Advanced Gyan on Advance Tax....

Advance Tax Provisions under the Income Tax Act’1961

1.  Advance Tax is applicable for all assesses whose Tax Liability exceeds Rs. 10,000/- during the financial year.

2.  Advance Tax is payable as follows:

Particulars	For Companies	For other than Companies
Up to 15th June of financial year	15% of Tax Payable	Not Applicable
Up to 15th September of financial year	45% of Tax Payable	30% of Tax Payable
Up to 15th December of financial year	75% of Tax Payable	60% of Tax Payable
Up to 15th March of financial year	100% of Tax Payable	100% of Tax Payable

Points to remember:-

1. Advance Tax provisions are not applicable in case of assesses having income under head Profits & Gains from Business or Profession U/s 44AD and 44AE i.e presumptive income.
2.      Advance Tax provisions are not applicable in case of senior citizens aged above 60 years, but if senior citizens have business income then Advance Tax provisions are applicable.
3.      Note above points are applicable for residents only i.e exemptions are available only for residents. No exemption for senior citizens if such individual is Non-resident.
4.      Advance Tax can be paid by challan ITNS 280 under the minor head code 100 and Major Head code is 0020 for tax on Companies and 0021 for Tax on other than Companies.
5.      Tax can be paid by challan either by cheque, cash or by the online mode.

Interest on Late Payment of Advance Tax

If the Income Tax is not paid as per the above schedule, Interest is liable to be paid for late payment of tax as follows

1.     Interest under section 234B – Interest @ 1% is payable if 90% of the tax is not paid before the end of the financial year i.e. for Default in Payment of Advance Tax

2.     Interest under section 234C – Interest @ 1% per month is payable if the tax is not paid as per the above schedule i.e. for Deferment in Installments of Advance Tax.

Tax is not on revenue but on Profit!!

In India, a typical entrepreneur always wants to hide things from the tax department under a feeling of being questioned and asked for paying taxes. In this race for non-disclosure, sometimes the things of our benefit also remain underground.

This process of hiding starts without even knowing "What if this is disclosed?". Many a times this has positive impact as well!! Seems funny?? In our experience, many are seen doing the same.

Tax is not on revenue (sales) but on Profit!!  Funny part is people start worrying about taxes with respect to the revenue.

1. There are expenses which are deductible from this revenue to arrive at the profit. Please understand all the expenses which are incurred to earn the revenue directly and indirectly are allowed to arrive at the taxable profit.
2. Not only cash expenses but the expenses which are to be paid on later date are also available. These are termed as accrued expenses in accounting language. This include your year end bills of supplies, rentals, electricity which don't get paid in that period but are pertaining to that period. 
3. Also, there is are certain virtual deduction like for depreciation of Capital Goods like plant, building, machinery, equipment, motor car purchased in past for the purpose of the business. This is basically value for wear and tear of the assets in that period to generate the sales. Additional deduction on account of depreciation is allowed in the year of such investments for plant and machinery.
4. Other virtual deduction that needs to be taken into account while doing the computation of profits is with regard to the Bad Debts. Many times of our customers don't pay after committing even after followup and legal action. Those customer balances could be written off in the books and claimed as deduction. Even the discounts while settlement of dues are available as deduction if part of the deal.
5. Whenever there is an actual help coming in from the Partners, Directors, family members or relatives, we can pay them salaries and commissions. Even the directors and partners can have legitimate remunerations which are available as deductions subject to certain conditions. 
6. You may claim market rentals for the family properties from the company. This is something that many of us may be missing.
7. Other areas to check are credit card expenses and cash spending for business directly and indirectly. This many a times doesn't gets reflected in the books and may be missed out. It may be for business development, marketing, conveyance and so on for business purpose.

Above is a very broad list of items which are available as business deductions and we can deduce the sales / revenue to this extent before working out the taxes.

Our article on 5 basic disciplines of accounting for businesses would help you with tips of tracking the same diligently.

So, first track and than calculate correct PROFITS. It's quiet possible that you end up at a legitimate and acceptable tax liability without playing any gimmicks :-)

How to Form a Company in India with New Companies Act

The first thing to take care of under the new Companies Act, 2013 is to follow a changed procedure for giving birth to a Company. This article speaks of only Public and Private Limited Companies and does not cover One Person Companies. The brief procedure to be adopted for incorporating a Company would be :

Action Points : Formation of a Public / Private Limited Company – under Companies Act, 2013
[Covered by provisions of Chapter II]

Sr No	Action Point	Requirement
01	Obtain Digital Signature Certificate (DSC)	Obtain a Digital Signature Certificate from authorized DSC issuing authority.
02	Obtain DirectorIdentification No. (DIN) [S.153]	Make Application in Form DIR-3  [Rule 9 of Chapter XI Rules]
03	Register DSC in the name of Director on MCA portal
04	Apply for Reservation of Name [S.4(4)]	Apply in Form No. INC.1 [Rule 9]. The same shall be reserved for a period of 60 days
05	Adoption of Memorandumof Association [S.4(6)]	MoA shall be in respective form as prescribed in Table A, B, C, D and E of Schedule I as may be applicable
06	Adoption of Articles of Association [S.5(6)]	MoA shall be in respective form as prescribed in Table F, G, H, I and J of Schedule I as may be applicable
07	Incorporation	File with ROC Form No. INC.7 [Rule 12 to 18] alongwith(a)   The Memorandum and Articles of the company duly signed by all subscribers; (b)   A declaration in Form No.INC.8 by an advocate or Practicing professional (CA, CS, CA) who is engaged in incorporation, and a person named in director as Director, Manager or Secretary, that all requirements related to incorporation has been complied with; (c)   an affidavit in Form No. INC.9 from each subscriber and from each person named as first director in the articles that; he is not convicted if any offence in connection with promotion, formation or management of any company, he is not been found guilty of any fraud or misfeasance or of any breach of duty to any company during preceding five years, and all the documents filed with the Registrar contain correct, complete and true  information to the best of his knowledge and belief; (d)  the address for correspondence till its registered office is established; (e)  the particulars of every subscribers along with proof of identity; (f)   the Particulars of first directors along with proof of identity; and (g)  the particulars of interests of first directors in other firms or bodies corporate along with their consent to act as directors.
08	Commencement of business [S.11]	Director should file Declaration with ROC in Form No. INC.21 [Rule 24]
09	Registered Office [S.12]	A company shall have a registered office within 15 days of Incorporation and it shall file Form No.INC.22 [Rule 25] to verify the same

Highlights on Interim Budget 2014

Highlights of Finance Minister P Chidambaram's Vote on Account or Interim Budget speech.

FM inaugurated his Interim Budger as always with glorious words from Tamil sage Thiruvalluvar which spoke of "not the spear but sceptre swayed with equity alone gives the ruler victory".

Finance minister P Chidambaram on Monday "neither populism nor individualism" is an alternative way of governance and expressed confidence that people will entrust responsibility to a "hand" that works for equity.

MyMuneemji presents below quick look at key highlights with insights from the Vote on Account:

12.10: FM hopes to peg revenue deficit at 3.3% and fiscal deficit target at 4.1% next year. 

12.00: No change in direct taxes.Excise duty cuts on mobile handsets, consumer durables, capital goods. Excise duty cut for large and mid-segment cars (20% cut), small cars and two wheelers (12% to 8% ), SUVs (24% from 30%).

11.58: Students get major relief. Moratorium on education loan interest taken prior to 2009 till 2014. - Does this mean more money for foreign schools setting up operations in India more than students?

11.55: Urban Housing Fund at get Rs 2,000 cr

    Rural housing fund get Rs 6,000 cr

  Minority affairs to get Rs 3,711 cr 

11.53: Expenditure kept at Rs 5.55 lakh crore (same as last year)

11.52: PSU Banks get a boost by fresh capital infusion Rs.11,200 Cr - Is this an NPA funding?

11.52: Rs 8 lakh cr allocated for rural credit - Continuous favor goes for Farm lending - Hope the next session doesn't propose a waiver of these credits!!

11.51: Defense Allocation to Rs 2.24,000 crore, up 10%. - We Startups need to come up with some ideas around defence needs now!!

11.49: Food, Fuel and Fertilizer subsidy at 2.46 Lakh crore. Non-plan expenditure at Rs 1.15 lakh crore. - again farmers favored - is this because this the vote bank? 

11.48: Ministry of Health and Family Welfare gets Rs. 33,725 cr - Good for society - Huge opportunity in heath care

11.45: Fresh power capacity, rural roads, highways added in last 3 months. 50000 MW of thermal and hydro power plants under construction - good infrastructure boost - No power cuts!!

11.42: Government committed to Aadhaar. Even critics will realise it is a tool of empowerment. 54 lakh transactions completed under direct benefit transfer.  - Great Governance tool!!

11.34:  Last two quarters of 2013-14 to grow at atleast 5.2%. Rupee doing better than other emerging market currencies. However, stagnation in manufacturing sector a worry.

11.29: Exports to grow to $326 bn; up 6.4%. Investment rate at 34.8%; saving rate at 30.1%. $15 bn added to foreign reserves this fiscal. Cabinet cleared 296 projects. GDP to be 4.9%. 

11.24:  Key concerns of last fiscal: fiscal consolidation and inflation. 2013-2014's fiscal deficit managed at 4.6% of GDP. Food inflation has declined but still a worry. Analysts are expecting PC to report a fiscal deficit of around 4.7 per cent of GDP

11.22: World economy has slowdown in last few years. India affected by global economy downturn but doing better than other emerging economies. 

Free Due-date Reminders - a Christmas Gift from MyMuneemji

Christmas is the festival of Cakes, Candles and Carrels. Cake says "be sweet", Carrels say "Love one and all" and Candles say "Light up your mind with knowledge". 

We at MyMuneemji extend warm greetings for Christmas and a Happy New Year 2014.

At this juncture, it is exciting to share that more functional version of MyMuneemji is launched. This welcomes the New Year with added visibility and pro-activeness.

As Just try our Free Signup to start getting free sms and email alerts on before relevant tax filing due-dates and avoid any interest or penalties. Do let us know if there are any suggestions and feedback in this regard to make us better in helping you.

I am a fan of MyMuneemji.com!

I lead a busy, routine, ordinary life. I own and run a clothing store in Kotla’s commercial district and I am the sole earning member of my family of 4.  While I’d call myself a responsible family man, I have to confess that sometimes my duties weigh me down and I find myself ignoring the important yet demanding task of sorting out my finances and accounts. It is not that I am laid back or ignorant, it is just that at times I lack the willingness to make the effort to visit my accountant, to file returns, to source all the forms/data from different platforms given how time-consuming and tedious a task it all is.  

It is just for these reasons that I am super thankful for the services of MyMuneemji.com. From the comfort of my home I get expert accounting solutions + advice and under their skilled supervision I can file my tax returns without worrying about messing up the process in doing so. Additionally, it is with their help that I learnt about the best investments for me and under their guidance invested my money wisely. And yes, the returns on my investments so far have been great!

The best part about MyMuneemji.com is that the methods are simple and do not require much time. All I had to do was to sign-up, fill in basic details and I was ready to go. To get such an important job done without any hassles and to be able to do it at my convenience and on my time is what has made me a fan of MyMuneemji.com. So much so, that I have already recommended the site to all my friends and I am convincing them to sign-up ASAP.

To be honest, MyMuneemji.com has made it possible for me to fully concentrate on running my business as I leave the care of my finances in their trusted hands. And for this, I am always grateful! 

myMuneemji - an Accounting revolution !!!!

|| श्री || 

In the mid sixties, White and Green revolution took place in India making us self sufficient in the field of dairy and agriculture.  Likewise there is a need to do an accounting revolution to make accounting simple and hassle free for common man and entrepreneurs. While there had been substantial progress in the field of Information Technology from the manual age, the key problem today is the lack of an ecosystem, which provides accounting as a solution and not just as a product or service!!!  Accounting and taxation still remain mystery topics and the knowledge is in the handful of few. With increasing compliance, it is important that entrepreneurs and individuals get a proper book keeping and tax solution, so that they can focus on the business and not worry on the compliance matters at any point during the year. myMuneemji proposes to be the One Stop Shop Solution combining the latest technology  and processes , backed up by best in class accounting professionals.

In our country, many people are non-compliant not because they don’t want to pay tax, but because they feel the pinch of time and effort to handle these compliances. Today, there are variety of taxes both at a state and central level, which are applicable with different periodicity, rates and procedures. Complication in compliance is topped up by lack of skilled resources such as accountants and consultants to handle these procedures in systematic and timely manner.

On the other hand, India is yet a rural economy with majority of population concentrated in the tier two and three cities as well as villages which is scarcely literate. This population is ignorant of the compliances and disconnected from the happenings in these laws.

The only way to build in governance in this country is the Internet bases tools which can reach farthest of the places at a time with same amount of accuracy 24 X 7.

We are myMuneemji, are working towards taking accounting including all kinds of tax filings online with simplicity and service. The mission to make “Accounting for everyone and everywhere”.

Features like Document Management, Sms / email alerts,help desk and dashboards help make this a unique combination of product with service which creates transparency with complete accountability on both the sides.

Along accounting data entry options, myMuneemji endeavours that the best of the tax and legal advisors could be part of our panel who feel like joining this mission and helping their fellow countrymen, with the best in class advice. All this will be reaching the farthest and remotest places through the internet connection and sms.

Life with myMuneemji will be joyous as everything will be accounted for by everyone with effortless ease. People will not only file their taxes in time but even the smallest of the businessmen will also get their MIS (Management Information System). Along with compliance, this is also targeted to add value to the businesses as well as personal finance in some way. Having said this, myMuneemji is a product backed by a service engine, to handhold the customers and encourage them to adhere to the compliance.