies, and associations are eligible to open this type of account. Corporation Bank provides its customers with all the financial assistance that they require for successfully running their business. The added advantage of having exclusive privileges for their current account makes the customers’ banking transactions seamless and flexible. GST of 18% is applicable on all banking products and services from July 1, 2017 onwards. Benefits of Corporation Bank Current Account Corporation Bank current account enables businesspeople and traders to make direct payments using cheques, demand drafts, or pay orders Corporation Bank current account allows for prompt business transactions No limit on deposits in the Corporation bank home branch No limit on withdrawals This type of current account provides an overdraft facility Corporation Bank offers internet banking and mobile banking facilities Applicability – Corporation Bank Current Account The following types of individuals/entities are allowed to open IndusInd Bank current account Individuals of sound mind and who have attained majority Two or more individuals in their joint names Proprietary Concerns (Sole Proprietorships) Partnerships Firms Hindu Undivided Families Companies Clubs Societies Associations Committees Schools Trusts Joint Current Account- Two persons or more than two persons having contractual capacity can open a Corporation Bank Joint current account in any one of the following forms. Accounts in the name of Mode of Operation A & B Either or Survivor A & B Jointly or Survivor A & B Former or Survivor A, B & C

NGO (Non-Government Organization) or NPO (Non- Profit Organization) is an organization formed under Section 8 of the Companies Act, 2013 to achieve a specific set of objectives as defined under the Act. These types of companies are formed with the objective of working towards the public development of society at large. This blog will help you in understanding the Difference Between NGO and NPO, The three forms of NGOs/NPOs in India, objectives, and Procedures for establishing NGO / NPO in India. There are three forms of NGOs/ NPOs in India Society Trust Section 8 Company A non-governmental organisation (NGO) is a non-benefit government organization, resident-based gathering that capacities freely of government. NGOs, in some cases called common social orders, are composed on the network, national and universal levels to fill explicit social or political needs, and are helpful than commercial in nature. A non-profit organization is a business that has been allowed tax excluded status by the Internal Revenue Service (IRS) since it advances a social reason and gives an open advantage. Donations made to a not-for-profit association are regularly tax deductible to people and organizations that make them, and the NPO itself pay no tax on donations received. Even though they might be perceived as similar but they are not the same because non-profit organization can only be registered under companies act and on contrary non-governmental organization can be registered as a trust, society or not for profit organization in their respective acts. Any NGO ‘s role is to contribute to the nation’s development by engaging in issues such as education, health, livelihood, micro-finance, human rights, and many more. It is up to the NGO to decide on the issues for which they wish to work. In parts of India, we can find several good NGOs working not only on the charity model but also on the model based on rights. NGO ‘s charity concept includes charitable initiatives such as offering the community instant help. It can be Food , Clothing, Medicine, etc. While the right based model involves building local communities’ capacity to stand up for their rights and questioning the system’s discrepancy and keeping track of development as promised by the government. To understand it in a simple way, we can use NGOs to train local farmers on NREGA policies and schemes where farmers begin to ask for their right wages and benefits as promised under NREGA. Some other differences are that non-governmental organization works for betterment and development of society on the other hand, non-profit organizations works for promotion of art, science, research, commerce or any other useful purpose. There scope differentiates too as NGO has a lot wider scope than the NPO’s. Many non-profit organizations are affiliated with churches, clubs, and associations but non-governmental organizations are often working in isolated lands with widespread famine and disease, large scale disaster etc. NGO’s depend on gifts, different techniques, forms, projects, undertakings and exercises for rising of assets. An NPO utilizes its additional assets with the end goal of the association, as opposed to isolating it between its investors and the proprietors of the association NPO’s can raise assets through outer business borrowings, remote assets or the assets can be contributed by the individuals or chiefs. What is an NPO? A non-Profit Organization or NPO is a legal entity that is formed by a group of people to promote cultural, religious, professional, or social objectives. The members of the trustees of the NPO raised the funds are initially. As the NPO is a nonprofit making entity the surplus funds are applied to the promotion of the objectives of the organization rather than distributing it among the members of the organization. Registered under Section 8 of the Companies Act. The NPOs enjoy several privileges lie the exemption on taxes. NPOs include charitable organizations or the membership groups like sports clubs, women’s clubs, any social or recreational organization, public education institutions, public hospitals, etc. Non-Profit Organization fulfills the purposes like religious, charitable, scientific, public safety, literary, educational, fostering national or international sporting but on a smaller scale as compared to an NGO. What is an NGO? A Non- Government Organization operates independently from any government even though it may receive funds from the Government. NGO is a non-profit making entity that operates at the regional, national or international level and is completely dependent on connectivity and reach. An NGO can be incorporated as a trust, company, or society. These institutions can raise their funds from the government, businesses, or any other foundation or the general public. In India, there are 3.4 million non-governmental organizations that work in various fields like disaster relief to advocate for the marginalized and the suppressed communities. Many NGOs work for supporting human rights, women’s rights, children’s rights, environmental and health issues.  Point NGO (Non-Governmental Organization) NPO (Non-Profit Organization) 1 Operates independently of government control and intervention Operates without the primary goal of generating profits for its members or stakeholders 2 Engages in various activities, such as humanitarian aid, advocacy, social services, or development projects Engages in a wide range of charitable, educational, scientific, religious, or community-oriented activities 3 Can be local, national, or international in scope, addressing issues at regional, national, or global levels Can be local, national, or international in scope, depending on the organization’s mission and target beneficiaries 4 Often focuses on promoting social, environmental, or political change, and advocating for human rights or specific causes Often focuses on providing services or addressing specific needs in areas such as healthcare, education, arts and culture, or community development 5 May receive funding from various sources, including donations, grants, membership fees, or international organizations May receive funding from various sources, such as donations, grants, sponsorships, fundraising events, or government contracts 6 Can operate in sectors such as healthcare, education, environmental conservation, disaster relief, or human rights advocacy Can operate in various sectors, including social services, education, healthcare, arts and culture, sports, or community development 7 Often involved in advocacy, lobbying, or campaigning to influence policies, raise awareness, or bring

Starting a food business in India can be an exciting venture, but it comes with its share of responsibilities, including obtaining the necessary licenses and permits. Navigating the licensing process might seem daunting, but with a step-by-step guide, you can ensure compliance with the regulations while setting up your food business. As per Section 31(1) Food Safety and Standards Act, 2006, every Food Business Operator in the country must be licensed under the Food Safety &Standards Authority of India (FSSAI). The FSSAI licensing and registration procedure and requirements are regulated by the Food Safety & Standards (Licensing and Registration of Food Business) Regulations, 2011. A Food Safety and Standards Authority of India License or Registration is required for any food business in India that manufactures, stores, transports, or distributes food. Depending on the size and nature of the company, FSSAI registration or license may be required. the process more manageable and less intimidating. Step 1: Determine the Appropriate License The first step in starting your food business is identifying the type of license you need. In India, there are three primary categories of food licenses: FSSAI Registration: If your annual turnover is below a certain threshold (currently 12 lakhs), you can apply for an FSSAI registration. State License: For mid-sized food businesses, a state-level license is required, and this applies if your turnover exceeds the FSSAI registration threshold but remains below a state-specific limit (usually between 12 lakhs to 20 crores). Central License: Large-scale food manufacturers, importers, and exporters must obtain a central food license. Step 2: Prepare Your Documentation Once you’ve determined the type of license you need, it’s time to gather the necessary documents. The common documents include: Identity and address proof of the business owner or partners. Details of the food products to be manufactured or sold. The layout plan of the processing unit or food establishment. A list of equipment and machinery used. A copy of the partnership deed, if applicable. A declaration of food safety management plan. Step 3: Fill Out the Application Form  Visit the Food Safety and Standards Authority of India (FSSAI) website and fill out the appropriate application form, which varies depending on the type of license you need. Make sure to provide accurate information and attach all the required documents. Step 4: Submit Your Application After filling out the form, you can submit it online through the FSSAI portal. Ensure that you pay the necessary application fee as well. The fees differ depending on the type and duration of the license. Step 5: Inspection and Verification Once your application is submitted, a designated Food Safety Officer will inspect your premises to verify compliance with food safety standards. Be prepared for the inspection by having all necessary documents and facilities in order. Step 6: Receive Your License If your application and premises pass the inspection, you will receive your food license. The duration of the license will depend on your business size and requirements. It’s important to renew your license as necessary to maintain compliance. Food Business Operators Who Require FSSAI Registration Petty retailers, Retail Shops, Snacks shops, Confectionery or Bakery shops, etc. Temporary stalls, fixed stalls, or food premises are involved in preparing, storing, distributing, and selling food products. Hawkers sell packaged or freshly prepared food by traveling from one location to another. Dairy Units, including Milk Chilling Units, Petty Milkmen, and Milk Vendors Slaughtering house Fish Processing, Meat Processing, and unit All Food Manufacturing units that include Repacking food Vegetable Oil Processing Units Proprietary food and Novel food Cold/refrigerated storage facility Transporter of food products having several specialized vehicles like insulated refrigerated vans/wagons, milk tankers, food wagons, food trucks, etc Wholesalers, suppliers, distributors, and marketers of food products Hotels, Restaurants, and Bars Canteens and Cafeteria, including mid-day meal canteens Food Vending Agencies and Caterers Dhaba, PG provides food, a Banquet hall with food catering arrangements, Home Based Canteen, and Food stalls at fairs or religious institutions. Importers and Exporters of food items and food ingredients. E-Commerce food suppliers, including cloud kitchens FSSAI Registration/FSSAI License FSSAI Registration: Food Business Operators having a turnover of less than Rs.12 lakh per annum must obtain FSSAI essential registration. Food business operators who are petty food manufacturers can obtain registration. Form A is the FSSAI registration form the applicant must fill out to receive FSSAI essential registration. FSSAI State License:  Food businesses having a turnover of more than Rs.12 lakh per annum and less than Rs.20 crore per annum must obtain the FSSAI state license. Form B is the FSSAI registration form the applicant must fill out to get an FSSAI state license. Food business operators like small to medium-sized manufacturing units, storage, transporters, retailers, marketers, distributors, etc., need to take FSSAI registration from the state government. FSSAI Central License: Food businesses having a turnover of more than Rs.20 crore per annum must obtain the FSSAI central license. The FSSAI registration form the applicant must fill out to obtain FSSAI primary license is Form B. Food business operators like 100% Export Oriented Units, large manufacturers, importers, food business operators in Central Government Agencies, airports, seaports, etc., need to obtain FSSAI registration from central government. Documents Required Photograph of the Applicant Government-issued photo identities such as AADHAAR, PAN, Voter ID, etc Proof of Address of Businesses activity (if the address is other than as mentioned in the Photo ID Card) Documents for Renewal/Modification of License Any change in documents or information provided during the grant of the previous food business license. Certificate of Food Safety Management System being adopted Medical fitness certificates of all workers engaged in the firm All details of technical personnel in charge of the operation Documents required for Renewal of Registration/License Any change in documents or information provided during the grant of the previous registration Validity of FSSAI License / Registration The FSSAI License / Registration will be issued for 1 to 5 years, as chosen by the Food Business Operator, from the date of issue of registration or license. The FBO must apply for

PAN stands for Permanent Account Number, and TAN stands for Tax Deduction and Collection Account Number. PAN is a unique 10-digit alphanumeric number that is allotted to individuals, companies, and other entities by the Income Tax Department of India. In contrast, TAN is a 10-digit alphanumeric number allotted to persons who are required to deduct or collect tax on behalf of the government. What is the meaning of TAN? In India, the Income Tax department of the Central Government issues a 10-digit alphanumeric number to all persons who bear the responsibility of collecting tax at source (TCS) or deducting tax at source (TDS). This number is unique and is known as the TAN. Under Section 203A of the IT Act of 1961, the TAN number has to be quoted on all TDS returns filed. TAN number full form:- Tax Deduction and Collection Account Number. TAN stands for Tax Deduction and Collection Account Number. It is a 10-digit alphanumeric number allotted by the Income Tax Department of India to persons who are required to deduct or collect tax on behalf of the government. TAN is mandatory for persons responsible for deducting tax at source (TDS) on salaries, interest, dividends, and other payments as specified by the Income Tax Department. TAN is also required for persons responsible for collecting tax at source (TCS) on certain transactions as specified by the government. TAN is a unique identifier that helps track and monitor tax deductions and collections made by the person. It is used for filing TDS/TCS returns, issuing TDS/TCS certificates, and making payments towards TDS/TCS liabilities. TAN can be obtained by applying Form 49B to any of the authorized TIN (Tax Information Network) facilitation centers or NSDL (National Securities Depository Limited) e-Gov TIN-FCs. Once the application is processed, TAN is allotted and communicated to the applicant by the Income Tax Department. TAN Number – Structure The structure of this 10-digit unique identifier has undergone several revisions over the years. The current structure has 4 alphabets at the start, followed by 5 numerals and ends with an alphabet again.  The identifier has several details encoded using this combination of letters and numerals. These details are broken down as mentioned below – The TAN number’s first 3 alphabets represent the holder’s jurisdiction code. The 4th alphabet is the initial of the holder’s name. It must be remembered that a TAN number can be allotted to an individual or an enterprise, like a company or a firm, of any sort.  In such an instance, the company or organisation is treated as an individual. The next 5 numbers are exclusive identifying numerals with no added significance. Finally, the last alphabet acts merely as a unique identifying entity.  The structure can be better understood with two examples, albeit fictional ones. If a certain Mr Mahesh from Rajasthan files tax returns at source, his TAN number will look like – RAJM99999B Where,  RAJ indicates the jurisdiction which, in this example, is the state of Rajasthan. The 4th alphabet, ‘M’, refers to the first character of its holder’s name. The next 5 numerals and the last letter serve as a unique ID. When a certain Delhi-based firm, XYZ Pvt Ltd, is allotted a TAN, it may look like this – DELX12345M Here again,  ‘DEL’ indicates that any legal issues will be dealt with only by competent jurisdictional authorities within the city of New Delhi. ‘X’ is the first character of the company’s registered name. The remaining letters serve the same purposes as the previous example. The Relevance of this Number It is imperative that you know your TAN no. Without it, you are certain to face a series of difficulties while filing your tax returns.   Following are some reasons why holding a Tax Deduction and Collection Account Number is necessary. Note that all these provisions are clauses and conditions under Section 203A of the IT Act, 1961.  You cannot file TCS or TDS statements if you do not have a TAN. This number is required when you seek challans for TDS or TCS payments; without it, you cannot procure these documents. Unless you can quote your TAN number, you will not be able to submit either TDS or TCS certificates. This may result in problems in the IT documentation process and plenty of persisting issues later.  Lastly, without the Tax Deduction and Collection Account Number, it is impossible to collect or submit a wide variety of IT-related forms. Here, it is crucial to note that there is an important exception when it comes to obtaining and quoting the TAN. The number is not mandatory for any individual who deducts tax under Section 194-1A of the IT Act of 1961.  Who are eligible to apply for the TAN? As per the Indian Income Tax laws, any person who is responsible for deducting tax at source (TDS) or collecting tax at source (TCS) is required to apply for a Tax Deduction and Collection Account Number (TAN). The following are some of the entities that are required to apply for TAN: Government organizations or departments are required to deduct TDS or collect TCS. Companies or corporate entities, including public and private limited companies, who are required to deduct TDS or collect TCS. Partnerships, limited liability partnerships (LLPs), and trusts that are required to deduct TDS or collect TCS. Individuals or firms who are carrying out business and liable to deduct TDS under the provisions of the Income Tax Act. How to apply for TAN? There are two modes for applying for TAN: online and offline. You can apply for a Tax Deduction and Collection Account Number (TAN) in India by following these steps: Visit the NSDL website or TIN-FC website and download Form 49B. Fill in the form with accurate details and attach the necessary documents, such as proof of identity and address. Pay the required processing fee,  Submit the form and the supporting documents to any of the authorized TIN facilitation centers or NSDL e-Governance TIN-FCs. Once the form and documents are verified, TAN will be allotted and communicated to the applicant. For offline applications, one should file Form 49B