Professional Updates

🔍 What is Section 194IB? Section 194IB mandates that individuals and HUFs who are not required to get their accounts audited must deduct TDS on rent payments , if the monthly rent exceeds ₹50,000 . ✅ Who Must Deduct TDS Under Section 194IB? Applicable To: Individuals or HUFs not liable for tax audit under Section 44AB. Applicable When: Rent paid to a resident landlord exceeds ₹50,000 per month . Nature of Property: Land or building (residential or commercial) 📊 TDS Rate Under Section 194IB 2% on rent if deducting since 01.10.2024 5% on rent if deducting before 01.10.2024 Activity Timeline TDS Deduction At payment or credit of rent for last month of tenancy/year Deposit of TDS Within 30 days from the end of the month of deduction TDS Return (Challan) Form 26QC (online) TDS Certificate to Landlord Form 16C , within 15 days of Form 26QC filing TAN Requirement ❌ Not required ⚠️ Important Points If landlord does not provide PAN , deduct T...

  Which exchange rate should i consider for conversion from USD to INR if i have sold shares listed in the USA? As per Rule 115 of the Income tax rule Exchange rate is decided as follows- the last date of the preceding month in which such capital gain is incurred. For example, if you sold shares on 15th Mar 2024, Then you need to use the 29th Feb 2024 exchange rate. Such exchange rate will be multiplied by the capital gain (U.S.D) to convert the value to INR. What Are RSUs? RSUs are stock-based compensation that vests over time based on predefined conditions, such as tenure, performance, or other company-specific criteria. Until the RSUs vest, the employee does not own the shares. Once vested, RSUs become taxable and can be sold at the employee’s discretion. Taxation of RSUs in India – Step-by-Step Guide Tax on Grant of RSUs At the time of grant, no tax liability arises since the employee does not have ownership rights yet. Tax on Vesting of RSUs RSUs are treated as a perquisite an...

When a foreign shareholder or director is involved in a Private Limited Company in India, there are additional compliance and documentation requirements under Indian laws, especially relating to FEMA (Foreign Exchange Management Act) , Companies Act, 2013 , and taxation . 🧾 1. KYC & Documentation for Incorporation For Foreign Director / Shareholder : Passport (Notarized & Apostilled / Consularized) – Mandatory identity proof Address Proof (Utility bill / Driving License / Bank Statement – Notarized & Apostilled) Recent Passport-size Photograph Email ID & Mobile Number DIN – Director Identification Number (to be applied, if not already available) Digital Signature Certificate (DSC) – To be obtained from Indian Certifying Authority 📌 All foreign documents must be notarized and apostilled (or consularized in case of non-Hague countries). 💼 2. FDI (Foreign Direct Investment) Compliance – FEMA Regulations If a foreign shareholder is brin...

 A Private Limited Company (Pvt Ltd) is the most popular and widely used business entity in India for startups and small to medium enterprises. It offers a perfect blend of limited liability protection and corporate structure, while ensuring ease of operations and investor confidence. ✅ Key Characteristics: Separate Legal Entity – Company has its own legal identity separate from its shareholders and directors. Limited Liability – Shareholders are liable only to the extent of their shareholding. Perpetual Succession – The company continues to exist irrespective of changes in ownership or management. Minimum 2 Directors & Shareholders – Required to start; maximum of 200 members allowed. Minimum capital – Can be started with Rs.100,000 as capital. 📋 Checklist for Incorporation of a Private Limited Company 🔷 Proposed Company Details Proposed Name(s) of the Company (Preferably 2–3 options) Complete Office Address Proof of Address of Registered Offi...

Incorporating a Private Limited Company (Pvt. Ltd.) in India involves several legal and procedural steps as per the Companies Act, 2013 . Below is a step-by-step guide detailing the process, required documents, and key considerations. ✅ 1. Basic Requirements for a Pvt. Ltd. Company Minimum Directors : 2 (at least one must be an Indian resident) Maximum Directors : 15 Minimum Shareholders : 2 Maximum Shareholders : 200 Registered Office Address : Mandatory at the time of incorporation ✅ 2. Digital Signature Certificate (DSC) All directors and subscribers to the Memorandum of Association (MoA) and Articles of Association (AoA) must obtain a DSC . Apply through certifying authorities (e.g., eMudhra, Sify, NSDL) Documents required: PAN card Aadhaar card Passport-sized photo Email and mobile number Time : 1–2 days ✅ 3. Director Identification Number (DIN) DIN can be obtained through the SPICe+ Form (explained later) for new directors. If th...

Overview of the newly issued GST registration guidelines aimed at reducing unnecessary hurdles and ensuring smoother processing 📋 Officer Conduct Instructions Follow document checklist in FORM GST REG-01 only. Do NOT ask for: Original physical documents Additional/unprescribed documents ⏱️ Application Timelines ✅ Not Risky & Aadhaar Authenticated: Within 7 working days ⚠️ Flagged / Aadhaar Not Authenticated: Within 30 days (includes physical verification) 👨‍💼 Principal Chief Commissioners to oversee and review processes regularly. 🏢 Documents for Principal Place of Business Type of Arrangement-->Documents Required Owned--> One valid document (e.g., electricity bill, tax receipt) Rented (Registered Agreement)-->Rent/lease agreement only – no lessor ID needed Rented (Unregistered)-->Rent/lease agreement + lessor’s ID proof Tenant has utility bill on his name-->Acceptable with rent agreement Other’s Property (e.g., Spouse)-->Consent letter + ownership proof + I...