Income Tax Department Archives - Newskart https://www.newskart.com/tag/income-tax-department/ Stories on Business, Technology, Startups, Funding, Career & Jobs Tue, 13 Feb 2024 18:34:00 +0000 en-US hourly 1 https://www.newskart.com/wp-content/uploads/2018/05/cropped-favicon-256-32x32.png Income Tax Department Archives - Newskart https://www.newskart.com/tag/income-tax-department/ 32 32 157239825 TDS and Income Tax – Two Different Entities https://www.newskart.com/income-tax-tds-two-different-entities-lets-clear-concept/ Fri, 13 Apr 2018 13:11:34 +0000 http://sh048.global.temp.domains/~newskar2/?p=87018 TDS and Income Tax - Two Different Entities
TDS and Income Tax – Two Different Entities

TDS (Tax Deduction at Source) could be part of Income in turn income tax that is already paid by the assessee whether an assessee is eligible for the income tax or not whereas an income tax is a tax that government imposes on financial income generated by any individual or firm which is a key source of capital that the government uses to fund its activities and serve the public.

There is some difference in computation part, i.e. TDS is deducted before the income reaches to any individual or entity which then after can be calculated and if over taxed then it can be refunded.

The Central Board of Direct Taxes (CBDT) regulates the policy and planning of taxes. CBDT is also responsible for administering the direct tax laws through the IT (Income Tax) Department. In addition to the collection of taxes, the IT department is also involved in prevention and detection of tax avoidance.

What is Income Tax?

The Income Tax Act, 1961 regulates the collection, recovery, and administration of income tax in India. It is a compulsory contribution levied on individual’s personal income as per his/her earning which is divided into different slab percentage according to which the money gets deducted after all the exemptions from your gross income.

Income Tax is paid on the annual income where taxes are computed for a particular financial year.

What is Tax Deducted at Source (TDS)?

TDS is a part of income in turn Income-tax that is already paid by the deductee whether a deductee is eligible for the income tax or not which can be set off against Income tax and balance tax liability to be paid. Necessary adjustments of TDS are done while filing Income Tax return and in case any excess amount is deducted or over taxed then that can be claimed to refund.

TDS aims to collect tax from the very source of income. A person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount which deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

TDS can be deducted from Income from salary, income from any commission, professional fee, interest from FD and many other income sources etc. so tax deduction at the point of generation of income is known as Tax Deducted at Source or TDS and the same is deposited to the Income Tax department of the concerned area. It is deducted at source on a periodic basis say quarterly in the particular year for the salaried individuals and for others it is deducted on each set of incomes and then can be claimed.

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Register A Company or Startup Online In India – Complete Guide https://www.newskart.com/registering-a-company-startup-online-india-complete-guide-2018/ https://www.newskart.com/registering-a-company-startup-online-india-complete-guide-2018/#comments Fri, 30 Mar 2018 09:39:35 +0000 http://sh048.global.temp.domains/~newskar2/?p=86745 Register A Company or Startup Online In India – Complete Guide
Register A Company or Startup Online In India – Complete Guide

Now-a-day there are number of startups opening and gaining success as well worldwide. Either it is online or offline, all the businesses and startups have to follow some/all of the guidelines laid out by their governments and related ministries/offices in their respective countries.

Register A Company or Startup Online In India

In India, registering a company or startup or any business has become quite easy. First and foremost, there are some official procedures a startup or a business has to follow in order to register them in Indian official records. MCA (Ministry of Corporate Affairs) is the central point where all the businesses/startups falls in and gets their registrations done.

Types of companies to register in India

  1. Private Limited Company
  2. Limited Liability Partnership (LLP)
  3. One Person Company (OPC, this is also a private limited company with one person as Director)
  4. Sole Proprietorship
  5. General Partnership

From above types of entity registration, if you have a startup in which you need to raise funding in future through equity as the most preferred way, entrepreneurs have the option to get private limited company registered which limits the liability as well.

Process to register a company

MCA in recent days made it very simple to register any startup or business as a company in a few days only whereas it was very cumbersome few years back. Companies in India are registered with the Registrar of companies(ROC) under Companies Act 2013. Please find below on how to go about these processes when you want to register your company-

    • You can apply for registration just sitting at home. The registration includes some must follow rules and some registration like Digital Signature Certificate (DSC), Director Identity Number (DIN) and filing for an e-form.
    • These are four major steps:
    • Acquiring Digital Signature Certificate (DSC)
    • Acquiring Director Identification Number (DIN)
    • Preparing and filing Form INC-32
    • Incorporate the company, obtaining PAN/TAN/GST identification number and opening a bank account

Ministry of Corporate Affairs Introduced SPICe or Form INC-32. With this form (INC-32) Company registration has merged few processes like Getting Business Name Approval, Director’s Identification Number (DIN) and Incorporation Application into one single process.


Documents required to register a company

Before applying for the company, documents are required from the members/individuals need to be associate/partner/director of the new company as below-

  1. Passport-sized photograph
  2. Copy of PAN Card/Aadhaar Card
  3. Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill whatever available
  4. Voter’s ID/Passport card
  5. Notarized Rental Agreement in English
  6. No-objection Certificate from property owner
  7. Utility Bill for the registered address

Steps to register a company

1. Acquiring Digital Signature Certificate (DSC)

In order to ensure the security or authenticity of documents filed electronically The Information Technology  Act, 2000 demands a valid Digital Signature on the documents submitted in electronic form.

This is the only and safest way that one can submit their documents electronically. As such, all filings done by the companies/LLPs under MCA 21 e-Governance programme are required to be filed using Digital Signatures by the person authorized to sign the documents.

DSC is e-signature to help you complete the new company registration online. It Normally takes 2 days to obtain DSC after the submitting the documents.

2. Acquire Director Identification Number(DIN) through SPICe or Form INC-32

Each director of the company should obtain their identification number. As per the amendment act 2006, acquiring a DIN is compulsory for every director i.e. as such every existing and intending directors have to obtain their DIN.

Register yourself on MCA Website first and have a login id. The process includes Director’s Identification Number ( DIN number ), Name approval, Memorandum and Articles of association (e-MoA(INC-33) and e-AoA (INC-34)), Registered office verification and Appointment letters and declaration.

Once all these documents are ready, we have to file the forms for company formation after which we get the certificate of incorporation.

3. Create a account on MCA Portal – New user registration

This is about having a registered user account on MCA Portal for filing a eForm, for online fee payment, for different transactions as registered and business user. Creating an account is totally free of cost. To register yourself on the MCA portal, click on the register link.

4. Apply for the company to be registered

This is the final major step in a registration of your company which includes incorporating company name, Registering the office address or notice of situation of office and notice for appointment of company directors, manager and secretary.

5. Apply for company’s PAN and TAN

Once you get the certificate of incorporation, PAN & TAN is applied in the income tax department and finally open the bank account of the company.

6. Apply for company’s GST identification number

Depending upon the type and size of the business, you will need to apply for GST identification number.

This information may help you registering a new entity for your business and basic insight about the idea of company registration. Registering a new company online though a tough process and one needs to adhere various procedures and have strong knowledge of all if & but so better advised to get the help of any expert like CA/CS/Advocate who have experiences in this field. However, online procedures are not so tough now-a-days (as online help to do everything is available in the internet) which you can’t try…Good Luck

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