What is e-Aadhaar?
e-Aadhaar is a password protected electronic copy of Aadhaar, which is digitally signed by the competent Authority - UIDAI.
What is the Password of e-Aadhaar?
It is the combination of the first 4 letters of your name in CAPITAL and your year of birth (YYYY) together.
How can residents download e-Aadhaar?
Residents can download e-Aadhaar in these two ways:
By Using Enrollment Number: Residents can download e-Aadhaar using 28 digit enrolment no. along with their Full Name and Pin code. In this download process an OTP is received on the registered mobile number. Residents can also use TOTP to download e-Aadhaar instead of OTP. TOTP can be generated using mAadhaar mobile Application.
By Using Aadhaar No: Residents can download e-Aadhaar by using the 12 digits Aadhaar No. along with their Full Name and Pin code. In this download process OTP is received on registered mobile no. Residents can also use TOTP to download e-Aadhaar instead of OTP. TOTP can generated using mAadhaar mobile Application.
Where can I update my Mobile Number?
You can update your mobile number by visiting a Permanent Enrolment Centre.
Can I update my address in my local language?
In addition to English you can update/do correction to your address in any of the following languages:
Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu and Urdu.
Is it necessary to link bank account with Aadhaar?
As per gazette notification of Ministry of Finance, dated 1st June 2017, Individuals are required to provide Aadhaar number for linking all their bank accounts before 31st Dec 2017.
In case, a resident is an NRI/OCI card holder and has a bank account in India but doesn’t have Aadhaar card. What will happen to his/her Bank account?
For NRIs it is suggested that they disclose their non-resident status with proof to their bank.
For the status of account becoming in-operational only the relevant banks shall be able to give response.
Is it necessary to submit Aadhaar in Bank while transaction amount is INR 50,000 or above?
As per the gazette notification of Ministry of Finance, dated 1st June 2017, Aadhaar will be sought for all transactions for an amount INR 50,000 or above.
How is Aadhaar different from any other identity issued by the government?
Aadhaar is essentially a paperless online anytime-anywhere identity assigned to a resident to cover his/her entire lifetime. The verification of his/her identity is done online with the help of authentication devices which connect to UIDAI’s Central Identity Repository and return only a ‘yes’ or ‘no’ response to the basic query-“Is the person who he/she claims to be?” based on the data available with UIDAI.
The Aadhaar authentication service is fully functional and is in use in several service delivery schemes across the country. The Aadhaar Card or the e-Aadhaar (electronic copy of Aadhaar) are essentially given to residents to know their own Aadhaar, but are only the first step towards the actual use of the online id as explained in the preceding para.
Can we register/ change mobile number online?
For any online update request, including updating the mobile number, resident should already have an active number registered with UIDAI on which the person can receive OTP SMS and authenticate himself/herself. Otherwise you would need to visit the nearest UIDAI permanent Enrolment centre.
I want to give up my Aadhaar. How and what needs to be done?
Presently there is no Policy to give up Aadhaar. However Aadhaar holders can secure their Biometric Authentication as per the need by locking or unlocking Biometrics using "Lock/Unlock Biometrics” functionality at UIDAI official website "resident.uidai.gov.in"
What is the time period prescribed for registering the event?
The normal period of 21 days (from the date of occurrence) has been prescribed for reporting the birth, death and still birth events.
Is there any fee for registration of births and deaths?
In the event that a birth or death is reported for registration to the prescribed authority within the normal period of 21days, no fee would be charged.
Whether registration can be made after the normal period of reporting?
If any event if birth or death is not reported for registration within 21 days, the same can be reported any time under the Delayed Registration provisions prescribed under Section 13 of the Act with payment of fee prescribed.
Who are responsible for reporting the event?
(i) In respect of birth or death occurred in a house, it is the duty of the Head of the house/household or nearest relative of the head present in the house or in the absence of any such person, the oldest male person present therein during the said period is responsible to report the event to the concerned Registrar/ sub Registrar. These events can also be reported through the prescribed Notifiers such as Anaganwadi Workers, ANM's, ASHA's and others.
(ii) In respect of birth or death occurred in a hospital, health center, Maternity or nursing home or other such institutions, the medical officer In-charge or any person authorized by him/herp in this behalf is responsible for reporting.
Whom to approach for registration?
The events of birth and death are registered at the place of occurrence of the event i.e. where the event took place. Under the provision of Section 7 of the RBD Act, the Registrars of Births and Deaths are appointed for each local area comprising of the area within the jurisdiction of the Municipality Panchayat or other local authority. The Sub- Registrars are also appointed under section 7(5) of the Act and assigned them any or all powers of Registrars.
I. Rural Areas-
The following Officials have been appointed as Registrar of Births and Deaths:
II. Registration centres / units in Government Hospitals- In addition to that registration centres / units have also been opened in major Government hospitals, CHC's/ PHC's in majority of the State. Birth and death event that occurred in an institution are registered their and certificate of birth/ death is issued by the Medical officer in charge or equivalent who has been declared as Registrar or Sub Registrar of births and deaths. The events which occurred in private hospital and those hospitals where registration units have not opened will be reported to the concerned Registrar of that area where the hospital exists. Such event will be reported by the institution concerned.
III. Urban Areas: The Municipal Health Officer, Health officer or Equivalent Officers are appointed as Registrar of births and deaths. The Medical Officer in charge or equivalent of the District Hospital, Referral Hospital and other Government Hospitals has also declared Registrar of births and deaths for registration and issuance of birth/ death certificate for those events which occurred in their premises
How many copies of birth or death certificate can be obtained?
One free copy of birth / death certificate is issued to the informant under Section 12 of the RBD Act. Under the provision of Section 17 of the Act, any number of copies can be obtained by any one after paying the prescribed fee.
Whether a birth certificate can be obtained without the name of a child?
Under the provision of Section 14 of the Act, a birth certificate can be obtained without the name of the child. In such cases, the name can be entered by the concerned registration authority without any charge within 12 months and by charging the prescribed fee up to 15 years (from the date of registration).
What are the benefits of registration of birth and death?
The birth certificate is the first right of the child and it is the first step towards establishing his/her identity. The following are the compulsory uses of birth and death certificates
• For admission to schools
• As proof of age for employment.
• For proof of age at marriage.
• To establish parentage.
• To establish age for purpose of enrolment in Electoral Rolls.
• To establish age for insurance purposes.
• For registering in National Population Register (NPR).
• Production of death certificate for the purpose of inheritance of property and for claiming dues from insurance companies and other companies.
Whether a correction is allowed after registration?
Corrections or Cancellations are allowed under the provision of Section 15 of the RBD Act and the corresponding State Rules made there under.
If a birth was given by an Indian Citizen abroad (outside India), is there any provision to register such birth in India?
In case, any child is born outside India, his/her birth would be registered under the Citizenship Act 1955 and Citizens (Registration at Indian consulates) Rules, 1956 at the Indian Missions. However, under Section 20 of the RBD Act, if the parents of the child return to India with a view to settling therein, the said birth can be registered with in sixty days from the date of arrival of the child in India at the place of settling. If this birth cannot be registered within 60 days, the same can be registered under the delayed registration provisions of section 13 (2) & (3) of the said Act.
What is cast certificate?
A Caste Certificate is the proof that a person belongs to a particular caste, especially in case when one belongs to any of the 'Backward class' or 'Scheduled Castes', as specified in the Indian Constitution.
How to Apply for Caste Certificate?
It is very clear that the only difference is that there is a "specific format" for caste Certificate. You should approach the respective institution where you will get the caste certificate. They have a specific format for caste certificate which they use to upload online to make downloading it easy. You need to download the caste certificate template and fill all the details needed. After filling the details visit tehsil or SDM office from where you can get your certificate.
What are the advantages of Caste Certificate?
If you have proper caste certificate, then you will get all the advantages of it. Whether you are from SC, ST, OBC, NT, VJ or another caste community, your caste certificate will allow you to enjoy the reservations in school, college, university and job. Also, with the help of this caste certificate you can get scholarship from government sectors, educational loans etc.
When do you need Caste Certificate?
School admissions, College admissions, Competitive examinations, Scholarships, Employment in reserved category, Government subsidies, Housing and self-employment schemes, Allotment of house sites assignment (grant) of land Election (as candidate).
How to apply for Caste validity certificate?
1. Visit the Tehsil or SDM office and ask for a caste validity certificate application form.
2. Fill in the form correctly and submit it to the officer.
3. It may take a month for the certificate.
What are the documents required For Caste Certificate?
Following are the documents required for caste certificate. These documents are common for all type of castes like SC, ST, OBC, VJ, NT,SBC & ESBC. You have to submit the additional proof of documents in a special case like if you are a married woman and if you have migrated from one state to another or you have changed your religion.
What are the Legal Framework?
The statutory lists of the Scheduled Castes and the Scheduled Tribes, in pursuance of Articles 341 and 342 of the Indian Constitution, were notified for the first time under the Constitution (Schedule Castes) Order, 1950 and the Constitution (Scheduled Tribes) Order, 1950. These lists have been modified/amended/supplemented from time to time. On the reorganisation of the States, the Scheduled Castes and Scheduled Tribes List (Modification) Order came into force from 29th October, 1956. Thereafter, a few other orders in respect of the Scheduled Castes and Tribes list in some individual States also came into force.
Who can issue a caste certificate?
The following are the competent authorities to issue the Caste certificate –
Is there any application fee to be paid for a caste certificate?
The conditions for fees vary from state to state. While some states levy an application fee or processing fee, some state governments do not charge even a penny.
How much is the application fee to get a Caste Certificate?
The application fee to get a caste certificate may vary from state to state. This amount may range from INR 10 to INR 500.
Why is the Certificate Required?
The Government has allowed some special privileges to the “special category” people by waiving of admission fees (part of or full), providing quotas in various institutes, relaxing the age limits for certain job applications, etc. So, to avail these privileges, the applicants must provide a proof of their “category” in support of their candidature. Thus, the caste certificate is important to prove the original caste of the individuals to avail the entitlements.
What is the validity of Caste Certificate?
The validity of a caste certificate varies from state to state. Usually, a caste certificate remains valid for the entire life of the individual. However, in some states, the validity is restricted to certain time duration, i.e. 3 years. The individuals who receive the caste certificate can see its validity mentioned on the certificate itself. Also, the individuals are required to get their caste certificate verified from the concerned Tehsil or SDM office to ensure its validity.
What does Private Company Closure mean?
The Process of closing a Private Limited Company is known as Strike off or company closure. Company closure is done under newly notified rules Companies (Removal of Names of Companies) Rules, 2016 which are governed by section 248 of Companies Act, 2013. If you are not running your company, we recommend you to close your Private Limited Company.
How to Close Private Company in India?
A Company closure is filed under Form STK 2 (Earlier form was FTE) along with the government fees of Rs.10,000/- and some necessary docs. However it is important to note the cases where closure can be filed. A Company closure can be filed after the following steps:
Pay all Liabilities: The first step is to repay all the liabilities of the company and ask for written No Objection Certificate from them. However, in case you have not started the business/operations, then this clause does not apply to you.
Need 75% Consent: This is a very new requirement which is to be complied for Private Limited Company closure. To wind up the company, you need at least 75% consent of the shareholders/members of the company or can be done by passing a Special Resolution in EGM. Further, one director also needs to be notified to take care of all the responsibility for the company closure.
Prepare Application: Once consent is assigned, next step is to prepare application and file the same with the ROC.
Why to close a Private Ltd. Company?
If you are not running a company and not even complying with the law then you can file Private Limited Company closure to avoid being in default. A dummy company, defunct company, non-operative companies can file for Company closure to avoid late penalties etc.
How can I close my Private Limited Company?
The closure of a limited company depends on whether it is solvent (able to pay its bills) or insolvent (unable to pay its bills). If it is solvent, the easiest way to close it is for the directors to apply to the Companies House to have it struck off the register. Alternatively, you can start a members’ voluntary liquidation. If your company is insolvent, the directors can propose a creditors’ voluntary liquidation process.
This course of action will require at least 75% of the voting shareholders (by value of their shares) to agree to the closure by passing a winding-up resolution.
What does strike off of a company mean?
Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies.
It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.
What is the procedure for Closing a Private Limited Company?
Shutting down a company is a long and complicated procedure. A Private Limited Company can be closed down in various manners depending on the requirement of the owner.
• The owner can sell the company.
• Can close down the company by declaring the company ‘Defunct' (Striking of the company).
• Winding up or dissolving the company.
Selling of Private Limited Company:
A company can be sold by transferring the majority shares to the person best suited for the company. The procedure of eventually winds up the company, but only the majority of the shares are transferred with the responsibility of stocks.
Declaring the company Defunct:
Any company that wants to strike off its name from the registrar of the company can declare itself defunct by applying Form STK-2 and then the company can be shut down by the registrar of the company.
Winding Up of Private Limited Company:
Winding up of the private limited company is necessary in the case where the company needs to conclude its business or due to bankruptcy. The winding up method can be initiated intentionally by the shareholders or creditors, or it can also be done on the order of the tribunal (Compulsory Winding up).
If the company is not dissolved and the assets are not collected as per the legal proceedings, the company is considered in operation, and hence the directors will be liable for completing all the compliances associated with the private limited company.
What are the main steps to close a Private Limited Company?
Companies may pursue a strike off by following each of the specified steps:
Holding of Board Meeting:
The passing of Board Resolutions has been mandated for major enactments in the corporate sphere.
Closing of liabilities:
A company desirous of a strike off must have closed off all its liabilities.
Holding of General Meeting:
A general meeting of shareholders should be held by the company by passing a resolution for striking off the name of the Company.
Furnishing of Applications and documents:
Companies on the pursuit of strike-off must file an application to the Registrar of Companies (ROC), accompanied by the following documents:
• Indemnity Bond duly notarized by all directors (in Form STK 3).
• A statement of liabilities comprising of all assets and liabilities of the companies in Form-STK-8 (certified by a Chartered Accountant).
• An affidavit in Form STK 4 (by all directors of the company).
• CTC of Special Resolution or consent of 75% shareholders (duly signed by every director of the company).
• A statement concerning any pending litigations with respect to the company.
Implications of dissolvement:
If a company confirms its dissolvement, it shall cease its operations as a company from the date of such dissolvement, and the Certificate of Incorporation issued to it by the ROC shall be deemed to have been cancelled, except for the discharge of any existing liabilities or obligations.
How long does it take to Strike off a company?
It usually takes at least 3 months for a company to be officially dissolved. But the length of time can vary considerably if the process is complex. Generally, however, a company will cease to exist no less than 3 months of the winding-up notice being advertised in the Gazette.
What happens after the registrar strikes off the name of the Company?
There are serious consequences for Directors of companies which are involuntarily struck off, particularly if the company is still trading.
• The company ceases to exist as a legal entity from the date of dissolution
• The assets of the company become vested in the state
• Where the company ceases to exist, banks will be unwilling to provide finance and future contracts with customers/ suppliers
• Directors of companies that are involuntary struck off may be disqualified from acting as a Director or in the management of any company.
• The company’s Shareholders and Officers are trading without the protection of limited liability and can be held personally liable for the debts of the company.
When can a company be struck off?
The company can be struck off under following circumstances:
• When a company has failed to commence its business within one year of its incorporation.
• When a company is not actively carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant Company.
In such circumstances either the registrar of companies will strike off the name of the company on his own or the company voluntarily applies for the strike off.
Can a struck off company still trade?
When a company is struck off, the name would be removed from the company register and it cannot trade, sell its assets or make payments or get involved in any other business activities. The name of the company would be made available for new companies to use.
The company cannot be struck off if in the last three months
• The company has Changed its name or relocated its registered office to another state.
• Made a disposal for the value of property or rights held by it (subject to conditions).
• Engaged in any other activity other than what is necessary or expedient for making an application under the concerned provision, and so and so forth.
• Filed an application to the Tribunal for the granting of Compromise or Arrangement, and a consensus for the same hasn’t yet been arrived at.
• Been wound up under Chapter XX, whether voluntarily, by the Tribunal or under the Insolvency and Bankruptcy Code (IBC), 2016.
What is a Company and what are the different types of Companies?
A Company is an association of people which is formed and registered under this Act or any previous company laws. A company is a separate legal entity which is different from its shareholders. It is an important feature of Company that there is a difference between people who have control over the affairs of a Company and the people who actually own it.
Different types of Companies are as follow:
What are the types of Companies that I can register in India?
Here are the various types of companies that you can register in India:
What is MOA and AOA?
MOA stands for Memorandum of Association whereas AOA means Articles of Association. Both these documents act as important source of information for various shareholders and other stakeholders associated with a Company.
MOA reveals the name, aims, objectives, registered office address, clause regarding limited liability, minimum paid up capital and share capital of a Company. In short, it explains the relationship of a Company with the outside world.
AOAs are the necessary documents to be submitted when the company is incorporated with the registrar of Companies (ROC). When AOAs are in conjunction with the MOA, they are called the Constitution of the Company.
What is a Private Limited Company?
A private limited Company restricts the number of its members to 200. A private limited company can start with just two members only. A private limited company is a separate legal entity having perpetual succession, with limited liability only up to the share of capital. A shareholder is not personally liable to the amount of the debt and his/her personal assets won’t be attached to pay the debt.
Can small businesses get registration under the private limited company?
Yes, a small business can get its business registered under private limited company registration in India. It provides them with the credibility and an image of their business in the eye of the financial institution, suppliers and potential clients. It helps the company to get the loans at little compliance from banks or potential clients while entering into the deals.
Is there any specific qualification required to become a director or shareholder in a private limited company.
No specific professional or educational qualification is required to become a shareholder in a private limited company. Any individual who is sound of mind, can start a company.
What are the eligibility criteria for shareholder or director to be appointed for Private company registration?
The person should be of –
What is the Director Identification Number (DIN)?
Any individual who intends to become a director of a company must apply to the Director Identification Number, there is no special form required to have the DIN from now onwards. No special form is required.
Proof of Identity and address is required to be submitted along with the requisite fee. The DIN usually takes 3-4 days to get approved. Once you get the DIN, the same can be used for the lifetime.
What will be the address of the registered office of the company?
The Registered Office does not mean to be owned only; it can be rented premises also. The registered office is used for the purpose of holding a general meeting, keeping records and receiving correspondence from all the statutory government timely. It also specifies the jurisdiction of the registered office.
Can we change the Registered Office of the Company?
Yes, we can easily change the registered office of the company any time after the specified procedure is completed. The changed address can be situated within the same state or in a different state, depending upon the conditions.
Benefits of small businesses in Private limited company?
It provides creditability to business in the eyes of financial institutions, suppliers and potential clients. It makes easier for companies to get loans at favourable rates from banks or in convincing potential clients while entering into deals.
Can sole proprietorship be converted to private limited company registration?
Yes, sole proprietorship can be converted into private company registration after following the companies act, 2013 procedures.
Is a foreign entity allowed to be Director or shareholder of the private limited company?
Yes, any foreign nationals, entity or an NRI can become a director or shareholder of a private limited company in India.
What are the forms that are required for Private Limited Company Registration in India?
Ministry of Corporate Affairs has introduced a new form called the SPICe INC- 32 forms for the faster company incorporation. Apart from this, to register a private limited company, an e- MoA (INC-33) and e- AoA (INC- 34) are also to be submitted with the above form. It is important for fill these Form-1 for Declaration of compliance requirement. Form -18 for giving notice of the company’s registered office and Form 32 mentioning the particulars of the Director’s, Secretary or Manager.
How much Capital is required for running a Private Limited Company?
There is no bar in particular on the minimum capital requirement to run a private company.
Can a private limited company invite the general public for share allocation?
No, a private limited Company cannot invite the general public to subscribe to its company shares.
How many directors are required for company registration?
A private limited company needs a minimum of 2 directors and a maximum of 15 directors to register a company.
Can a Private Limited Company have FDI or Foreign direct investment?
Yes, a private company is allowed to have foreign direct investment in their company.
What are the important documents required before starting up with the registration process?
The most basic and important documents required before starting up with the incorporation of the company is PAN card, Aadhaar card, ID’s, photo and contact details of all the directors, bank statement, electricity bill, rent agreement with the slip or proof of ownership.
How to Register a Private Limited Company?
What is meant by Compounding?
Compounding of an offence is a settlement mechanism, by which, the offender is given an option to pay money in lieu of his/her prosecution, thereby avoiding a prolonged litigation.
Who can apply for compounding?
Any person who contravenes any provision of the FEMA, 1999 or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act or contravenes any condition subject to which an authorization is issued by the Reserve Bank, can apply for compounding to the Reserve Bank. Applications seeking compounding of contraventions under section 3(a) of FEMA, 1999 may be submitted to the Directorate of Enforcement.
When should one apply for compounding?
When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or any other statutory authority or the auditors or by any other means, she/he may apply for compounding. One can also make an application for compounding, suo mo-to, on becoming aware of the contravention.
Are any fees required to be paid for seeking compounding?
Yes, The application in the prescribed format along with necessary documents and a demand draft for Rs. 5000/- (Rupees five thousand only) drawn in favour of the “Reserve Bank of India” should be sent to the Reserve Bank of India while sending the request for compounding.
What are sensitive contraventions?
Cases involving serious contravention which may involve money laundering, terror financing or affecting sovereignty and integrity of the nation are categorized as sensitive contraventions.
Is it mandatory to appear for the personal hearing?
It is not mandatory to attend/opt for the personal hearing. In case a person opts not to attend the personal hearing he//she may indicate his/her preference in writing. The application would be disposed of on the basis of documents submitted to the Compounding Authority. It may be noted that appearing for, or opting out of the personal hearing does not have any bearing, whatsoever, on the amount imposed in the compounding order, as the amount imposed is calculated based on the Guidance note on computation matrix as contained in the Master Direction on compounding of contraventions under FEMA.
Can the applicant authorise another person to attend the personal hearing?
Yes, another person may be authorised by the applicant to attend the personal hearing on his behalf but only with proper written authority. It has to be ensured that the person appearing on behalf of the applicant is conversant with the nature of contravention applied for. However, the Reserve Bank encourages the applicant to appear directly for the personal hearing rather than being represented/ accompanied by legal experts/consultants, etc. as the compounding is only for admitted contraventions.
How is the compounding process brought to conclusion?
The Compounding Authority passes an order indicating details of the contravention and the provisions of FEMA, 1999 that have been contravened. The sum payable for compounding the contravention is indicated in the compounding order. The process of compounding is brought to a conclusion by payment of the amount imposed.
How is the compounding process brought to conclusion?
The Compounding Authority passes an order indicating details of the contravention and the provisions of FEMA, 1999 that have been contravened. The sum payable for compounding the contravention is indicated in the compounding order. The process of compounding is brought to a conclusion by payment of the amount imposed.
How does the application for compounding finally get disposed of?
On realization of the sum for which contravention is compounded, a certificate shall be issued by the Reserve Bank, indicating that, the applicant has complied with the order passed by the Compounding Authority.
What happens if the amount is not paid within 15 days of the order?
In case of non-payment of the amount indicated in the compounding order within 15 days of the order, it will be treated as if the applicant has not made any compounding application to the Reserve Bank and the other provisions of FEMA, 1999 regarding contraventions will apply. Such cases will be referred to the DoE for necessary action.
Can there be an appeal against the order of the Compounding Authority?
As compounding is based on voluntary admissions and disclosures, there is no provision under the of Foreign Exchange (Compounding Proceedings) Rules, 2000, for an appeal against the order of the Compounding Authority or for a request for reduction of amount imposed or extension of period for payment of the amount imposed.
What is the timeframe for completing the compounding process?
The compounding process needs to be completed within 180 days from the date of receipt of the completed application in all aspects, by the Reserve Bank
Choice of LLP vs Private Limited Company
LLP is majorly suitable for small businesses that have annual sales turnover of fewer than Rs 40 lakhs and a capital contribution of not more than Rs 25 lakhs. LLPs that satisfy these conditions do not have to go through the audit every year. On the other hand, it is necessary for a private limited company to conduct an audit of its financial statement each year. Though, in case, a LLP has an annual turnover of Rs 40 lakhs or a capital contribution of more than 25 lakhs, the need for compliance becomes almost similar for both the private limited company and LLP, forcing the owners of LLP to convert into a Private Limited Company.
Can we convert LLP to Private Limited Company?
Provision mentioned in the Section 366 of the Companies Act, 2013 and Company (Authorised to Register) Rules, 2014, says that an LLP can be converted into a Private limited Company.
Is LLP better than Private Limited Company?
LLP offers limited liability, offers tax advantages, can accommodate an unlimited number of partners, and is credible in that it is registered with the Ministry of Corporate Affairs (MCA). At the same time, it has less compliance than a private limited company and is also significantly cheaper to start and maintain.
Can LLP take loan from bank?
Unlike private limited company, you cannot raise equity funding in llp from any person other than its partner. However debt funding such as term loan, overdraft from bank is possible.
Benefits of Conversion of LLP into Private Limited Company
Conversion of LLP into Private Limited Company facilitates business entities to continue the brand name without making any further efforts on brand advertisements.
After the conversion, no expenditure will be incurred on bookkeeping, as the losses and depreciation incurred in LLP will be carried forward on the conversion of entity
Conversion of LLP to Private Company facilitates Companies to offer stock ownership and ESOP plans. Such plans help companies to attract efficient employees, as it offers incentive plans for them to work in the company.
If the company registration process is strict, it helps the company structure to be more credible among others. This leads to easy fundraising from external sources.
Conversion of company facilitates the separate ownership and management to pay attention to their potential work. The Shareholders assign responsibility to run and operate the company without losing control in the form of voting.
Conversion prohibits the liability of the owners only to the capital subscribed and unpaid by them.
Reasons for LLP Registration
Documents Required for Conversion of LLP into a Private Limited Company
List of Documents required for filing pROC for conversion of LLP into Company:
E-form URC-1
Company required filing e-form URC- 1 along with all the below mentioned documents:
i. A list showing the names, addresses, and occupations of all persons named therein as members with details of shares held by them
ii. a list showing the particulars of persons proposed as the first directors of the company
iii. an affidavit from each of the persons proposed as the first directors, that he is not disqualified to be a directolr under sub-section (1) of section 164 and that all the documents filed with the Registrar for registration of the company contain information that is correct and complete and true to the best of his knowledge and belief
iv. a list containing the names and addresses of the partners of the Limited Liability Partnership
v. Copy of LLP Agreement
vi. a statement of assets and liabilities of the Limited Liability Partnership duly certified by a chartered accountant in practice which is made as on a date not earlier than thirty days of the filing of form no.URC-1
vii. a copy of latest income tax return of the Limited Liability Partnership
viii. an undertaking that the proposed directors shall comply with the requirements of Indian Stamp Act, 1899 (2 of “1899)
ix. written consent or No Objection Certificate from all the secured creditors of the applicant
x. written consent from the majority of Partners
xi. a statement specifying the following particulars:—
♦ the nominal share capital of the company and the number of shares into which it is divided;
♦ the number of shares taken and the amount paid on each share;
♦ the name of the company, with the addition of the word “Limited” or “Private Limited” as the case may require, as the last word or words thereof;
E-form INC- 33 / INC-33 / INC-34
Company required to file e-form INC-32/ INC-33/ INC-34 along with URC-1 as linked form with all the attachment as required in normal Incorporation of Company like:
xii. MOA & AOA
(Physical in case of more than 7 subscribers otherwise INC-33 and INC-34)
xiii. INC-9
xiv. DIR-2 etc.
Process of Conversion of LLP into a Private Limited Company
Obtain ‘Name Approval’ from the ROC (Registrar of Companies) by giving an application in e-format.
It is necessary for all the seven directors of the company to obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN). DIN can be obtained by filing an application form on MCA portal. Central government approves the application of DIN through the office of regional director, the ministry of corporate affairs. Before submitting the form make sure to self-attest it along with address proof and identity proof with one passport size photo of the applicant.
Once you have obtained the approval of name from the Registrar of Companies, the applicant is required to prepare and file the form No URC-1.
Formulate Memorandum of Association (MOA) and Articles of Association (AOA) and submit it to the Registrar of Companies. Once you have obtained approval of the company name, the Registrar of Companies issues the form URC-1.
The primary reason for conversion of LLP into Private Limited Company is the growth in the business. LLP framework does not fit well for venture capitalists or for private equity, also investors are more comfortable in investing in private limited company. For the purpose of FDI also, private limited companies are considered to be as the preferable choice over LLP. Hence, the conversion of LLP to private limited company can be a wise decision and shall be performed by taking all prescribed regulations into consideration.
How to file conversion form in case of more than seven partners in the LLP?
In case of more than 7 partners in the LLP at the time of conversion into Company then Company needs to file scanned copy of physically prepared MOA & AOA.
In the above mentioned situation company has to file 1.URC-1 and 2.INC-32. There is no need of filling INC-33 and INC 34 in the above mentioned situations.
At the time of Conversion should the Latest deed be attached in the form URC-1?
As per Rules, at the time of Conversion, LLP has to file “copies of the principal and all subsequent deeds including the latest deed” with the ROC in e-form URC-1
Understanding Limited Liability Partnership
LLP is a combination of both Company and Partnership. It is especially suitable for small to medium-sized business enterprises.
It is governed by Limited Liability Partnership Act- 2008 which came into force from April 1, 2008. This Act was proposed for promoting the Micro Small Medium Enterprise.
LLP registration has the advantage of self-governance and less compliance as compared to other types of corporate entities.
PROCESS OF CONVERSION OF COMPANY INTO LLP
The minimum number of designated partners for the incorporation of an LLP is two. One of them must be an Indian resident. Currently, DIN is allotted only at the time of incorporation or while adding a person as a director or designated partner in a company or an LLP. Hence, first such members need to be added as directors in the company to obtain DIN. DIN will be required for those who would become designated partners.
Further, it is important to apply for a DSC before applying for the DIN. A Body Corporate can also be a partner in a Limited Liability Partnership through a nominee.
3. Application for Name Availability
The company will have to apply for reservation of name of LLP And GET NAME APPROVAL CERTIFICATE FROM ROC.
File E Form FiLLiP with ROC along with following Attachments:
5. Filing of Application for Conversion into LLP
Form 18 is the form for conversion of a company into an LLP. But it needs to be filed with the Form for incorporation itself.
This form has information about the conversion of the company into LLP such as:
File E-FORM- 18 with ROC along with following ATTACHMENTS:
6. Certificate of Incorporation as LLP from ROC
After complying to all the formalities by the company and getting approved by the Ministry, ROC issues a COI as to the conversion of LLP.
7. Drafting of Limited Liability Partnership Agreement
Contents of Agreement are:
This form provides information about the LLP Agreement entered into; between the partners. This form is to be filed in 30 days from the date of conversion of the company into an LLP.
Attachment Required: LLP Agreement
After receiving incorporation certificate of LLP it has to be filed within 15 days of the date of conversion.
ATTACHMENTS OF E-FORM 14
EFFECT OF CONVERSION
The following are some of the implications due to the conversion of a company into a LLP:
Company has to intimate all the authorities concerned about the conversion and make necessary changes in all the registrations and licenses.
ADVANTAGES OF CONVERSION
Eligibility criteria under LLP Act for conversion of Private Company into LLP:
A company may apply to convert into LLP in accordance with Schedule III if and only if-
Pre-Conditions for Conversion of Private Limited Company into LLP:
1. There is no security interest in its assets subsisting or in force at the time of application;
2. All the shareholders of the company shall be partners of the LLP;
3. Consent from all shareholders of the company must be given for conversion;
4. Consent from all creditors of the company must be given for conversion;
5. All due returns of ROC, Income Tax and other statutory authorities must have been filed;
6. NOC from regulatory authority, if necessary has been obtained for conversion;
7. The company shall furnish a Statement of Assets and Liabilities certified by the Auditor not later than 30 days on the date of filing of the conversion application.
Companies which cannot be converted into LLP?
1. Companies engaged in the businesses of banking, finance and insurance
2. Companies having secured loan/ security interest on assets
3. Companies having FDI where performance linked conditions are applicable
4. Companies having External Commercial Borrowings
5. Companies having FDI under approval route.
Is the consent of all creditors mandatory for conversion?
Yes, Consent of all the creditors is mandatory for conversion of Company into LLP.
Is the consent of all shareholders of a company mandatory for conversion?
Yes, Consent for conversion of all shareholders is mandatory.
Is it necessary to intimate the Registrar of Companies about the conversion of a company into LLP?
Yes, the LLP shall within 15 (Fifteen) days from the date of conversion intimate about such conversion to the registrar of companies in Form-14.
Do we need to apply for fresh PAN & TAN after conversion?
Yes, after conversion the entity needs to apply for fresh PAN & TAN.
Do we need to open a new bank account after conversion?
Yes, new account in the name of the converted entity is mandatory to be opened.
What is compliance?
The definition of compliance encompasses several things. First, a compliance program should help the company prevent, detect, and respond to illegal or unethical conduct. Second, it requires developing standards and procedures that promote compliance with laws and regulations. Third, the company must build a culture that encourages ethical conduct and compliance with the law. Developing an effective compliance program doesn't just happen by chance. A company must commit the resources from end to end – from a thorough risk assessment to an employee training program to proper investigations of alleged misconduct.
Why is a compliance program important for my company?
An effective compliance program will help to avoid or minimize legal or regulatory penalties and potential civil litigation. It can help to promote ethical conduct across your company, as well as avoid or minimize reputational damage that often comes in the wake of a public compliance issue. Additionally, effective compliance program can assist members of the Board of Directors in meeting their fiduciary duties.
What are the modes available for issue of further shares?
Following modes are available for issue of further shares:
Public Companies:
(a) Issue of shares to the existing equity share holders through right basis;
(b) Issue of shares to employees under a scheme of employees' stock option; and
(c) Issue of shares to any person through preferential allotment/ private placement.
Private Companies:
(a) Right issue/ bonus issue;
(b) Issue of shares to employees under a scheme of employees' stock option; and
(c) Issue of shares to any person through preferential allotment/ private placement.
Can subsidiary company hold shares in its holding company?
Subsidiary company cannot hold shares in its holding company and any such holding shall be void. A subsidiary company may hold shares in its holding company only in the following circumstances:
(a) Where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company;
(b) Where the subsidiary company holds such shares as a trustee;
(c) where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company
Who can be appointed as director?
An individual holding a valid DIN and not disqualified from being appointed as Director under Section 164 of the CA, 2013, is eligible to be appointed as Director. He shall give his consent to act as a director in writing along with the disclosure of his interest and a declaration that he is not disqualified to become a director.
What are the broad steps involved in the appointment of a director?
The broad steps involved in the appointment of a director are: • Obtaining Digital Signature; • Obtaining DIN by filing Form DIR-3; • Declaration that he/she is not disqualified from being appointed as the Director in form DIR-8; • Written consent of director for his/her appointment in form DIR-12; • Interest of the Director if any, in any other entity in form MBP-1 • Approval of Board of directors by Board Resolution; • Approval of Shareholders by shareholders Ordinary Resolution• Intimation of appointment of director to Registrar of Companies in Form DIR-12.
Are all companies required to hold Board Meetings every quarter?
CA 2013, and Secretarial Standard 1, all companies – whether private limited companies or public companies are required to hold at least four meetings of its Board of Directors in each quarter every year where the gap between two consecutive board meetings is not more than one hundred and twenty days. As per the notification No. GSR 466 E dated 05 June 2015, in case of a Section 8 company, the Board of Directors of the Company shall hold at least one meeting within six calendar months. In case of an OPC, if there is only one director on the Board of Director, the quarterly board meetings are not required to be held. However, if the OPC has more than one director, or in case of a Small Company and Dormant Company, it will suffice the requirement, if they hold at least one meeting in each half of the calendar year and the gap between two meetings should not be less than ninety days. Further, any business which is required to be transacted at the meeting of the Board of Directors of a company, shall be sufficient if, in case of such OPC, the resolution by such director is entered in the minutes book.
What are the matters which cannot be considered at a meeting held through video conference or other audio visual means?
Following matters shall not be considered through video conference or other audio visual means:
(i) Approval of annual financial statements;
(ii) Approval of board's report;
(iii) Approval of prospectus;
(iv) Audit Committee Meetings for Consideration of financial statement including consolidated financial statement, if any, to be approved by the Board of directors and
(v) Approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover
When should a company convene its first AGM?
The first AGM of a company should be held within a period 9 months from the end of the close of the financial year. Example – If a company's financial year commences ends on 31 March, the first AGM of the company shall be held latest by 31 December of that year.
Can AGM be held at a place situated outside the limit of city, town or village in which the Registered Office is situated? AGM cannot be held at a place situated outside the limit of city, town or village in which the Registered Office is situated. Provided in case of Government companies, AGM can be held at a place which the Central Government may approve i.e. a Government Company can convene its AGM at a place other than limit of City, town, village in which the registered office is situated if the Central Government may approve. Also, AGM of an unlisted company may be held at any place in India if consent is given in writing or by electronic mode by all the members in advance.
What shall be the Quorum of an AGM?
Quorum for the AGM of a Private Limited Company is 2 members personally present,
Public Limited Company, quorum for AGM is based on the number of members in the Company, as stated below:
Quorum required Total number of member in the Company (members to be personally present)
5 Less than 1000
15 1000 to 5000
30 More than 5000
Who shall sign the Financial Statements of a Company?
The Financial Statements of a company is required to be signed as per the provisions of Section 134 of the CA, 2013 by:
• Chairperson if he is authorized or two directors out of which one shall be MD, if any
• CEO, the CFO and the Company Secretary, wherever they are appointed, to sign the financial statements of the company.
Can a company maintain books of account in any place other than the Registered Office?
A company may maintain books of account and other relevant papers may be kept at such other place in India as the Board of Directors may decide and where such a decision is taken, the company shall, within seven days thereof, file with the ROC a notice in Form AOC-5 giving the full address of that other place
When should the first auditors be appointed?
The first auditors should be appointed by the Board within 30 days of the registration of the company and in case of failure of the Board to appoint such auditors, the auditors shall be appointed by the members in general meeting. Further, such auditor shall hold office till the date of the conclusion of the first annual general meeting.
What is the term of appointment of an individual and a firm as a statutory auditor?
The following companies shall not appoint an individual as statutory auditor for more than one term of 5 years and a firm as statutory auditor for more than two terms of 5 year each:
• Listed company;
• All unlisted public companies having paid up share capital of INR 10 Crores or more; • All private limited companies having paid up share capital of INR 50 Crores or more; • All companies having paid up share capital below the threshold limit mentioned in the aforesaid two points, but having public borrowings from financial institutions, banks or public deposits of INR 50 Crores or more.
What is a Death Certificate?
A death certificate is an official document issued by the government, which declares cause of death, location of death, time of death and some other personal information about the deceased.
What are the reasons for obtaining Death Certificate?
There are several reasons one should obtain a death certificate which declares the cause, location and time of death. This certificate serves as a proof for legal purposes to collect pension benefits, claiming life insurance, medical benefits and other official commitments.
Who can register Death?
The death of an individual has to be registered within 21 days from the date of death. The following person is responsible for registering the death:
What are the required documents?
The following documents are to be provided at the time of applying for the death certificate.
What is the fee of Death Certificate?
For registering death following charges are applicable as below:
How to apply for Death Certificate?
To apply for death certificate through online mode.
How to track application status?
To check the application status of the death certificate proceeds, as mentioned below:
Who can obtain a death certificate?
In some states, death certificates are considered public domain documents and they can be obtained by any individual regardless of the requester's relationship to the deceased. In other states, only a legal representative, a spouse, parent, child, or sibling of the deceased may obtain a certified copy of the death certificate.
What are the things to keep in mind while applying a Certificate?
While applying for a death certificate, one must check the information (name, address, age) provided as the certificate should match with the Aadhaar/PAN or any other legal document of the deceased. If the person who has died holds a joint account, then the name should be removed or the account can be closed. All insurance claims like life, vehicle and credit card can be obtained with the help of a death certificate. Banks, insurance companies and tax departments can be contacted or visited to claim the above. One can also seek help from a lawyer or a financial planner.
What is the Significance of the Death Certificate?
The death certificate is a rather important document. Apart from mentioning the date, place and time of birth, it also mentions the cause of death. This is very important because the cause of death is entered on the death certificate after the post mortem report and results of the investigation done by the police have come in. This document can further be used for several purposes in future. In proceeding before a court of law in the territory of India, if the death certificate is produced before it, the court, under the Indian Evidence Act, 1872, shall presume its contents to be true unless satisfactorily proved to be untrue by way of conclusive proof. Therefore, the weightage of the death certificate in terms of evidence is considerably high.
What is Director?
A director is an elected individual who, along with other directors, is responsible for a company's corporate policy. Collectively, directors form the board of directors.
How many directors are required to be appointed in a company?
Section 149(1) of the Companies Act, 2013 requires that every company shall have a minimum number of 3 directors in the case of a public company, two directors in the case of a private company, and one director in the case of a One Person Company. A company can appoint maximum 15 (fifteen) directors.
A person can be appointed as director in how many companies at a time?
A person can hold the office of director simultaneously in 20 companies. The number of 20 companies includes the office of alternate directorship. A person cannot be a director in more than 20 companies at a given time. However, the maximum number of public companies in which a person can be a director simultaneously is 10. An individual cannot be appointed as a director in more than 10 public companies at a given time.
What are the qualifications of Director?
The Act has a dedicated provision which is Section 162 that underlines the reasons for which a person may not appoint as a director. There is no such provision regarding the qualification under the Act. However, requirements can be listed as below:
What are the disqualification of Director?
The minimum eligibility requirement for the appointment of directors has been laid down under section 164 of the Companies Act, 2013. The disqualification for a person, who cannot be appointed as a director are:
Who are the first directors of the company?
The subscribers of the memorandum appoint the first directors of a company. They are generally listed in the articles of the company. If the first director is not appointed, then all the individuals, who are subscribers become directors. The first director holds the office only up to the date of the first annual general meeting, and the subsequent director is appointed as per the provisions laid down under section 152.
What are the different types of Directors?
There are different types of directors:
Executive director
He/she is the full-time working director of the company. They have a higher responsibility towards the organization. The company and its employees expect them to be efficient and careful in all the dealings.
Non-Executive Directors
H/she are non- working directors and are not involved in the everyday working of the company. They might take part in the planning or policy-making process. They challenge the executive directors to come up with decisions and solutions that are in the best interest of the company.
Managing directors
They have a substantial ability to make decisions, manage and direct other members of the company. A Public Company or a subsidiary of a Public Company that has a share capital of more than Five Crore rupees must have a Managing Director.
Independent directors
They are the ones who do not have any direct relationship with the company. Their experience is their asset and provide expert advice to the board when required. Public companies who have paid-up share capital, turnover of Rs. 100 Crores, or outstanding loans of Rs. 100 Crores or Rs.50 Crores or more need two independent directors.
Qualifications to be an independent director:
Residential director
A director who has lived in India for at least 182 days is a residential director. A company should have one residential director.
Small Shareholder Directors
They are the ones who can appoint a single director in a listed company. By issuing a notice to at least 1000 shareholders or 1/10th of the shareholders whichever is lesser, to approve this action.
Women directors
The companies who have their securities listed on the stock exchange or have a paid-up capital of Rs. One hundred crores/turnover of Rs. Three hundred crore or more must have a women director.
Additional Directors
An individual can act as an additional director by taking the position of a director until the next Annual General Meeting.
Alternate director
When a director is absent for more than three months; an alternate director comes on board on his behalf. He acts as a director for a temporary period. And can only hold office as permissible to the director whose office this director holds.
Nominee Director
Shareholders, central government or third parties appoint them. Nominee directors come on board when there is grave mismanagement or the board members abuse their powers.
How a Director can be removed?
The removal of directors takes place by:
What are the Forms filed for appointment/resignation /change in designation of a director?
Companies have to file e-Form DIR-12 on MCA Portal to notify ROC about the particulars related to appointment/Change/Resignation of directors and Key Managerial Personnel within 30 days of such event by the Company pursuant to Sections 7(1) (c), 168 & 170 (2) of the Companies Act, 2013 and Rule 17 Of Companies (Incorporation) Rules, Rule 8, 15 & 18 of Companies (Appointment and Qualification of Directors) Rules, 2014.
What are the documents required for appointment of director?
A) Documents required from Director: PAN Card, Residence Proof, Consent letter for appointment.
B) Documents required from Company: Board Meeting Resolution for Appointment and Letter of Appointment.
Can a company grant loan to Director?
Section 185 (as amended by the Companies (Amendment) Act, 2017):
What is Director Identification Number? How can it be applied?
Every individual, who is to be appointed as director of a company shall make an application electronically in Form DIR-3 (Application for allotment of Director Identification Number) to the Central Government for the allotment of a Director Identification Number (DIN).
The Central Government shall, within one month from the receipt of the application under section 153, allot a Director Identification Number to an applicant.
How to intimate changes in particulars of a Director?
Every director having DIN in the event of any change in his particulars as stated in Form DIR-3, should intimate such change(s) to the Central Government within a period of 30 days of such change(s) in Form DIR-6 (Intimation of change in particulars of Director to be given to the Central Government). DIR-6 will be filed along copy of the proof of the changed particulars all of which shall be scanned, signed digitally by the applicant and submitted electronically. Form requires pre-certification by the professional CA/CS/CMA in practice.
What is a Domicile Certificate?
A domicile certificate proves that a person is a resident of a particular State/Union Territory.
Who can apply for a Domicile Certificate?
An individual who is living, or whose parents are living in a particular state for more than 3 years can apply for a domicile certificate. This duration of residence may vary from state to state.
Who is authorized to issue a Domicile Certificate?
A domicile certificate is issued by the respective State/UT authorities. The officers authorized by the State/UT to issue a domicile certificate are Revenue Department Officer, Tehsildar Officer, District Magistrate, SDM or Circle Officer.
Can online application be submitted for a Domicile Certificate?
Yes an online application can be filed for a domicile certificate. One needs to refer to the respective state's portal.
What are the documents required for application of a Domicile Certificate?
Following documents are required for application of a domicile certificate:
Additionally passport size photograph is required.
What is the validity period of a Domicile Certificate?
The domicile certificate once received is valid for lifetime unless the holder moves to a different state.
What are the benefits of a Domicile Certificate?
A domicile certificate can provide various benefits to the holder such as:
What is a driving license?
A driving license is a State Government issued document that signifies that license holder is permitted to drive a motor vehicle on public roads in India without the need for any supervision. According to the Motor Vehicles Act of 1988, no one can drive in a public place without a driving license.
Who issues driving license?
Driving license is issued by either the Regional Transport Authority (RTA) or the Regional Transport Office (RTO).
What are the types of driving licenses?
There are four types of driving licences available by the RTO in India namely (i) Learning License; (ii) Permanent License; (iii) Commercial Driving Licence; (iv) International Driving Permit.
What is the eligibility criteria for obtaining a driving license?
For driving a motorcycle with gear and four-wheelers like cars one needs to be 18 years or older with knowledge of traffic rules. For motorcycles without gears of upto 50 cc one needs to be of 16 years or older with the consent of parents/guardian and should have knowledge of traffic rules.
What documents are required to obtain a Driving License?
What is a learner’s license?
When you apply for a new driving license, you first get a learner's license with a validity of six months.
After getting a learners license, what is the minimum period after which one may apply for a permanent license?
After the expiry of a learner’s license and a minimum period of 30 days one may apply for a permanent licence.
Is there a driving test before obtaining a permanent license?
The RTO appoints an invigilator to take the applicant's driving test.
What is the validity of a permanent license?
A permanent license is valid for a period of 20 years from the date of issuance.
What to do in case one loss of driving license?
One may apply for a duplicate driving license to the RTO along with a copy of FIR, Photocopy of original license and Passport size photograph.
What is ESI Scheme?
It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the 'employees' in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
How does the scheme help the employees?
The scheme provides full medical care to the employee registered under the scheme during the period of his incapacity for restoration of his/her health and working capacity. It provides financial assistance to compensate the loss of his/ her wages during the period of his/her abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.
What are the establishments that attract coverage under ESI?
The ESI Act 1948 provides medical cover and other essential benefits to workers and employees who are working in factories, business establishments and organizations such as:
The ESI scheme offers benefits to both the workers and their dependents in case of any unfortunate eventualities at work. Under the ESI Act, employees or workers employed at the
are entitled for this social security scheme. The ESI Act aims at respecting human dignity during crises by protecting them from destitution, deprivation and social degradation.
Why Registration of an Insured Person is necessary?
Registration of employee is the process of identification to provide the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured persons.
What is the scale of Medical Benefit?
Full range of Medical, surgical & obstetric treatment consisting of out-door treatment, in-patient treatment, supply of all drugs and dressings, pathological and radiological investigations, prenatal and post-natal care, super specialty consultation & treatment, ambulance services, provision of artificial appliances etc.
What is the Eligibility for ESI?
To be eligible for the ESI scheme, the employee or the worker's monthly salary should not exceed Rs.21,000 and Rs.25,000 for people with disability.
For companies not registered under the ESI Act
Companies that have an employee base of more than 20 must be registered under the act.
For companies already registered under the ESI Act
The organizations need to rework the CTC of all the employees who have a monthly gross salary of INR 21,000 or less.
What are the ESI contribution rates?
Both the employer and the employee contribute to also collect the funds for the ESI scheme. Earlier this contribution is:
making it a total of 4% of the employee's monthly wages.
Contribution Period and Benefit Period?
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under:
Contribution period and Corresponding Cash benefit period
What are the various ESI reports?
ESI Monthly report: this report is generated monthly. This gives the total deductions/contribution (employee and employer) done for each employee for a month.
ESI Form 6: this is a half yearly report.
ESI Form 7: this is also a half yearly report.
What are the records to be maintained for ESI purpose?
For ESI compliance the employer has to maintain the following records:
1. Muster roll, wage record and books of Account maintained under other laws.
2. Accident Register in new Form-11 and
3. An inspection book.
4. The immediate employer is also required to maintain the Employees' Register for the employees deployed to the principal employer.
What are the benefits admissible to the family members?
(i) Family members are also entitled to full medical care as and when needed.
(ii) The family members are also entitled to artificial limbs, artificial appliances etc. as a part of medical treatment.
(iii) The medical benefit is also admissible to the family during the period the insured person is in receipt of unemployment allowance. In case he dies during the period, his family continues to receive the medical benefit till the end of those twelve months.
(iv) Reimbursement of expenditure incurred on the funeral of the deceased employee.
(v) In case of the death of the insured employee due to employment injury, the widow, widowed mother and children are entitled to Dependants' benefit.
(vi) Any benefit due to the insured employee at the time of death is paid to the nominee.
How long is it paid and at what rate to dependant?
The rate of dependants' benefit is 90% of standard benefit rate of the wages of the deceased insured person. It is distributed among the dependants as follows:
1) Widow: Till death or remarriage at 3/5th of the full rate.
2) Widowed mother till death @2/5th of the full rate.
3) Sons @2/5th of the full rate each till he attains the age of twenty –five years.
4) Unmarried daughters @2/5th of the full rate till they get married.
5) If the son or daughter is infirm and wholly dependent on the earnings of the insured person at the time of his death, they continue to receive the benefit even after attaining the age of 25 years/ marriage as the case may be. If the total dependants' benefit for all the dependants worked out as above exceeds at any time, the full rate, the share of each of the dependants shall be proportionately reduced, so that the total amount payable to them does not exceed the amount at full rate.
What is the benefit admissible after retirement of an employee?
An insured person who leaves the insurable employment on attainment of the age of superannuation or retires under a voluntary Retirement Scheme or takes premature retirement, after being an insured person for not less than 5 years, shall be eligible to receive medical benefit for himself and his spouse subject to production of proof thereof, and payment of a nominal contribution of rupees one hundred and twenty for one year. In case the insured person expires, his spouse is entitled to the medical benefit for the remaining period for which the contribution was made, and she can continue to receive the medical benefit on payment of the contribution @ 120/- p.a. for further period. This medical benefit is also admissible to an insured person who ceases to be in employment on account of permanent disablement caused due to employment injury for himself and his spouse on payment of similar contribution till the date on which he would have vacated the employment on attaining the age of superannuation, had he not sustained such permanent disablement.
What are the penal provisions for non-payment or delayed payment of contribution?
The Corporation may levy and recover damages under Reg. 31C at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution. Period of delay Rate of damages in % p.a.
i) Less than 2 months 5 %
ii) 2 to 4 months 10 %
iii) 4 to 6 months 15 %
iv) 6 months and above 25 % The employer is liable for prosecution under Section 85(a) for the first time, However, having been convicted by a court of an offence punishable under the Act, commits the same offence again shall, for every such subsequent offence, be liable for enhanced punishment under section 85 A of the Act.
What are the types of businesses that Start-ups could consider?
The types of businesses that start-ups could consider are:
What is the Start-up India Action Plan?
Under the Start-up India Action Plan, start-ups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program.
An entity shall be considered as a Start-up:
An entity formed by splitting up or reconstruction an existing business shall not be considered a ‘Start-up’.
What is the process of registration of Start-up?
The process of recognition of an eligible entity as a start-up shall be as under: —
(a) a copy of Certificate of Incorporation or Registration, as the case may be, and
(b) a write-up about the nature of business highlighting how it is working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation.
(a) recognise the eligible entity as Start-up; or
(b) reject the application by providing reasons.
What is the tax-exemption available for start-ups?
After getting recognition a Start-up may apply for Tax exemption under section 80 IAC of the Income Tax Act. Start-up can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Eligibility Criteria for applying to Income Tax exemption (80IAC):
What is the angel tax exemption under the Income Tax Act?
After getting recognition a Start-up may apply for Angel Tax Exemption. Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:
Can an existing entity register itself as a “Start-up” on the Start-up India Portal?
Yes, as per the law an existing entity can register itself as a start-up, provided that it meets the prescribed criteria for a start-up. They will also be able to avail various tax and IPR benefits that are available to start-ups. The criteria are the same as those mentioned in the article above.
What is the fees payable for registering a start-up?
The start-ups are not required to pay any fees to the Ministry of Commerce and Industry for obtaining the DPIIT Certificate of Recognition for Start-ups.
What is unique start-up recognition number?
DPIIT Certificate of Recognition for Start-ups is after examination of the application and documents submitted. Once the ministry approves the application it allots a unique start-up recognition number.
Are monetary gifts received by an individual or Hindu Undivided Family (HUF) taxable?
If the following conditions are satisfied then any sum of money received (i.e., monetary gift received in cash, cheque, draft, etc.) by an individual/ HUF will be charged to tax:
Are there any cases in which the sum of money received without consideration, i.e., monetary gift received by an individual or HUF is not charged to tax?
If the conditions given in preceding FAQ are satisfied then sum of money received without consideration (i.e., monetary gift) by an individual or HUF will be charged to tax. However, in the following cases monetary gift will not be charged to tax.
Relative for this purpose means:
( a ) Spouse of the individual;
( b ) Brother or sister of the individual;
( c ) Brother or sister of the spouse of the individual;
( d ) Brother or sister of either of the parents of the individual;
( e ) Any lineal ascendant or descendent of the individual;
( f ) Any lineal ascendant or descendent of the spouse of the individual;
(g) Spouse of the persons referred to in (b) to (f).
Apart from marriage are there any other occasions in which monetary gift received by an individual will not be charged to tax?
Gift received only on the occasion of marriage of the individual is not charged to tax. Apart from marriage there is no other occasion in which the gift received by an individual is not charged to tax. Hence, gift received on occasions like birthday, anniversary, etc. will be charged to tax.
Are monetary gifts received from friends liable to tax?
Gifts received from relatives are not charged to tax. Friend is not a relative as defined in the above list and hence, gift received from friends will be charged to tax (if other criteria of taxing gift are satisfied).
Are monetary gifts received from abroad liable to tax?
If the aggregate value of monetary gift received during the year by an individual or HUF exceeds Rs. 50,000 and the gifts are not covered under the exceptions prescribed in the preceding FAQ, then gifts whether received from India or abroad will be charged to tax.
An Individual received different gifts (cash) from his friends, none of the gift exceeded Rs. 50,000 but the total of the gifts received during the year exceeded Rs. 50,000.
What will be the tax treatment in such a case?
Sum of money received without consideration by an individual or HUF is chargeable to tax if the aggregate value of such sum received during the year exceeds Rs. 50,000.
The important point to be noted in this regard is the "aggregate value of such sum received during the year". The taxability of the gift is determined on the basis of the aggregate value of gift received during the year and not on the basis of individual gift. Hence, if the aggregate value of gifts received during the year exceeds Rs. 50,000, then aggregate value of such gifts received during the year will be charged to tax.
Are gifts of immovable property received by an individual or HUF charged to tax?
If the following conditions are satisfied then immovable property received by an individual or HUF will be charged to tax:
Are gifts of immovable property located abroad liable to tax?
If the aggregate value of monetary gift received during the year by an individual or HUF exceeds Rs. 50,000 and the gifts are not covered under the exceptions prescribed then gifts whether received from India or abroad will be charged to tax.
Would any taxability arise if an immovable property is received for less than its stamp duty value?
Apart from taxing the immovable property received without consideration, i.e., received as a gift, the Income-tax Law has also designed the provisions for taxing immovable property received for less than its stamp duty value. If following conditions are satisfied, then immovable property received by an individual or HUF for less than its stamp duty value will be charged to tax:
In above case the excess of stamp duty value over the purchase price of the property will be treated as income of the purchaser.
An individual received gift of jewellery from his friends. The total value of jewellery received during the year as gift from all the friends amounted to Rs. 84,000.
What will be the tax treatment of gift in this case?
If the aggregate fair market value of prescribed movable property received by an individual or HUF without consideration during the year exceeds Rs. 50,000, then the total value of such properties received during the year without consideration will be charged to tax. In this case the total value of jewellery received during the year exceeds Rs. 50,000 and hence, Rs. 84,000 will be charged to tax.
Does any taxability arise if prescribed movable property is received by an individual or HUF for less than its fair market value?
If the following conditions are satisfied then prescribed movable property received by an individual or HUF will be charged to tax:
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
Can one start using provisional GSTIN till new one is issued?
Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.
A taxable entity's business is in many states. All supplies are below 10 Lakhs. Entity makes an Inter State supply from one state. Is the entity liable for registration?
Entity is liable to register if the aggregate turn over (all India) is more than Rs.20 lacs (Rs.10 lacs in Special Category States) or if the entity is engaged in inter-State supplies.
Whether civil contractor doing projects in various states require separate registration for all states or a single registration at state of head office will suffice?
A supplier of service will have to register at the location from where he is supplying services.
Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?
Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
When is registration in other state required? Will giving service from Nasik to other state require registration in other state?
If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
Will rental income upto 20 lacs attracts GST or attracts any other charges?
GST is to be levied only if aggregate turnover is more than 20 LACS. (Rs. 10 lacs in 11 special category states).For computing aggregate supplies turnover, all supplies made by entity would be added.
Is separate registration required for trading and manufacturing by same entity in one state?
There will be only one registration per state for all activities.
Is there any concept of area based exemption under GST?
There will be no area based exemptions in GST.
How long can one wait to register in GST?
An unregistered entity has 30 days to complete its registration formalities from its date of liability to obtain registration.
If an entity wishes to have a new registration under GST, when can it do so?
Entity should be able to apply for new registration at the GST Portal gst.gov.in from 0800hrs.
Is SGST of Rajasthan charged by supplier on purchase from Rajasthan be utilized for payment of SGST in Madhya Pradesh?
SGST of one State cannot be utilized for discharging of output tax liability of another state.
How can one use SGST credit for the payment of IGST on another state?
SGST Credit can be used for payment of IGST liability under the same GSTIN only.
Can one State CGST be used to pay another state CGST?
The CGST and SGST Credit for a State can be utilized for payment of their respective CGST/SGST liabilities with in that State for the same GSTIN only.
Do registered dealers have to record Aadhaar /PAN while selling goods to unregistered dealers?
There is no requirement to take Aadhaar / PAN details of the customer under the GSTAct.
All Expenses like freight/transport/packing which are charged in Sales invoice are taxable in GST? How to charge in bill?
All expenses will have to be included in the value and invoice needs to be issued accordingly. Please refer to Section 15 of CGST Act and Invoice Rules.
What type of health plan it is?
The first thing that you must ask your insurer is the type of insurance plan that is best for you. There are three types of health insurance plans on offer - fixed benefit, medical and critical illness. Go thoroughly through the benefits of each plan and then choose the one that best caters to your requirement.
What does the policy cover?
Policy coverage or inclusions is the set of conditions that are covered under the health insurance policy that can be claimed. The coverage of a health insurance policy may include hospitalization charges, pre and post hospitalization charges, ambulance services, laboratory tests, prescription drugs, organ donor charges, and others. You must read the policy document carefully to understand the exact coverage on offer.
What the policy does not cover?
Policy exclusions are the conditions that the policy will not cover. Some insurance policies do not cover the treatment of certain diseases in the first year but after a waiting period. The exclusions in the policy may differ from one insurer to another, therefore being aware of these exclusions is equally important as that will help you decide which policy to buy.
Does your health insurance policy cover routine tests?
Certain health disorders require you to undergo routine medical check-ups. You must ask whether or not your plan will pay for your routine check-ups.
How much does the plan cost?
The cost of the plan is the monthly premium or the amount you pay per month to your insurer to keep your health cover active. Depending on the type of plan you choose and the amount of coverage you require, the cost can vary.
How is the policy premium determined?
When it comes to determining the premium you pay for your health plan, age is a major factor. The older you are, the more prone you are to diseases and so the premium cost will be higher. Previous medical history also plays a role in deciding your health premium. If you are healthy with a favourable medical history, your premium tends to be lower.
How much money will you have to pay for availing medical care?
Health insurance comes with certain out-of-pocket costs like deductible and coinsurance. This amount is what you will have to pay out of your own pocket when you receive medical care. Check with your insurance provider for these charges. Also, find out the cost percentage that your health plan will cover once you have paid the deductible.
Will you be able to avail of treatment from your preferred doctor?
If you have a preferred doctor or hospital, check the list of network hospitals to ensure that you can avail their services or not since an out of network provider can turn out to be very expensive.
What is the process for filing a claim?
It is always better to have an idea about the process of claim initiation because emergencies can occur anytime without giving you any time. You must understand the claim process and the documents you will require for claim initiation. Insurers also offer cashless facilities, in which you can avail of medical services without paying for it!
What is the maximum number of claims you can make in a year?
In general, there is no limit to the number of claims in a year, provided it does not exceed the sum assured on your policy. You must ask your insurer about your claim limit beforehand.
Create a check-list of these questions, and analyze all the available policy options on the basis of this. Another very critical thing to remember is that whichever plan you decide to opt for, go through the policy wordings carefully and completely before you sign the policy documents.
Get to know more about the easy tips for buying a health insurance policy
**To understand exactly about the policy coverage, exclusions, etc read the Policy Wordings carefully.**What is an Income Certificate?
An Income Certificate is a document issued by an authority under the State Government, certifying the annual income of a person or his family from all sources. The actual authority that issues such a certificate varies from state to state. It is usually the Village Tahsildars that issue the certificate but many states and union territories also have District Magistrate / Collector, Revenue Circle Officers, Sub Divisional Magistrates or other District Authorities appointed for this purpose. In certain parts of the country, this certificate is also termed as ‘EWS certificate’ which stands for ‘Economically Weaker Section Certificate’.
What are its possible uses?
As mentioned earlier, the income certificate acts as a proof of eligibility to various schemes and benefits granted by the State Government in various fields. These fields include but are not limited to:
. Educational institutions that usually have a quota reserved for people from economically poorer backgrounds. This certificate helps them secure admission either free of cost or at a concession.
. Scholarships offered by some institutions/governments targeting the upliftment of the poor.
. Availment of medical benefits like free or concessional treatment, subsidized medicines, financial assistance to mothers who give birth to girl child, etc.
. Obtaining loans from the respective government employers at a concessional rate of interest.
. Providing relief to victims of various natural calamities and disasters.
. Widows who can claim government pension wherever applicable.
. Claiming entitlement to hostels, flats or other such government accommodation
What is the procedure to obtain the Income Certificate?
Most states have a dedicated website for such administration related activities through which the certificate can be applied for. The procedure would be:
After gathering all the documents, depending on the infrastructure offered by the respective state, the application has to be either submitted at the local district authority’s office or uploaded online. The application would cost a nominal fee depending on the state it is applied in. The certificate is then issued within a period of 10 – 15 days.
Key Information in the Income Certificate Form?
As shown in the above sample, the key fields included in the income certificate form are as follows:
Who Issues Income Certificate and who can Apply?
Income Certificate is issued by individual State Governments/Union Territories and each has its unique set of documentation requirements. Any individual who is resident of India and belongs to an economically weaker section of society and not required to pay income tax can apply for an income certificate with the applicable State Government/Union Territory.
List of Documents required for obtaining Income Certificate?
The complete list of documents required for obtaining the certificate may vary slightly from one state to another. That being said, few key documents are the same irrespective of the state in which the income certificate application is made. The following is a short list of key documents required for obtaining the certificate:
Additional documents such as expenditure proof may also be required depending on the individual requirement as provided by the state government/union territory.
Validity of Income Certificate?
The validity of income certificate is based on the financial year mentioned in document. Thus the certificate needs to be updated every financial year in order to ensure validity. Also the old certificate may be required as a key documentary proof required for issue of an updated income certificate.
Who needs to Apply?
Every individual already acting or aspiring to become an independent director on the board of a company.
Where to Apply?
They have to apply online at MCA website www.mca.gov.in in ID Data Bank Services under MCA Services tab on home page. The applicant has to first create a user account on the website and then has to fill his/her DIN/PAN/Passport number (as may be applicable) and thereafter he/she will be automatically redirected to IICA website for further processing.
Is DIN mandatory for individual Registration?
No, the individual can also register by using his PAN or Passport number.
What is the Fee for Individual Registration?
Individuals can apply by paying a fee of INR 5000 (+GST) for one year, INR 15000(+GST) for 5 years or INR 25000(+GST) for lifetime registration.
When renewal application shall be filed?
The renewal application shall be filed within a period of 30 days from the expiry of 1 year or 5 years subscription as the case may be.
What is Time Period for Enrolment in Databank?
Existing independent directors should register by June 30, 2020 (after the latest extension is allowed) and individuals aspiring to become ID shall register before appointment anytime.
What has to be done after Enrollment?
After enrollment the individuals are also required to pass an “online self assessment test” within 1 year from the date of registration in databank, failing which their names shall be removed from the databank.
What if existing IDs fail to enroll by June 30, 2020 or the candidates after enrolment fail to pass the test within 1 year?
If they fails to do so their names shall be removed from the databank.
Is there any Exemption from Test?
Yes individuals who had already served as a director or KMP (Key Managerial Personnel) for atleast 10 years in a listed public Company/ unlisted public company having a paid up share capital of Rs 10 Crores or more/listed body corporate are exempted from taking the test.
Provided that any period during which an individual was acting as a director or as a key managerial personnel in two or more companies/bodies corporate at the same time shall be counted only once.
What is the pass percentage to clear the test?
The individuals are required to score at least 60 % marks in the online test.
How many times can an individual take the Test?
There is no limit on number of attempts an individual may take for passing this online test within one year.
What is the schedule for the test after enrolment in the databank?
The test has already started w.e.f March 01, 2020 and there are 3 slots to choose from on any given day.
What if the individual fails to pass the test or misses the test on any given day?
He/She can rebook the slot after a period of 15 days from the previously booked slot date and time.
Where will the test be conducted?
There are no physical tests being held but the whole process is online.
Are any mock tests also available?
Yes the candidates can take the mock test before the actual test in order to familarize themselves with the test environment.
Which subject areas would be covered in the test?
The test is broadly based on relevant topics on the functioning of an individual acting as an independent director and his/her competence in Companies Law, Securities Law, Basic Accountancy and Corporate Governance, etc.
What are the chances for appointment after clearing the test?
The passing of the test is only an opportunity to get appointed as an independent director in companies. The companies may or may not appoint a particular person as an ID in its board after passing the test. It all depends upon the companies requirements, individuals skills and various other factors.
Whether there are any risks and liabilities of Independent Directors?
Yes independent directors are always exposed to legal risks and liabilities because they are entrusted with higher responsibilities under Companies Act, 2013, SEBI norms and other applicable legislations. A detailed study of their roles and responsibility must be done by the individuals before any appointment.
Can exempted individual take the test voluntary?
Yes they can take the test for self assessment.
How can a company register with IICA to access name of proposed ID(s)?
A company can also register by following similar process by using CIN (Corporate Identification Number).
Is IICA or Government of India responsible for accuracy of credentials submitted by the applicant?
The government is not responsible however the companies are required to carry out their own due diligence before the appointment of any person from the data bank.
Who can avail information in the Databank?
The data bank can be accessed only by the companies required to appoint IDs after paying some fees.
How can an Indian company receive foreign investment?
The routes under which foreign investment can be made are:
What are the Capital instruments permitted for receiving foreign investment in an Indian company?
Capital Instruments’ means equity shares, debentures, preference shares and share warrants issued by the Indian company.
Equity shares: Equity shares are issued in accordance with the provisions of the Companies Act, 2013 and will include partly paid equity shares issued on or after July 8, 2014.
Share warrants: Share warrants issued on or after July 8, 2014 will be considered as capital instruments.
Debentures: ‘Debentures’ mean fully, compulsorily and mandatorily convertible debentures.
Preference shares: ‘Preference’ shares mean fully, compulsorily and mandatorily convertible preference shares.
Non-convertible/ optionally convertible/ partially convertible preference shares issued as on and up to April 30, 2007 and optionally convertible/ partially convertible debentures issued up to June 7, 2007 till their original maturity are reckoned to be FDI compliant capital instruments. Non-convertible/ optionally convertible/ partially convertible preference shares issued after April 30, 2007 and optionally convertible/ partially convertible debentures issued after June 7, 2007 shall be treated as debt and shall require conforming to External Commercial Borrowings guidelines regulated under Foreign Exchange Management (Borrowing and Lending in Foreign Exchange Regulations), 2000, as amended from time to time.
What is meant by Foreign Investment, Foreign Direct Investment and Foreign Portfolio Investment?
Foreign Investment means any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of an LLP.
Foreign Direct Investment (FDI) is the investment through capital instruments by a person resident outside India (a) in an unlisted Indian company; or (b) in 10 percent or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company.
Foreign Portfolio Investment is any investment made by a person resident outside India in capital instruments where such investment is (a) less than 10 percent of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company or (b) less than 10 percent of the paid up value of each series of capital instruments of a listed Indian company.
Is any approval required for an entity which has received foreign investment under the automatic route and subsequently the sector was brought under approval route
As long as the foreign shareholding in the entity remains the same and there is no corporate action pursuant to the sector being brought under approval route, approval is not required.
Who should be approached for Government approval or in case of doubt regarding the concerned Administrative Ministry/ Department or regarding the classification of an activity or the sectoral route?
Please refer to the ‘Standard Operating Procedure (SOP) for Processing FDI Proposals’ issued by Department of Industrial Policy & Promotion, Government of India → http://fifp.gov.in/Forms/SOP.pdf
Does the definition of Indian company in FEMA 20(R) cover companies incorporated under both the Companies Act, 1956 and Companies Act, 2013
Indian company under FEMA 20(R) includes all the entities covered under section 1(4) of the Companies Act, 2013.
Is cash a permissible mode of payment for making foreign direct investment in Indian company?
No.
What is meant by investment on repatriation basis and investment on non-repatriation basis?
Investment on repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated out of India. The expression investment on non-repatriation basis may be construed accordingly.
What is meant by FDI linked performance conditions?
FDI linked performance conditions are the sector specific conditions stipulated in regulation 16 of FEMA 20(R) for companies receiving foreign investment.
Can a foreigner set up a partnership/ proprietorship concern in India?
Only NRIs/ OCIs are allowed to invest in partnership/ proprietorship concerns in India on non-repatriation basis.
Is a person resident outside India permitted to acquire capital instruments on stock exchange?
The following persons can acquire capital instruments on the stock exchanges:
Within how many days from the date of receipt of the consideration should the capital instrument be issued?
The capital instrument has to be issued by the Indian company within sixty days from the date of receipt of the consideration.
What if the Capital Instruments are not issued within the stipulated time period?
If the capital instruments are not issued by the Indian company within sixty days from the date of receipt of the consideration, the amount so received has to be refunded to the person concerned by outward remittance, through banking channels or by credit to his NRE/ FCNR (B) accounts, as the case may be, within fifteen days from the date of completion of sixty days.
What is the concept of downstream investment and Indirect Foreign Investment?
Downstream investment is investment made by an Indian entity which has total foreign investment in it or an Investment Vehicle in the capital instruments or the capital, as the case may be, of another Indian entity.
If the investor company has total foreign investment in it and is not owned and not controlled by resident Indian citizens or is owned or controlled by persons resident outside India then such investment shall be “Indirect Foreign Investment” for the investee company.
What are the regulations regarding investments on the stock exchanges in India?
Foreign Portfolio Investors (FPIs) registered in accordance with the provisions of SEBI (FPI) Regulations and NRIs/ OCIs can make investment on the stock exchanges in India, subject to the individual and aggregate limits prescribed in schedules 2 and 3, respectively of FEMA 20(R).
What are the various reporting formalities for foreign investments?
The reporting requirements are laid down in the Master Direction on Reporting under Foreign Exchange Management Act, 1999.
Are resident individuals allowed to make investments outside India?
Resident Individuals: a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include a person who has gone out of India or who stays outside India, in either case –
How can a resident individual make investments outside India?
A resident individual in India can purchase/acquisition of securities in the following manner:
What is the monetary limit for individuals making investments outside India?
Resident Individuals (RI) can invest up to their limit under Liberalized Remittance Scheme (LRS). Present limit is $250000 per year per RI.
What are the activities permitted for investment by individuals while making investments outside India?
An Indian Party can make overseas direct investment in any bonafide activity. However, real estate and banking business are the prohibited sectors for overseas direct investment. Real estate business means buying and selling of real estate or trading in Transferable Development Rights (TDRs) but does not include development of townships, construction of residential/commercial premises, roads or bridges.
What are the methods of approval for getting approval from RBI overseas direct investment done by individuals?
There are two methods:
Who is an ‘Authorised Dealer’?
There are three categories of authorized dealers:
Are there any restrictions on overseas direct investment?
Investment in Pakistan is allowed under the approval route. Investments in Nepal can be only in Indian Rupees. Investments in Bhutan are allowed in Indian Rupees and in freely convertible currencies.
What is the process for making an application for approval of overseas direct investment?
The Indian Party/Resident Individual intending to make overseas direct investment under the automatic route/approval route is required to fill up Form ODI duly supported by the documents listed therein and submit the form in physical to AD Bank.
What are the source for funding overseas direct investment?
Funding for ODI can be done by one or more sources which are given below:
What is an Annual Performance Report (APR)?
The Indian party making investment abroad shall file an Annual Performance Report in Form ODI PART III to the Reserve Bank by 30th of June every year in respect of each Joint Venture (JV) / Wholly Owned Subsidiary (WOS) outside India set up. The APR shall be certified by the statutory auditor of the Indian Company.
What is life insurance?
A life insurance policy is a contract between the policyholder and the insurer, wherein the latter promises to pay a designated lump-sum of money to the family of the policyholder upon his/her demise during the policy period. The policyholder pays a regular amount of money, called ‘premium’ to avail this benefit.
Why is life insurance important?
A life insurance policy provides financial support to the family members of the policyholder in case of his/her demise. If you are a sole breadwinner for your family, you must buy a life insurance policy to ensure your loved ones do not face financial problem to sustain their lives, when you are not around. The money received from life insurance policy can help them live the same standard of living as they live when you are around.
What are the types of life insurance?
There are two basic types of life insurance policies:
What are the benefits of life insurance?
The benefits of life insurance include:
Why should I buy life insurance?
If you are earning member of the family you should buy a life insurance to ensure that your family continues to receive income even when you are not there. A life insurance policy is like a financial safety net that protects your family financially in your absence. It provides a sum assured to your family in case of your demise during the policy term. The sum assured can be used by your family to tackle daily and crucial expenses.
How Does Life Insurance Work?
A life insurance policy is a contractual arrangement between you, the policyholder, and the life insurance company. The policyholder determines the amount of life insurance coverage required and pays the life insurance company a premium to keep the policy in force.
The way the premium will be paid will also be spelled out in the policy. The premium could be paid to the life insurance company as a lump sum, an annual or semi-annual payment, or monthly amount. The premium must be paid according to the terms of the policy to keep the life insurance policy active.
Should the policyholder die while a life insurance policy is in force, then the life insurance company will pay out the death benefits specified in the policy. Additionally (applicable to permanent life insurance policies only), the insurance company will accumulate a cash value.
Death proceeds are paid as a lump sum to the named beneficiary (the person who will receive the life insurance benefits), as stipulated in the policy.
Is Life Insurance Taxable?
Life insurance proceeds are usually not taxable if they are paid to a specifically named beneficiary, such as your spouse or children. The life insurance proceeds may become taxable, however, if you name your estate as the beneficiary. At that point, the proceeds become a part of your estate, and can be subject to estate taxes.
When Should I Get Life Insurance?
Buy life insurance as soon as you determine that it makes sense for you or for your family. Waiting to buy life insurance is costly, as it becomes more expensive as you age. It is also easier to qualify for life insurance when you are young and have no health complications.
Many people buy life insurance as their circumstances change. When you get married, for example, you may consider purchasing life insurance in order to provide death benefits to your spouse in the event of your untimely passing. It is a good idea to evaluate your life insurance anytime you have experienced a change in your overall financial obligations.
For example, you may want to buy life insurance or increase your coverage under these circumstances:
Life insurance can help to prevent the loss of your income and your debt accumulation from being passed on to your family as a financial burden after your passing
Your life insurance policy coverage should reflect these and other foreseeable financial obligations.
How much does life insurance cost?
The cost of life insurance depends on the type of policy you take, the sum insured, your age, health condition and the benefits you expect to receive when your policy matures.
Do I have different options to pay my premium?
Yes, there are multiple options available for you to pay your premiums. You can pay your premiums monthly, quarterly, half-yearly or yearly. You can also pay it in one lump sum. However, a monthly premium is the most convenient because the amount is relatively small and it is easier to monitor and be prepared for a more frequent premium payment.
What if I don't pay my premium on time?
You usually get a grace period, up to 30 days (15 days for monthly mode), to pay your premium once it falls overdue. If you still don’t pay your premium after the grace period your policy stands defunct and you cannot claim any benefits from your policy. However, you can revive your policy once you pay all your overdue premiums subject to certain terms and conditions as per your policy and you will again start receiving the benefits of the policy.
Will I not be able to claim tax benefits if I stop paying premiums on my life insurance or pension policies?
Correct. If you stop premium payments of your policy, it amounts to discontinuation of the policy and you cannot claim any tax benefits. However, if you discontinue paying your premiums after 2 years from the commencement of your policy, the tax will not be deducted on the premium paid in the year when your policy ends. The amount of tax deducted on the premium paid in the preceding year is taxable in the year when the policy terminates.
What happens when my life insurance policy matures?
When your policy matures you will receive an accumulated amount (in lumpsum or Regular Payments, basis the option chosen). This amount will include the total of all your premiums paid, plus bonuses (if any). The amount you receive shall be substantial because the premiums that you pay accumulate and grow every year until the maturity of your policy.
Will I have to pay tax on my maturity benefit?
No, you will have to pay no tax on the maturity proceeds of a life insurance policy. In fact, under a pension plan you can even withdraw up to one-third of the total maturity amount in cash and that too will be tax-free. All this is provided on the basis that you have paid all your premiums and have not let your policy lapse.
What is the full form of LLP?
The full form of LLP is a Limited Liability Partnership.
What is Limited Liability Partnership?
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in its partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
What is the minimum number of partners required to start LLP?
A minimum of two partners are required to start an LLP.
How to form/incorporate an LLP?
The procedure for formation of an LLP is very similar to that of a Private Limited Company incorporation procedure. A minimum of two Partners are required to start the LLP formation procedure and a registered office location is required within India. It is important to remember that FDI in LLP is allowed only with the prior approval of the Reserve Bank of India (RBI). Therefore, it is recommended that NRIs and Foreign National promoters opt to incorporate a Private Limited Company, where 100% FDI is allowed under the automatic route.
How can I get an LLP registered in India?
To register an Indian LLP, you need to first apply for a Designated Partner Identification Number (DPIN), which can be done by filing e-Form for acquiring the DIN or DPIN. You would then need to acquire your Digital Signature Certificate and register the same on the portal. Thereafter, you need to get the LLP name approved by the Ministry. Once the LLP name is approved, you can register the LLP by filing the incorporation form.
What is the procedure for LLP registration in India?
LLP registration procedure is the easiest and transparent process as it has a blend of the benefits of a company and partnership firm namely, limited liability feature of a company and the flexibility of a Partnership firm. LLP registration process includes the following steps:
Is there any government fees to register LLP in India? How much does it cost?
Following are the details of the fees levied by the Government for the registration of LLP.
Who can become a partner in LLP?
Any individual or body corporate may be a partner in an LLP. However, an individual shall not be capable of becoming a partner of an LLP, if—
(a) he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;
(b) he is an undischarged insolvent; or
(c) he has applied to be adjudicated as an insolvent and his application is pending.
What are the documents required for LLP registration?
To register an LLP in India, the following documents are required:
When should I file my annual report with ROC of an LLP?
LLPs in India must file its Annual Return within 60 days from the end of close of financial year and Statement of Account & Solvency within 30 days from the end of six months of close of financial year. Unlike Companies, LLPs mandatorily have to maintain their financial year statement, as April 1st to March 31st. Therefore, LLP annual return is due on May 30th and the Statement of Account & Solvency is due on October 30th of each financial year. In addition to the MCA annual return, LLPs must also mandatorily file an income tax return every year.
Which is better LLP or Pvt Ltd Co?
Private Limited Company is the simplest and a very popular form of Business Registration in India. It can be registered with a minimum of two people. Limited liability, protection to shareholders, ability to raise equity funds, separate legal entity status makes it the most recommended type of business entity for millions of small and medium-sized businesses that are family owned or professionally managed.
Limited liability partnership is a partnership with limited liability. LLP is basically a combination of both Company and Partnership. It is an alternative form of business registration in India which is generally preferred by Professionals, medium and small scale business. Limited it is governed by LLP Act, 2008 and as per LLP agreement formed at the time of Incorporation.
What are the benefits of registering as LLP in India?
Here are some of the many benefits of registering as an LLP in India.
What is the difference between partner and designated partner at LLP in India?
Designated partner is like a Director and partners are like shareholders.
The liability of the Partner is limited solely to Partnership Agreement. The Designated Partners are responsible towards the day to day functioning, liabilities prescribed by LLP Agreement as well as for all penalties imposed on Limited Liability Partners for contravention of any provisions applicable and to be complied with by the LLP.
Can an entity which has objectives like “charitable or other not for profit objectives” be able to set up under LLP Act?
No. The essential requirement for setting LLP is ‘carrying on a lawful business with a view to profit’.
What is a marriage certificate and how to apply for it?
A marriage certificate is an important document to have for married couples in India. It serves as the legal proof of marriage between two individuals. Getting their marriage registered and having a marriage certificate is necessary for married couples in order to avail a number of services/facilities in the country.
What is the importance of having a marriage certificate?
A marriage certificate helps an individual in proving they are legally married to someone, especially beneficial for getting a passport, visa, work permit, etc. if their spouse lives abroad. It is also beneficial in availing life insurance benefits, family pension, bank deposits, etc. if their spouse dies without nomination and otherwise too. Also, courts may require marriage certificates in cases of divorce/legal separation/alimony/child custody.
How many marriage acts are there in India?
In India, there are two Marriage Acts: The Hindu Marriage Act, 1955, and The Special Marriage Act, 1954.The Hindu Marriage Act applies to marriages where both the husband and wife are Hindus, Sikhs, Buddhists, Jains, or if they've converted to these religions. The Special Marriage Act applies to marriages of individuals of any religion, including inter-religious marriages, and for Indians living abroad, too.
What documents are required for obtaining marriage certificates?
Documents required include application form duly filled / signed by both husband and wife, their age proofs, passport-sized photos, one marriage photo, Aadhaar cards, address proof, and marriage invitation (if available). A certificate from the priest (for marriages conducted in religious places) and a conversion certificate from the priest in cases where one of the parties is converted (under the Hindu Marriage Act) are also required.
What other important documents need to be submitted?
Both parties are also required to submit separate Marriage Affidavits. An attested copy of divorce order (for divorcees) or death certificate of spouse (for widows/widowers) is necessary. They should pay a fees of Rs. 100 to the cashier of the district in case of registration under the Hindu Marriage Act and Rs. 150 for the Special Marriage Act; this receipt should be attached with their application.
Where can a Marriage be registered?
Couples who have already performed their marriage rituals and are applying to register their marriage later also come under the Special Marriage Act. Marriages under both the Marriage Acts must be registered in the concerned Gram Panchayat / Municipality / Corporation where the wedding took place.
How can you obtain a marriage certificates under the Hindu Marriage Act?
Under the Hindu Marriage Act, the application must be duly filled and signed by the husband and wife, along with two witnesses. After document verification, they'll be allotted an appointment date. The couple must appear before the Sub-District Magistrate along with a gazetted officer who has attended their wedding and sign in the marriage register. Their marriage certificate would be issued the same day.
How to obtain registration under the Special Marriage Act?
For cases under the Special Marriage Act, once the application is submitted, there'll be a 30-day notice period inviting objections. A copy of the notice is displayed on the concerned office's notice-board and is also sent to the addresses of both husband and wife. Registration is done after the 30-day period. Both parties and three witnesses should be present on the day of registration.
What Is a Marriage License?
A marriage license is a legal document obtained by a couple prior to marriage. Once the license is signed (during or after your ceremony) and returned by an officiant to the county, a marriage certificate is issued.
What's the difference between a marriage license and a marriage certificate?
A marriage license is what you get first, and it's basically an application to be married. Once you have filled it out, had your ceremony, gotten it signed, and your officiant has turned it back into the county, then you receive a marriage certificate. "The marriage certificate is a certified copy the married couple will receive post-wedding, which proves they are officially married,"
Where are the marriage officer /Registrar of marriages located?
Sub Registrar who registers documents relating to immovable property is also the Marriage Officer. The offices are usually located in Tehsil Head Quarters/District Head Quarters. The list of SROs/Marriage Officers can be seen in the SRO Jurisdiction page.
To whom does the Hindu Marriages Act applies?
It applies to Hindu, Buddhist, Brahma, Sikhs and Aryasamaj. It does not apply to Muslim, Christian, Parsi or Jew Communities. But it also applies to those who follow Hindu religious customs.
What are the restrictions for the registration of marriages?
Following are the restrictions under Hindu Marriage Act, 1955 and Special Marriage Act, 1954:
1. Bridegroom or bride who desire to marry should not have married wife / husband.
2. Bridegroom or bride who cannot voluntarily give consent for marriages owing to mental illness is not eligible for marriage.
3. Marriage of those who are capable of giving consent for marriage but incapable of getting child owing to unsound mind cannot be solemnised nor be registered.
4. Those suffering from insanity are ineligible for solemnisation of marriage.
5. Those who are within degree of prohibited relationship are ineligible for marriage provided they can marry if it is permitted according to the usage of custom or usage governing such persons
What is a mutation entry?
Mutation entries are entries in revenue records which indicate the transfer of title of a property. These entries are reflected in the khasra khataunis with the local patwari. They are essentially records maintained by the revenue department.
What is the relevance of mutation entries?
Mutation entries are useful in establishing clear title to a property.
Can I claim title over a property only by virtue of the fact that it has been mutated in my name?
Mutation entries can only be used as proof of possession over a property.
How do I apply for mutation?
An application to the tahsildar on a plain paper, along with a non-judicial stamp of relevant value, has to be made.
What details need to be mentioned in my application?
1) Area in which the right has been acquired
2) Description of the right acquired
3) Name, parent's name, and address of the person from whom the right has been acquired
4) Manner in which the right has been acquired
5) Name, parent's name, and address of the person who has acquired the right
6) Date on which the right was acquired
7) Copy of document on the basis of which the mutation is sought - sale deed, Will etc
What is the procedure after my application for mutation is made?
A proclamation is issued inviting objections to the proposed mutation and specifying the date, not less than 15 days from the date of the proclamation, up to which any objection to the mutation will be entertained. The Patwari submits his report in the prescribed format. The statements of the parties are recorded. The contents of the documents are matched with the recorded statements. In case no objections against the proposed mutation are received, it is sanctioned.
Do I have a right to appeal if my application for mutation is rejected?
Any party aggrieved by an order of mutation can file an appeal before the Additional Collector (or the Deputy Commissioner) concerned within 30 days of the order.
Are additional documents required on a mutation based on a sale deed?
1) Copy of sale deed
2) Application for mutation with court fee stamp affixed on it
3) Indemnity bond on stamp paper of requisite value
4) Affidavit on stamp paper of requisite value
5) Receipt of up-to-date property tax payment
Why is an indemnity bond required for mutation?
An indemnity bond giving an undertaking that the executant indemnifies the municipal corporation in the event of a dispute arising from the mutation made upon his application is sought.
What is Land mutation?
It must be noted that in case of a land buyer, property mutation is compulsory, because without getting this done, the transfer of ownership will not be complete. It must be stated here that while land mutation is not legally binding on the land buyer, they must get it done within 3-6 months of the land purchase so that the government records are updated and there are no confusions with regard to the change of land ownership.
What is Apartment mutation?
For buyers of flats and apartments, the transfer of ownership takes place as soon as the property's registration is done; mutation is more of a legal formality, which can be completed any time after the transaction. However, one would have to show the mutation documents, if one were to sell the property in future. These documents may also be required, while applying for utilities such as power and water services.
Difference between mutation and property registration?
While a property is registered by way of executing the sale deed, after the buyer and the seller reach a consensus, property mutation takes places after the actual transaction. The property mutation process is basically a buyer's responsibility, wherein the buyer gets his newly-owned asset updated in his name in the local revenue office.
What if property mutation is not completed?
Since the penalty is not very high (states typically charge Rs 25 to Rs 100 as the penalty for delays) and one is free to get the property mutation done as and when they find it convenient to do so, buyers often continue to postpone the process. However, it is advised that the property mutation process be completed as soon as all the other tasks pertaining to the purchase are complete. You would need the proof of the mutation, when you plan to sell the property in future. Even otherwise, it is legally much safer if a property mutation is done immediately after the purchase, from the point of view of transfer of ownership.
What are the indicators of risk in a Mutual Fund Scheme?
You must properly evaluate before picking up the right Mutual Fund scheme to invest your hard-earned money. While investors often go by scheme category and top performing schemes in the category, they ignore risk indicators for these schemes. When you are comparing schemes to choose from, don’t miss out comparing their riskiness.
How do Mutual Funds help manage risk?
Risks appear in many forms. For example, if you own a share of a company, there is a Price Risk or a Market Risk or a Company Specific Risk. The share of just that company may dip or even crash due to any of the above reasons or even a combination of these reasons.
However, in a Mutual Fund, a typical portfolio holds many securities, thus offering “diversification”. In fact, diversification is one of the biggest benefits of investing in a Mutual Fund. It ensures that the dip in price of one or even a few securities does not affect portfolio performance alarmingly. What happens when a Mutual Fund company shuts down / gets sold off? When a Mutual Fund Company shuts down or gets sold off, it is a serious matter to note for any existing investor. However, as Mutual Funds are regulated by SEBI, events of such kind have a prescribed process. In the case of a Mutual Fund company shutting down, either the trustees of the fund have to approach SEBI for approval to close or SEBI by itself can direct a fund to shut. In such cases, all investors are returned their funds based on the last available net asset value, before winding up. If a Mutual Fund is acquired by another fund house, then there are usually two options. One, the schemes continue in their original format, albeit with a new fund house overseeing it. Or, the acquired schemes are merged with schemes in the new fund house. SEBI approval is required for all Asset Management Company (AMC) Mergers and Acquisitions, as well as scheme level mergers too.
How to choose a fund basis your risk appetite?
Mutual Funds are market-linked products that carry various kinds of risks and their returns are not guaranteed. Choosing the right mutual fund involves not only looking at its investment objective, return potential but also an evaluation of its riskiness. Since every investor has a unique personality including risk preference, the choice of mutual funds will be unique to each investor. Apart from risk preference, every investor will have a certain goal in mind that would be unique in its value and time horizon. Hence choosing the right mutual fund requires one to evaluate various funds along with the risk-return-time horizon metric. Select a fund whose risk profile matches your risk appetite. If you prefer less risk, choose a debt fund. If you don’t mind taking risk, look for a suitable equity fund. If you prefer moderate risk, look for a hybrid fund. Thus, the starting point for any fund selection should be how much risk you are willing to take.
Are fund managers necessary?
The answer is a huge, resounding YES! It is important to note that experience in managing money/making investments plays a vital role in generating good performance. The more the experience, the better is the probability of making profitable investment decisions. An experienced fund manager would have seen many economic cycles, business developments, political and policy changes. Such issues have a bearing on investment performance. Since all these issues are normally beyond the grasp of an average investor, a fund manager brings not just their own expertise and competence, but also the collective wisdom from the information and data that he has access to.
Does long term mean less risk?
Investments in Mutual Funds require the appropriate time horizon. Having the right time horizon, not only provides a better chance of getting expected, investment returns, but also lowers the risk in the investment. Now what is this “risk” we are talking about? In simple terms, it is volatility of investment performance, as well as chances of eroding investment capital. By staying invested over the long term, some years of low/negative returns and some years of impressive returns will make the average returns quite reasonable. Therefore, the investor can ‘average out every year’s widely fluctuating returns’ to get a more stable long term return. Money doesn’t get locked up. It gets invested! In Mutual Funds, money doesn’t get locked up. It gets invested! It is important to note two facts: In a Mutual Fund scheme, the money is Invested and not Locked, and the money always stays yours. It is simply being managed by a professional fund manager. Your money is always easily accessible. The structure of a Mutual Fund ensures that there is flexibility in accessing it. You may redeem your investment either partially or entirely. You can even pre-specify the redemption dates, by giving standing instructions to the Mutual Fund company to transfer a fixed amount into your bank account on a specified date every month or every quarter, as you choose. You can also choose to transfer your investment from one Mutual Fund scheme to another managed by the same Mutual Fund company. And you always get a comprehensive /easy to understand account statement that neatly documents it. What is Net Asset value (NAV)? The performance of a particular scheme of a Mutual Fund is denoted by Net Asset Value (NAV). In simple words, NAV is the market value of the securities held by the scheme. Mutual Funds invest the money collected from investors in securities markets. Since market value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date.
Are Mutual Funds suitable for those who don’t want to invest in share market?
Investing in Mutual Funds is like ordering the right dish on the menu at a restaurant. If you prefer to stay away from the stock market, you can still choose to invest in debt funds for your financial goals. Mutual Funds are broadly categorized into equity, debt and hybrid, Solution Oriented Schemes and Other Schemes based on where they invest.
What is NPS?
NPS is a voluntary and long-term investment plan for retirement. The scheme encourages people to invest in a pension account at regular intervals during the course of their employment.
Who is entrusted with the administration of NPS?
The administration of NPS is under the purview of the Pension Fund Regulatory and Development Authority (PFRDA) and Central Government.
Who can invest under NPS?
Earlier, only the Central Government employees could invest under NPS. Now, the PFRDA has made it open to all Indian citizens employed in the public, private and even the unorganized sectors except those from the armed forces.
Who should invest in NPS?
Anyone who is wants to take minimum risk on his investment may invest under NPS.
What are the different types of NPS account?
There are two types of NPS accounts: (i) Tier-I Account, (ii) Tier-II Account.
What are the differences between the two accounts?
| Tier-I NPS Account | Tier-II NPS Account |
Minimum deposit of Rs. 500. |
Minimum deposit of Rs. 250. |
Withdrawals from the account is not permitted. |
Withdrawals are permitted from the account. |
Tier-I account is mandatory for everyone who opts for the NPS scheme. |
Tier-II account is not mandatory for everyone who opts for the NPS scheme. |
Tax benefits are available. |
Tax benefits are not available. |
What are the Tax benefits under NPS?
Under Section 80CCD of the Income Tax Act, 1961 the assessee is allowed to claim a maximum of up to Rs. 1,50,000/-.
How much can one withdraw on retirement?
On retirement maximum withdrawal allowed in 60%. The remaining 40% is set aside to receive regular pension. The 60% withdrawal shall be tax free.
Are early withdrawals possible?
Early withdrawals are possible if you have been investing for at least three years, you may withdraw up to 25% for certain purposes such as children's wedding or higher studies, building/buying a house or medical treatment of self/family, among others. You can make a withdrawal up to three times (with a gap of five years) in the entire tenure.
Can the investor change the fund manager of the scheme?
With NPS, you have the provision to change the pension scheme or the fund manager if you are not happy with their performance. This option is available for both tiers I and II accounts.
How to open NPS account?
One can open an NPS account by both onlineand offline means.
What is PRAN?
PRAN stands for Permanent Retirement Account Number which is a unique 12-digit number that is allotted to each NPS subscriber.
Can NRI's Invest under NPS?
Yes, an NRI can opt for the National Pension Scheme for retirement corpus creation provided he/she maintains the residential status until exit from the scheme.
Can an individual invest in more than one NPS?
NPS comes with a unique PRAN for each individual hence does not allow multiple accounts for an individual.
What is the Code on Wages, 2019?
What is Industrial Relations Code, 2020?
What are Occupational Safety, Health and Working Conditions Code, 2020?
What is National Security Code, 2020?
What is the Registration Process?
What is Floor wage?
How much deductions are permissible?
Deductions (not exceeding 50% of total wage) from an employee's wages may be made on grounds including fines, absence from duty, accommodation provided by employer or recovery of advances given to employee, among others.
How is bonus determined?
What are the Offences under the new Code?
What is Worker re-skilling fund?
What is Model Standing Orders?
What are the duties of Employers?
There are other duties prescribed for employers in respect of mines, docks, factories, plantations and construction work which include instructing employees about safety protocols and provisioning for a risk-free work environment.
What is the new tax regime for FY 2020-21?
The Budget 2020 introduces a new regime under section 115BAC giving an option to individuals and HUF taxpayers to pay income tax at lower rates. The new system is applicable for income earned from 1 April 2020 (FY 2020-21), which relates to AY 2021-22.
What are the new Personal Income Tax Slabs of for FY 2020-21?
Budget 2020 has proposed a new and simplified personal income tax regime where the tax rates are reduced compared to the earlier years for those who forego deductions, and exemptions.
Taxpayers can follow either old regime with deductions or the new tax slabs without deductions. The tax slabs in the new regime are as follows
| Tax Rates Comparison | ||
Taxable Income |
Old Rates |
New Rates |
0 - 2.5 Lakh |
Exempt |
Exempt |
2.5 - 5 Lakh |
5% |
5% |
5 - 7.5 Lakh |
20% |
10% |
7.5 - 10 Lakh |
20% |
15% |
10 - 12.5 Lakh |
30% |
20% |
12.5 - 15 Lakh |
30% |
25% |
above 15 Lakhs |
30% |
30% |
Will the Rebate u/s 87A is applicable under New Regime also?
Yes, Rebate u/s 87A of Rs. 12500 is also applicable under New Regime if the Net taxable Income is less than Rs 5 Lakhs. If the Net income exceeds Rs 5 Lakhs, then the above tax slabs will be applicable.
What are the important observations on the new tax slabs?
The Important observations on the new tax slabs are as following:
What Deductions are retained in the new Tax regime?
The following are some of the new tax Deductions retained under the new Tax regime:
What is the Tax Audit Limit for MSMEs?
The threshold limit for Tax Audit has been increased to Rs. 5 Crores from current Rs. 1 Crore. This has been increased in order to reduce the compliance burden on small retailers, traders, shop keepers who comprise the MSME Sector.
Condition: This increased limit will be applicable only to those businesses which carry out less than 5% Cash Transactions.
Can a person change Tax Regime year on year?
The persons who have Income from sources of Salary, House Property, Capital Gain and from other sources are allowed to select tax regime year on year basis. However, those having Income from Business Profession are allowed to select tax regime only once in their lifetime.
Is Standard Deduction of Rs. 50000 available under new tax regime to Individuals having Income from Salary?
The main condition of availing an option of paying tax at concessional rates on Income up to Rs. 15 Lacs is “to forego certain tax deductions and exemptions”. Here Deductions include Standard deduction which is otherwise available at Rs. 50000 to those having Income from Salary. It means that Standard Deduction is not available under the new tax regime.
If Employee does not give Intimation of going for new tax regime to the employer while deciding tax liability and later on wishes to go for new regime while filing Income Tax Return, can he/she do so?
The CBDT via circular dtd. 13th April has clarified that an Employee can change the tax structure at the time of filing income tax and that the amount of TDS will be adjusted accordingly.
What are the Exemptions and deductions not claimable under the new tax regime?
The following are the deductions and exemptions you cannot claim under the new tax system:
Are Deductions for business expenditure not allowed under the new regime?
Deductions and exemptions not allowed for business income are:
Are Unabsorbed depreciation and business loss under the new regime?
In the case of a business income, an individual or HUF cannot claim set-off of the brought forward business loss or unabsorbed depreciation. The deductions are not available under the new regime to the extent that they relate to deductions/exemptions withdrawn.
Who is an NRI?
Non-Resident Indian (NRI) means a “person resident outside India” who is a citizen of India or is a person of Indian origin".
NRI has been defined under FEMA as follows:
NRI has been defined under the Income Tax Act as well:
You are a resident if you satisfy any of the following conditions:
Exceptions:
Note: A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, were born in undivided India.
The Finance Act 2020 has amended the above conditions as follows:
• In case of the citizen or PIO having total income except income from foreign sources, exceeding Rs. 15 lakhs during the previous year, the "60 days" in the second condition shall be substituted by "120 days”.
• An Indian citizen or PIO having total income, other than income from foreign sources, exceeding Rs. 15 lakhs would qualify as RNOR in India if he/she is present in India for 120 days or more but less than 182 days during the relevant financial year.
• An Indian citizen would be deemed to be RNOR if such an individual is not liable to pay tax in any other country or territory by reason of residence or domicile in that country and his total income, other than income from foreign sources, exceeds Rs. 15 lakhs in the relevant financial year.
Who is RNOR?
You are an RNOR if you satisfy any of the following conditions:
What is the difference between the definitions of NRI under the two acts?
The differences could be understood with the help of the points mentioned below:
• For you to be resident in India, IT Act requires stay of 182 days in India while FEMA requires a stay exceeding 182 days.
• IT Act considers current financial year for determination of residential status while FEMA considers preceding financial year.
• FEMA considers the reason of stay in India or visit abroad for determination of residential status. IT Act considers number of days of stay in India.
• Under Income Tax Act, you cannot be resident for part of the year and non-resident for rest of the year. Under FEMA you could be a resident for part of the year and non-resident for rest of the year or vice-versa.
Is the income of an NRI taxable in India?
The taxability of income earned by NRI depends on his residential status. If the NRI is resident his global income shall become taxable.
Is there any tax relief available in the country of residence of the NRIs?
NRI investors are often concerned that there would be double tax on their gains on investment in India as well as in their country of residence. In case India has signed the Double Taxation Avoidance Treaty (DTAA) with the respective country, you can claim tax relief in your country of residence, if you have already paid taxes in India.
Who can open a NRO Account?
Any Non Resident Indian or Person of Indian Origin can open a NRO Account. Individuals from Bangladesh & Pakistan can also open NRO Accounts, but would need prior permission of Reserve Bank of India (RBI) to do so. A person can mean an individual, a company, a partnership, a trust etc. can open a NRO Account. Post Offices in India can open NRO Accounts.
Who is a NRI?
A NRI or Non Resident Indian is an individual who resides outside India, but is an Indian Citizen.
Who is a PIO?
A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions:
A PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI Card holder should also be a person resident outside India.
Can the NRO Account be a Joint Account?
Yes, the NRO Account can be a Joint Account, provided all the account holders are either NRIs or PIOs or any combination of the two.
What is the Currency of the NRO Account?
The NRO Account is an INR denominated account.
What kind of accounts can be opened as a NRO Account?
NRO Account can be a Savings Account, a Current(Checking) Account, a Fixed Deposit Account or a Recurring Deposit Account.
What is the period of Fixed Deposits or Recurring Deposits?
The Fixed Deposit or Recurring Deposit can be for a period as are opened for a resident, per the regulations of RBI. There is no special treatment of a Fixed Deposit or Recurring Deposit in an NRO Account.
What are the permitted credits into a NRO Account?
The permitted credits into the NRO Account are:
What are the permitted debits from the NRO Account?
The permitted debits are:
How much can be repatriated abroad from the NRO Account?
NRO account balance cannot be repatriated. The repatriation can only be up to 1 Million INR and under the Regulations of FEMA (Remittance of Assets) issued in 2016.
What is the taxation on the NRO Account?
Income earned in the account is fully Taxed in India.
Can Loans be availed in India on the security of the NRO Account?
Yes, the banks can lend on the security of the NRO Account to the account holder or third parties, as per the general lending norms.
How can the loans be repaid if these are taken by the account holder?
The repayment of the loan can be done by inward remittance. It can also be repaid by utilizing the balance held by the account holder in their NRO Accounts.
Can Loans be availed outside India?
Loans outside India are not permitted under the NRO Account
What is the Rate of Interest of NRO Account?
The rate of interest on NRO Account are based on the directives of RBI under the guidelines issued by the department of Banking Regulations. The rates are the normal rates as are applicable to resident accounts.
Can the NRO Account be operated under a Power of Attorney (POA)?
Yes, the NRO Account can be operated under a POA. There are restrictions on the application of the POA. These restrictions are applicable to withdrawals for local payments in INR or remittance to the account from abroad. For sending money abroad the rules as above of 1 million INR apply.
What happens when there is a change in the status of the Non Resident to Resident, as regards NRO Account?
The NRO Account is then designated as a Resident account or the funds held in this account are transferred to a Resident Domestic Account, at the option of the account holder. When a resident moves abroad all his/her domestic accounts are to be designated as NRO accounts.
What is the time limit for the change of the account status of the person who becomes a Resident from Non Resident?
The account holder should immediately intimate the bank of the change of the status.
What is PAN?
PAN is an electronic system through which, all tax related information for a person/company is recorded against a single PAN number. This acts as the primary key for storage of information and is shared across the country. Hence no two tax paying entities can have the same PAN.
Who all are eligible to get a PAN Card issued?
PAN Card is issued to below mentioned who pay tax in India:
What are the documents required to file application for issue of PAN Card?
PAN requires two types of documents. Proof of address (POA) and Proof of Identity (POI). Any two of the following documents should meet the criteria
| S.No | Applicant |
Document required |
1 |
Individual Applicant |
POI/ POA- Aadhaar, Passport, Voter ID, Driving Licence |
2 |
Hindu Undivided Family |
An affidavit of the HUF issued by the head of HUF along with POI/POA details |
3 |
Company registered in India |
Certificate of Registration issued by Registrar of Companies |
4 |
Firms/ Partnership (LLP) |
Certificate of Registration issued by the Registrar of Firms/ Limited Liability Partnerships and Partnership Deed. |
5 |
Trust |
Copy of Trust Deed or a copy of the Certificate of Registration Number issued by a Charity Commissioner. |
6 |
Society |
Certificate of Registration Number from Registrar of Co-operative Society or Charity Commissioner |
7 |
Foreigners |
PassportPIO/ OCI card issued by the Indian GovernmentBank statement of the residential countryCopy of NRE bank statement in India |
What is the cost for applying for a PAN card?
The cost of PAN card is Rs. 110 or Rs. 1,020 (approximately) if PAN card is to be dispatched outside India.
How to enrol for PAN?
PAN Card can be applied both online and offline:-
Online Application of PAN:-
Offline Application for PAN:-
How to update/edit PAN details?
PAN can be updated by the following steps:
What are the Do’s and Don’t’s for Filling up PAN Form?
What if the PAN Card is lost?
If you have lost your PAN card, not to worry. Apply for a duplicate PAN card online or offline. Login on to NSDL or UTIITSL website, Fill the form 49-A for Indian citizen or Form 49-AA in case of a foreigner and make the payment online for a duplicate copy of your PAN card. The PAN will be dispatched within 45 days.
How long is the PAN Card valid?
PAN Card is valid for lifetime.
How to track the submitted PAN Application?
Application for PAN Card can be tracked on the given website https://tin.tin.nsdl.com/pantan/StatusTrack.html by just filling up the acknowledgement number.
Why do we need a PAN Card?
PAN is a unique identification number that enables each tax paying entity of India with the following:
The union budget 2019 has proposed taxpayers to use Aadhaar instead of PAN for filing income tax returns on or after 1 September 2019. It has been proposed in the union budget 2019 that the Income-tax officer can themselves allot PAN to taxpayer filing return with Aadhaar.
FAQs related to TAN
What is TAN?
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all individuals who are responsible for deducting or collecting tax. It is compulsory to quote TAN in all TDS/TCS returns (including e-TDS/TCS return), TDS/TCS payment challans and TDS/TCS certificates.
Why is it necessary to have TAN?
The provisions of Section 203A of the Income-tax Act, 1961 require all individuals who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS/TCS/Annual Information Returns, payment challans and certificates to be issued. If TAN is not quoted, TDS/TCS returns will not be accepted by TIN-Faciliation Centres (TIN-FCs) and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000.
Who must apply for TAN?
All those persons who are required to deduct/collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.
What is the procedure to obtain a TAN?
An application for allotment of TAN is to be filed in Form 49B and submitted to any TIN-FC. Addresses of TIN-FCs are available at NSDL-TIN website. Alternatively, you can apply for TAN online at the NSDL-TIN website.
Are there any charges to be paid while submitting application for TAN?
A fee of ₹ 55 + Goods and Service tax (as applicable) should be paid as processing fee at the TIN-FC at the time of submitting Form 49B. If you are applying for TAN online, then the payment can be made with cheque, demand draft or credit card as per the guidelines given in the NSDL e-Gov -TIN website.
How will the new TAN be intimated to the applicant?
An allotment letter is dispatched by NSDL e-Gov at the address provided in Form 49B.
How can I enquire about the status of my application?
You can inquire the status of your application by accessing NSDL e-Gov -TIN website at the "Status track" option and quoting your unique 14-digit acknowledgement number after three days of your application date.
How can the change in address or details on the basis of which TAN was allotted be communicated to Income Tax Department?
Any change or corrections in the data associated with the TAN, should be communicated to ITD by filing up 'Form for Changes or Correction in TAN data for TAN allotted' along with the necessary fees at any of the TINFCs, or at NSDL e-Gov-TIN website.
What is a duplicate TAN?
Duplicate TAN is a TAN which has been inadvertently obtained by a person who is responsible for deducting/collecting tax and who already has a TAN allotted to him. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TANs.
What are the various passport services and which form has to be filled in?
The various passport services are:
Issue of Fresh Passport: You can apply for fresh passport if applying for the first time in the applied category.
Re-issue of Passport: You can apply for re-issue of passport if you want another passport in lieu of an existing passport for any of the following reasons:
The applicant must apply under fresh category, in case they did not hold previously any Ordinary Passport, even if they currently hold Official/Diplomatic Passport.
The applicants for Official/Diplomatic Passport must apply under fresh category in case they did not hold previously any Official/Diplomatic Passport, even if they currently hold Ordinary Passport.
What types of passports are issued in India?
Following three types of passports are issued in India:
Ordinary Passport: An ordinary passport consists of 36/60 pages. Generally, for adults it is valid for 10 years from the date of issue and can be re-issued. For minors' passport, the validity is restricted to five years or till they attain the age of 18, whichever is earlier.
Diplomatic Passport: Issued to designated members authorised by the Government of India.
Official Passport: Issued to designated Government servants or any other person specifically authorised by the Government deputed abroad on official assignment.
How do I apply for a Passport or Police Clearance Certificate (PCC)?
For issue of fresh/re-issue of Passport and PCC, applicant should fill in the application form online at www.passportindia.gov.in . In case of poor internet connectivity, applicant may choose e-Form (offline mode).
Note: It is mandatory for all applicants, including infants, to be physically present at the Passport Seva Kendra (PSK) or the Post Office Passport Seva Kendra (POPSK) to give their biometrics (fingerprints) and photographs and follow prescribed procedures.
What is the procedure to apply for duplicate passport in case of lost or damaged passport?
Duplicate passports are not issued however; a new passport with different passport number may be issued with fresh validity. The applicant has to apply in re-issue category with reason as Lost/Damaged passport.
What is the fee for applying for fresh passport?
| Age | Fees |
Particulars |
Less than 15 years |
1000/- |
For fresh Passport application, a rebate of 10% on basic Passport fee will be applicable for minor applicants (age <= 8 years) |
18 years and above |
1500/- |
For fresh Passport application, a rebate of 10% on basic Passport fee will be applicable forsenior citizens (age > 60 years). |
15 to 18 years |
1500/- |
Validity for 10 years |
1000/- |
Validity 5 years/Till the age of 18 years |
How long is a passport valid?
In case of adults, generally, 10-years validity passport would be issued. In case of minors, the validity of the passport is restricted to 5 years or till they attain the age of 18, whichever is earlier. But the minors between 15 to 18 years of age can apply either for a 10-year validity passport or for a passport which is valid till they attain the age of 18 years. Different fees are applicable for different validity. Further, most of the foreign missions/embassies insist on the passport validity of at least of six months to one year before they consider issuing visas. Accordingly, it is advisable to apply for re-issue well before time to avoid last minute rush.
I am preparing for official travel. How do I obtain my diplomatic or official passport?
You need to fill/upload the Diplomatic/Official Passport online form/e-form by selecting. Normally applications for diplomatic and official passports are entertained only at the Consular, Passport and Visa (CPV) Division, Patiala House, New Delhi. However, you may also apply at the Passport Office attached to your present residential address (except in Delhi). Accordingly, please select CPV Division for submission at CPV Division, Delhi and RPO concerned for submission at RPO. Please submit the following documents along with the application form: --
For existing Ordinary Passport (if any): Proof / Certificate of Safe Custody done at your office.
For existing Diplomatic/ Official Passport (i.e. in Re-Issue applications): the original Diplomatic/Official Passport for cancellation. If the same is kept in the safe custody of the Ministry of External Affairs, the original surrender/safe custody certificate. If the same has been cancelled by Ministry of External Affairs, the original cancellation certificate.
A copy of your Official Identity (ID) Card (or that of the Head of Office)
A copy of Certificate issued by the Head of Office in the format enclosed within the new Diplomatic/Official Application Form available in the website
The Official Request from Forwarding Officer in the format enclosed within the new Diplomatic/Official Application Form available in the website
The Political/PMO Clearance Certificate, if applicable
If you are retiring in less than six months from the date of application, please give an undertaking from your office that you will surrender the Diplomatic/Official passport to your office immediately after return from official assignment
What do I do if I lose my passport?
Loss of passport should be immediately reported to the nearest Police Station and to the Passport Office or Indian Mission, if abroad. If required, you can apply for "Re-issue" of passport.
Documents required for issue or reissue of Passport?
To check the complete list of documents to be submitted along with the application form, please click on "Documents Advisor" link on Home page of https://www.passportindia.gov.in/.
What is Employees' Provident Fund & Miscellaneous Provisions Act, 1952?
It is social security legislation for the future benefit of employees and their dependants; in case of unfortunate incidents occurring in the future.
How are the contributions made? And by whom?
The entire contribution (currently 12% of basic) of the employee goes to the
The contribution of the Employer is split as under:
For Employees' whose basic is less than or equal to Rs. 6,500 per month:
• 8.33% of the employee's basic to the Employees' Pension Fund Scheme
• 3.67% of the employee's basic to Employees' Provident Fund Scheme
• 0.5% of the employee's basic to EDLI
For Employees' whose basic is more than Rs. 6,500 per month:
• 12% of the employees' basic to the Employees' Provident Fund Scheme less Rs. 541 per month
• Rs. 541 to Employees' Pension Fund Scheme (being 8.33% of employee's basic subject to a maximum of Rs. 6,500)
• 0.5% of the employee's basic (subject to a maximum of Rs. 6,500 p.m.) to EDLI
What is the interest allowed on PF contributions?
The current rate of interest allowed on PF contributions is 9.5% p.a.
Is the interest on PF taxable?
No, interest earned by an employee on his Provident Fund balance is not taxable.
Can I make voluntary contribution to the PF? What is the benefit of it?
As an employee, you can contribute voluntarily over and above the stipulated rate of contribution. However, the contribution to VPF will have to be a fixed % of wages and not a fixed amount. Once an employee decides to contribute a certain percentage to his PF account, he must continue to do so till end of the financial year. The Employer does not have to make a matching contribution. Voluntary
contributions are also available for tax rebates. Interest on voluntary contributions is also exempt from income tax.
Can I change my voluntary contribution percentage at any time?
You can change your voluntary contribution only at the start of the financial year. Once the change is opted for, it must run throughout the year and cannot be changed till the end of the financial year.
Can I withdraw only my voluntary contribution?
Voluntary contributions alone cannot be withdrawn.
Can I get a loan against my PF accumulated balance?
Depending upon the purpose of the loan, you can get two types of Loans against your PF accumulated balance – Non-refundable Loans and Refundable Loans. Refundable loans have to be repaid via monthly instalments. Non-refundable Loans are like withdrawals. These loans are not to be paid back. Further details of these can be made available to you.
What happens in case of death of an employee?
In case the employee has filed a nomination form, settlement is made according to the last filed nomination form on record. In case no nomination has been filed, the accumulated balance is divided equally among the following family members in equal shares:
1. Sons who have not attained majority.
2. Sons of a deceased son who have not attained majority.
3. Married daughters, whose husbands are not alive.
4. Married daughters of a deceased son, whose husbands are not alive.
If I withdraw my PF accumulations, is there any tax deduction at the time of settlement?
There is no tax deduction if the member has put in five years of continuous service with the employer (includes period of past membership with previous employer/s if there is a transfer received). Otherwise, the member is liable for deduction of tax on the share contributed by the employer to the employees PF accumulations.
Normally, RPFC will make the full payment to the employee and it is the onus of the employee to pay the tax on the employer's share to the PF contribution.
How is the duration of membership of the PF (RPFC/ Trust) calculated?
If an employee transfers one's PF amount from another approved Provident Fund Trust or RPFC then the service rendered with such an ex-employer is treated as continued membership. In case there is a break in service, the break is ignored, unless the employee had withdrawn the funds earlier.
Can the employee contributions towards Employees' Pension Scheme, 1995 be withdrawn?
An employee can withdraw the contributions made towards Employees' Pension Scheme, 1995, on leaving service before becoming eligible for members pension, by submitting Form 10-C, only if he has NOT completed 10 years of service.
How do I apply for the Public Provident Fund (PPF) Amendment Scheme, 2016?
To apply for the PPF Provident Fund (PPF) scheme, 1968, you have to fill Form A and submit it at any bank with relevant documents. The PPF account will be opened in one of the branches. Please mention the name of branch where you wish your Public Provident Fund (PPF) account to be opened on Form A. Refer documents required.
Can I maintain more than 1 Public Provident Fund (PPF) account under my name?
Only one PPF account can be maintained by an Individual.
What is the eligibility for investing under Public Provident Fund (PPF) Amendment Scheme, 2016?
A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of minors.
Only one Public Provident Fund (PPF) account can be maintained by an Individual, except an account that is opened on behalf of a minor.
A Public Provident Fund (PPF) account can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however the Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.
Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a Public Provident Fund (PPF) account as guardians of the Grand-child.
What is the minimum and maximum amount that can be invested under the Public Provident Fund (PPF) Amendment Scheme, 2016?
The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1, 50,000 per annum.
What happens if I fail to deposit any amount in one or more Financial Years?
A penalty of Rs. 50 will be levied per year of default, if the customer doesn't deposit the minimum deposit amount of Rs. 500 on the completion of the financial year.
When does a Public Provident Fund (PPF) account mature?
A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened.
Can I extend the tenure of a Public Provident Fund (PPF) investment beyond the Maturity Period?
A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity.
Can I withdraw funds from my Public Provident Fund (PPF) Account?
Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.
Can I withdraw funds from my Public Provident Fund (PPF) Account?
Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.
I opened my PPF account when I was a resident Indian. Now I am a Non-resident Indian. Can I continue my PPF account?
As per Ministry of Finance Notification number GSR1237(E) dated 3.10.17, PPF accounts of resident Indians who became NRIs during the currency of the maturity period , would be deemed closed from the date from which the account holder became an NRI. However, this rule has now been put in abeyance (as per Govt OM no. F/01/10/2016-NS dated 23.02.18) and NRIs can continue to hold PPF accounts as before.
What is the Interest earned in Public Provident Fund (PPF) account?
The current rate of interest on Public Provident Fund (PPF) is 7.9%, which is compounded annually.
Can I terminate or close the Public Provident Fund (PPF) account before maturity?
No premature withdrawal is allowed for Public Provident Fund (PPF) accounts. Only in the case of the death of a customer, their nominee /legal heir can close the account by submitting the required documents as guided by the Ministry of Finance.
What is a solvency certificate?
Solvency certificate is an important financial document that proves the financial stability of an individual or entity.
When is a solvency certificate required?
A solvency certificate may be required by the government, commercial offices to ensure the financial position of individuals/entities. A solvency certificate may be required for the following:
Where is application for solvency certificate made?
Application for solvency certificate may be submitted to either the revenue department or the bank in which a savings or current account is maintained by the individual or entity.
What are the documents required for applying for a solvency certificate?
Following are the documents required for the solvency certificate
What is the validity period of a solvency certificate?
In most cases, a solvency certificate is valid for a period of one year.
What is a Surviving Member Certificate?
Surviving Member Certificate also known as a Legal Heir Certificate is issued to prove the right legal heirs left behind by the deceased person.
Who issues a Surviving Member Certificate?
Surviving Member Certificate is issued by the Revenue Department of the State to identify the actual legal heirs of a deceased person.
What is the primary purpose of a Surviving Member Certificate?
The primary purpose of a Surviving Member Certificate is to nominate the rightful successor who then, can claim the assets/properties of the deceased person.
What are the other benefits of Surviving Member Certificate?
Some other benefits are:
Who can apply for a Surviving Member Certificate?
Generally Surviving Member Certificate is applied by the Surviving spouse of the deceased; Son/s; Daughter/s; and Mother. In other cases it may also be applied for by the Father or Sibling of the deceased.
Where should one apply for getting a Surviving Member Certificate?
For being issued a Surviving Member Certificate one needs to approach the Revenue Department, or from the corporation/municipality office of the respective area. In the state of Delhi the legal heir may even submit the application online.
What are the documents required for being issued a Surviving Member Certificate?
Following documents primarily are required:
All these documents need to be submitted at the Revenue Department, or at the corporation/municipality office of the respective area along with the applicable fees.
When is the certificate issued?
The certificate is issued after enquiry is done by the authority it verifies the genuineness of documents submitted.
Why is holding a Board meeting important?
Whom to Issue the notice of the general meeting?
Why is holding the general meeting and pass the special resolutions necessary?
For alteration in MOA and for changing its registered office from one state to another sate and Filing of e-form MGT-14 is required to be filed within 30 days of EGM with attachments i.e Altered MOA and Certified true copy of the resolution along with the explanatory statement annexed with the notice of such meeting.
What is the need of publication of the advertisement?
The company shall publish an advertisement in the vernacular language newspaper of the district and in English language with the widest circulation in the state. Such advertisement shall also be sent to the Central Government, debenture-holders and creditors of the company on its publication. Filing of e-form: INC-26 is to be filed maximum 30 days before filing of INC-23.
Why is it necessary to file a List of Creditors and Debenture Holders?
To intimate them accordingly regarding the shifting of registered office from this state to another state. This list is required to be filed with the application. The list should be duly verified by an affidavit. List should be verified by the Statutory Auditor of the Company. The list should not precede the date of filing of petition by more than one month.
Why Application is made to the Registrar under whose jurisdiction registered office of the company is situated?
Intimation to the Registrar of Company regarding the changing of the Registered office from this state to another state so for this Filing of e-form: INC-23 is required to be filed within 30 days of filing INC-26 with attachments.
What are the attachments needed to be filed with the ROC?
Following are the mandatory attachments to be filed with the ROC:
Why simultaneously with the INC-23, Company also apply to the Chief Secretary of the concerned State Government or Union Territory & ROC where the registered office is situated at the time of filing application?
Filing of e-forms: GNL-2 is to be filed via courier and to ROC simultaneously with INC-23. The attachments of INC-23 shall be attached with GNL-2.The Central Government shall then pass its order confirming the alteration upon such terms as it deems fit. If there is any objection, the central government shall hold hearing and pass necessary directions to the company at its own discretion.
What is the next step upon receipt of order?
The copy of the order shall also be filed with the Registrar of each state by filing of e-forms: INC-28 shall be filed within 30 days from the receipt of order.
Is there any e-form filed with the ROC?
The Registrar shall be notified through mail. Now filing of e-forms: INC-22 is required to be filed within 30 days from the receipt of the confirmation order along with the following attachments:
Steps after obtaining new certificate from Roc?
In File the necessary Amendment in the Application are under which Acts?
What is a trademark?
Trademarks are “source” identifiers that help consumers identify the source of whatever goods or services they’re interested in. Therefore, your trademark will let your customers know that the source of the goods or services that contain your trademark is actually your company.
How to select a good trademark?
If it is a word it should be easy to speak, spell and remember. The best trademarks are invented words or coined words or unique geometrical designs.
Please avoid selection of a geographical name, common personal name or surname. No one can have monopoly right on it.
Avoid adopting laudatory word or words that describe the quality of goods (such as best, perfect, super etc.).
What is the function of a trademark?
Under modern business condition a trademark performs four functions
What are the different types of trademarks that may be registered in India?
Who benefits from a trademark?
The Registered Proprietor of a trademark can create, establish and protect the goodwill of his/her products or services, he/she can stop other traders from unlawfully using his/her trademark, sue for damages and secure destruction of infringing goods and or labels. The Government earns revenue as a fee for registration and protection of registration of trademarks. The Legal professionals render services to the entrepreneurs regarding selection registration and protection of trademarks and get remunerations for the same. The Purchaser and ultimately Consumers of goods and services get options to choose the best.
What are the benefits of registering a trademark?
The registration of a trademark confers upon the owner the exclusive right to the use of the trademark in relation to the goods or services in respect of which the mark is registered and to indicate so by using the symbol (R), and seek the relief of infringement in appropriate courts in the country. The exclusive right is however subject to any conditions entered on the register such as limitation of area of use etc. Also, where two or more people have registered identical or nearly similar marks due to special circumstances, such exclusive right does not operate against each other.
What are the sources of trademark laws?
What is goodwill? And how it is related to trademark?
When you offer a service or product that creates value for consumers, you establish a reputation for your business. This reputation is termed as “goodwill”. This means that, when consumers who are aware of you business’ goodwill come across your business’ name or brand name, they are likely to buy (or market to others) your products or services over other similar products or services. As consumers keep purchasing or recommending your goods or services, your business name or brand name acquires more and more goodwill. Although goodwill is an intangible asset, it is regarded as a “quantifiable” asset, which is typically calculated as part of a business’ value when it is sold. In terms of how goodwill and trademarks are related; most (need not be all) of the goodwill that you generate for your products or services typically rests in the various trademarks you adopt to identify your business or goods or services. For example, the goodwill for a business house like Arvind Limited (formerly Arvind Mills) may lie (in whole or in part) with its brands Flying Machine®, Newport® and Excalibur®.
What are patents? And how are they different from trademark?
Patents are probably the most complex category of IPR. If you have invented something and you are willing to disclose your invention to the world at large, the government upon verification that your invention is indeed an invention and not a discovery, will give you a ‘patent’ in return for your willingness to disclose your invention conceptually different.
What are Copyrights? And how are they different from trademark?
When someone says that they own a copyright for their literary works (literary work includes computer programs, tables and compilations including computer databases which may be expressed in words, codes, schemes or in any other form, including a machine readable medium), dramatic, musical and artistic works, cinematographic films and sound recordings, what they mean is that a competent authority or body of experts has certified that their work is original and has never been published before.
The owner of a copyright is vested with the right of exclusive usage of such works described in the above paragraph. Further the author or creator of the work is considered to be the first owner of copyright. An exception to this rule is that, the employer becomes the owner of copyright in circumstances where the employee creates a work in the course of and scope of employment.
As with patents and trademarks, copyrights and trademarks are conceptually different species of IPR. With respect to similarity, copyright and trademarks owners acquire similar class of rights with regards to protecting their conceptualizations.
Can Sound and Smell be registered as a trademark in India?
Yes, sound and smell can be registered as a trademark in India under the Indian trademark law.
Whether foreign proprietors can apply for registration of trademark in India?
Yes, foreign proprietors can apply for registration of trademark in India. The Indian trademark Law is TRIPS obedient and provides for protection of well-known trademarks and recognizes trans-border reputation.
What is eDistrict Delhi Service Portal?
Delhi Government has come up with this new portal to offer the citizens of Delhi a wide range of services. It eases availing government services.
What services are available on eDistrict Delhi Service Portal?
It helps in getting certificates like Income certificate, Surviving Member Certificate, Provisional certificate of cinematograph, Caste certificate, etc. One can avail benefit of Government schemes such as Disability pension scheme, Old Age Pension scheme on on eDistrict Delhi Service Portal. Benefits such as funeral benefits, marriage assistance benefits, financial assistance to Ex-servicemen, and more are available on the portal. Educational scholarships at the state level are also available for students. It provides for online access and online delivery of services to the citizens seeking it in a time-bound and efficient manner.
What are the documents that are required for eDistrict Delhi Service Portal?
The original affidavit, if required and an identity proof, so either UIDAI Aadhar Card or the Voter ID Card. Other documents will depend on the kinds of services the user is seeking.
Can a minor file application for availing eDistrict Delhi Service Portal?
Minors, i.e., people aged below 18, may file their application through a parent/legal guardian by adding the former's profile to the latter's registered account.
When is a certificate provided to the user?
Citizens will be provided with a certificate if their application is approved, which can be downloaded from the e-District portal. The download can be processed using the application number provided at the time of applying.
What if the application is rejected?
The reasons for an objection can be checked by visiting the portal by logging into the users account. If it is due to non-submission of certain documents, the applicant may visit the Counters at the Sub-Division office or make a call to the concerned number to know any requirement of additional documents. If an application is rejected for any other reason, the user will be required to file another application for the particular service with the procedures provided above.
What is a Voter Identification Card?
Voter Identification Card also known as also known as EPIC (Electors Photo Identity Card) is a photo identity card issued by the Election Commission of India to all Indian citizens eligible to vote. The purpose of Voter ID is to serve as identity proof for voters and prevent impersonation and fraud during elections.
Who is eligible for Voter Identification Card?
All Indian citizens with a permanent address in India who are at least 18 years of age and older may apply for a Voter ID.
What are the documents that are required for Voter Identification Card?
Primarily, (i) Age Proof such as PAN Card or Passport; (ii)Address Proof: 10th pass Certificate or Birth Certificate; (iii) Passport size Photographs are required.
Can Voter ID be applied for online?
Yes one may apply for a Voter ID online by visiting https://www.nvsp.in/. One needs to create a login ID on the portal and Login using his credentials. One the homepage select FORMS. For first time voters one should select Form 6. Enters the details in the mandatory fields and attach the scanned copies of the documents mentioned above.
What are the other relevant forms?
Other relevant which can be filed on the portal and their relevance are discussed under:
Can an NRI be issued a Voter ID?
Non-resident Indians can have the right to vote in India. NRIs can now apply online, or offline for a Voter ID. However, NRIs have to be present in India and within their constituency to cast their vote. NRI's are not allowed to vote remotely at least for now.
What are the uses of Voter ID?
The Voter ID card can be used for the following:
What is a Will?
A Will is a document, considered as a legal declaration of the intention of a Testator about the distribution / disposal of his possessions / assets / properties etc. after his death. The Will would specifically have details of all considerations that the Testator has in mind, to carry out his wish in this regard, after his death.
Who can write a Will?
Why should anyone write a Will?
What if one dies without making a Will?
If one dies without making a Will, then he is called as have died ‘Intestate’. In this case his estate will be distributed amongst the family members as per the personal/state law of the deceased intestate. In this process, all the legal heirs may get a share in the assets of the deceased, without any regard to the real intentions of the deceased about including or excluding any of the family members or friends. A Will obstructs the natural flow of succession so that assets are inherited as per the wishes of the person (Testator).
What are the characteristics of a Will and its requirements?
The Will document should have:
In addition to the above,
Who are the parties to a Will?
What all assets can be covered under the Will?
All movable as well as immovable assets including Real Estate, Fixed Deposits, Money in Bank Account(s) Securities, Bonds, proceeds of Insurance Policies, Retirement benefits, Art, precious metals (Gold, Silver etc.), Brands, Goodwill, digital assets (photographs, sketches, blogs, websites, email accounts such as gmail, yahoo etc. and with social websites such as Facebook, Twitter etc.) and Intellectual Property Rights etc. including what they are and the method and manner of their storage, can be covered under the Will. In short, any assets that the Testator has in his ownership, at the time of his death can be included and distributed as per the desire of the person.
Who all can be included as the beneficiaries to the Will?
All the Testator’s loved ones who may include the Testator’s spouse, children, step-children, parents, grandparents, grandchildren, friends, relatives and/or any institution like School/s, Temple/s, Community Trust/s, Charitable Trust/s, etc. to whom the Testator wishes to pass on any benefit can be included as the beneficiary/ies in the Will document.
What happens if one does not sign the Will?
Unless a Will is signed, it is not a legally valid document. A Will Document which is not signed is as good as no Will at all.
If one has already done the nomination for his assets, is he still required to write Will?
A Nominee is a Trustee (or custodian) as per law. Nominee may or may not be the Beneficiary to receive the assets of the deceased. To avoid disputes, it is advisable to write a Will in order to make a comprehensive note of all the assets as well as providing a clear indication about allocation of assets to the beneficiaries. It reduces the hassle of paper work for beneficiaries / legal heirs and avoids the instance of any future dispute over the assets.
It is also advisable to make nomination of securities in accordance with the Will. Both, Nomination and executing a Will are very important. Transfer of assets to the Nominee gives discharge to the creditor / custodian. For e.g.: in the case of a Bank where it is the creditor / custodian of fixed deposits made by the Testator, upon release of the FD to the Nominee the Bank shall stand discharged.
Can one exclude his immediate family member/s from the list of beneficiary/ies?
One can exclude his immediate family members from being the beneficiary/ies in the self- acquired assets. However, in case of inherited asset/s, the rights of the family members who are legal heirs shall prevail and the Testator has to abide by the law dictating such rights.
Who can be a witness to the Will?
Witness to the Will can be anyone who is/are above 18 years of age and of sound mind and capable to enter into a Contract. It is recommended that the beneficiary/ies should not be the witness to the Will.
How many witnesses are required?
There should be minimum 02 (Two) witnesses to the Will.
Is Will required to be printed on a stamp paper?
No; the Will can be written on plain paper of any convenient size. It is also not necessary that Will has to be written on legal size paper. In addition, the Will can be hand written and is not necessary to be in typed form. However, for clear legibility and avoid any ambiguity arising due to hand writing, typing in a font size which is naturally readable, is recommended.
Who can be appointed as an Executor to a Will?
Anyone who is /are above 18 years of age and of sound mind and capable to enter into a Contract, can be appointed as an Executor/s to the Will. One can appoint multiple Executors, one as a primary executor and others as alternate executors.
The Testator has the option to appoint any of his relatives or friends as Executor and mention it in the Will Document.
If the Testator chooses to appoint a professional agency as an Executor, these services are separately availed and paid for as per the terms of the agency who is appointed as an Executor. “Warmond Trustees and Executors Private Limited” also accept Executorship.
Is it mandatory to register the Will? What is the stamp duty payable on Registration of the Will?
Registration of a Will is not mandatory. However, it is advisable to register the Will at the Sub Registrar office to add to its authenticity.
There is no stamp duty payable on Registration of the Will. However, applicable registration charges have to be paid, in addition to any legal services fees for registration of the Will document.
What is work ethics?
Work ethic is an attitude of willpower and commitment toward one's job and career. Work ethic refers to a set of behavioural rules that create a positive work environment. A strong work ethic can lead to employees being fairly treated, which in turn motivates them and develops a sense of loyalty towards the organization.
What are the various attributes an employer looks for in an employee that show good work ethics?
Some major attributes are as follows:
What is the importance of work ethics?
Work ethics are important due to the following reasons:
How can an employee improve his work ethics?
Some tips to improve on work ethics are:
Can you teach work ethics?
While it is true that work ethics are something you are born or learn in your childhood, it can be taught to a certain extent through seminars, workshops etc.