<p>A Public Limited Company (PLC) is a type of business entity with shares offered to the general public, often listed on a stock exchange. This structure allows companies to raise substantial capital from public investors, which can be pivotal for large-scale ventures.</p><h4>Key Characteristics of a Public Limited Company</h4><p><strong>1. Directors:</strong><br>To establish a Public Limited Company, the Companies Act, 2013 mandates a minimum of three directors. However, there is no cap on the maximum number of directors, providing flexibility in governance.</p><p><strong>2. Limited Liability:</strong><br>Shareholders of a Public Limited Company enjoy limited liability. This means they are only liable for the company’s debts up to the amount they have invested. Unlike partnerships or sole proprietorships, shareholders’ personal assets are generally protected. However, they are still accountable for any illegal actions they may personally undertake.</p><p><strong>3. Paid-up Capital:</strong><br>A Public Limited Company requires a minimum paid-up capital of ₹5 lakhs (or a higher amount as prescribed by law). This threshold underscores the company's ability to manage substantial financial responsibilities.</p><p><strong>4. Prospectus:</strong><br>A PLC must issue a prospectus when offering shares to the public, as required by the Companies Act. This document outlines the company's business details and potential risks. In contrast, Private Limited Companies do not have this requirement since they cannot publicly solicit investments.</p><p><strong>5. Name Requirement:</strong><br>As per the Companies Act, 2013, the name of a Public Limited Company must end with “Limited,” indicating its corporate structure.</p><h3>Advantages of a Public Limited Company</h3><p><strong>Increased Capital:</strong><br>By offering shares to the public, PLCs can attract a broad range of investors, significantly boosting their capital reserves.</p><p><strong>Enhanced Visibility and Trust:</strong><br>Listing on the stock exchange can attract institutional investors like mutual funds, bringing greater credibility and visibility, which may lead to new business opportunities.</p><p><strong>Risk Diversification:</strong><br>Public ownership allows a broader distribution of market risks, as shares are widely held among various investors.</p><p><strong>Growth and Expansion:</strong><br>With access to public funding, PLCs can invest in new projects, promoting growth and expansion.</p><h3>Registration Requirements for a Public Limited Company</h3><p>To register a Public Limited Company, one must follow specific guidelines outlined by the Companies Act, 2013:</p><ul><li>Minimum seven shareholders and three directors are required.</li><li>A minimum paid-up capital of ₹5 lakhs is mandatory.</li><li>Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for directors.</li><li>Apply for the company name and submit necessary documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), to the Registrar of Companies (ROC).</li><li>Complete forms DIR-12, INC-7, and INC-22 as part of the registration.</li><li>After ROC approval, apply for a ‘Certificate of Business Commencement.’</li></ul>

What is Public Limited Company?

<p>A One Person Company (OPC) is a unique business structure introduced by the Companies Act, 2013, allowing a single individual to operate a company with limited liability. Essentially, it combines the benefits of a sole proprietorship with the features of a corporate entity.</p><h4>Key Features of a One Person Company</h4><p><strong>Sole Member:</strong><br>An OPC can have only one shareholder, who is the sole member of the company.</p><p><strong>Nominee Requirement:</strong><br>OPCs must designate a nominee to take over in case the sole member is incapacitated or unable to continue. The nominee must be an adult, as minors are not eligible to be members or nominees.</p><p><strong>Directors:</strong><br>While an OPC can function with just one director, it can have up to 15. Often, the sole member also serves as the director.</p><p><strong>No Minimum Capital:</strong><br>Unlike other company structures, OPCs have no minimum capital requirement, allowing flexibility in capital investment.</p><p><strong>Exemptions Under Companies Act:</strong><br>OPCs benefit from various regulatory exemptions, simplifying compliance and promoting ease of business.</p><p><strong>Board Meetings:</strong><br>OPCs with more than one director must hold a board meeting every half-year, with a minimum gap of 90 days between meetings. This requirement is waived if there is only one director.</p><p><strong>Separate Legal Entity:</strong><br>Despite having a single member, an OPC is a separate legal entity with its own identity, similar to a private or public company.</p><p><strong>Business Restrictions:</strong><br>OPCs cannot register as Section 8 (non-profit) companies or engage in non-banking financial investment activities.</p><h4>Benefits of a One Person Company</h4><p><strong>Limited Liability:</strong><br>The OPC structure protects the owner’s personal assets, limiting liability to the capital invested in the company.</p><p><strong>Reduced Compliance:</strong><br>OPCs have fewer compliance requirements compared to private or public companies, making it easier and cost-effective to manage.</p><p><strong>Complete Control:</strong><br>With a single shareholder, all control and decision-making lie with one individual, allowing for quicker decisions and streamlined management.</p><h3>Essential Details for Setting Up an OPC</h3><p>To register an OPC, you need to have the following information ready:</p><ul><li>Proposed company name</li><li>Business address and type of activities</li><li>Details of the sole member, nominee, and director(s)</li><li>Initial capital amount</li></ul><p><strong>Required Documents Include:</strong></p><ul><li>Personal identification (PAN, Aadhaar, etc.) of the sole member, nominee, and directors</li><li>Business address proof</li><li>Passport-sized photographs of all stakeholders</li></ul>

What is a One Person Company?

<h3>Understanding Private Limited Companies: A Preferred Business Structure for Startups and Growth</h3><p>Private Limited Companies are one of the most popular choices for business structures in India, especially among startups and rapidly growing businesses. This structure is ideal for entrepreneurs who aim to scale their businesses, as it offers a robust framework for raising external funding, provides limited liability protection for its shareholders, and allows the issuance of Employee Stock Options (ESOPs) to attract and retain top talent.</p><p>In a Private Limited Company, the minimum number of members is two, while the maximum is capped at two hundred. This structure combines the benefits of limited liability, operational flexibility, and a separate legal identity, making it a practical choice for various businesses.</p><h4>Key Features of a Private Limited Company</h4><p><strong>Limited Liability:</strong><br>Shareholders’ personal assets are protected, as their liability is limited to the amount they have invested in the company.</p><p><strong>Separate Legal Entity:</strong><br>The company has its own legal identity, which is separate from that of its shareholders. This allows the business to own assets, incur debts, and enter into contracts independently.</p><p><strong>Ownership Restrictions:</strong><br>Private limited companies are not publicly listed on stock exchanges, and share transfers are restricted. Shareholders must have mutual consent before selling or transferring their shares, protecting against hostile takeovers.</p><p><strong>Access to Funding:</strong><br>These companies can raise capital through private placements or by attracting investments from venture capitalists and other financial institutions, facilitating growth and expansion.</p><p><strong>Management Flexibility:</strong><br>While adhering to the Companies Act, 2013, private limited companies enjoy flexibility in their internal management and governance structures, similar to a partnership but with the added benefits of a corporation.</p><p>A Private Limited Company balances the advantages of a partnership with the scale potential of a public company, making it a versatile choice for entrepreneurs looking to grow their businesses in India.</p>

What is a Private Limited Company?

<h3>Understanding Partnership Firms: Structure, Benefits, and Key Differences from LLPs</h3><p>A partnership firm is a business arrangement where two or more individuals come together to run a business with the mutual agreement to share profits and losses. This business structure is governed by the Indian Partnership Act, 1932, and emphasizes a contractual relationship among partners. Each partner acts on behalf of the firm and shares liability, making partnership firms an attractive option for small businesses looking for simplicity and mutual accountability.</p><h4>Key Differences Between Partnership Firms and LLPs</h4><p><strong>Cost:</strong><br>Registering an LLP generally incurs higher costs than setting up a partnership firm due to the compliance requirements and formalities involved.</p><p><strong>Authority and Registration:</strong><br>LLPs are governed by the Ministry of Corporate Affairs (MCA) under central regulations, while partnership firms register with the Registrar of Firms, and are regulated by respective state laws.</p><p><strong>Liability Protection:</strong><br>Unlike traditional partnerships, LLPs offer limited liability, meaning that partners are not liable for the misconduct or negligence of other partners. In a partnership firm, partners share unlimited liability.</p><p><strong>Number of Partners:</strong><br>Both LLPs and partnership firms require a minimum of two partners. However, LLPs can have an unlimited number of partners, and the firm continues even if one partner exits. In contrast, if a partnership firm drops below two partners, it dissolves unless a new partner is found.</p><p>Partnership firms do not hold a separate legal status from their partners, and they have a limited identity primarily for tax purposes. Any two individuals capable of entering into a contract can form a partnership through a mutual agreement, known as a partnership deed, which can be either oral or written. While registration of a partnership is optional, it is recommended for legal recourse, as unregistered partnerships face limitations in filing suits against third parties.</p><h4>Documents Required for Partnership Registration</h4><p>The main document required for registration is a signed partnership deed. Other documents include:</p><ul><li>PAN of each partner</li><li>Aadhaar card as additional ID</li><li>Recent address proof (telephone bill, electricity bill, or bank statement)</li></ul><h4>Advantages of a Partnership Firm</h4><p><strong>Ease of Formation:</strong><br>A partnership is simple to establish and manage, with fewer regulatory requirements than an LLP or private limited company.</p><p><strong>No Mandatory Registration:</strong><br>Registration is not obligatory, offering partners flexibility. However, registered partnerships gain legal advantages, particularly in enforcement of the agreement.</p><p><strong>Simplified Compliance:</strong><br>Regulatory compliance for partnership firms is minimal compared to LLPs or private companies, although they must adhere to tax and operational requirements.</p>

What is a Partnership Firm?

<h3>How to Pre-Validate Your Bank Account for Income Tax Refunds</h3><p>To facilitate direct credit of income tax refunds, the Income Tax Department has required electronic refunds since March 2019. Physical refund cheques are no longer issued, making it crucial to pre-validate the bank account on the income tax portal. Additionally, a pre-validated bank account enables electronic verification (EVC) of your income tax returns.</p><h4>Steps to Pre-Validate Your Bank Account</h4><p><strong>Login to the e-Filing Portal</strong><br>Begin by visiting the e-filing portal at <a href="https://www.incometaxindiaefiling.gov.in/home">https://www.incometaxindiaefiling.gov.in/home</a>. Use your login ID, password, and the captcha code to access your account.</p><p><strong>Navigate to Profile Settings</strong><br>Once logged in, go to 'Profile Settings' and select the 'Pre-validate Your Bank Account' option. You will see a list of bank accounts linked to your profile, along with their validation status.</p><p><strong>Add a New Bank Account (If Necessary)</strong><br>If you don’t see your desired bank account or wish to add a new one, click on ‘Add’ and provide the account details, including the PAN number linked to the account. Make sure the name on the bank account matches your PAN records to ensure successful validation. Once details are entered, select ‘Pre-validate’ to confirm.</p><h4>Important Considerations</h4><p><strong>One Account at a Time for E-Verification:</strong><br>You can only register one bank account at a time for e-verification purposes.</p><p><strong>Matching Contact Details:</strong><br>For electronic verification, the email ID and mobile number registered with the bank must match those on the income tax portal.</p>

How to pre-validate your bank Account?

<h3>How to File Income Tax Return (ITR) Online: Step-by-Step Guide</h3><p>Filing your Income Tax Return (ITR) online is a straightforward process. Here's how you can do it easily through the Income Tax e-Filing portal:</p><h4>Step 1: Log in to the e-Filing Portal</h4><p>Visit the <a href="https://www.incometaxindiaefiling.gov.in/home">e-Filing website</a> and log in with your User ID (usually your PAN), Password, and Captcha code.</p><h4>Step 2: Choose the ITR Form</h4><p>Navigate to the "e-File" menu, then click on "Income Tax Return." Select the ITR form applicable to you (such as ITR-1 or ITR-4) and choose the relevant Assessment Year.</p><h4>Step 3: Fill in the Details and Submit</h4><p>Complete the form with your income details, tax deductions, and other relevant information. Once done, click "Submit." If applicable, upload your Digital Signature Certificate (DSC) to finalize submission.</p><ul><li>If you’ve used a DSC, your return filing is complete upon submission.</li><li>Without a DSC, you’ll receive the ITR-V form. Download it, print, sign, and send it to the Centralized Processing Centre (CPC) within 120 days to complete the process.</li></ul><h4>Step 4: Verification</h4><p>After submission, you can e-verify your return using options like Aadhaar OTP, Net Banking, or pre-validated bank account. Verifying your return ensures faster processing and refund.</p><h3>How to Upload Your ITR</h3><p>For those using offline utilities:</p><p><strong>Download and Prepare the Form:</strong><br>Download the ITR utility for the specific Assessment Year from the e-Filing portal. Gather all income details, tax payments, and deduction proofs.</p><p><strong>Pre-fill and Validate Details:</strong><br>Use the 'Pre-fill' option to auto-populate basic details, then verify and fill in remaining information. Calculate your tax, save the file in XML format, and be sure to enter any outstanding tax payment details.</p><p><strong>Upload the XML File:</strong><br>Log in, go to "Upload Return," select the ITR form and Assessment Year, and upload the XML file. Submit with DSC if applicable or e-verify after submission.</p>

How to file Income Tax Return (ITR) Online?

<h3>How to Correct Mistakes in Your Income Tax Return (ITR): A Guide to Revised Returns</h3><p>Mistakes happen, and if you've made an error in your Income Tax Return (ITR), there's a way to fix it: by filing a revised return. Here’s everything you need to know about correcting errors in your ITR.</p><h4>What is a Revised Return?</h4><p>A revised return allows taxpayers to correct mistakes or omissions in their originally filed ITR. Filing a revised return essentially means resubmitting your return with accurate information. When doing so, you need to provide details of the original ITR.</p><h4>Who Can File a Revised Return?</h4><p>Under Section 139(5) of the Income Tax Act, any taxpayer who has filed their ITR can revise it to correct errors. Previously, only returns filed before the original deadline could be revised. Now, even belated returns (filed after the deadline) are eligible for revision.</p><h4>Deadline for Filing a Revised Return</h4><p>As per current tax laws, you have until the end of the relevant assessment year to file a revised return. For example, if you filed your ITR for FY 2023-24, you have until March 31, 2025, to make corrections.</p><h4>How to File a Revised ITR</h4><p>The process for filing a revised ITR is similar to filing the original. However, you’ll need to file under Section 139(5) and select the '17 - Revised u/s 139(5)' option on the portal. Additionally, you must enter details of the original ITR, such as the receipt number and filing date.</p><h4>Is There a Limit to Revising an ITR?</h4><p>There's no limit to the number of times you can revise an ITR within the permitted timeframe. Just remember to include the original ITR details each time. It’s advisable to exercise care when filing to minimize the need for revisions.</p><h4>Things to Keep in Mind</h4><ul><li><strong>Verification:</strong> The revised return must be verified, just like the original. You can e-verify using Aadhaar OTP, EVC via net banking, or by physically sending the signed ITR-V form to the CPC in Bangalore.</li><li><strong>Scrutiny Assessment:</strong> If the tax authorities have completed a scrutiny assessment under Section 143(3), you can no longer revise the return.</li><li><strong>Timing:</strong> Remember, the deadline for filing both belated and revised returns is March 31 of the relevant assessment year. If you miss this date, you lose the chance to correct any mistakes.</li></ul>

How to correct mistake(s) made in Income tax return?

<h3>How to Check the Status of Your Income Tax Refund</h3><p>If you’ve filed your Income Tax Return (ITR) and are expecting a refund, it’s easy to check the status online. Here’s a quick guide on how to track the status of your income tax refund.</p><h4>Steps to Check Refund Status on the Income Tax Portal:</h4><p><strong>Login to the e-Filing Portal:</strong><br>Visit the Income Tax e-Filing website <a href="https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html">here</a>. Enter your User ID, Password, and Captcha to log in.</p><p><strong>Navigate to Refund/Demand Status:</strong><br>After logging in, go to the <strong>‘My Account’</strong> section and select <strong>‘Refund/Demand Status’</strong>. This will display all relevant information related to your refund status.</p><p><strong>Details Available on the Refund Status Page:</strong></p><ul><li><strong>Assessment Year:</strong> The year for which the return was filed.</li><li><strong>Status:</strong> Shows if the refund has been processed, issued, or failed.</li><li><strong>Reason for Failure:</strong> If the refund failed, a reason will be provided.</li><li><strong>Mode of Payment:</strong> Indicates the payment method used for the refund, such as direct bank transfer.</li></ul><p><strong>Alternate Method for Checking Refund Status:</strong><br>You can also check your refund status by visiting the <a href="https://tin.tin.nsdl.com/oltas/refund-status-pan.html">NSDL Refund Status page</a>. Enter your PAN and assessment year to view your refund details.</p><p>&nbsp;</p>

How to know the status of Income tax refund?

<h3>Understanding Provisions of Advance Tax</h3><p>Under the Income Tax Act, 1961, all citizens are obligated to pay tax on their earned income. Income accumulated during a financial year is assessed in the subsequent year, referred to as the Assessment Year. Although income is evaluated during the Assessment Year, taxes are typically paid in advance, either through Tax Deduction at Source (TDS) or advance tax.</p><h4>What is Advance Tax?</h4><p>Advance tax is a type of income tax that must be paid when an individual’s tax liability surpasses INR 10,000 in a given financial year. This tax is to be paid during the year the income is earned, thus making it a "pay-as-you-earn" scheme.</p><p>For instance, if your tax obligation for the financial year 2019-20 exceeds INR 10,000, you must remit the advance tax during that financial year, i.e., 2019-20. The rationale behind collecting advance tax during the earning year, rather than at year-end, is to ensure a steady revenue flow for the government, facilitating the management of public expenses.</p><h4>Who is Required to Pay Advance Tax?</h4><p>Salaried individuals generally do not need to pay advance tax, as employers typically deduct taxes at the source. Conversely, individuals with income streams apart from their salary—such as capital gains from shares, interest from Fixed Deposits (FDs), rental income, and lottery winnings—are required to pay advance tax. Additionally, self-employed individuals, business owners, companies, and corporations must also comply with advance tax payments.</p><h4>How to Pay Advance Tax?</h4><p>Designated bank branches authorized by the Income Tax Department collect advance tax payments through tax payment challans. Some banks facilitating advance tax collection include the Reserve Bank of India, HDFC Bank, Allahabad Bank, ICICI Bank, and State Bank of India, among others. Alternatively, advance tax can be paid online via the Income Tax Department or through National Securities Depository Ltd. (NSDL).</p><h4>Calculating Advance Tax</h4><p>To ascertain the amount of advance tax owed, you can use an income tax calculator or follow these steps:</p><ol><li>Identify your total income from various non-salary sources.</li><li>Deduct related expenses, including internet fees, phone bills, travel costs, and workspace rent.</li><li>Aggregate any additional income received throughout the year, such as from FDs, rental properties, and lottery winnings.</li><li>If the computed tax amount exceeds INR 10,000, you are obligated to pay advance tax.</li></ol>

Understanding Provisions of Advance Tax

<h2>Understanding Income Tax Audit</h2><h3>What is Income Tax Audit?</h3><p>An income tax audit refers to the examination and verification of accounts of a taxpayer's business or profession under the Income Tax Act, 1961, specifically mandated by Section 44AB. The audit aims to ensure compliance with tax laws and to maintain accurate financial records.</p><h3>Objectives of Income Tax Audit</h3><p>The primary objectives include:</p><ul><li>Verification of the accuracy of accounts.</li><li>Reporting requirements under Form Nos. 3CA, 3CB, and 3CD.</li><li>Detecting and preventing fraudulent practices.</li><li>Assisting tax authorities by streamlining the verification process.</li></ul><h3>Who is Required to Get Their Accounts Audited?</h3><p>According to Section 44AB, the following individuals or entities must undergo a tax audit:</p><ul><li><strong>Businesses:</strong> If total sales, turnover, or gross receipts exceed INR 1 crore (or INR 2 crores if opting for presumptive taxation under Section 44AD).</li><li><strong>Professionals:</strong> If gross receipts exceed INR 50 lakhs.</li><li><strong>Assessees Declaring Profits:</strong> Who claim profits lower than prescribed under Section 44AD, 44ADA, or 44AE and their income exceeds the tax-free threshold.</li><li><strong>Non-Residents and Foreign Companies:</strong> Engaged in specific businesses under Sections 44BB and 44BBB.</li></ul><h3>Audit Exemption Under Other Laws</h3><p>If a taxpayer is required to conduct an audit under any other law (e.g., company law), they do not need to comply with Section 44AB. However, they must obtain an audit report under the prescribed forms.</p><h3>What are Form Nos. 3CA/3CB and 3CD?</h3><p>The audit report must be furnished in:</p><ul><li><strong>Form 3CA/3CB:</strong> For individuals or entities audited under other laws.</li><li><strong>Form 3CD:</strong> For detailed reporting of prescribed particulars during the tax audit.</li></ul><h3>Due Date for Completing the Audit</h3><p>The audit must be completed, and the report filed by September 30 of the relevant assessment year. For those requiring additional reports (e.g., Form 3CEB), the due date extends to November 30.</p><h3>Penalties for Non-Compliance</h3><p>Under Section 271B, a penalty may be imposed if the taxpayer fails to comply with the audit requirements. The penalty is the lower of:</p><ul><li>0.5% of total sales, turnover, or gross receipts.</li><li>INR 1,50,000.</li></ul><p>However, no penalty is imposed if reasonable cause for failure can be demonstrated.</p><p>&nbsp;</p>

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