Frequently Asked Questions
Detailed answers to the most common questions on Indian income tax, GST, business registration, audit, and financial advisory. All answers reviewed by qualified Chartered Accountants. Last reviewed: 22 July 2026.
Pick a category
Income Tax
ITR filing, regime choice, deductions, capital gains and TDS — answered.
15 questionsGST
Registration, returns, ITC, refunds and notice reply — answered.
10 questionsBusiness Registration
Pvt Ltd, LLP, OPC, partnership, trademark — registration and compliance answered.
10 questionsAudit & Compliance
Statutory audit, tax audit, internal audit and ROC compliance — answered.
8 questionsAdvisory & Planning
Financial planning, mutual funds, NRI advisory, succession — answered.
7 questionsCommon questions, plainly answered
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Income Tax
ITR filing, regime choice, deductions, capital gains and TDS — answered.
1What is the difference between the old and new tax regime for FY 2025-26?
The old regime has slab rates of 0% up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh, and 30% above, but allows all common deductions — Section 80C (₹1.5 lakh), 80D (₹25K-1L), 80CCD(1B) (₹50K NPS), HRA exemption under Section 10(13A), Section 24(b) home loan interest (₹2L-3.5L), LTA, and standard deduction of ₹50,000. The new regime (default) has lower slab rates — 0% up to ₹3 lakh, 5% up to ₹7L, 10% up to ₹10L, 15% up to ₹12L, 20% up to ₹15L, and 30% above — but most deductions are removed. The new regime gives a higher standard deduction of ₹75,000. Salaried individuals can choose either regime each year at ITR filing; businesses are locked in once chosen (with one switch allowed). Use our Income Tax Calculator to compare.
Try the Income Tax Calculator2What is the due date for ITR filing for FY 2025-26?
For individuals, HUFs, and partnership firms not requiring audit: 31 July 2026. For businesses requiring audit (Section 44AB): 31 October 2026. For transfer pricing cases: 30 November 2026. A belated return under Section 139(4) can be filed up to 31 December 2026 with a late fee of ₹1,000-5,000 under Section 234F (capped at ₹1,000 for income below ₹5L). Note: NRIs without business income must also file by 31 July — the 31 December window does not apply.
ITR Filing — Salaried3Which ITR form should I use?
ITR-1 (SAHAJ) for salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources (interest, family pension). ITR-2 for individuals with capital gains, multiple house properties, foreign assets / income, or income above ₹50L. ITR-3 for individuals / HUFs with business or profession income. ITR-4 (Sugam) for presumptive taxation (Section 44AD / 44ADA / 44AE) with turnover below threshold. ITR-5 for partnership firms, LLPs, AOP, BOI. ITR-6 for companies. ITR-7 for trusts and charitable institutions. Choosing the wrong form leads to defective return notice — our team helps select the right form.
4What is Section 87A rebate and when does it apply?
Section 87A rebate caps income-tax liability for resident individuals when total taxable income does not exceed ₹12 lakh (new regime) or ₹5 lakh (old regime) for FY 2025-26. The rebate is capped at ₹60,000 (new regime) / ₹12,500 (old regime) — for incomes where the natural slab-rate tax is below the cap, tax effectively becomes zero. Marginal relief applies for incomes slightly above the threshold so tax payable does not exceed the excess of taxable income over the threshold. The rebate is fully available to senior citizens, very senior citizens, and others. Non-residents are not eligible. The rebate applies to tax computed under the slab rates but not to special rate income (e.g., STCG 111A, LTCG 112A).
5How are capital gains from listed equity taxed in FY 2025-26?
Short-term capital gains (STCG) on listed equity where Securities Transaction Tax (STT) is paid: 20% under Section 111A — added to normal income. Long-term capital gains (LTCG) on listed equity held more than 12 months: 12.5% on gains exceeding ₹1.25 lakh per year under Section 112A — without indexation benefit. Surcharge on LTCG under Section 112A is capped at 15%. STCG / LTCG from non-STT equity (e.g., foreign equity) is taxed at slab rates (STCG) or 12.5% with indexation (LTCG).
Capital Gains Planning6What is Section 54 exemption on sale of a house property?
Section 54 allows exemption of long-term capital gains (LTCG) arising on sale of a residential house if you purchase another residential property within 1 year before or 2 years after the sale, or construct a house within 3 years. Exemption is the lower of (a) LTCG amount or (b) cost of new property. If only part of LTCG is reinvested, the unutilised portion is taxable. The new property must be in India. If you cannot purchase before the ITR filing deadline, deposit the unutilised amount in a Capital Gains Account Scheme (CGAS) account with SBI / authorised bank. Section 54F applies to LTCG from any asset (not just property).
7How is HRA exemption calculated?
HRA exemption under Section 10(13A) is the minimum of: (1) HRA actually received from employer, (2) 50% of basic+DA for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros, (3) rent paid minus 10% of basic+DA. For example, basic ₹5L/year + HRA ₹2.4L + rent ₹2.4L + non-metro: exemption = min(2.4L, 2L, 1.9L) = ₹1.9L. If annual rent exceeds ₹1 lakh, the landlord's PAN must be declared in Form 12BB.
HRA Exemption Calculator8What deductions can I claim under Section 80C?
Section 80C allows deductions up to ₹1.5 lakh per financial year across: (a) EPF / VPF / PPF contributions, (b) ELSS mutual funds (3-year lock-in), (c) life insurance premium, (d) principal repayment of home loan, (e) NSC (National Savings Certificate), (f) ULIP, (g) tax-saving FDs (5-year lock-in), (h) children's tuition fees (max 2 children), (i) stamp duty and registration charges on home purchase. The combined limit for 80C + 80CCC + 80CCD(1) is ₹1.5 lakh. Investment must be made / paid during the financial year to claim. Section 80CCD(1B) gives an additional ₹50,000 deduction for NPS — over and above the 80C ceiling.
Personal Tax Planning9When is tax audit mandatory under Section 44AB?
Tax audit under Section 44AB is mandatory when: (a) business turnover exceeds ₹1 crore (or ₹10 crore if cash receipts are less than 5% of total transactions), or (b) profession gross receipts exceed ₹50 lakh. Tax audit is also mandatory for specified presumptive taxpayers who claim income below the prescribed threshold. The audit must be conducted by a Chartered Accountant, and Form 3CD must be uploaded on the e-filing portal by 30 September (or 31 October for transfer pricing cases) of the assessment year. ITR must be filed by 31 October / 30 November. Non-compliance attracts a fee of ₹1.5 lakh under Section 271B.
10What is the TDS rate on salary and how is it calculated?
TDS on salary under Section 192 is calculated on estimated annual salary income minus deductions (standard deduction, 80C, 80D, HRA, etc.) using the slab rates. Monthly TDS = annual tax / 12. Standard deduction: ₹75,000 (new) / ₹50,000 (old). The employer typically estimates TDS at the start of the year and may revise each quarter based on actual income. Surcharge is not deducted by employer — paid via self-assessment tax. Health & Education Cess of 4% is included. To lower TDS, submit declaration (rent receipts, home loan interest, investment proofs) via Form 12BB to the employer.
TDS on Salary Calculator11What is advance tax and who needs to pay it?
Advance tax under Section 207 is payable by taxpayers whose estimated tax liability for the year is ₹10,000 or more (after TDS). Senior citizens (60+) not having business income are exempt. Capital gains are excluded — paid via self-assessment. Schedule: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. Non-payment attracts Section 234B interest (1% per month on shortfall) and Section 234C interest (1% per month for 3 months on instalment shortfall).
Advance Tax Calculator12How do I claim foreign tax credit under DTAA?
Foreign tax credit under Section 90 (DTAA) or Section 91 (unilateral relief) can be claimed by NRIs / residents with foreign income that has been taxed in the source country. Steps: (1) obtain Tax Residency Certificate (TRC) from the foreign country, (2) file Form 67 on the e-filing portal before filing ITR, (3) provide details of foreign income and tax paid, (4) claim credit in Schedule FSI and Schedule TR of ITR. Tax credit is limited to the Indian tax on the doubly-taxed income. We assist NRIs across the US, UK, UAE, Singapore, Australia, and Canada with DTAA relief claims.
13What is the difference between revised return and belated return?
Revised return (Section 139(5)): filed within 31 December of the assessment year to correct errors in an originally filed return — no late fee, but cannot change the regime (for businesses). Loss carry-forward is preserved. Belated return (Section 139(4)): filed after the due date but before 31 December — late fee of ₹1,000 (income < ₹5L) / ₹5,000 (income > ₹5L) under Section 234F, and most losses (house property, capital gains, business) cannot be carried forward. Updated return (Section 139(8A)): can be filed within 24 months from end of AY for missed income — additional tax of 25%/50% and cannot claim refund or carry forward losses.
14How is residential property income taxed when the house is vacant?
Annual Value of a self-occupied property (Section 23(2)): Nil (deemed). However, home loan interest up to ₹2 lakh (Section 24(b)) can be claimed as deduction against income — Nil in case of self-occupied under construction property until completion. Let-out property: Net Annual Value (gross rent minus vacancy) minus municipal taxes = Net Annual Value. From NAV, standard deduction of 30% of NAV (towards repairs, insurance) is allowed. Home loan interest on let-out property can be claimed fully (no upper limit) against rental income. Loss from house property (other than self-occupied) can be set off against other income up to ₹2 lakh and carried forward 8 years.
15What is Form 26AS and AIS?
Form 26AS is the annual TDS / TCS statement — shows tax deducted / collected by deductors, advance tax paid, self-assessment tax paid, refund received, and high-value transactions. AIS (Annual Information Statement) is the comprehensive statement including Form 26AS data plus additional information from other sources — interest, dividends, sale of securities, foreign remittances, etc. Both can be downloaded from the e-filing portal under 'My Account > AIS'. Reconciling your TDS credits and income with Form 26AS / AIS is critical before filing ITR — mismatches lead to notices.
ITR Filing — SalariedGST
Registration, returns, ITC, refunds and notice reply — answered.
1What is the GST registration threshold?
Aggregate turnover above ₹20 lakh per financial year (₹10 lakh for special category states — NE states, Himachal Pradesh, Uttarakhand, Sikkim, etc.). Mandatory registration regardless of turnover applies to: (a) inter-state suppliers, (b) e-commerce operators and sellers, (c) persons supplying on behalf of another taxable person, (d) reverse charge taxpayers (legal services, GTA, security services, etc.), (e) non-resident taxable persons (NRTP), (f) casual taxable persons, (g) input service distributors, (h) TDS / TCS deductors under GST. Voluntary registration is also available for businesses wanting to claim ITC and improve vendor / customer credibility.
New GST Registration2What is the difference between CGST, SGST and IGST?
CGST (Central GST) and SGST (State GST) apply on intra-state transactions — tax is split equally between the two. For example, ₹10,000 invoice at 18% intra-state = ₹8,500 base + ₹1,530 CGST + ₹1,530 SGST. IGST (Integrated GST) applies on inter-state transactions and imports — the full tax goes to the central government. For ₹10,000 invoice at 18% inter-state = ₹8,500 base + ₹2,550 IGST. The IGST collected on inter-state supply is shared between the Centre and consuming state. Place of supply rules determine whether a transaction is intra-state or inter-state.
3What are the GST rate slabs and common items under each?
GST rates: 0% (essential items — fresh fruits, vegetables, milk, eggs, bread, salt, educational services, healthcare), 5% (sugar, tea, coffee, spices, edible oil, medicine, transport, small restaurants), 12% (processed food, butter, ghee, namkeen, business class tickets, computers), 18% (most services, FMCG, IT products, financial services, capital goods, industrial inputs, restaurants with AC), 28% (luxury / demerit goods — cars, tobacco, aerated drinks, cement, pan masala) + compensation cess. Gold and precious stones: 3% separate slab.
4What is Input Tax Credit (ITC) and what is ineligible for ITC?
ITC under Section 16(1) is the GST paid on inputs, input services, and capital goods used for business that can be claimed as a credit against output GST liability. Ineligible ITC (Section 17(5)) includes: (a) motor vehicles (with exceptions for transportation, training, further sale), (b) food and beverages, (c) club membership, (d) health and life insurance, (e) rent-a-cab, (f) beauty treatment, (g) membership / admission fees, (h) personal consumption, (i) goods / services used for exempt supplies. ITC can be blocked for non-business or exempt supplies. We help optimise ITC claims and avoid ineligible credit that leads to notices.
ITC Optimization & Reconciliation5What is the GSTR-2B and how is it used for ITC reconciliation?
GSTR-2B is an auto-generated statement on the 14th of every month showing ITC available based on suppliers' GSTR-1 filings. Each row represents an invoice uploaded by your supplier. ITC can be claimed in GSTR-3B only up to the amount reflected in 2B. Reconciliation: compare your purchase register with 2B to identify (a) suppliers who haven't filed GSTR-1 — ITC at risk, (b) mismatches in invoice value or tax amount, (c) wrong HSN code, (d) cancelled invoices. Monthly reconciliation prevents defaulting supplier issues and reduces notice exposure.
6What is reverse charge mechanism (RCM) in GST?
Reverse charge under Section 9(4) means the recipient (instead of the supplier) is liable to pay GST on specified notified supplies. Examples: (a) legal services from an advocate, (b) services from a Goods Transport Agency (GTA), (c) renting of motor vehicle from unregistered person, (d) security services from any person, (e) import of services, (f) supplies from unregistered person in specific cases. Under RCM, the recipient must pay GST on reverse charge and can claim ITC on the same return (subject to eligibility). Failure to pay RCM attracts interest at 18% p.a.
7What is e-invoicing and when is it mandatory?
E-invoicing under Rule 48(4) is mandatory for B2B invoices where the aggregate turnover exceeds ₹5 crore (from 1 August 2023). The invoice must be reported to the Invoice Registration Portal (IRP) — GSTN, ClearTax, etc. — before being issued. IRP generates an Invoice Reference Number (IRN) and digitally signs the invoice. The same IRN is used to generate the e-way bill (no separate Part A entry needed). E-invoices for government departments, SEZ units, and exporters are exempt. Non-compliance attracts penalties.
8How is GST refund for exports processed?
Exporter can opt for one of two routes: (a) export under Letter of Undertaking (LUT) — no IGST paid, refund of unutilised ITC claimed, (b) pay IGST on export, claim refund of IGST paid. Application: Form RFD-01A (for IGST) or RFD-01 (for ITC refund) on GST portal. Documents: shipping bill / bill of export, bank realisation certificate (FIRC / BRC), invoice, GSTR-1 return. Refund processed within 60 days (IGST) or 90 days (ITC) — interest at 6% p.a. on delay. LUT is filed annually — must be renewed before commencement of exports each FY.
9What is the GST composition scheme and who is eligible?
Composition scheme (Section 10) is for small taxpayers — manufacturers and traders with aggregate turnover up to ₹1.5 crore (₹75 lakh for service providers). Restaurant operators (not serving alcohol) can opt up to ₹1.5 crore. Tax rate: 1% for manufacturers, 5% for service providers, 0.5% for other suppliers (job workers, agents). Restrictions: cannot make inter-state supplies, cannot supply through e-commerce operators, cannot supply exempt goods, cannot claim ITC, must pay tax at flat rates. Quarterly return filing (GSTR-4) and annual return (GSTR-9A). Exit from composition: intimated via Form GST CMP-04 before the start of the desired quarter.
10What is the penalty for non-filing or late filing of GST returns?
Late fee for GSTR-1: ₹50/day (₹25 CGST + ₹25 SGST), ₹25/day for nil return — capped at ₹10,000 per return. Late fee for GSTR-3B: ₹50/day or ₹20/day for nil — capped at ₹10,000 per return (₹2,500 for nil). Late fee for GSTR-9: ₹200/day (₹100 CGST + ₹100 SGST) capped at 0.5% of turnover. Non-payment of tax attracts interest at 18% per annum. Non-compliance with e-invoicing / e-way bill: ₹10,000 or tax amount involved, whichever is lower. Section 122 penalties up to ₹10,000 for specific defaults. We ensure timely filing to avoid penalties.
Business Registration
Pvt Ltd, LLP, OPC, partnership, trademark — registration and compliance answered.
1Which entity should I choose — Pvt Ltd, LLP, or OPC?
Pvt Ltd: suitable for startups, growth-stage companies, and businesses planning to raise equity (VC, PE, angel), implement ESOPs, or eventually sell / IPO. Minimum 2 shareholders and 2 directors. Higher compliance but more credibility. LLP: suitable for professional services firms (lawyers, CAs, consultants), small businesses, and joint ventures. Lower compliance (no AGM, no board meetings, no share capital). Limited liability with operational flexibility. OPC: solo founder who wants limited liability without a co-founder. Must convert to Pvt Ltd when paid-up capital exceeds ₹50L or turnover exceeds ₹2 crore for 3 consecutive years. Partnership / Proprietorship: simplest structure — no separate legal entity, unlimited liability, suitable for very small businesses and consulting.
Choice of Entity & Structuring2How long does it take to register a Private Limited Company?
Typical timeline with all documents in order: (1) DSC issuance: 1-2 working days, (2) DIN application: 2-5 working days, (3) name approval via RUN or SPICe+: 2-5 working days, (4) incorporation via SPICe+: 3-7 working days. Total: 7-15 working days. PAN and TAN are issued automatically with the certificate of incorporation. Post-incorporation: bank account opening (3-7 days), GST registration (3-7 days), MSME registration (immediate). Our team handles end-to-end registration with regular status updates.
Pvt Ltd Registration3What is a Digital Signature Certificate (DSC) and who needs it?
DSC is the digital equivalent of a physical signature — required for e-filing with MCA, GST portal, income tax portal, EPFO, and other government agencies. Class 3 DSC (with video verification or Aadhaar eKYC) is the current standard. Required for: (a) proposed directors signing incorporation documents, (b) authorised signatory for company filings, (c) CA / CS signing audit reports and certifications. Validity: 2-3 years. Issued by Certifying Authorities (eMudhra, Capricorn, Sify, etc.). For foreign nationals: video verification is mandatory. We assist with DSC issuance for individuals and organisations.
DIN & DSC4What are the annual compliances for a Private Limited Company?
Mandatory annual compliances: (1) Board Meetings — minimum 4 per year, max 120-day gap. (2) AGM — within 6 months from FY end (by 30 September). (3) Financial statements (Balance Sheet, P&L, Cash Flow, Notes) — file AOC-4 within 30 days of AGM. (4) Annual Return — file MGT-7 within 60 days of AGM. (5) Statutory Audit — by CA firm, report attached to financial statements. (6) Income Tax Return — ITR-6 filing for companies. (7) Director KYC — DIR-3 KYC by 30 September. (8) Event-based filings — allotment, change in directors, share capital, etc. (9) GST / TDS / EPF returns — if applicable. (10) Maintenance of statutory registers and minutes.
5What is the difference between MOA and AOA?
MOA (Memorandum of Association) defines the company's relationship with the outside world — name, registered office, objects (main and ancillary), liability of members, share capital. Filed at incorporation. Objects clause defines what the company can do — anything outside the objects is ultra vires and void. AOA (Articles of Association) defines the internal rules — share rights, board proceedings, general meetings, dividends, audit, transfer of shares, borrowing powers. AOA is subordinate to MOA and the Companies Act. For Pvt Ltd, model AOA in Table F of Schedule I can be adopted with modifications. We draft MOA / AOA tailored to your business needs.
6What is trademark registration and why is it important?
Trademark is a distinctive mark, logo, word, or combination that identifies your goods / services and distinguishes them from competitors. Registration gives exclusive right to use the mark for 10 years (renewable indefinitely). Without registration, you have only common law rights (limited geographic protection). With registration, you can sue for infringement, claim damages, and prevent others from using a similar mark. Process: filing → Vienna codification → examination → publication → opposition period → registration. Total timeline: 8-12 months for uncontested marks. We file and prosecute trademark applications.
Trademark, Copyright & Patent7What is MSME / Udyam Registration?
Udyam Registration is the registration for Micro, Small and Medium Enterprises (MSMEs) under the MSMED Act, 2006. Classification: Micro (investment ≤ ₹1 crore, turnover ≤ ₹5 crore), Small (≤ ₹10 crore, ≤ ₹50 crore), Medium (≤ ₹50 crore, ≤ ₹250 crore). Benefits: (1) priority sector lending, (2) lower interest rates, (3) collateral-free loans under CGTMSE, (4) preference in government tenders, (5) protection under MSME Samadhaan for delayed payments, (6) state-level subsidies, (7) income tax exemption under Section 80M. Application is free on udyamregistration.gov.in — Aadhaar of proprietor / partner / director required. We assist with registration and re-classification as the business grows.
MSME / Udyam Registration8What is Startup India / DPIIT Recognition?
DPIIT (Department for Promotion of Industry and Internal Trade) Recognition is the formal recognition of a startup under the Startup India initiative. Eligibility: (a) entity incorporated as Pvt Ltd / LLP / Partnership, (b) less than 10 years from incorporation, (c) turnover less than ₹100 crore in any FY, (d) working towards innovation / improvement. Benefits: (1) 3-year income tax exemption under Section 80-IAC, (2) self-certification under labour and environment laws, (3) fast-tracked patent examination, (4) access to Fund of Funds, (5) exemption from angel tax under Section 56(2)(viib), (6) easy winding up. Apply on startupindia.gov.in.
Startup India / DPIIT Recognition9What is FSSAI license and when is it required?
FSSAI (Food Safety and Standards Authority of India) license is mandatory for any food business in India — manufacturing, processing, packaging, distribution, storage, retail, sale, import. Three tiers: (1) Basic registration — turnover up to ₹12 lakh (cottage / small businesses, hawkers), (2) State license — ₹12 lakh to ₹20 crore (small to medium businesses), (3) Central license — above ₹20 crore (large businesses, dairy / meat / 100% export units). 14-digit FSSAI number must be displayed on all food product packaging. Operating without FSSAI: penalty up to ₹5 lakh and 6 months imprisonment. We help with all three license types and renewals.
FSSAI License10What is Import Export Code (IEC)?
IEC is a 10-digit code issued by DGFT required for any import or export from India. One-time registration, no renewal required. Mandatory for: importers, exporters, persons receiving foreign remittance, persons supplying goods / services from India to outside India. Application: online on dgft.gov.in — Aadhaar / PAN required. Fee: ₹500. Issued within 3-7 working days. AD code registration (bank IFSC) with Customs is required for foreign remittance through specific ports. Exemptions: personal imports (≤ ₹25,000 via post), Nepal / Myanmar, diplomats. We handle IEC application, modification, and AD code registration.
Import Export CodeAudit & Compliance
Statutory audit, tax audit, internal audit and ROC compliance — answered.
1What is the difference between statutory audit and tax audit?
Statutory audit is required under the Companies Act, 2013 (for companies), LLP Act (for LLPs), and Banking Regulation Act (for banks). The auditor examines whether financial statements give a 'true and fair view' and expresses an opinion. Tax audit under Section 44AB of the Income Tax Act is required when business turnover exceeds ₹1 crore (₹10 crore for cash-light) or profession gross receipts exceed ₹50 lakh. Conducted by a CA — Form 3CD is filed. Different statutes, different objectives, different reports. The same auditor can perform both if qualified and independent. Both are needed for a company above the threshold.
Tax Audit2Who can conduct a statutory audit?
Statutory audit of companies, LLPs, banks, insurance companies, and certain other entities must be conducted by a Chartered Accountant (CA) or a firm of CAs registered with ICAI. The auditor must hold a valid Certificate of Practice (COP) and should not be disqualified under Section 141 of the Companies Act (e.g., not a director / KMP of the company, no business relationship, no indebtedness exceeding ₹5L). Auditor appointment is by shareholders at AGM, holds office for 5 years, subject to rotation requirements for listed / prescribed companies. Internal auditor can be a CA, Cost Accountant, or any professional as per Section 138.
3What is included in an internal audit?
Internal audit is an independent review of operations, processes, and controls — covering operational efficiency, financial controls, compliance with policies and regulations, IT systems, and risk management. Scope depends on company size and risk profile. Reports to the audit committee of the board. Internal audit is mandatory for listed companies, large unlisted public companies, and private companies above specified thresholds (Section 138). Internal auditor can be in-house team or outsourced CA firm. Reports are typically quarterly with observations and recommendations for improvement. We provide tailored internal audit services for SMEs and large corporates.
Internal Audit4What is ROC compliance for a Private Limited Company?
ROC (Registrar of Companies) compliance includes: (1) Annual: AOC-4 (financial statements within 30 days of AGM), MGT-7 (annual return within 60 days of AGM), ADT-1 (auditor appointment intimation within 15 days of AGM). (2) Periodic: Board meetings (4 per year), AGM, minutes, statutory registers. (3) Event-based: PAS-3 (allotment within 30 days), DIR-12 (director changes within 30 days), MGT-14 (special resolutions within 30 days), SH-7 (capital changes), INC-22 (office change). (4) Director: DIN application, DIR-3 KYC by 30 September each year. Non-compliance attracts additional fees and penalties under Section 403 / 447. We provide a complete annual compliance calendar and event-based filing service.
5What is transfer pricing audit and when is it required?
Transfer pricing audit (Section 92E) is required for assessees entering into international transactions or specified domestic transactions (SDT) with related parties above the threshold (₹1 crore aggregate). The audit is conducted by a CA and reported in Form 3CEB. Due date: 31 October of the assessment year. The audit reviews: (a) arm's length pricing, (b) selection of most appropriate method (CUP, RPM, CPM, PSM, TNMM), (c) comparability analysis, (d) documentation under Section 92D. Failure to file Form 3CEB attracts penalty of ₹1 lakh under Section 271BA. We provide transfer pricing documentation, certification, and representation.
Transfer Pricing Audit6What are the penalties for non-compliance under Companies Act?
Penalties under Companies Act, 2013: (1) Non-filing of annual return (MGT-7): ₹5,000 to ₹5 lakh for company, similar for officers. (2) Non-filing of financial statements (AOC-4): same range. (3) Failure to hold AGM: ₹1 lakh for company and every defaulting officer. (4) Failure to hold board meetings: ₹25,000 (officer) / ₹5 lakh (company). (5) Director KYC non-compliance: ₹5,000 (later increased). (6) Fraud: Section 447 — imprisonment up to 10 years and fine up to ₹25 lakh. Continued default may lead to strike-off of company name. We help clients avoid penalties through timely compliance and proactive reminders.
7What is forensic audit?
Forensic audit is a detailed examination of financial records to detect fraud, embezzlement, or financial irregularities. Uses specialised investigative techniques — data analysis, transaction tracing, e-discovery, witness interviews. Findings can support litigation, regulatory action, or internal disciplinary proceedings. Initiated when: (a) suspicion of fraud / mismanagement, (b) whistleblower complaint, (c) unexplained financial irregularities, (d) asset misappropriation, (e) related-party transaction issues. Reports prepared for management, audit committee, or legal counsel — admissible in court. We work with corporate management, audit committees, and legal counsel on forensic investigations.
Forensic Audit8What is virtual CFO service?
Virtual CFO provides strategic financial leadership to SMEs / startups without the cost of a full-time CFO. Typical deliverables: (1) monthly MIS with P&L, balance sheet, cash flow, KPIs, (2) 13-week rolling cash flow forecast, (3) variance analysis vs budget, (4) board / investor reports, (5) fundraising support, (6) statutory compliance oversight, (7) banking and treasury management, (8) auditor coordination. Engaged on monthly retainer — typically 2-5 days per month. Cost-effective (40-60% of full-time CFO). Suitable for SMEs, startups, companies in transition, businesses between CFOs. We provide tailored virtual CFO engagements.
Virtual CFOAdvisory & Planning
Financial planning, mutual funds, NRI advisory, succession — answered.
1What is comprehensive financial planning?
Comprehensive financial planning is a holistic review of your financial life — income, expenses, assets, liabilities, insurance, investments, taxes, retirement, and estate planning. Output: personalised plan with goal-based asset allocation, specific product recommendations (term insurance, health insurance, mutual funds, NPS, FDs, etc.), tax-efficient strategies, and review mechanism. Process: discovery session → data collection → plan preparation → presentation → implementation support → quarterly reviews. Suitable for: individuals with multiple goals, families, HNIs, NRIs, business owners. We provide fee-based advisory — not commission-driven product recommendations.
Comprehensive Financial Planning2How is mutual fund advisory different from distribution?
Mutual fund advisory: fee-based — we recommend funds based on research and your goals, charge a flat fee or % of AUM. No commission from AMCs. Product-agnostic advice. Suitable for investors wanting unbiased recommendations. Mutual fund distribution: commission-based — AMCs pay 0.5-1.5% trail commission on AUM. Distributor may favour funds with higher commissions. We work in advisory mode — recommending direct plans (no commission) so our advice is purely in your interest. Typical fee: ₹5,000-50,000 per year depending on portfolio size. Reviews are quarterly with rebalancing recommendations.
Mutual Fund & SIP Advisory3What is the right way to plan for retirement?
Retirement planning steps: (1) estimate post-retirement monthly expenses (typically 70-80% of current expenses, adjusted for inflation). (2) calculate corpus needed: 25-30 times current annual expenses. For ₹10L/year expenses → ₹2.5-3Cr corpus. (3) identify sources: EPF, PPF, NPS, mutual fund portfolio, FDs, real estate. (4) calculate monthly investment required to build the corpus. (5) review and rebalance quarterly. Use the 4% rule: withdraw 4% of corpus in year 1 of retirement, adjusted for inflation each year. Senior Citizen Savings Scheme (SCSS) at 8.2% is a good post-retirement option. We build goal-based retirement plans with detailed modelling.
Retirement Corpus & Pension4How can NRIs save tax on Indian income?
NRIs can optimise Indian tax through: (1) DTAA benefits — claim credit for foreign tax paid on Indian income using Form 67. (2) NRE / FCNR accounts — interest fully tax-free in India. (3) Capital gains planning — LTCG on listed equity at 12.5% above ₹1.25L, use Section 54 / 54F for property sale. (4) NPS Tier 1 — 80CCD(1B) deduction of ₹50K. (5) Section 80C — PPF (for resident Indians only — NRIs cannot open new PPF), ELSS, life insurance, home loan principal. (6) HRA — only if in India and receiving salary. (7) NRI ITR filing — ITR-2 / ITR-3 with Schedule FA disclosure. (8) 15CA / 15CB — for foreign remittance. (9) Residential status review annually. We help NRIs optimise across US, UK, UAE, Singapore, Australia, Canada.
NRI Tax, Investment & Repatriation5What is the difference between term insurance and endowment plan?
Term insurance: pure risk cover, no investment component, lowest premium, highest cover. Example: ₹1 crore cover at age 30 for 30 years = ₹8,000-12,000/year premium. Death benefit: full sum assured to nominee. No maturity benefit if you survive the term. Best for: protection needs. Endowment / money-back: insurance + savings — fixed returns (4-5%), high premium, low cover. Premium for ₹10 lakh cover over 20 years can be ₹1.5-2 lakh/year. Low returns, opaque charges. ULIP: insurance + market-linked — high upfront allocation charge, lock-in of 5 years. Generally, term + separate investment is more cost-effective than ULIP. We recommend term + MF SIP over ULIP / endowment.
Insurance Planning6What is ESOP and how is it taxed?
ESOP (Employee Stock Option Plan) gives employees the right to buy company shares at a pre-determined price (exercise price) after a vesting period. Typical structure: 4-year vesting with 1-year cliff. Tax treatment: (1) At grant — no tax. (2) At vesting — perquisite value (FMV minus exercise price) added to salary, taxable at slab rate. DPIIT-recognised startups: Section 80-IAC deferral — tax deferred by 5 years from vesting (or sale, whichever earlier). (3) At exercise — no additional tax (already taxed at vesting). (4) At sale — STCG 20% (held ≤12 months) or LTCG 12.5% above ₹1.25L (held >12 months). Companies must obtain valuation under Section 56(2)(viib) to determine FMV.
ESOP Design & Implementation7What is succession planning and why is it important?
Succession planning is the orderly transfer of wealth, business, and assets to the next generation. Covers: wills, trusts, family constitutions, business restructuring, gifting strategies, nominee selection, and tax-efficient transfer. Important for: HNIs, family businesses, NRIs with Indian assets, anyone wanting to avoid intestate succession disputes. Without a will, assets are distributed as per personal law — which may not reflect your wishes. Key documents: Will (registered), Trust deed (if used), Family constitution, Nomination forms (bank, demat, insurance, EPF). We work with families on comprehensive succession plans including trust structuring and family governance.
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