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!

 

GST Return Consultants

An individual certified by the state or central government for providing services related to Goods and Service Tax to the eligible taxpayer is referred to as GST Consultant. The person becomes a GST Consultant after registering himself on the GSTN portal.

Services Provided by GST Consultants

• Registration of GST

As per the new laws made by the Central government, GST registration can be done only through its online Portal. A qualified consultant makes the smooth completion of the process in little time. So GST Consultant saves the time and hassles the client’s full task.

Amendments in Details of Taxpayer

Sometimes a GST Taxpayer requires changes in the details filed with the tax authorities like changes in address, name of the company, etc. In that case, a GST Consultant uses his expertise to make those alterations.

• Audits for GST

A business enterprise needs to make financial statements, maintain various records and books of accounts. It consumes a lot of time and energy.

But if you go to a GST Consultant, he/she will be responsible for conducting investigations of internal control, tests to see the match between the evidence and the amounts. And finally, the consultant will prepare a GST audit report.

• Evaluation of GST

The taxpayer has to self-evaluate the exact amount of tax needed to be paid for a specific tax period and submit a return to the tax authorities. But the whole process can shift the business owner’s focus from earning maximum profits. So it is better to outsource such a job to GST Consultants.

• Filing of GST Return

The taxable individual or business needs to file a GST return to the tax authorities in compliance with the GST statutory regulations. A qualified GST Consultant performs the duty of providing details about sales, purchase, tax paid, and collected through the process of filing GST returns. It helps to reduce tax evasion.

• Compliance with Rules and Regulations of GST

Under GST Compliance, various ratings are given to different businesses by the government. It is based on their ability to make timely payment of GST, furnish GST return, provide a report of input credits, and so on. GST Consultants enables you to reach the top rating by fulfilling the mentioned duties.

Not only that, GST Consultants will provide you with instant information about amendments in GST Compliances made by the government.

Here, the expertise and experience of MyTaxAdvisor prove to be a useful source to outsource numerous tasks related to Goods and Service Tax. We understand your business and provide you with the best possible advice for taxation.  

Compliance Outsourcing Companies

The increasing complications in compliance are the main reason behind the trend of outsourcing compliance. Compliance management is a priority for a business to survive. Because it can be problematic when ignored. And we’re sure that you don’t want to let this bother you in the long run. So there, we’re introducing outsourcing compliance.

Outsourcing Compliance

What is Outsourcing Compliance?

Outsourcing compliance is an act of allowing professionals to look into the chief functions of compliance. When a business organization outsourced the responsibility of identifying risk, actions for prevention, monitoring and detecting the activities, resolving the complication, and providing future advice on that, it is known as Outsourcing Compliance.

According to the surveys and reports, about 24% of business firms believe in outsourcing compliance. The reason being the in-house members lack the skills. And the firms need assurance about all their compliance requirements.

Why Outsource Compliance?

A large portion of business owners follows the trend of outsourcing compliance. A firm indeed wants to be sure about all the compliance activities.

However, there are reasons that make it a wise step:

•  It saves you time, and you can focus on generating more leads rather than compliance. 
•  It will save money because outsourcing compliance is available at a lower cost than what you may have to pay while doing everything by yourself. 
• Professionals will be performing all the activities.
• The professionals will always have updates on all the changes in rules and regulations.

When to Outsource Compliance?

Before deciding on it, first, you must know when to Outsource and when not to. Your in-house experts can also perform some compliance tasks. And there’s nothing wrong with that. After all, You need experts for resolving complications. 

Outsourcing compliance is a wise choice when a particular compliance task needs a unique approach, specific understanding, and expert knowledge.

Besides, when you want to have an all-time online system, you can go with the choice of outsourcing compliance.

Want to Outsource Compliance, but How?

You know the specific requirements of your firm. And you have decided the compliance to outsource. Now, the question is, how? Believe us. It is way too easy than you might be thinking right now.

For outsourcing compliance, all you need to do is send us a proposal with your message. And My Tax Advisor will get back to you within 24 hours.

And the best part is, apart from offering lite, basic, and standard packages, we also offer customized packages for outsourcing compliance.