May 26, 2024

SBI Gold Loan

learn / /

SBI Gold Loans can be obtained by pledging the applicant’s personal gold, gold jewellery, or gold coins with SBI as security. Upon timely loan repayment, SBI will securely return the provided collateral. The loan application process is simple, and loan approval and disbursement happen immediately. SBI offers personal gold loans with interest rates starting at 8.80%. A gold loan is a loan taken against your gold assets against a certain interest rate to be paid after the tenure is over. State Bank of India (SBI) offers gold loans to individuals of up to Rs. 50 lakhs against 18-24K gold articles like gold jewellery, gold bonds, etc.  SBI Gold Loan Interest Rate 2024 SBI Personal Gold Loan Scheme 1-year MCLR Spread over 1 year MCLR Effective Interest Rate Gold Loan EMI based 8.65% 0.95% 9.60% 12 Months Bullet Repayment Gold Loan 8.65% 0.20% 8.85% 3 Months Bullet Repayment Gold Loan 8.20% 0.55% 8.75% 6 Months Bullet Repayment Gold Loan 8.55% 0.25% 8.80% SBI Realty Gold Loan Scheme 1-year MCLR Spread over 1 year MCLR Effective Interest Rate Realty Gold Loan(all variants) 8.65% 0.20% 8.85% SBI Gold Loan Rate per Gram According to the State Bank of India, they decide the actual loan amount by checking the gold purity and net weight. The bank does not grant any gold loan based on the security of Primary Gold (For example – 24 carats of gold bars and biscuits).  SBI Gold Loan Interest Rate Agricultural Under the Multi-Purpose Gold Loan scheme of SBI, a farmer or a person engaged in agriculture can apply for SBI Gold Loan. According to the bank, the interest rate is 1-year MCLR rate plus 1.25%.  Additionally, you have to pay additional charges for the inspection or processing of your loan. Farmers have to pay the following charges for loans above Rs. 50,000. For loan amounts between Rs. 50,001 to Rs.2 lakh, the fee is Rs. 500 plus GST.  If your loan amount is more than Rs. 2 lakhs, SBI will take 0.30% of the loan amount and additional GST as an inspection/processing fee. Characteristics of the State Bank of India Gold Loan Schemes Flexible loan amount: Borrowers may receive loans ranging from 20,000 to 50 lakh rupees. Flexible payback period: The maximum time allowed to repay the loan through EMIs is between 12 and 36 months. Prepayment: SBI does not levy prepayment fees for loans that are prepaid by the borrower. Flexible loan repayment options: Customers can repay their SBI Personal Gold Loans through gold loans, liquid gold loans, or bullet repayment gold loans. Gold objects used as security are returned when the loan is repaid. Rapid approval: This loan is simple to obtain and requires little documentation. Low processing fee:  The processing fee charged by SBI is 0.25 percent of the loan amount. SBI Gold Loan Eligibility Criteria SBI Personal Gold Loan The age should be 18 years or above.  You must have a steady income source. However, you do not need to submit income-proof documents if you are a pensioner or bank employee. SBI Realty Gold Loan The age must be 18 years or above.  You must be a housing loan borrower of SBI Bank (Existing and new customers are allowed). Documents Required for SBI Gold Loan These are the list of documents you need to submit to get your gold loan from SBI: Two passport-size photographs Address proof (Aadhar card, Voter ID card or driving license) Identity proof (Aadhar card, Voter ID card or driving license) SBI Gold Loan Procedure Step 1: Log in to the SBI Yono app by entering the MPIN. Step 2: Click on the ‘Loans’ tab and select ‘Gold Loan’. Step 3: On the next screen, click on the ‘Apply Now’ button. Step 4: Enter the required details, such as personal details, gold ornament details, loan amount, and the branch in which you want to deposit the gold ornaments and submit the form. Step 5: Visit the selected branch and submit the gold ornaments and the required documents. Step 6: The bank officials will process your application and documents and sanction the loan amount. Fees of the State Bank of India Gold Loan Scheme SBI, in contrast to other banks, levies a small processing fee, the amount of which is determined by the caliber of the gold pledged as security. SBI levies a processing fee of 0.25 percent of the loan amount, with a minimum of Rs 250, and there is no price if the application is submitted through YONO. State Bank of India Gold Loan Interest Rate Compared to Other Lenders of Gold Schemes Bank Interest Rate HDFC Bank Gold Loan 7.20% p.a to 16.50% p.a. Axis Bank Gold Loan 8.90% p.a.to 17% p.a. FAQs Are the repaid terms for demand loans and overdrafts different? Yes, a demand loan has a 36-month maximum repayment period. Will I receive an acknowledgment letter when the money is dispersed? Yes, you will receive a delivery letter detailing the quantity, weight, purity, and other pertinent information on the gold jewellery. Since they will be needed after the account is closed, store these documents safely. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services

SBI Gold Loan Read More »

Companies Act 2013

Companies Act 2013 / /

The Companies (Amendment) Bill 2019 was passed by the Lok Sabha. It introduced some changes to the Companies Act 2013. It amends the laws related to Indian companies.  Companies Act 2013 The Companies Act 2013 regulates the formation and functioning of corporations or companies in India. The first Companies Act after independence was passed in 1956, which governed business entities in the country. The 1956 Act was based on the recommendations of the Bhabha Committee. This Act was amended multiple times, and in 2013, major changes were introduced. By Section 135 of the 2013 Act, India became the first country to make corporate social responsibility (CSR) spending mandatory by law. Currently, the Ministry of Corporate Affairs is administering the following Central government Acts: Companies Act 2013 Companies Act 1956 (some provisions of this Act still apply) Competition Act 2002 Insolvency & Bankruptcy Code, 2016 Chartered Accountant Act 1949 The Companies Act 2013 has replaced the 1956 Act. Detail   Companies Act 1956 Companies Act 2013 Parts  13 NA Chapters  26 29 Sections  658 470 Schedules  15 7 Salient Features of the Companies Act 2013 It has introduced the concept of ‘Dormant Companies’. Dormant companies are those that have not engaged in business for two years consecutively. It introduced the National Company Law Tribunal. It is a quasi-judicial body in India adjudicating issues concerning companies. It replaced the Company Law Board. It provides for self-regulation concerning disclosures and transparency rather than having a government-approval-based regime. Documents have to be maintained in electronic form. Official liquidators have adjudicatory powers for companies having net assets of up to Rs.1 crore. The procedure for mergers and amalgamations has been made faster and simpler. Cross-border mergers are allowed by this Act (foreign company merging with an Indian company and reverse) but with the permission of the Reserve Bank of India. The concept of a one-person company has been introduced. This is a new type of private company which may have only one director and one shareholder. The 1956 Act required at least two directors and two shareholders for a private company. Having independent directors has been made a statutory requirement for public companies.  For a prescribed class of companies, women directors are mandatory. All companies should have at least one director who has been a resident of India for not less than 182 days in the last calendar year. The Act provides for entrenchment (applying extra-legal safeguards) of the articles of association. The Act mandates at least 7 days of notice for calling board meetings. In this Act, the duties of a Director have been defined. It has also defined the duties of ‘Key Managerial Personnel’ and ‘Promoter’. For public companies, there should be a rotation of audit firms and auditors. The Act also prevents auditors from performing non-audit services to the company. In case of non-compliance, there is substantial criminal and civil liability for an auditor. The whole process of rehabilitation and liquidation of the companies in the case of the financial crisis has been made time-bound. The Act makes it mandatory for companies to form CSR committees, and formulate CSR policies. For certain companies, mandatory disclosures have been made with regard to CSR. Listed companies ought to have one director to represent small shareholders as well. There is provision for the search and seizure of documents, during the investigation, without an order from a magistrate. Norms have been made stringent for accepting deposits from the public. The setting up of the National Financial Reporting Authority (NFRA) has been provided for. It engages in the establishment and enforcement of accounting and auditing standards and oversight of the work of auditors. (Due to the notification of NFRA, India is now eligible for membership in the International Forum of Independent Audit Regulators (IFIAR).) The Act bans key managerial personnel and directors from purchasing call and put options of shares of the company if such person is reasonably expected to have access to price-sensitive information. The Act offers more power to shareholders in that it provides for shareholders’ approval for many major transactions. Companies Act 2013 Highlights The maximum number of shareholders for a private company is 200 (the previous cap was at 50). The concept of a one-person company. Company Law Appellate Tribunal & Company Law Tribunal CSR made mandatory Companies (Amendment) Act, 2019 This Act was passed by the Parliament in July 2019. The changes recommended under the latest amendment to the Companies Act are as follows: Companies will have to keep an unspent amount in a special account for CSR. This amount, if left unspent after 3 years, will be moved into a fund specified in Schedule VII of the Act. This could even be the Prime Minister’s Relief Fund. Under this Act, the Registrar of Companies can initiate action for the removal of the company’s name from the Register of Companies if it is not conducting business or operation as per the Company Law. 16 minor offences mentioned in the Act have been decriminalised (made civil defaults). FAQs What is Company as per Companies Act 1956? Companies Act 1956 defines a company as ‘a company formed and registered under this Act or an existing Company’. Existing Company is one that has been formed under the earlier company laws. What are types of companies in India? There are various types of business entities in India. They are: Private limited company Unlimited company Public limited company Sole proprietorship Partnership Joint Hindu family business Cooperatives Limited liability partnerships   Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and

Companies Act 2013 Read More »

Decode GST Number

Goods & Service Tax / /

GSTIN, short for Goods and Services Tax Identification Number, is a unique 15 digit identification number assigned to every taxpayer (primarily dealer or supplier or any business entity) registered under the GST regime. Before GST was introduced, all dealers registered under the state VAT law were issued a unique TIN number by the respective state tax authorities; the GSTIN number has replaced the same. Business entities registering under GST are now provided with a unique identification number known as the GSTIN. What is GSTIN? Before GST was implemented, all dealers registered under the state VAT law were assigned a unique TIN number by the respective state tax authorities. Similarly, service providers were assigned a service tax registration number by the Central Board of Indirect taxes and Custom (CBIC). Under the GST regime, all registered taxpayers are consolidated into one single platform for compliance and administration purposes and are assigned registration under a single authority.  Every business operating in a state or Union territory will be assigned a unique Goods and Services Tax Identification Number, popularly known as GSTIN. Every taxpayer under the GST regime is provided with a State + PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Here is the breakdown of the GSTIN format- GSTIN Full Form: Goods and Services Tax Identification Number First 2 Digits: The first 2 digits of the 15 digit GSTIN represents the state code. Next 10 Digits: The next 10 digits are the PAN of the person or the business entity. Thirteenth Digit: The thirteenth digit is based on the number of registrations done by the firm within a state under the same PAN. Fourteenth Digit: The fourteenth digit will be the alphabet “Z” by default Last Digit: The last digit is called the check code to detect errors and can be denoted by either a number of an alphabet GST Number Example If any legal entity or business firm has only one registration in the same state, then the number “1” will be assigned as the 13th digit of GSTIN under its format. If the same company obtains one more or second registration in the same state itself, the thirteenth digit of GSTIN will be assigned as number ”2”. Similarly, the letter “B” will be assigned as the 13th digit of the GSTIN if the entity has done 11 registrations in the same state. In the same way, any legal entity can have up to 35 business verticals and can be registered within a state using this system. How to apply for GSTIN? It is part of the GST Registration process. Once the application is approved by the GST officer, a unique GSTIN is allocated to the dealer. There are two ways to register for GST: via GST Online Portal or via GST Seva Kendra set up by Government of India Documents Required Photographs The taxpayer’s constitution Proof(s) of the business’s location Account information Form of authorization Difference Between GSTIN and GSTN GSTIN number means the Goods and Services Tax Identification Number, whereas Goods and Service Tax Network (or GSTN) is an organisation that oversees the GST portal’s whole IT system. The Government of India will use this portal to track every financial activity and to give taxpayers all services, from registration to submitting taxes and preserving all tax records. Benefits of Getting a GSTIN Legal recognition of the business entity as a supplier of goods or services. This, in turn, helps in attracting more customers and growing business. You will become more competitive than small businesses as purchasing from them will ensure input credit. A person who has GSTIN can take input credit on their own purchases and input services.  No restrictions on interstate sales (they will be treated as casual taxable persons). Thus, the potential market for SMEs reaches the next level. You can either register on e-commerce sites or open your own e-commerce website. This will again enhance the scope of business for a registered person.  GST registration will ensure that your business is compliant (because most returns are automated). This will result in a good GST rating for your firm and help to boost the business. FAQs How do I file a complaint regarding a forged GSTIN? The GSTIN can be looked up and validated on the government portal. Assume that any variations from a supplier have been recognised. In that case, please report it immediately by using the portal, contacting the government at [email protected], or phoning 011-23370115, 0124-4688999, or 0120-4888999. Is the GSTN and GSTIN the same thing? No, they are not the same. GSTIN is a 15-digit alpha-numeric number assigned to each taxpayer. GSTN, on the other hand, is the Goods and Services Tax Network, which is an organisation in charge of the official GST portal’s whole information technology infrastructure. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration

Decode GST Number Read More »

Income Tax Refund (ITR) Status

Income Tax / /

The due date to file an ITR return is 31st July 2024 for non-audit cases and for cases requiring an audit, the due date is 31st October 2024. The income tax return filing season is over. Are you waiting for your income tax refund?  paid more taxes than your actual liability, you can request a refund for the excess amount. The Income Tax Department offers an online facility for tracking your Income Tax Refund status. You can easily check the progress of your refund by entering your PAN (Permanent Account Number) and the applicable Assessment Year. Tax refunds are initiated by the tax department once you have e-verified your return Typically, it takes 4-5 weeks for the refund to be deposited in your bank account If the refund is not received within this timeframe, you should consider these steps: Check intimation for any discrepancies or errors in your ITR (Log in to e-filing portal > e-File > Income Tax Returns > View filed returns) Check your email for notifications from the Income Tax (IT) department regarding the status of the refund. Check the refund status using the methods provided below What is an income tax refund? When a taxpayer makes an excess payment of income tax to the government against its actual income tax liability for a given year, the income tax department refunds the excess amount paid after due assessment. This refunded amount is known as an ‘Income tax refund’. How to Check your ITR Refund Status for FY 2023-24? You can check your refund status using either of these methods: TIN NSDL website Income tax e-filing portal Refund Status check on TIN NSDL Portal Go to this online refund checking facility Scroll down and enter your PAN, AY, captcha, and then click on ‘Submit’. When can you claim an income tax refund? Excess TDS deducted-  The employer generally deducts taxes after considering various documentary proofs provided to him by an employee pertaining to, say, 80C investments, medical insurance premium under 80D, etc. However, there are instances where an employee cannot furnish proof for a few such investments before the end of a particular financial year. Accordingly, the employer goes ahead with a higher deduction. However, the employee can claim the benefit of such investments while filing their return of income and therefore claim a refund of the higher taxes paid, Certain individuals may not fall within the taxable bracket at all, i.e. their income would be less than Rs 2.5 lakh. Hence, they would not have to pay any taxes. Yet, taxes would have been deducted from their income. This being so, they can claim a refund of the excess tax deducted; Excess TDS was deducted from your interest income- Banks may deduct TDS on interest accrued on FDs or bonds if the amount exceeds the threshold limit specified in the Income Tax Act. Excess advance tax paid- The advance tax paid on the basis of self-assessment was more than the actual tax liability for the given FY. This advance tax can be claimed as a refund while filing ITR. Taxpayers may be called upon to pay additional taxes- The income-tax officers may make certain additions to taxpayer’s income during income tax proceedings. Such additions may be deleted by appeal authorities. Accordingly, the taxpayer will be refunded the taxes he would have paid. In case of income taxable in more than one countries i.e income is doubly taxed– This situation can arise when a person is a citizen of one country but receives income from another country. However, India has entered into a Double Taxation Avoidance Agreement (DTAA) with many countries wherein the agreement allows you to claim a tax refund if you are a non-resident Indian and your income is taxable in other countries. Any payment of excess tax can be claimed as a refund under this DTAA agreement. How to claim an income tax refund? An income tax refund can be claimed simply by filing ITR. Please note that the IT department will process the ITR for refund only if the ITR is verified through any of the online modes or by offline mode (sending a signed copy of ITR-V). Further, the refund from the IT department is subject to assessment/verification by the IT department. A refund is received only if the refund claim is found to be valid and legitimate. Refund Status check on Income Tax e-filing Portal Step 1: Visit the income tax portal and log in to your account Step 2: Click on ‘e-File‘, choose ‘Income Tax Returns’ and then select ‘View Filed Returns’ Step 3: You can see the status of your current and past income tax returns. Step 4: Click on ‘View details’ and you’ll see the status of your income tax refund, like in the picture below. FAQs How long will it take to get the refund? The time taken to receive the income tax refund entirely depends on the Income Tax Department’s internal process. Generally, it takes around 7 to 120 days, with an average time of 90 days after you have e-verified your return. The Income Tax Department implemented a new refund processing system to enable faster refund processing with an expected turnaround of a few days instead of a few months. Consistent with this objective, the average ITR processing duration has been reduced to 10 days for returns submitted in the AY 2023-24, as opposed to 82 days for returns submitted in the AY 2019-20 and 16 days for returns submitted in AY 2022-23. How will I receive the refund? The Income Tax Department will send the refund amount through electronic mode (direct credit to the account) or through a ‘Refund Cheque’. You must enter the correct bank account number and IFSC code with complete address details, including the PIN code, at the time of filing your return to receive refunds. Refunds sent through cheques are dispatched to the address mentioned in the ITR through speed post. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration

Income Tax Refund (ITR) Status Read More »

Telangana Registration

learn / /

Property buyers in Telangana have to register the sale with the Telangana Registration and Stamp Department. A buyer, along with the seller and witnesses, needs to visit the sub-registrar’s office, nearest to the location of the property, to pay the stamp duty and registration charges as applicable in Telangana state. A part of the Telangana property and land registration can be done online, where you have to upload all the documents online. Telangana Registration department deals are tasked with providing various services to the public, including property registration, marriage registration, partnership deed registration, and more. The Telangana Registration department helps the people to verify registered documents and enquire the right, title, and obligations, if any, on any immovable property. In this article, we look at the various services provided by the Telangana Registration department, the procedure for property registration, and Telangana stamp duty. Telangana Property Registration Procedure Before Arriving at Telangana Registration Office Telangana Government has introduced a completely online system for property registration. Before reaching the concerned Registrar office, the applicant must upload details of the transaction using the Public Data Entry system and upload the required documents. On uploading the documents, the user can make payment through the online portal and book a slot at the Registrar office for completing the property registration formalities. Finally, on the appointed date and time, the applicant must arrive at the concerned office to complete the property registration procedure. Procedure at Registration Office Allow sufficient time to complete the formalities at the registration office. Typically, 1 to 4 hours would be required for the completion of formalities. On the date and time of appointment, arrive at the concerned Registrar Office with the documents to be registered. The involved Officer at Sub-Registrar office will prepare a check slip based on the details provided through the Public Data Entry system and make any changes if required. After the generation of check slip, the concerned Officer will complete E-KYC and collect fingerprints of the registering parties. The fingerprint will also be verified against the Aadhar database. On successful completion of the verification of Aadhar, payment of stamp duty, registration fees, and other requisite fees, a verification challan is provided. Finally, endorsements will be printed on the document being registered by the Registrar. Sub-Registrar will then register the document by providing a Document number, and the thumb impression of the parties is collected. The registered document will then be scanned and uploaded on the portal, which the user can download from the portal. In case of verification is unsuccessful, the applicant will be directed to make necessary changes and re-submit the application. Major Services under Telangana Registration Telangana Registration Department provides various services to the public involving public registration of documents. The following are some of the essential services provided by the Registration Department: Property Registration Stamp Vending Marriage Registration Chit Fund Registration Partnership Firm Registration Societies Registration Documents Required for Property Registration in Telangana The original document bearing the signature of all parties Challan or DD evidencing payment of full stamp duty, transfer duty (if any), Registration fee and user charges Section 32A photo form of executants, claimants or witnesses. Two credible persons(witnesses), who will identify the parties and identity cards with photos of such persons. Address proof of the executants and witnesses Aadhar Passport Drivers License PAN Card Ration Card Voter ID Photograph of the property with a front view (8 x 6 inches) GPA or SPA, if any in original and its Photostat copy. Link documents copies. Webland copy in respect of agricultural properties. Pattadaar passbooks and title deeds in original and their copies in respect of agricultural property transactions. Telangana Stamp Duty Document Stamp Duty Transfer Duty Registration Fee Stamp Duty and Transfer Duty Payable on Sale of Immovable Property         In Corporations, Special Grade and Selection Grade Municipalities 4% 1.5% 0.5% Market value or consideration, whichever is higher. In other areas 4% 1.5% 0.5% Market value or consideration, whichever is higher. Apartments or Flats including semi-finished in all areas 4% 1.5% 0.5% Market value or consideration, whichever is higher. Sale Agreement cum GPA 5% (4% adjustable & 1% not adjustable) 0% RS.2,000 Market value or consideration, whichever is higher. Sale Agreement with Possession 4% (adjustable) 0% 0.5% ( subject to a minimum of Rs.1000 and maximum of Rs.20,000) Market value or consideration, whichever is higher. FAQs What is the registration charges for flats in Telangana? The stamp duty of flats in Hyderabad is 4% with registration fees of 0.5% and transfer fees of 1.5%. How can I get new house number in Telangana? You can get a new house number in Telangana by visiting the Greater Hyderabad Municipal Corporation’s official website. Here, after following the asked verification details, download the new assessment request application form and proceed. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore

Telangana Registration Read More »

Powers and Duties of Liquidator in Voluntary Winding Up- A Complete Checklist

Companies Act 2013 / /

In voluntary winding up, when a company decides to close down its operations, a liquidator is appointed to oversee the process. But what exactly does a liquidator do? The liquidator holds significant powers, including gathering and selling company assets, settling debts, and distributing remaining funds to shareholders. Moreover, they bear the responsibility of ensuring fair treatment to all parties involved and conducting investigations if any misconduct is suspected. Who is a Liquidator in Voluntary Winding Up? In voluntary winding up, a liquidator is an individual appointed by the shareholders or members of a company to oversee the winding-up process and manage the affairs of the company during the period of its dissolution. The main purpose of the liquidator is to ensure the orderly and efficient realization of the company’s assets, settlement of its liabilities, and fair distribution of any remaining funds to the shareholders or members. Appointment and Qualifications of a Liquidator In a voluntary winding-up, the company’s shareholders must pass a special resolution to appoint a liquidator. The liquidator may be a qualified insolvency practitioner, a licensed individual, or even a shareholder or director of the company. However, some jurisdictions may require specific qualifications and restrictions for the appointment of a liquidator. Powers of the Liquidator Gathering and Realization of Assets: One of the primary duties of the liquidator is to identify and gather all the assets of the company. This includes tangible assets such as property, equipment, and inventory, as well as intangible assets like patents, trademarks, and intellectual property rights. The liquidator is then responsible for selling or disposing of these assets to convert them into cash. Settling Liabilities: The liquidator must also identify and settle all the outstanding debts and liabilities of the company. This includes payments to creditors, employees, and other stakeholders. The liquidator must follow a strict order of priority while making these settlements, as defined by the relevant laws. Distribution of Funds: Once the liabilities are settled, the liquidator distributes the remaining funds, if any, to the shareholders under their shareholdings. The order of distribution may also be specified by law, ensuring fair treatment to all shareholders. Investigations: The liquidator has the power to conduct investigations into the company’s affairs to ascertain any wrongful trading or fraudulent activities that may have contributed to the company’s insolvency. If any misconduct is discovered, the liquidator can take legal action against those responsible. Summoning Meetings: The liquidator can call for meetings with the creditors, contributors, or shareholders as required during the winding-up process. These meetings may be for obtaining approval for certain actions or to keep stakeholders informed about the progress of the winding-up process. Legal Action: The liquidator has the authority to initiate legal proceedings on behalf of the company to recover assets, challenge voidable transactions, or defend the company’s interests. Duties of the Liquidator Fiduciary Duty: The liquidator acts as a fiduciary for the company and its stakeholders. They are required to act honestly, impartially, and in the best interests of all parties involved. Reporting: The liquidator must provide regular reports on the progress of the winding-up process to the relevant authorities and stakeholders. These reports may include financial statements, details of asset realization, and other relevant information. Compliance with Laws: The liquidator must comply with all relevant laws and regulations governing the winding-up process. They must ensure that the distribution of assets and settlement of liabilities follow the prescribed legal procedures. Impartiality: The liquidator must remain neutral and unbiased throughout the winding-up process, avoiding favoritism towards any stakeholder. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west

Powers and Duties of Liquidator in Voluntary Winding Up- A Complete Checklist Read More »