June 19, 2024

A sole proprietorship cannot get all benefits of operation as it grows. So, there will be a need to convert the proprietorship into a private limited company. The conversion can bring in its wake all the benefits of a company like higher capital, limited liability, and so on. Conversion of a proprietorship into a private limited company provides many benefits, but it also brings along the diffusion of power and loss of independence. Small businesses formed as sole proprietorships generally struggle to upscale their venture due to minimal investment capacity, unlimited liability, no separation between ownership and management, no perpetual succession after the death of a sole person, etc. It also cannot induct new investors on the Board and is less preferred for investment. Start-ups and growing businesses started as sole proprietorships choose to convert into Private Limited Company because it allows outside funding to be raised easily, limits the liabilities of its shareholders, and enables them to offer employee stock options to attract top talent. A Pvt Ltd Company is a type of privately held small business entity, which is considered a separate legal entity in the eyes of law, provides separation between ownership and management, restricts shareholding up to 200 or fewer members, and shares are prohibited from being publicly traded. A sole proprietorship can be converted into a Private Limited by executing a sale/takeover agreement and mentioning the takeover of the business of a sole proprietor as the main object in its Memorandum of Association (MOA). Choosing to Convert to a Private Limited Company as the Business Grows: 1. Limited Liability & Member: As the business expands, the proprietor may seek the protection of limited liability provided by a Private Limited Company, shields personal assets from business liabilities.Requires a minimum of two members, up to a maximum of 200. 2. Attracting Investors: Private Limited Companies have greater potential to attract external investors by issuing shares, facilitating fundraising for expansion and development. 3. Enhanced Credibility: A Private Limited Company often carries greater credibility in the business world, fostering trust among clients, partners, and investors. 4. Scalability: The structure of a Private Limited Company is conducive to scaling operations and accommodating a larger workforce, facilitating business growth. 5. Transferability of Shares: Private Limited Companies offer flexibility in transferring ownership through the sale or transfer of shares, enabling changes in ownership structure. 6. Tax Planning Opportunities: Private Limited Companies may benefit from various tax planning strategies and potentially lower tax rates on profits, offering tax advantages as the business grows.Profits are taxed at a fixed rate of 30%, plus surcharges and cess. 7. Formalized Governance or Compliance: Private Limited Companies generally have more formal governance structures, which can enhance transparency and corporate governance practices.Annual returns and accounts must be filed with the Registrar of Companies. Conditions for Conversion of Proprietorship Firm into Pvt Ltd Company All the assets and liabilities of the sole proprietorship must be transferred to the company. The shareholding of the sole proprietor should be at least 50% of the total share. The shareholding of the sole proprietor must be continued for a period of 5 years. Any additional benefits or consideration shall not be provided to the sole proprietor except the allotment of shares. The Memorandum of Association (MOA) of the company shall have one of its objects as “The takeover of a sole proprietorship”. A sale or takeover agreement has to be executed between the sole proprietorship firm and the company. Advantages of Converting Proprietorship to Pvt Ltd Company Separate legal entity and Limited Liability A company is a separate artificial person in the eyes of the law, and the liability of each member/shareholder is limited up to the unpaid amount of shares. It means that if a company faces loss under any circumstances, then its shareholders are not liable to sell their own assets for re-payment. Perpetual succession (Continuous Existence) A company has a continuous existence in the eyes of the law even in the case of death, insolvency, and bankruptcy of its members. This leads to the perpetual succession of the company. The life of the company does not depend upon one person as in the case of a sole proprietor. Easy allocation of ownership and management Businesses that require funding from fund houses, venture capitalists (VCs), angel investors, etc. need to register or convert to Private Limited Company so that it can make them shareholders and offer them a seat on the board of directors, whereas Sole Proprietorship Firm is not eligible to share or fully give up ownership and management. Preferred by banks, VCs & investors As the private limited company’s books are audited by an independent auditor every year, most of the Banks, VCs, and investors prefer them over other forms of business. Separation between Ownership and Management In a Pvt Ltd company, there is a clear separation between ownership and management which ensures that management of the company is headed by a team of professionals with the diverse skills necessary to effectively run the company. Documents Required PAN Card copy of all directors (Identity Proof). Copy of Aadhar card/ Voters ID (Address Proof). Passport size photographs of Directors. Proof of ownership of business place (if owned). Rental agreement if rented. No Objection Certificate (NOC) of Landlord. Electricity or water bill. The forms to be submitted to the MCA are:   Form 1 must be filed with the MOA, AOA and other documents.  Form 18 specifies the details of the registered office.  Form 32 contains particulars of the information of the directors. Procedure for Conversion of Proprietorship to Company The proprietor must complete the slump sale formalities. The Director Identification Number (DIN) and the Digital signature certificate (DSC) must be obtained for all the directors. The proprietor must apply for the availability of name in Form – 1. Prepare the MOA and Articles of Association (AOA) of the company specifying the objects and the rules of the company. Apply for the incorporation of the company to the Ministry of Corporate Affairs (MCA). Submit all the relevant documents. Receive the Certificate of Incorporation. Apply for a new

For revival of a Company an appeal / petition / application can be filed by a person who is affected by such strike off of the company to the National Company Law Tribunal (NCLT) within a period of 3 years from the respective date of order by the registrar for striking off of the name of the Company and the onus lies on the person applying for the said revival upon the satisfaction of NCLT with the justifications given by the concerned person and is of the opinion may order the restoration of the name of the company in the register of companies. Section 250 of Companies Act of 2013 is a provision and it declares that even where a Company is dissolved in consequence to it being struck off under section 248, it shall be deemed to continue to be in existence for the purpose of discharging its liabilities. The said section recognizes the continuing liability of a struck off company, which is in addition to section 248(7) of the Companies Act, 2013, Revival of struck off company According to the 2013 Companies Act, a “strike off” occurs when the Registrar, in accordance with the requirements of the Act, temporarily closes the Company or strikes the Company’s name from the Register of Companies. The revival of struck off companies may be done for a period of twenty years following the date of the strike-off as a replacement for winding up the business. Any person who feels wronged by a Registrar’s order, the Company, a Member, a Creditor, or a Worker may file an appeal or application. In accordance with section 252(1), a member, creditor, or employee of a company may file a petition for the revival of struck off company before the passing of 20 years after the company has been struck off. Other parties may file a petition under section 252(3) within three years of the publication of the notification in the official gazette. The petition’s filing fee should be a demand draft for Rs.1000. The appeal must be filed within three years of the date of the Registrar of Companies order in the case of the Registrar’s forced striking off, and the statute of limitations is twenty years in the case of the Registrar’s voluntary striking off. Accordingly, it is contingent upon the application being submitted prior to the passage of twenty years following the date on which notice of the intention to remove the Company’s name from the Official Gazette. Grounds for the revival of a struck off company The Company owns any immovable property. The Company has complied with the GST, Income tax, Provident Fund, and other relevant agencies aside from the Registrar of Companies. If there is proof that the company is still operating, as indicated by active transactions in the company’s bank statements. Depending on the situation, the Company renews any licenses or other documentation on an annual basis. Anything that demonstrates that the company is still operating or is currently functioning and that doing so would be in the public interest. When can a company be struck off the register of the ROC? No Business for One Year From the date of incorporation of the company the business operations have not been carried out. The date of incorporation of the company would be considered as the date where the company has received its certificate of incorporation from the ROC. Not Filing Forms Usually when the forms and e-forms have not been submitted by the company. Then it can be a ground for striking off the name of the company. Such forms have to be submitted within the previous two financial years or the fiscal years. The relevant forms are AOC- 4 and MGT-7. Subscription Money Not Paid If the members or shareholders, have not paid the proceeds related to the paid up money or subscription money for the memorandum of association, then such grounds would be valid for striking off the company. Such declaration has to be filed within 180 days from such date. Usually for the above process e-Form 20A would be considered. Physical Verification The registrar of companies has gone and physically verified that the office or the business has not commenced any operations. Documents required for the revival of struck off company The incorporation certificate an MOA. A copy of the financial statement that was audited as of the date it was struck off. Bank records. The Registrar of Companies’ order to strike someone off. A declaration that the petition is true. A copy of the board resolution approving the petition’s filing. PAN. Return of income taxes. If the Company owns the property, all of the property documentation is. Vakalatnama, or Memorandum of Appearance. Any other paperwork that may be needed. Procedure related to the revival of struck off company Application, petition, or appeal must be submitted in Form NCLT-9 format and be accompanied by a demand draft for Rs. 1000 paid out to the Ministry of Corporate Affairs’ Pay and Accounts Officer (MCA). 1. Copy of the petition is served: A copy of the petition must be served to the Registrar of Companies and any additional parties the Tribunal may permit at least fourteen days prior to the date set for the application’s hearing. 2. Tribunal Trials And Hearings: The Tribunal will hear from the Petitioner and the Respondent during the Tribunal’s trials and hearings (ROC- Registrar of Company). Furthermore, it will take note of any concerns raised in relation to the hearing’s suggested dates. The revival of the Company’s name in the ROC record may be ordered if it is satisfied following the hearing of both parties. 3. Order from the Tribunal: The Tribunal issues an order to reinstate the Company’s name in the Register of Companies. The following actions are mandated under the order: The applicant must send a certified copy of the order to the ROC by 30 days after the order is made. When the copy of the order is received, the Registrar will publish it under the

The Ministry of Civil Aviation is adding a Digital experience for Air Travelers through DigiYatra Platform. The ‘DigiYatra‘ is an industry-led initiative coordinated by the Ministry in line with the Prime Minister Shri Narendra Modi’s Digital India’s vision to transform the nation into a digitally empowered society. Digi Yatra – Digital processing of passengers at the airports. Passengers will be automatically processed based on facial recognition system at check points like; Entry point check, Entry into Security Check, Aircraft Boarding, Digi Yatra will facilitate paperless travel and avoid identity check at multiple points. Key Features of DigiYatra Plan the trips efficiently by finding price trends and estimate future airfares at the time of booking tickets. Aadhaar can be linked (optional) to airlines and other ecosystem players while looking for the faster airport entry and automated check-ins that do not require any paper-based interventions. Walk-through security scanners are quickly owing to the advanced biometric security solutions. Receive important information concerning various facilities, airline timings, protocols, queue lengths at airports etc. Engage in the customised digital offerings at the experience zones. Get real-time information about the congestion and delays to have higher visibility on the next step of the journey. Conveniently navigate through the airport terminal using digital guidance systems, augmented reality apps and interactive kiosks Stay connected during the flights and indulge in immersive experiences. Also, passengers can book in-flight services and destination based offerings digitally. Get a prompt when the luggage reaches the baggage claim belt. The passengers can also submit grievances, share experiences and provide feedback. Who were the first onboarders? Namma Bengaluru: The first phase of a curb-to-gate biometric system has been implemented at Kempegowda International Airport in Bengaluru (BLR) under the Digi Yatra Seamless Flow initiative. Program kicked off July-2019 Which airline stepped forward to showcase the technology? TATA SIA – Vistara Airlines What is the Technology Used behind Digi Yatra? Vision-Box was selected by BLR airport to deliver a rusted biometric platform that enables a digital friction-less experience, resembling ‘a walk in the park’. Vision-Box says its Orchestra platform runs Seamless Flow operations around the world, in accord with IATA’s One ID concept. It combines Identity Management as a Service features, certified Common-Use connectors, tier one biometric algorithms, artificial intelligence and deep learning, and user experience and human-to-machine interfaces and provides digital friction-less experience, resembling ‘a walk in the park’. Procedure of Digital Boarding Get Digi Yatra ID  Under the Digi Yatra, the passenger can get a Digi Yatra ID by providing minimum details such as name, e-mail address, mobile number and details of one approved Identity proof where the Aadhaar proof is not mandatory. This DigiYatra ID will be sent to the passengers while booking a ticket. The airlines will give the passenger data and DigiYatra ID with the departure airport. Aadhaar Based verification In case a traveller opted for the Aadhaar based verification, the identity will be validated online. On successful verification, the facial biometric will be captured and saved in the Digi Yatra ID profile of the traveller. In case the traveller has chosen a different identity for creating Digi Yatra ID, then the verification will be done manually by the Security individual, and facial biometric will be captured and saved in the Digi Yatra ID profile. By this process, the registration is complete. Successful Registration  When the DigiYatra successfully registered passenger can go directly to the entry point that is E-Gate of the airport and scan the QR code/barcode of the air ticket or Boarding pass while a camera will capture the face for matching with the DigiYatra ID Photo. On successful verification of the flying details and facial matching, the E-Gate will open. Acknowledgement Token  Now, the system will also generate an acknowledgement token in the system comparing the face of the traveller with PNR of the ticket, so that at subsequent check points the ticket details will be available on face recognition. Face Recognition At Self Bag Drop counter or check-in counter, the traveller will be recognised by face, and there is no need to give any document or ID proofs for this process. The traveller will gain entry to the security check  Advantages of Digiyatra The airport check-in and boarding time would halve by the end of the year. Digiyatra, a technology-based initiative which will enable a passenger to opt for paper-free travel, that will aid swift entry at the airport and also automated check-ins. The Unquie Identification Authority (UID) linked with the flight tickets will act as a digital boarding pass, and the same can be used through smartphones at all the points at an airport. This initiative that aims to shorten the queues at the entry points, boarding areas, sub-security checks and also during exit. This high-tech feature will be optional. The travellers will continue to have the various options of travelling the traditional way by manually collecting boarding pass at the airline counter at the airport. The time for the passenger to avail the Digiyatra will be ranging between 10 to 15 minutes versus the 20 to 30 minutes of the manual check-in method. The identification feature also improves the security system at airports during air travel. At present, the identification is needed only at the time of entering the airport and not for the booking process. This will also help in executing the proposed no-fly list on unruly travellers of the Aviation Ministry as that will help in the tracking process. The aviation ministry that conducts extensive consultations that is mainly to ensure the comprehensive traveller convenience, coverage and privacy through a stringent data protection mechanism. The data-sharing protocol that will also be among the travel portals, security agencies and also at various concessionaires like parking and transportation providers, thus support in the seamless flying. The burden on CISF security personnel will be reduced those who are have been engaged in keeping the airport premises safe and conducting the checks at various levels will  The MoCA assured that all the metro city airports would be within the preview of Digiyatra by the end of this year 201 9

In the year 1993 a special committee called the Malhotra Committee observed that insurance formed a very meagre percentage of India’s gross household savings. The numbers were exceptionally weak for people from the rural sector. According to the committee, in the rural areas, post masters enjoyed a very trustworthy and friendly relationships with customers and hence this position could be successfully used in popularizing insurance in the nation. With a strong network of post offices in urban as well as rural areas, rural postal life insurance was set to succeed. Also, the cost expected to be incurred for operations came down drastically because of use of existing network of post offices. Currently, RPLI is the only insurance provider in the country to give the highest returns to customers at the lowest premium amount. The RPLI scheme is aimed to provide insurance to individuals working in all government sector enterprises including military forces, government school employees, nationalized banks, local civic bodies etc. Also, employees working in the private sector too can Rural ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Postal Life Insurance​ Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus Rural Postal Life Insurance (RPLI) was introduced in 24.03.1995 for rural people of India. The Malhotra Committee had observed in 1993 that only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings. The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business, mainly because of the vast network of Post Offices in the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural populationnec ullamcorper mattis, pulvinar dapibus leo. Benefits of Rural Postal Life Insurance in India: Nominations can be changed. The policy can be assigned to a lender to avail a loan. A Duplicate Policy Bond will be issued in case the original policy is lost. In case the policy has lapsed, it can be revived. You can convert the policy to an Endowment Assurance from a Whole Life Assurance. Insurance Schemes under Rural Postal Life Insurance: A number of schemes are available for customers under the rural postal insurance drive. These schemes include those of pure insurance nature and those that are endowment plans. Customers can avail one or more of these insurance schemes and can also switch between schemes in case of dissatisfaction. Important features and benefits of these schemes are described in detail in the section below. Whole Life Assurance ( GRAMA SURAKSHA): Objective of the scheme: To pay the nominee a sum equal to assured sum plus accrued bonus in the event of death of the policyholder Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 55 years Conversion of Policy: Whole Life assurance policy can be converted to endowment policy after completion of 1 year of policy and before policyholder completes 59 years of age Minimum Sum assured: Rs.10,000 Maximum Sum Assured: Rs.10 lakhs Loan Option: Yes. After completion of 4 years of policy Surrender of policy: Only after completion of 3 policy years Premiums Payable: Premiums vary with the sum assured, age of applicant etc. Convertible Whole Life Assurance (GRAMA SUVIDHA): Objective of the scheme: To pay the nominee a sum equal to assured sum plus accrued bonus in the event of death of the policyholder Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 50 years Conversion of Policy: Whole Life assurance policy can be converted to endowment policy after completion of 5 years of policy However, the policy cannot be converted after 6 years. Minimum Sum assured: Rs.10,000 Maximum Sum Assured: Rs.10 lakhs Loan Option: Yes. After completion of 4 years of policy Surrender of policy: Only after completion of 3 policy years; bonus in case of surrender is nullified Premiums Payable: Premiums vary with the sum assured, age of applicant etc. Endowment Assurance ( GRAMA SANTOSH):This scheme is an endowment plan aimed to fulfill the insurance needs of policyholders.Following are some of the most striking features of this scheme. Objective of the scheme: To furnish sum assured plus all accrues bonuses to the nominee/assignee/heir until he/she attains the age of maturity on death of the policyholder Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 55 years Minimum Sum assured: Rs.10,000 Maximum Sum Assured: Rs.10 lakhs Loan Option: Yes. After completion of 4 years of policy Surrender of policy: Only after completion of 3 policy years; bonus in case of surrender before 5 years is nullified Premiums Payable: Premiums vary with the sum assured, age of applicant etc. Anticipated Endowment Assurance (GRAMA SUMANGAL) :The Anticipated Endowment Assurance is a money-back policy which is best suited for customers who wish to avail certain amount of cash periodically to fulfil their short-term financial needs. Under this scheme, two types of policies are offered, one for a tenure of 15 years and another for a term of 20 years. For the former term, the benefits are paid at intervals of 6, 9, and 12 years while for the latter benefits are paid at intervals of 8, 12, and 16 years. Objective of the scheme: To furnish benefits to the policyholder periodically. In the event of death of the policyholder, only the sum assured and bonuses accrued will be paid and staggered payment in stages will cease Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 45 years Maximum Sum Assured: Rs.50 lakhs GRAM PRIYA (10 Year RPLI):This is an endowment scheme which is for a term of 10 years. Insurance cover begins from the date of purchase of policy. Objective of the scheme: To furnish benefits to the policyholder or his/her nominee on completion of policy term. The assurance

A partner in a partnership business is a person who shares in the ownership and management of the company. A designated partner, on the other hand, is a partner who is specifically chosen to represent the partnership in legal matters and has the authority to sign legal documents on behalf of the partnership. In brief, a partner is a co-owner of the business and a designated partner is an appointed representative of the partnership. Who is a Partner in an LLP? A Limited Liability Partnership (LLP), a Partner plays a foundational role that serves as the backbone of the organization. Partners in an LLP are individuals who have decided to collaborate in a business venture on mutually agreed upon terms and conditions. They share the investment, profits and liabilities of the business in a predetermined fixed ratio mentioned in the LLP Agreement. LLP Agreement is the document signed by all partners affirming the terms they’ve agreed upon mutually. Partners can either be individuals or corporate entities. They play a crucial role in decision-making processes of the business, yet enjoy a certain degree of operational freedom when compared to designated partners. Given below a list of their wholesome roles and responsibilities. Decision-Making: Partners are central to the decision-making processes of the LLP. They actively participate in determining the business’s goals, making major financial decisions, and charting the course for growth and development. Partners collectively make decisions through meetings, discussions, and voting, with each Partner having a say in important matters. Effective decision-making is crucial for the success and sustainability of the LLP. Profit and Loss Sharing: Partners share in the profits and losses of the LLP as per the terms outlined in the LLP Agreement. Profit-sharing reflects the financial benefit that each Partner receives from the business’s earnings, while loss-sharing involves bearing a portion of any financial losses incurred by the LLP. The terms of profit and loss sharing are typically agreed upon in advance and documented in the LLP agreement. Bringing in Investment: Partners contribute capital to the LLP, and they often play a key role in raising funds for the business. Their financial contributions are essential for the growth and operations of the LLP, and the level of investment can vary based on each Partner’s commitment. Appointing Designated Partners: Partners have the authority to appoint Designated Partners, who play specific roles within the LLP. The appointment of Designated Partners is a pivotal decision, as they assume additional responsibilities, including legal compliance and obligations. Signing LLP Agreement: Partners are responsible for participating in the development and signing of the LLP agreement. This document outlines the rights, responsibilities, profit-sharing arrangements, and other key terms that govern the LLP’s operations. The LLP agreement serves as a foundational document that helps establish the structure of the partnership. Limited Liability: Partners in an LLP enjoy limited liability, which means their personal assets are protected in case of business debts or legal issues. Limited liability is a fundamental advantage of the LLP structure. It ensures that a Partner’s personal wealth and assets are not at risk in the event of the LLP’s financial troubles or legal disputes. Who is a Designated Partner to LLP? Designated Partners are appointed by the partners of LLP, from among themselves. Since there is a separation between the ownership and management structures in an LLP, designated partners are appointed specifically to control the business’s apex management. The provisions of designated partners are given under section 7 of LLP Act. A Designated Partner to LLP is what a director is to company. However, they have other crucial responsibilities as well. Here’s a complete list: Ensuring Compliances: Designated Partners bear the primary responsibility for ensuring the LLP complies with all legal and regulatory requirements. This includes the timely filing of annual returns, financial statements, and other documents with the Registrar of Companies. Failure to fulfill these legal obligations can result in penalties and adverse consequences for the LLP. Controlling Day-to-Day Business Operations: Designated Partners may actively participate in the management of the LLP’s daily operations. They oversee various functions, make strategic decisions, and manage financial matters to ensure the smooth functioning of the business. Ensuring Adherence to LLP Agreement: Designated Partners are responsible for ensuring that the LLP agreement, which outlines the rights and responsibilities of the Partners and the operation of the LLP, is consistently followed and updated as needed. Any necessary amendments to the agreement may also be overseen by them. Decision Making: Designated Partners play a crucial role in decision-making processes within the LLP. They actively participate in determining the business’s goals, making significant financial decisions, and charting the course for growth and development. Their involvement is key to the success and direction of the LLP. Ensuring Maintenance of Financial Records: Designated Partners are responsible for overseeing the maintenance of accurate financial records within the LLP. This includes managing financial statements, accounts, and other financial documentation, ensuring transparency and compliance. Partner Designated Partner One of the multiple individuals who jointly own and operate a partnership business A specific individual designated by the partners to have specific responsibilities and authority within the partnership Has equal rights and responsibilities as the other partners May have different rights and responsibilities than the other partners Shares in the profits and losses of the partnership May have a different profit and loss sharing agreement than the other partners Can make decisions and take actions on behalf of the partnership May be limited in their decision-making and actions on behalf of the partnership Is personally liable for the partnership’s debts and obligations May have limited personal liability for the partnership’s debts and obligations Can be held liable for the actions of the other partners May not be held liable for the actions of the other partners Can be removed or replaced by the other partners May have a specific term or contract that outlines the conditions under which they can be removed or replaced. Difference between Partner and Designated Partner in LLP Features Designated Partner Partner Minimum number 2 2 Maximum number 15 No maximum limit Nationality At least

The Income Tax Return filing last date for FY 2023-24 (AY 2024-25) is 31st July 2024. Also, the ITR last date for a late return for the same FY is 31st December 2024. Since the IT return filing last date for FY 2023-24 (AY 2024-25) is 31st July 2024. therefore, it is important to complete ITR filing on time to comply with tax laws, avoid penalties, claim timely refunds, maintain accurate financial records, and facilitate financial transactions. Section 234A and Section 234F of the Income Tax Act pertains to penalty provisions related to the late filing of income tax returns. It is worth noting that the central government has the authority to extend the income tax ITR filing due dates. What are Financial Year (FY) and Assessment Year (AY)? The return you will file in the upcoming year is for the income you earned in FY 2023-24, i.e. for the income earned between 1 April 2023 and 31 March 2024. The assessment year is the review year for FY 2023-2024, where you file your returns and declare your returns by declaring all the incomes, exemptions, deductions, losses etc., already made or incurred during the year for tax assessment. For the income earned during the FY (here FY 2023-24), the assessment year would be the immediately next year, i.e. 1st April 2024 to 31st March 2025. Hence, the assessment year would be AY 2024-25. What is Income Tax Return (ITR)? An Income Tax Return (ITR) is a form or document that individuals, businesses, and other entities use to report their annual income, deductions, exemptions, and tax liabilities to the tax authorities. It is a declaration of their taxable income and the taxes they owe or are eligible to receive as a refund. The Income Tax Return serves as a means for taxpayers to provide comprehensive information about their financial transactions, sources of income, and expenses to the tax authorities. It helps determine the taxpayer’s tax liability and enables the government to assess and collect taxes effectively. When is the Last Date to File ITR? Taxpayers are typically required to file their ITR annually, providing details of their income and relevant financial information for a specific period, such as a financial year (FY). It starts on 1st April and ends on 31st March of the next calendar year. The ITD has started income tax e filing for taxpayers. The income tax ITR filing due date for FY 2023-24 is 31st July 2024. However, this date can be extended, if the Income Tax Department finds it necessary. Why is it Important to File Income Tax Returns on Time? Filing income tax returns on time is a legal obligation imposed by the government. It is essential for individuals and entities to fulfill their tax obligations by accurately reporting their income, claiming deductions and exemptions, and paying the appropriate amount of tax within the prescribed timelines. Timely filing of income tax returns enables the government to assess and collect taxes efficiently, ensuring the smooth functioning of public services and welfare initiatives. Here are the reasons why you should file your ITR on time – To avoid any fines and penalties under different sections of the Income Tax Act. Late filing of ITR can attract penalties upto Rs.5000 on income above Rs.5 lakh and Rs.1,000 on income upto Rs.1,00,000. Income Tax Filing Due Dates for FY 2023-24 (AY 2024-25) Category of Taxpayer Due Date for Tax Filing – FY 2023-24*(unless extended) Individual / HUF/ AOP/ BOI     (books of accounts not required to be audited) 31st July 2024 Businesses (Requiring Audit) 31st October 2024 Businesses requiring transfer pricing reports   (in case of international/specified domestic transactions) 30th November 2024 Revised return 31 December 2024 Belated/late return 31 December 2024 Updated return 31 March 2027 (2 years from the end of the relevant Assessment Year) What is the Due Date for Making Payment of Advance Tax Installments? Installment Due Date For all assessee (except assessee referred in next column) Assessee declaring income under presumptive schemes under 44AD / 44ADA 1st Till 15th June of FY 15% of the amount of advance tax Nil 2nd Till 15th September of FY 45% of the amount of advance tax Nil 3rd Till 15th December of FY 75% of the amount of advance tax Nil 4th Till 15th March of FY 100% of the amount of advance tax 100% What is the Due Date for Making TDS Payments? For the Month Due Date Due Date for TDS payment in case of Govt. Assessee April 2023 to February 2024 Last date of the month in which TDS/TCS is deducted or collected March 2024 7th April 2024 Due Date for TDS payment in case of Non-Govt. Assessee April 2024to February 2025 7th of next month March 2025 30th April 2025 Note: Tax deducted by a Government assessee without challan (i.e., treasury Challan) should be deposited on the same day of deduction. However, in the case of deduction under section 192(1A), it must be deposited on or before seven days from the end of the month in which such deduction is made, where tax is paid and accompanied by an income-tax challan. – Tax deducted on the acquisition of immovable property u/s 194IA must be deposited within 30 days from the end of the month in which payment of consideration is made. The due date for Quarterly payment of TDS as permitted under Section 192, 194A, 194D, or 194H are For the quarter Due Date For the quarter ending 30th June 7th July For the quarter ending 30th September 7th October For the quarter ending 31st December 7th January For the quarter ending 31st March 30th April Note*:Under section 192(1A), the payment has to be made within seven days (7 days) of the last day of the month in which the deduction is made or income tax is due. What is the Due Date for Filing a TDS Return? Quarter Period Due Date 1 01 January 2023 2024 to 31 March 2023 2024 31st May 2023 2024 2 01 July 2024 to 30

Agriculture sector plays vital role in Indian economy both in terms of employment generation and contribution in GDP. Economic survey of year 2015-16 records 17.4% contribution of agriculture sector in total GDP. Nearly 50% Indian population is being dependent upon the agriculture and allied activities for livelihood. Therefore, it is impertinent to note the impact of GST on agriculture sector. India is basically an agriculture based country and that is why a special treatment is enjoyed by the agriculture sector in the current taxation system. Many agriculture commodities are exempted under Central Excise Law or are taxed at Nil rate of duty. In Service tax, agriculture related services are exempted under mega exemption list. However, Many State Governments levies State vat on agriculture products other than unprocessed foods at the rate of 4% or 5%.GST is the tax on Supply of goods and services at each stage along with the setoff of taxes paid at the previous stage. GST is going to replace a number of Central & State taxes with one uniform tax across India. Taxing agriculture sector under GST could have impact on poor. On the other hand, a complete exemption would shrink the tax base significantly. The Model GST Law was released by CBEC in the month of June 2016. No of suggestion were received on the Model GST law and after proper deliberation a revised version of Model GST law was released by GST Secretariat on 26th November, 2016 along with necessary changes. The position of agriculture sector is remained unchanged in revised GST law. What is GST? Goods and services tax is known as GST. The GST was introduced to address the fundamental problems with India’s indirect tax code. The GST is used nationally to boost economic growth. The government collects GST on products and services to fund its administrative operations. GST went into effect July 1, 2017. Coverage to the agriculture sector under GST According Sub-Section (2) to section 8 of Revised GST Law, taxable person is liable for payment of tax (i.e. GST) on supply of goods and/or services. Section 10 defines taxable person as, a person who is registered or liable to be register under Schedule V of GST Act. However, According to Clause 2 (b) of Schedule V to GST Act, an agriculturist, for the purpose of agriculture shall not be liable for registration and subsequently becomes a nontaxable person and will not be liable for the payment of GST.The concept of Agriculturist is further defined under Sub-Section (8) of Section 2 to Revised GST Act as, a person who cultivates land personally, for the purpose of agriculture. Therefore, agriculturist shall be nontaxable, if he fulfills following two conditions i.e. (1)   Cultivated land personally and (2)   For the purpose of agriculture Section 2 Sub-Section (106) of Revised GST Act, defines the concept “cultivates land personally” as, carry on any agriculture operations on one’s own account- (a)   By one’s own labour, or (b)   By the labour of one’s family, or (c)   by servants on wages payable in cash or kind [(but not in crop share)] or by hired labour under one’s personal supervision or the personal supervision of any member of one’s family; For this purpose, a widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour. In the case of a Hindu Undivided Family, land shall be deemed to be cultivated personally, if it is cultivated by any member of such family.Giving the land on crop sharing basis is the common practice of agriculture in India. But that will not be treated as land cultivated personally and will be subject to GST.The second important condition is about cultivation of land personally for the purpose of agriculture. The concept agriculture is defined under Section 2 (7) of Revised GST Act as, “agriculture” with all its grammatical variations and cognate expressions, includes floriculture, horticulture, sericulture, the raising of crops, grass or garden produce and also grazing, but does not include dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants; The definition is kept both inclusive and exclusive. Keeping dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants out of agriculture definition makes them taxable under GST regime.It seems that the intention of government to give a tax relief to agriculturist, but the question about taxability of services procured by agriculturist such as farm labour supply, fumigation, grading, packing, leasing of agro machines, storage or warehousing, cold storage services, transportation are still unanswered and hopefully Government will address those in coming days.Activities to be taxable under GSTBroadly, following activities shall be subject to GST, if all India turnover exceeds the basic exemption limit of Rs. 10 lakhs in case of north east state and 20 lakhs in case of states other than north east state (1)   Crop Sharing agriculture : When agricultural activity is made on crop sharing basis then it shall not be treated as cultivated personally and therefore, such activity will be subject to GST. (2)   Food processing units : Many products such as tomato ketchup, tomato chips, potato chips are made from farm product and are manufactured through a process which alters the essential characteristic of the product. Therefore, such products shall not be qualified as agriculture and will be subject to GST. (3)   Contract Farming : Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers. Here, agriculturist shall not be subject to GST but a person who is buying from agriculturist will have to pay GST on subsequent sale. (4)   Frozen foods : In case of