Income Declaration Scheme 2016

With the Income Tax Department discovering Rs. 43,000 crore of undisclosed income in the last two fiscal years and the problem of black money still prevalent in India, the Ministry of Finance on 11th of May introduced the Income Declaration Scheme 2016 in a bid to tackle the problem.
So, what is the Income Declaration Scheme 2016?
It is a one-time opportunity for people who have not paid full taxes, declared their income or investment in any asset representing unrevealed income in the past to disclose their income to the government between a compliance window of four months, starting from 1st June 2016 and ending on 30th September 2016. The tax, surcharge, and penalty have to be paid by 30th November 2016. This offers them the chance to clear their past offenses. In order to do so, they must pay tax (at 30%), KrishiKalyan Cess (at 7.5%), and penalty (at 7.5%) totaling to 45% of the total undisclosed income declared.
The benefits of the Income Declaration Act
The biggest advantage of this scheme for the declarant is exemption from penalty or inquiry under Income Tax Act and Wealth Tax Act in respect of declaration.
Immunity from prosecution under the Income Tax Act and Benami act 2016 to the regard of the declaration.
Immunity from Benami Transactions (Prohibition) Act, subject to the transfer of assets from the Benamidar to the real owner before 30.09.17. The Capital Gain Tax will not be levied on the Benamidar.
The declaration can be void due to the following reasons:
Misinterpretation or the suppression of the actual undisclosed income.
Nonpayment of the combined taxes by 30th November 2016
What happens in the case of non-compliance?
The effect of non-compliance can be severe. The department will issue any undisclosed income or undeclared assets in any year up to FY 2015-16 brought to notice. Penalty and prosecution of defaulters will take place accordingly.
What do you need to fill the forms?
To fill the form for Income disclosure, an assessee requires a valid PAN card and a registration in the e-filing portal.
BENEFITS OF THE SCHEME
In certain cases, depending on the facts, the tax rate can be 31% only or even less than that.
Complete secrecy of the information furnished by the declarant will be maintained by the Department. The same shall not be admissible as evidence in any other proceedings under the Income-tax Act.
Now, file income tax return with the help of tax experts at LegalRaasta.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 company registration, Nidhi company registration, IEC registration.

Government Announces Tatkal Option For Faster Registration Of Patents

With the current scenario, 2.75 Lakh patent applications are pending before the Indian government, the government has decided to introduce Tatkal option for faster patent registration. The government has decided to cut down the time period to two and half years immediately from the existing five to seven years. Applicants can opt for the Tatkal option by paying additional fees if they opt for India as first international search authority.
The purpose of introducing this option is to create India’s image as a patent filing hub so that outside companies can file in India. Keeping in mind the growth of startups, the government has opened this Tatkal option for them also. However, the additional fee for startups will be same as individuals. Under, Tatkal option the fee is fixed at INR 8000/- for startups and individuals while companies it may cost up to INR 60000/-
It has been claimed that about 10 % of the pending applications could be withdrawn with the initiation of this option. The government is trying its best to complete the process within 18 months. After which, the patent would be granted within next 12 months.
DIPP (Department of Industrial Policy & Promotion) has also introduced cases under which firms can ask for a refund of application fee if one withdraws the application. There are many applicants who filed for patent registration but did not show any interest in future. It might be because that after working for a year, they realized that their invention is not viable enough. Such applicants can withdraw their applications and the department will refund 90 % application fee. However, this modification will be applicable only to new applicants.
This modification came as a good news for Startups with innovative ideas because now they will be able to enjoy governmental benefits.
For patent registration or to file any kind of tax online such as income tax return, service tax return, TDS return, contact LegalRaasta.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 company registration, Nidhi company registration, IEC registration.

All You Need To Know About The Shops And Establishment Act

The basic definition of a shop is an outlet where goods are sold in retail or in wholesale, or services are provided whether online or in person. An establishment is any place (including a shop) which constitutes as a place of service. For example, commercial establishments, residential hotel, eating houses, theater, public places of entertainment, etc which provides employment to people and pays them a salary. The shop and establishment act was introduced in 1948.
The Shops and Establishment Act has been implemented in various states of India. It provide legal rights in the interest of the employees and employers working in the unorganized sector of employment and to oversee and regulate the working conditions
While there is not one uniform act which governs all the states, most states have their own model of the act.
The basic provisions of the act are as follows:
Registration of the shop/ establishment within 30 days of commencement.
All commercial establishments must adhere to The Weekly Holiday Act, 1942.
Communication of closure of the establishment within 15 days of the end of operations.
Specification of hours of work per day per week.
Specifies the opening and closing of the shopper day, closing days, national holidays and overtime work. Along the usual standard, shops cannot open before 7 AM and close after 8:30 PM.
States the rules for employing young persons, women and disabled persons in the shops. Minimum age of employee cannot be less than 14 years.
Lays down the minimum wages.
Specifies duration of sick leave, maternity leave etc
Rules for employment and termination of employment.
Specifies obligations for employers.
Specifies obligations for employees.
As a business owner, you need to register under the Shops and Establishment act. Follow the given guidelines to register for the same:
Application: Procure the prescribed application, duly fill it out and submit it to the local inspector along with the fee, within 30 days of commencement of business.
Fill information: It should contain the following information:
Name of the employer and the manager(if any)
Postal address of the establishment
Name of the establishment
Any other information prescribed
Finally, once the inspector has successfully verified the application, he/she will enter the details in the Registrar of Establishments and issue a certificate of the establishment to you. The license has a validity of five years after which it needs a renewal. Now apply for shop establishment license in India with the help of experts at LegalRaasta.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 company registration, Nidhi company registration, IEC registration.

Difference Between One Person Company And Sole-Proprietorship

Sole-proprietorship
The simplest form of business carried on by individuals who are personally liable for debts. A sole proprietorship is not a legal entity like a partnership or a corporation. One can start a business by obtaining necessary licenses and tax identification numbers. A sole-proprietor can start a business under his name or under a fictitious name. Costs are nominal to start this kind of business, however, the disadvantage lies with financial failure situation. If the business fails to earn a profit then creditors can file a lawsuit against sole-proprietor. Business liability can be discharged against his personal assets. Moreover, if the owner dies, there are little chances of survival. Expansion of business after a point becomes a tough job. The advantage is this kind of entrepreneurs need not enter into board meetings and annual meetings. Returns are signed under their name. They have flexible working hours.
One person Company (OPC)
The Companies Act, 2013 (No. 18 of 2013) introduced a new form of business, a hybrid of Sole-proprietorship and Company, by providing sole proprietors an opportunity to enter into a corporate world. It is treated as a private company only having a separate legal entity and limited liability. Only an Indian citizen and resident of India shall be eligible to incorporate ‘One person Company’. Nominee for One Person Company shall be an Indian citizen and resident in India. There must be a minimum one director, hence, a shareholder can himself be the sole director. A company may have 15 directors maximum. One person company shall have two Board of Directors meeting in a calendar year and the gap between these two meetings shall not be less than 90 days. A sole-proprietor can incorporate only one company of such kind and can be a nominee in one company. A minor cannot become member or nominee of One Person Company. One Person Company can never be converted into a company meant for not for profit. This company cannot carry Non-banking financial investment activities. They are not required to conduct Annual General Meeting. It loses OPC character if the paid-up share capital exceeds INR 50Lakhs or previous annual turnover exceeds INR 2Crore. It provides assistance to startup entrepreneurs. Annual return shall be signed by Director/Company Secretary. The setting up of OPC requires the lot of time and paperwork.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 company registration, Nidhi company registration, IEC registration.

Food Corporation Of India Receives 25000 Crore

Food Corporation of India
In this fiscal quarter, the Food Corporation of India received 25,000 Crore INR from Ministry of Finance for the second time.
Because of implementation of food safety legislation, the food department has faced a financial deadlock so the officials from the Department of Public Distribution wanted the funds to make its operations smoother and easier.
Earlier in April, the Central body of India already released 25,834 Crore to FCI as a subsidy. But due to outstanding bills, FCI was unable to manage all its bills. The next slot of the fund was to be received in July. FCI was also raising a short term loan about 30,000 Crore.In the past financial year, the government had initially allocated Rs 97,000 crore to FCI, which was later increased to Rs 1.12 lakh crore at the revised estimate stage. This helped bring down subsidy arrear to Rs 58,650 crore till March.
As told by the Department of Public Distribution, these funds with loans will serve as a sufficient requirement to take care of the Rabi procurement and expecting to receive around 300 lakh tons of wheat.
In 2015-16, the subsidy originally allocated was 97,000 Crore and this increased to 1,12,000 Crore by the revised norms which helped to clear arrears in the subsidy.
Food license is required for any kind of food business. FSSAI registration has been made compulsory. FSSAI license can be obtained online.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 company registration, Nidhi company registration, IEC registration.