Explaining Income Tax Returns (ITR) in Mumbai

One major downside of growing up is that you have to deal with Income Taxes. The issue isn’t the taxes, but the lack of knowledge about it. It would not have been a problem if schools taught us all about basic finances earlier in our lives. Nonetheless, It is not too late to learn about taxes. In fact, you can save a lot on taxes by doing so.

In this article, we highlight vital information about Income Tax Returns (ITR). You will learn how Income Tax Returns in Mumbai work. Before we explain ITR, you must first understand the basics of income tax.

So let’s get right to it.

Basics of Income Tax

Income tax is a way for the central government to earn revenue so that they can develop the country. This revenue comes from a percentage of your income. That percentage depends on what tax bracket/tax slab applies to you. (We will discuss the details of tax slabs below in “Old Tax Regime vs. New Tax regime”). Basically, India’s tax system works on a Progressive Taxation Mechanism, which essentially means, the more you earn, the more income tax you pay.
Income can be from multiple sources. For example, your salary, profits from your business, profits from your capital investments, and profits from other sources like FD. All this together makes your total income.
Moreover, citizens of India need to pay taxes for the income generated by sources in the country and from outside the country as well, but non-resident citizens only need to pay tax for the sources generated in India.
But how does the government know that we are paying the right amount of taxes? This is where Income Tax Returns come into play.

What is Income Tax Return?

Income Tax Return (ITR) is a form that needs to be filled and submitted to the Income Tax Department of India. This form contains information about your total income and the tax rate applicable to it during the year. ITR is filed/submitted for the whole financial year that is from 1st April to 31st March of the next year. It is supposed to be filed before a fixed due date given by the government.
Nowadays, you can file ITR online or hire a CA to do that for you. Income Tax Returns in Mumbai are made easy by MyTaxAdvisor. We will take care of all your tax problems.

A Complete Guide to Start a New Company in India

Aspiring to start a company of your own is indeed quite ambitious. But getting stuck into a web of legalities can be daunting at times. At such times, having a reassuring support can be an immense relief.

My Tax Advisor is a one-stop solution to all your financial and legal dilemmas. Based in Mumbai, My Tax advisor aims to offer you intriguing, out-of-the-box ways to help you start your new company.

In this article, we’ll dive into exploring legal and financial know-hows that are necessary to start a company in India.

STEPS TO BEGIN A NEW COMPANY:

Starting a company isn’t an overnight process, it takes a lot of paperwork and careful planning to affirm a strong foundation of a company. Here are 5 steps that will help you ease your process of registering your company in India.

Choose your company name:

Although it might sound naïve, but having a good company name is the most essential step in starting a company. The customers will remember the name of your company before anything else, take an example of Uber, Amazon or Jio. Having an arguably long name won’t be ideal. It’s imperative to choose a company name that is easier to remember, pronounce and promote to your customers.

There are certain clauses that need to be followed while selecting a company name. Few of them are as follows:

·         The name should reflect the vision and mission of your business.

·         It should be distinctive enough to catch the attention of your customers.

·         Generic names like the name of any state or an area cannot be used as a company name.

My TaxAdvisor offers you legal help in selecting an appropriate name for your company that tackles all the legal discrepancies.

Register your company’s DLC:

DSC (Digital Signature Certificate) play instrumental role in starting your company, especially in the era of digital advancements.

Indian IT Act 2000 has made provisions to enhance the security and originality of your company by allowing you to in register the company’s official signatures in digital form.

Acquire your DIN:

DIN (Director Identification Number) is a unique number allotted by the MCA (Ministry of Corporate Affairs), India to a new or an existing director of the company.

With this 8-digit number having a lifetime validity, the details of the director are saved in a centralised database. You can log on to MCA portal and apply to acquire your DIN.

Creating an Account on MCA:

Once you have acquired you DIN, you can create your account on MCA (Ministry of Corporate Affairs) by registering on mca.gov.in.

Click on the new registration option and once all the requirements are met, you’re all set in taking your first step in starting a new company.

Register for GST number:

If your annual turn-over exceeds 40 lakhs, you are applicable to enrol for Goods and Services Tax (GST) registration.

You can register for GST for free using MyTaxAdvisor. Right from registering your company to acquiring your GST number, we’ve got you covered!

TYPES OF COMPANIES IN INDIA

Depending on your business goals and future prospects, you can choose your type of company to start. There are 5 major types of companies you can start in India:

Sole proprietorship:

Sole proprietorship is one of the easiest ways to start your company. All you have to do is provide mandatory identification documents and you’re good to go. However, it is advisable to consult a Chartered Accountant for a registration certificate.

One-person company:

In the earlier days before 2013, a company was compelled to have at least two directors. However, since the inception of One Person Company, an individual is allowed to take a 100% charge of a company.

The major difference between a sole proprietorship and one person company is that the latter is able to incorporate the entire company and avail additional tax benefits.

Partnership Company:

A partnership company, as the name suggests, is formed when your venture is shared with partners. An agreement of association which is termed as Partnership Deed has to be signed by the partners. This agreement contains the details about sharing of profits and roles of partners in a business.

Limited liability Company:

A Limited Liability Company or LLC is one of the most flexible business structures. Companies like Nike, IBM, and Google are prime examples of LLC companies. There are multiple owners to this business structure. The owners can be an individual, corporations, foreign entities or other LLCs. LLC constitute less paperwork as compared to other business structures.

Private limited company:

A private limited company or LTD has minimum 2 to maximum of 200 members. As the name suggests, a private limited company cannot obtain funds from public, hence publically issuing shares is not allowed for a LTD company.

The percentage of taxation in LTD is comparatively a bit lesser than other business structures.

We, at MyTaxAdvisor will provide you financial and legal assistance to help you register your new company by guiding you in all the steps in a much easier and flexible manner.

TIPS TO REMEMBER WHILE STARTING A COMPANY

Although the steps for starting a company might seem conveniently easier, following a few tips will help you smoothen the process of starting a new company. Here are a few tips recommended by us to help you start a company much comprehensively.

1.       Make sure you select the right type of business according to your planned framework for investment and visions

2.       Ensure that you consult a chartered accountant to understand the fundamentals and benefits of taxation for different business structures.

3.       Consult legal advice and get all your legal clearances documented and approved from authorities. At times, a business fails to register or validate a certain document, which might create hurdles in the future during audits.

4.       A thorough knowledge of tax implications, liabilities and risk management is essential before venturing into your business.

THE BEST PLACE TO START A NEW COMPANY IN INDIA | MY TAX ADVISOR

Now that we’re well versed in understanding the essentials of starting a new company in India, a company that pays special attention to all your requirements would be impeccable, wouldn’t it?

Our team at MyTaxAdvisor, with a combined experience of more than 10+ years prominently helps you avail your financial and legal solutions in a comprehensive manner. Equipped with a bunch of dynamic, zealous and experienced individuals, MyTaxAdvisor is your go-to place to understand tax benefits and other complex services in a much simpler way.

Right from free registration for GST to an expert counsel on starting a new company, we, at MyTaxAdvisor have got your back! We provide an extensive range of packages curated to suit your business requirements and facilitate an overall seamless experience.

Connect with us at info@mytaxadvisor.co.in and discover a wide range of services to help you start your dream company!