New ITR filing date for A.Y 2019-20

New ITR filing date for A.Y 2019-20

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It was demanded to extend the due date of filing ITR because of last minute rush and also main factor was  TDS  statement issue was also delayed for A.Y 2019-20. On 23rd July, 2019 CBDT extended the due date of filing Income Tax Return of taxpayers whose due date fall on 31st July, 2019. Now the new due date shall be 31st August, 2019

Who is required to file ITR by 31st July, 2019 (now extended to 31st August)?

Individuals including salaried taxpayers and entities who do not need to get their accounts audited. 

Click here to Read About : who needs to get their account audited here.

What are the document checklist to file ITR?

-Form 16 received from your employer

-Bank statement during the relevant year if you have income other than salary and also to check interest from your saving bank account, as it is taxable too however you get tax deduction upto a limit for your saving bank account interest.

-If you have income from house property than again details of rent received during the relevant year, along with municipal taxes paid receipts

-Details of your tax aving investments like LIC, ELSS, Basic tuition fees paid for your children, any tax saving FD made during the year, donations eligible for tax benefits, medical insurance paid for yourself or parents and spouse.

-House loan email and interest paid details if any.

-If you are a proprietor and not required to get your account audited make sure your tax computation is calculated correctly so ensure you get the right tax consultant for the same. 

Income TAx Return Filing | ITR Due Date

Why should one approach a tax consultant to file ITR?

There is no doubt that you can login to the income tax and do the basic filing yourself. If you have income only from salary then you can file it yourself. If a salaried taxpayer do not have time they may approach a tax consultant who is not charging you hefty sum to file salary income tax return. However for those having income from capital gain, income from other sources, income from business- it is always recommended that they should approach a tax consultant. Because relying on not so efficient person to file your tax return will only put you in trouble. Income tax department is very strict and serves you with notice in few months if anything submitted is incorrect or you may even have to face late fees or interest if there is by any chance mistake in your tax computation.

Therefore why get served with notice and take hassle when you can now go to a tax consultant nearby you or approach a CA online through a reliable source. Choice is yours file return on time with help of consultant or get served with notice and face interest penalty by doing delay or making mistake by getting your itr filed through not reliable source.

Related Article- 7 Ways Salaried Individuals Can Save Tax

Know how to file ITR online and don’t wait till the last date.

File your ITR on time and live with peace!!

STATUTORY AUDIT

STATUTORY AUDIT OF FINANCIAL STATEMENTS OF COMPANY

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The audit is an independent examination of the financial statements of an organization by an auditor. It is conducted to ensure that the financial statements represent a true and fair view of the financial position of the organization. Auditor presents the independent auditor’s report to the stakeholders of the company. There are various types of audit which are conducted in India. However, some audits are mandatory and some audits are voluntary.     

Statutory Audit is a type of audit which is mandated by a Statute or Law to ensure a true and fair view of the financial statements of an organization is presented to the regulators and the public. Statutory audit is to be conducted by qualified Chartered Accountants who are independent of the Business. Further, the independent auditor’s report prepared by the Statutory Auditor on his/her findings must be presented in the format prescribed by the regulator.

  • Statutory Audits can be mainly classified into two types of audits i.e. company audits and tax audits.
  • Company Audit is governed by the Companies Act, 2013 and every company, irrespective of its turnover or nature of business or capital must have its book of accounts audited each financial year.
  • And, the books of accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs.40 lakhs or more or capital contribution of Rs.25 lakhs or more.
  • Tax audit, on the other hand, is required for a certain class of taxpayers who exceeded a certain threshold of turnover or receipts. Tax audit is governed by the Income Tax Act, 1961.
Company Registration

Statutory Auditor Appointment:

  • Statutory auditor appointment will be made for five years and form ADT-1 will be filed for a 5-year appointment. The company auditor appointment can also be made for a period of 1 year, renewable at each annual general meeting.
  • Although the appointment of statutory auditor is made for a term of five years, the company will have to place the matter for ratification at every AGM. Members will have to ratify the appointment of such Auditor in Every AGM by passing an Ordinary Resolution.
  • The first statutory auditor appointment is to be made within one month from the date of incorporation of the company in the first board meeting.

Related Blog – All you need to know about Company Registration as a startup

For audit services you can contact professionals through CAONWEB.

FAQS

What does a Chartered Accountant do?

A Chartered Accountant provides consultancy about accounting, taxation, auditing, and, other matters. He/she also conducts the audit of financial statements of your organization as per the applicable law and provides an independent auditor’s report. 

What is Auditing and why it is necessary?

Auditing is an independent examination of the financial statements of an organization by an auditor. It is conducted to ensure that the financial statements represent a true and fair view of the financial position of the organization and accurate financial information can be provided to the management, shareholders, and investors. He prepares the independent auditor’s report which contains the summary of the examination of financial statements carried by the auditor.

GST Registration

What is the maximum period for which an individual CA or a CA firm can serve a company as an auditor?

An individual CA can serve for a term of five years and a CA firm can serve for two terms of five years as an auditor to a Company.

What if at any AGM appointment of an auditor is not ratified by the members?

If the company auditor appointment is not ratified by the members of the company, The Board of Directors shall appoint another Individual or Firm as its auditor. It will be considered as casual vacancy.

audit service

Internal Audit Requirement Under Companies Law in India

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If we talk about audit compliance in India, You must be aware that every company shall appoint the auditor and get the audit of financial statement done every year. This shall apply irrespective of whether a company is newly established or whether an existing company is under loss. Today we will discuss the internal audit requirement under companies Law in India. what are an internal audit and its objective? Internal audit is the review of records and day to day operation of the business, It’s objective is to evaluate and improve the organizational activities from data entry to huge compliance. It covers everything basically. It helps reduce waste and utilize the potential of the organization.

To whom the law mandates this Audit compliance in India?

  1. Every listed company shall comply with internal audit requirement,
  2. For public unlisted companies

(i)    paid up share capital of fifty crore rupees or more during the preceding financial year; or

(ii) turnover(income) of two hundred crore rupees or more during the preceding financial year; or

(iii) outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point in time during the preceding financial year; or

(iv) outstanding deposits of twenty-five crore rupees or more at any point in time during the preceding financial year; and

  1. For private companies

(i) turnover of two hundred crore rupees or more during the preceding financial year; or

(ii)   outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point in time during the preceding financial year:

Provided that an existing company covered under any of the above criteria shall comply with the requirements of section 138 and this rule within six months of commencement of such section.

Audit service provider in India for internal audit as per law may be chartered Accountant, cost accountant or any other professional as may be decided by the Board. Therefore Chartered Accountants, Cost Accountants, Company Secretaries, Advocates and the like can be appointed as Internal Auditors.

Audit

What comes after incorporating a foreign subsidiary in India?

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Among several ways to bring foreign investment in India setting up a foreign subsidiary is the most popular and one of the best alternatives.  When we as consultants help our foreign client establish their business in India by incorporating a company in India, We always make sure that they have proper guidance on the compliance part such as audit of a foreign subsidiary in India. As a foreign subsidiary needs to comply with Indian laws it becomes very important for the legal entity in India to understand and comply with all the relevant compliances.

All types of company shall appoint auditor within one month of incorporation. The Board of directors is required to appoint the first auditor within 30 days of registration of company and in case of failure to do so, first auditors has to be appointed by members within 90 days at the EGM, however, such auditors have to vacate the position on conclusion of first AGM. Auditor’s consent and certificate has to be obtained by company explaining that such appointment is in compliance with the provisions of the Act and satisfies the criteria provided by law. Intimation of appointment has to be filed by the company with the Registrar within fifteen days of appointment by filing form ADT 1.

Accounting & Auditing Services

Regarding the audit service providers in India, One can reach out to consultants who are chartered Accountants. Audit service provider in India, audit of financial statements can only be done by qualified chartered accountant or a firm of chartered accountant. Every year the financial statement is prepared by the management of the company, which is then audited by the Accountants. Auditor express opinion on the financial statement of the company which is turns becomes very helpful. The feedback given could provide a good analysis of the business. It could help business in the operational strategy and many more.

Audit of a foreign subsidiary in India has to be done diligently as there could be several compliance that should be considered in business. It is very important for consultants to guide the clients in the best way. Because the miscommunication could cost the business. Any miscommunication means less clarity and the less clarity could result into breach in compliance, omission in compliance. And any omission or breach directly creates a negative impact for the business. The best way to smoothly operate is to have a basic understanding of laws and have open quality communication with your professional.

Summary: Audit of  any company including foreign subsidiary in India is mandatory under company laws. Additionally there are several audit to comply with buy corporates as specified by the law.

Company Audit

Cost of audit service in India

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Any company in India needs to get their accounts audited (statutory) on a mandatory basis. There are other audits such as tax audit and internal audit which has certain criteria on the basis of which it is decided whether these audits are needed. Individual practicing Chartered Accountants qualified to do the audit or a firm of chartered Accountants qualified to do audit shall be the company audit service provider in India. The cost of audit service in India depends on the size and volume of the work. One should always check the eligibility to be appointed the auditor of the company.

There are several benefits of the audit of the company. Major benefits are listed below

Good for your business:

Effective internal control to facilitate supervision and monitoring helps Prevent and detect irregular transactions, feedback on ongoing performance,  maintain adequate business records and to promote operational productivity. Internal audit prevents the risk of irregularity and fraud.

Risk of Misstatement:

Auditors assess the risk of material misstatement in a company’s financial statement. Without a system of internal controls a companies financial statements cannot be relied upon by stakeholders.

Fraud Prevention:

Internal audit is crucial for any business in fraud prevention. Recurring analysis of a company’s operations and maintaining rigorous systems of internal controls can prevent and detect various forms of fraud and other accounting irregularities. Audit professionals assist in the design and modification of internal control systems the purpose of which includes, among other things, fraud prevention.

Cost of Capital:

The cost of capital is important for every company, regardless of its size. Cost of capital is largely comprised of the risk associated with an investment, and if an investment has more risk, an investor will require a higher rate of return to invest. Strong audit systems can reduce various forms of risk in an enterprise

service-audit

Compliance to be followed by company in India in 2018

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Compliance to be followed by the company in India in 2018 

If you have incorporated a private limited company, you must read this as we speak about the mandatory compliance to be followed by you in the year 2018, You may be a startup or an existing business in India understanding all the compliance gets difficult alone, Experts such as chartered accountants advise is important in order to ensure that you are following the compliance and you avoid the penalties in future.

Below are the compliances for a private limited company:

1. Maintenance of accounts:

Every private limited company is required to maintain its accounting records at the registered address of the company.

2. Preparation of Balance sheet and its Audit:

The company has to prepare its balance sheet and profit and loss account which is then audited by an Auditor. Every company must appoint an auditor within one month of its incorporation. The main objective of the statutory audit is that auditor will inspect the accounts of the company and provide his opinion on fair and accuracy of the financial statement of the company. Caonweb helps companies with statutory audit through registered auditors.

3.   Annual return filing (ROC Filing)

Annual return filing is mandated by company laws. First points say about the audit being conducted by the auditor to express his opinion on true and fair view of the accounts of the company. Under annual filing details of accounts, directors, and shareholders is submitted to the registrar of companies.

A tax audit is required in specific cases only id turnover exceeds the prescribed limit. Caonweb gives free advisory on compliance requirements.

4. Tax audit

5.  Other compliance which is based on the events of company Like:

    • Loan to the directors
    • Appointment or change in auditor of the company
    • Change in paid-up capital of the company
  • Change in registered address of the company

It is always a safe and right option to take guidance of experts in compliance matters. At CAONWEB, we make it absolutely easy and safe for you. We connect clients directly to our professionals such as chartered accountants and company secretaries. Please ask questions on our discussion forum or online chat option or reach out to us through the call for any business advisory or services.