Best Instrument for Tax Saving Investments

Best Tax Saving Instruments in India

The best investment schemes for savings taxes are three common choices for people seeking stable, reliable, and fixed returns on their investments to save tax. Three such investment alternatives that are taxable under Section 80.C of the Income Tax Act and that offer a permanent return are fixed bank deposits, post office time deposits and national saving certificates (NSC). For many investors, especially senior citizens, bank deposits continue to be the option of choice when it comes to investing money in a safe place.

Some top tax-saving instruments on basic main factors stability, liquidity, costs, transparency, and ease of investment, return and taxability of profits. Each factor was given equal weightage and the composite scores decided their position in the ranking.

  1. Fixed deposit 5 year Scheme(FD)

The five-year banks’ tax-saving FD scheme will serve you if you are a taxpayer who wants to benefit from your investment in the FD bank. Investing in the bank FD tax saver is subject to Section 80C and will therefore allow you to save your tax.

In the year of receipt, the interest received is completely taxable by the lender. The return on a 7% FD is about 4.82% for an individual paying 31.2% tax (the highest tax rate). Although the banking FD implicit guarantee is issued, the explicit guarantee is only up to Rs 1 lakh pursuant to the DICGC Act. The insurance is covered by the principal and interest received in each branch of a bank and is available for deposit.

The tax is now free for 60 percent of the corpus that can be removed when retired.

  1. National Pension Scheme(NPS)

The NPS has only become more appealing by the changing investment and tax laws. Firstly, at the time of retirement, 60% of the entire corpus can be withdrawn tax free. Secondly, the active option of NPS is now open for investors to assign up to 70% to shares. You will stay invested until you are 70 and the withdrawals can be increased. In three separate parts, NPS will help save revenue. The deduction under Sec 80C is valid for donations up to €1.5 lakh. The Sec 80CCD requires additional deductions up to Rs 50000 (1b). If you have up to 10% of your basic NPS pay, your employer will not be subject to taxes on that amount. The tax is now free for 60 percent of the corpus that can be removed when retired.

  1. Senior Citizens’ Saving Scheme (SCSS)

For those over 60, the Senior Citizens’ Savings Scheme was the best tax-saving and the Budget of last year allowed it more appealing by offering an additional $50,000 interest income exemption to seniors. The total fiscal exemption for those over 60 is now Rs 3.5 lakh and over 80  Rs 5.5 lakh. The 8.7% of all SCSS small savings schemes provided by the SCSS is the maximum. The term SCSS is 5 years, which can be extended to another 3 years. But the cumulative investment cap of Rs 15 lakh remains. Furthermore, the scheme is mainly open for investors over 60. When the investor decides to retire willingly and does not take another job the minimum age is 58. An additional Rs 50,000 tax exemption for interest income is granted to senior citizens.

  1. Sukanya Samriddhi Yojana(SSY)

The Sukanya Samriddhi Yojana is a smart way to save for taxpayers with a daughter under 10 years of age. The interest rate will be 8.5 per cent until March and may adjust in April. A higher rate than the PPF is provided by the Sukanya scheme. Much like the PPF, the interest received is tax-free and the investment has an annual limit of around 1.5 lakh. In any post office or designated bank with a minimum investment of about 1,000, accounts can be opened. For a maximum of two children, a parent can open an account, but the combined investment in the two accounts cannot exceed ~ 1.5 lakh in a year. The best thing is that the account is opened on behalf of the infant and the gains from maturity have to be used for her education and marriage.

5. Insurance

Basically, Traditional policies are not likely to offer the insurance cover that an individual really wants. Experts claim that one should have at least 6-8 times his annual revenue covered. So, at the age of 30, anyone earning 50,000-60,000 a month should have a life insurance policy of approximately 40-50 lakh. The buyer would cost nearly 4-5 lakh per year for an endowment scheme providing a cover of 40-50 lakh. This is almost 60-70 percent of his overall earnings. A term cover for  Rs 1 crore, however, would cost him only Rs  7,000-8,000 a year, which will be just 1% of his income. When you go shopping for a tax-saving method this year, keep this equation in mind.

  1. Unit Linked Insurance Plan(ULIP)

Market-related products are basically a Unit Linked Insurance Plan. In the same way, the insured individual enjoys the benefits of both insurance cover and investment. The financial investment you have made under this policy is eligible for a tax deduction and helps your capital to grow effectively.

Ulips had a distinct tax advantage over mutual funds even before the tax on capital gains was revealed. Ulips offers investors not only equity funds but also debt and liquid fund options. It does not have any tax repercussions to turn from equity to debt or vice versa. Short-term debt fund income and fixed deposit revenue are charged at a marginal rate. After indexation, long-term capital gains from debt funds are taxed at 20 percent. But still, Ulips’s revenue is tax-exempt. The new Ulips introduced by insurance firms are cost-effective and compete with direct.

  1. Post Office Deposits of Time (POTD)

In a post office, the post office time deposit (TD) is almost like a bank fixed deposit, except one can only deposit for 1 year, 2 years, 3 years, and 5 years. The deposit made for a five-year term is liable for the tax gain of Section 80C.

The interest rate is currently 7.7 percent per annum, payable monthly but compounded quarterly (January 1 to March 31, 2020). The interest gained is completely taxable and, as in the case of bank FD, should be added to one’s ‘income from other sources.

  1. National Certificates for Savings (NSC)

NSC’s term is also 5 years, but there is no way to get daily interest payouts, not even annual payments, unlike bank FD and PO Time Deposit. It is possible to have the amount invested in NSC only upon maturity.

The interest in NSC is taxable, but the interesting thing about NSC is that the interest accruing annually is considered to be re-invested within the first 4 years and thus qualifies under section 80C for tax benefit.

  1. Equity Linked Saving Scheme(ELSS)

The best way to save taxes is by ELSS tools. While the SIP window has closed for taxpayers who would have had to show evidence of Sec 80C tax-saving investments by now, experts say that before the 31 March deadline, one can still put money into ELSS funds in 2-3 tranches. It should be pointed out that not all ELSS funds bear the same risks. Some allocate more to small and mid-cap stocks, while others stick to big-cap stocks that are stable. Select the one that best suits your appetite for danger. ELSS funds have a three-year lock-in, the shortest of all tax-saving options. For young taxpayers, ELSS is the perfect way to save income. With monthly SIPs, they can stagger their investments.

  • Public Provident Fund

After a sustained increase in bond yields, PPF prices were hiked in October 2018. In the third quarter of 2018-19, although bond yields subsequently decreased, PPF rates remained unchanged. Advisors claim PPF is a safe bet since the interest is tax-free, offering a distinct advantage over fixed deposits to the small savings scheme. FDs’ interest is entirely taxable, taking returns in the largest tax bracket down to just 5 percent. Advisers also caution against bingeing on the instruments of fixed income.

On protection, flexibility, and ease of investment, PPF scores high. In a post office or specified bank branches, an account may be opened. Opt for a bank that enables the account to be accessed online.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GSTN enable details to be auto-populated in E-invoice into GSTR-1

GSTN enable auto-populated in the E-invoice information into GST Return -1

www.carajput.com; GST E-Invoicing

www.carajput.com; GST E-Invoicing

GSTN made aware on 13 Nov 2020 that the details of the E-invoice would be auto-populated in GSTN-1. The document in its full is as follows:

  1. Some informed taxpayers must plan and file their invoices by receiving an Invoice Reference Number (IRN) from the Invoice Registration Portal (IRP) (commonly referred to as ‘e-invoices’).
  2. Upon the effective generation of IRN, the descriptions of such e-invoices will be auto-populated in the respective GSTR-1 tables. Information of available e-invoices for auto-population along with auto-population status can also be downloaded as an excel file. For this purpose, certain tabs/labels are added to the GSTR-1 dashboard and screens (Those taxpayers for whom e-invoicing is not applicable may ignore these changes).
  3. For the duration in the month of October 2020, the details of the e-invoice will be issued on a gradual basis from 13 November 2020. The processing of the e-invoices/IRNs generated until 31 October 2020 is supposed to take up to 10 days.
  4. The processing of documents dated Oct 2020 has no effect on the filing of GSTR-1 for October. Taxpayers are suggested not to wait for self-population, but to file GSTR-1 for October, on their own (if it hasn’t already filed). But you may download the details of the October-dated documents via the excel file: ‘Download details from the e-invoice (Excel)’ button (available at the bottom of the GSTR-1 dashboard).
  5. Taxpayers are needed to check the below documents in excel & to share feedback on the GST Self Service Common Portal, below:
  • All of the specifics of the document are correctly stored
  • The status of each e-voucher/IRN is correct
  • All documents reported to the IRP are in excel.
  1. For the period of November 2020, the produced e-invoices (i.e. memos dated the month of November) will be auto-populated into GSTR-1 on an incremental basis and the whole month process will be done by 2 Dec, 20 (i.e. on a T+2 basis).

https://carajput.com/learn/einvoices-details-are-autopopulated-in-the-respective-gstr1-tables.html

The Below fields must be mandatory be declared in an e-invoice:  

Sl. no. Name of the field Particular List of Choices/ Specifications/Sample Inputs
1 Document Type Code Type of document must be specified Enumerated List such as INV/CRN/DBN
2 Supplier_Legal Name The legal name of the supplier must be as per the PAN card String Max length: 100
3 Supplier_GSTIN GSTIN of the supplier raising the e-invoice Max length: 15  Must be alphanumeric
4 Supplier_Address Building/Flat no., Road/Street, Locality, etc. of the supplier raising the e-invoice Max length: 100
5 Supplier_Place Supplier’s location such as city/town/village must be mentioned Max length: 50
6 Supplier_State_Code The state must be selected from the latest list given by GSTN The enumerated list of states
7 Supplier Pincode The place (locality/district/state) of the supplier’s locality Six digit code
8 Document Number For unique identification of the invoice, a sequential number is required within the business context, time-frame, operating systems, and records of the supplier. No identification scheme is to be used Max length: 16 Sample can be “ Sa/1/2019”
9 Preceeding_Invoice_Reference and date Detail of original invoice which is being amended by a subsequent document such as a debit and credit note. It is required to keep future expansion of e-versions of credit notes, debit notes, and other documents required under GST Max length:16 Sample input is  “ Sa/1/2019” and “16/11/2020”
10 Document Date The date when the invoice was issued. However, the format under explanatory notes refers to ‘YYYY-MM-DD’. Further clarity will be required. Document period start and end date must also be specified if selected. String (DD/MM/YYYY) as per the technical field specification
14 Recipient’s State Code The place of supply state code to be selected here Enumerated list
15 Place_Of_Supply_State_ Code The state must be selected from the latest list given by GSTN An enumerated list of states
20 Shipping To_State, Pincode and State code State pertaining to the place to which the goods and services invoiced were or are delivered Max length: 100 for state, 6 digit Pincode and enumerated list for code
21 Dispatch From_ Name, Address, Place and Pincode Entity’s details (name, and city/town/village) from where goods are dispatched Max length: 100 each and 6 digit for Pincode
25 HSN Code The applicable HSN code for particular goods/service must be entered Max length: 8
26 Item Price The unit price, exclusive of GST, before subtracting item price discount, can not be negative Decimal (12,3) Sample value is ‘50’
27 Assessable Value The price of an item, exclusive of GST, after subtracting item price discount. Hence, Gross price (-) Discount = Net price item, if any cash discount is provided at the time of sale Decimal (13,2) Sample value is ‘5000’
28 GST Rate The GST rate represented as a percentage that is applicable to the item being invoiced Decimal (3,2) Sample value is ‘5’
29 IGST Value, CGST Value, and SGST Value Separately For each individual item, IGST, CGST and SGST amounts have to be specified Decimal (11,2) Sample value is ‘650.00’
30 Total Invoice Value The total amount of the Invoice with GST. Must be rounded to a maximum of 2 decimals Decimal (11,2)
16 Pincode The place (locality/district/state) of the buyer on whom the invoice is raised/ billed to must be declared here if any Six digit code
17 Recipient Place Recipient’s location (City/Town/Village) Max length: 100
18 IRN- Invoice Reference Number At the time of the registration request, this field is left empty by the supplier. Later on, a unique number will be generated by GSTN after uploading of the e-invoice on the GSTN portal. An acknowledgment will be sent back to the supplier after the successful acceptance of the e-invoice by the portal. IRN should then be displayed on the e-invoice before use. Max length: 64 Sample is ‘a5c12dca8 0e7433217…ba4013 750f2046f229’
19 ShippingTo_GSTIN GSTIN of the buyer himself or the person to whom the particular item is being delivered to Max length: 15
11 Recipient_ Legal Name The name of the buyer as per the PAN Max length: 100
12 Recipient’s GSTIN The GSTIN of the buyer to be declared here Max length: 15
13 Recipient’s Address Building/Flat no., Road/Street, Locality, etc. of the supplier raising the e-invoice Max length: 100
22 Is_Service Whether or not the supply of service must be mentioned String (Length: 1) by selecting Y/N
23 Supply Type Code Code will be used to identify types of supply such as business to business, business to consumer, supply to SEZ/Exports with or without payment, and deemed export. The enumerated list of codes Sample values can be either of B2B/B2C/ SEZWP/S EZWOP/E XP WP/EXP WOP/DE XP
24 Item Description Simply put, the relevant description generally used for the item in the trade. However, more clarity is needed on how it needs to be described for every two or more items belonging to the same HSN code Max length: 300 The sample value is ‘Mobile’ The schema document refers to this as the ‘identification scheme identifier of the Item classification identifier’
  1. Comprehensive advice on self-population methodology etc is made available on the GSTR-1 dashboard (‘e-invoice advisory’) and e-mailed to the relevant taxpayers.

You may like a few other posts 

GST Return compliances calendar- Nov 2020

SALIENT FEATURES OF NEW GST SYSTEM IN INDIA

Key points of 42nd GST council Meeting headed By FM N. Sitharaman

GSTN enable auto-populated in the E-invoice information into GST Return -1

Delayed in payment of GST then Intt to be paid on net GST liability from Sep 1, 2020.

Rajput Jain and Associates 

Reference link: https:/www.gst.gov.in/newsanddates/read/414

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Kind of business structures can be made in India

Kind of business structures for setting up an entity in India 

www.carajput.com; Business structure in India

www.carajput.com; Business structure in India

The most important thing to do when beginning your own company is to comply with the legal requirements to ensure the safe functioning of your business enterprise. Registration of a corporation is the first step in the process that gives you legal permission to operate a business. It requires compliance with a set of regulations set out in the Companies Act.

Company incorporation is the primary method that all company owners need to conduct. The Companies Act 2013 sets out the various forms of companies that can be established in India.

So before you move on to the company registration process, take a look at the various types of companies in India that you can register.

https://carajput.com/learn/company-registration-services-in-india.html

1) One Person Company

One Person Company is the new entrant to various types of companies registered in India. It was implemented under the Companies Act 2013 for the benefit of entrepreneurs who have the capacity to operate a company on their own but successfully. The minimum paid-up capital of the shares in the OPC shall be INR 1 Lakh.

List of following details or documents are required for the One Person Company Registration

FOR THE REGISTERED OFFICE

  • Copy of Latest bank statement or mobile bill or phone or gas bill. or electricity
  • Copy of Notarized Rental Agreement.
  • Copy of NOC from the property owner.
  • Copy Sale Deed/Property Deed in English (for the owned property).

List of below documents required to Submitted by OPC member

  • Copy of PAN Card or passport (Foreign Nationals and NRIs).
  • Copy of Aadhar Card/ Voter’s ID/Passport/Driver’s License.
  • Copy of current Bank Statement or Telephone or Mobile Bill or Electricity or Gas Bill.
  • Copy of passport-sized photo.
  • Copy of Specimen autograph or impression.

This latest addition to the various kind of companies in India was a welcome change in India, as it allowed a single individual to take over the affairs of the company, while other types of companies needed at least two persons to serve as representatives of any company.

It is very useful for small businesses that do not need partners. Much in the same way, One Person Company is considered to be a separate legal body from its members. Shareholders here have limited liability rights and this type of business is easy to incorporate.

https://carajput.com/learn/the-rules-for-incorporation-of-the-one-person-company.html

2) Sole Proprietorship

Sole Proprietorship is a kind of company registration in which a single individual controls the entire business management. The Proprietorship and the owner shall be regarded as one identity and shall bear himself the benefit or loss made therein.

List of below documents required for Sole Proprietorship

  • KYC documents of the Bank.
  • Utility Bill of the business place.
  • A license issued through the Shops and Establishment Act.
  • Income Tax Returns of the Proprietor.
  • Any 2 of the documents could be submitted for the Bank Account opening with the Identity and Address Proof of the proprietor.

The Business in Proprietorship is registered only on behalf of one single Individual. All accounting shall be conducted on the owner’s account for income tax and GST compliance purposes under the pan no of the owner. In this scenario, the owner must bear unlimited business liability.

(3) Partnership

This is one of the different types of firms where company deals and transactions are done by partners. The legal partnership agreement specifically specifies the obligations, positions, and number of shares withheld by the two parties.

List of following details or documents are required for the partnership firm Registration

  • The date when each partner joined the corporation.
  • The complete names in full & addresses of the partners.
  • The place or principal place of business of the corporation.
  • The names of any other places where the partnership carries on the entity
  • The duration of the partnership and other details as below
    • Proof of ownership or rent/lease of the location of the business.
    • PAN Card copy of partners.
    • Aadhaar Card/ Voter identity card Copy.
    • required a Statement in Form 1 with the prescribed fees.
    • Notarized True Copy of the Partnership Deed declaring:
    • Name of the firm.
    • The nature of the business of the corporation.
  • The Statement should be signed by all the partners of the corporation and need to be verified by affidavit in a specified manner.
  • As specified in the agreement, the gains or losses sustained by the company are split among the partners.

(4) Limited Liability Partnership (LLP)

The Limited Liability Partnership includes a minimum of 2 partners. It is also a recently launched corporate business arrangement that incorporates the words ‘Company’ and ‘partnership firm.’ The LLP is a distinct legal entity that distinguishes among relationships and personal & business properties.

https://carajput.com/learn/limited-liability-partnership-llps-requirements-at-the-time-of-incorporation.html

List of following details or documents are required for the LLP Registration

Documents required by Limited Liability Partnership:

  • Proof of the address of the registered office: proof must be given during registration or within 30 days of its incorporation. A tenancy contract or No Objection Letter from the landlord must be sent to the registered office for leasing.
  • The liability of the partners shall be determined by the number of their share capital. Compared to Sole Proprietorship and Partnership, the Limited Liability Partnership is more trustworthy among its investors. This is due to the proper maintenance of incorporation documents, financial records, and tax records.

Below Documents required from the partners of Limited Liability Partnership:

  • Copy of Current bank statement, phone bill, telephone bill, or gas bill must be submitted as proof of residence by the Partners.
  • Copy of Partners must also have a photo of their plan background passport size.
  • Copy of PAN card or ID Partner proof.
  • Copy of Address proofs of partners, such as Voter ID, Passport, Driver’s License, or Aadhar Card. Proof of identities, such as a driving license, bank statement, residence card, or any government-issued identification card that contains an address, is necessary for all foreign nationals who wish to register as a partner in the Limited Liability Partnership.
  • Copy of Passport is required for NRIs. and foreign nationals.

(5) Private limited company

A Private Limited Company is a privately owned company registered for small companies. According to the requirements of the Companies Act 2013, a minimum of 2 members and a maximum of 200 members may be members of a corporation. In this type of business, there is a group of shareholders, and the total capital is composed of shares owned by each member.

Below details and documents required for Private Limited Company Registration

  • Aadhaar Card/ Voter Id card copy of directors.
  • Rent agreement copy (for the rented property).
  • PAN Card copy of directors.
  • Scan copy Property papers (for the owned property).
  • Attached Landlord NOC.
  • Copy of Electricity/ Water bill (Business Place).
  • Copy of Passport size photo of directors.

In a private limited company, the liability of the shareholders is limited to the number of shares owned by the members. Company assets and personal assets shall be handled separately. Shares of a private limited company can be sold or transferred to persons who in turn, become shareholders of the company. Shares, however, cannot be publicly traded. Private Limited Company could be further listed as:

www.carajput.com; Company Structure

www.carajput.com; Company Structure

(a) Company limited by shares

It is the most general type of a private limited company. Here the liability of the shareholders is limited by a memorandum to the amount, if any, not paid on the shares owned by themselves.

(b) Company Limited By Guarantee

In this form of a private limited company, the liability of the shareholders is limited by the memoranda to the amount that the members may contribute to the company’s assets in the event of bankruptcy.

(c) Unrestricted Business

There is no limit to the liability of the members in this type of company. This ensures that in the case of a loss if the assets of the corporation fall short of paying off the creditors, the private assets of the owners are then consumed for debt relief. The risk factor here is exceptionally high.

https://carajput.com/learn/benefits-of-a-private-limited-company.html

6) Section 8 Company

This form of company registration is a non-profit organization (NPO). The purpose of the NPO is primarily to promote the arts, trade, and different aspects of social welfare in the form of education, charity, religion, and environmental protection, to name but a few. Any income, if produced, shall be used here for the achievement of the aforementioned purpose. Dividends shall also not be charged to their shareholders.

List of following details or documents are required for the Section 8 Company registration

For the Registered Office

  • Copy of Latest bank statement or mobile bill or phone or gas bill. or electricity
  • Copy of Notarized Rental Agreement.
  • Copy of NOC from the property owner.
  • Copy Sale Deed/Property Deed in English (for the owned property).

Below details and documents required for Section 8 Company limited registration

  • Copy of Aadhaar Card/ Voter Id card copy of directors.
  • Copy of Rent agreement copy (for the rented property).
  • Copy of PAN Card copy of directors.
  • Copy of Property papers (for the owned property).
  • Copy of Attached Landlord NOC.
  • Copy of Electricity/ Water bill (Business Place).
  • Copy of Passport size photo of directors.

https://carajput.com/learn/nongovernment-organisation-management.html

7) Public Limited Company

Public Limited Company shares can be owned by the general public. The company must have three directors and a minimum of seven shareholders. There is no limit on the number of shares in the Public Limited Company.

Below details and documents required For Public Limited Registration

  • Aadhaar Card/ Voter Id card copy of directors.
  • Rent agreement copy (for the rented property).
  • Attached Landlord NOC.
  • Copy of Electricity/ Water bill (Business Place).
  • Copy of Passport size photo of directors.
  • PAN Card copy of directors.
  • Scan copy Property papers (for the owned property).

The shares are listed on the stock exchange and can be freely exchanged. These corporations are owned by their founders. Companies in this group need a ROC certificate before beginning their business operations.

www.carajput.com; Company Structure

www.carajput.com; Company Structure

In India, no enterprise registration can be considered as a company unless it is registered with the company registrar under the Companies Act 2013. Only after incorporation does a corporation become a distinct legal entity from its owners.

Business registration is therefore an important and vital step in realising your dream of being a prosperous entrepreneur. Use this information and get started!

What is Process Private Limited Company Registration in Delhi?

www.carajput.com; Company Structure

www.carajput.com; Company Structure

  • We must apply to the DSC for the Private Limited Company Registration in Delhi.
  • The next step must apply for the DIN for the Private Limited Company Registration in Delhi.
  • Next step we must apply for approval by the ROC of the Pvt Limited Company Registration in Delhi.
  • Next step we must apply for registration with the latest SPICe Plus forms for registration of a Pvt limited company in Delhi.
  • Get the Registration Certificate (COI) after completion of the registration process of the company.

Here seem to be a couple more posts relevant to business registration for the purpose of brushing up your knowledge:

Also, read the below-mentioned link for a better understanding

Everything Know about company fresh start scheme,2020

Process of Company Registration in India

Know about Companies act, 2013

Requirement pf PAN for company Incorporation for foreign nationals

Mandatory compliance of Private Limited Company

Business Setup in India

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Overview of Overseas investment by NBFC

Overview of Overseas investment by NBFC

www.carajput.com; NBFC

www.carajput.com; NBFC

NBFC has become an integral part of our financial sector in India. Now, NBFC is taking lead in the financial sector to fulfill the financial needs of the people along with banks.

One of the questions that arise in the context of NBFC is whether it can extend its operations abroad also?

The answer is yes, but it has to follow certain compliances for doing the same.

No Objection Certificate for Overseas investment by NBFC

NBFC’s proposing to make overseas investment must, first of all, obtain the “No Objection Certificate” (NOC) from DNBS from the regional office within whose jurisdiction the registered office of the NBFC is situated before making any kind of overseas investment.

Also, the application made for obtaining NOC must state the activities undertaken by the overseas entity.

Further, the NBFC is not allowed to make any direct investment in the overseas entity engaged in activities that are not approved under FEMA.

Opening of Branch/Subsidiary/Joint Venture/ Representative Office abroad by NBFC

An NBFC can open a Branch/Subsidiary/Joint Venture/ Representative Office abroad only with the prior approval of the RBI.

An NBFC cannot open such an office abroad without prior permission of RBI.

General Conditions for permission of RBI.

  • NBFC shall not invest abroad in the Non-Financial sector.
  • NBFC is not allowed to make any direct investment and activities/Sectors which are prohibited under FEMA.
  • NBFC can invest in those entities abroad whose core activities are regulated by the financial sector regulator in the host country
  • The limit for aggregate overseas investment by NBFC is a maximum of 100% of NOF
  • NBFC cannot invest more than 15% of its owned funds in a single entity overseas including its step down subsidiaries, either by way of equity or in fund based commitment.
  • multi-layered, cross-jurisdictional structures should not be involved in Overseas investment, only a single immediate holding company is permitted
  • NBFC must maintain required NOF even after making o=investment overseas
  • The net NPA of NBFC should not be more than 5% of net advances
  • NBFC should be profit-making during the last three years before making overseas investment
  • FEMA regulations in place must be complied with by NBFC while making overseas investment
  • If NBFC holds any public deposit then it must comply with regulatory compliances as applicable.
  • KYC Norms must be complied with by NBFC
  • SPVs set up abroad or acquisition abroad shall be treated as investment or subsidiary/joint venture, depending upon the percentage of investment in an overseas entity
  • NBFC shall submit an Annual certificate with the regional office of the RBI regarding compliance with these guidelines
  • NBFC shall also submit a quarterly report with the regional office of the RBI and Department of Statistics and Information Management (DSIM) regarding overseas investment
  • RBI can withdraw the permission if any adverse features came to the notice of RBI relating to this transaction.

Read why RBI cancels the NBFC Registration?

 Opening of branch office of NBFC – Some specific Conditions

NBFC shall not be allowed to open a branch office abroad. But existing NBFC which has already set up their branches for financial business abroad can carry on operating those branches subject to compliance with the above guidelines.

Opening of a subsidiary abroad of NBFC – Some specific Conditions

NBFC must comply with the above conditions for opening a subsidiary abroad, apart from that the following shall also comply:

  • The parent entity shall not provide any guarantee, either implicit or explicit on the overseas subsidiary’s behalf
  • NBFC cannot give any letter of comfort on an overseas subsidiary’s behalf
  • NBFC liability shall be restricted to equity or fund based commitment in overseas subsidiary
  • The overseas subsidiary must not be a shell company.

Note: Subsidiary undertaking financial consultancy and advisory services with no significant assets shall not be considered as shell companies;

  • Overseas Subsidiary shall not be used as the vehicle should be used as a model for creating an asset in India for Indian operations
  • The parent company must obtain a periodical report/audit report from an overseas subsidiary and submit it to RBI for inspection
  • RBI can review/recall approval, in case the overseas subsidiary is not having any operations or not providing a periodical report
  • The permission granted for setting up of overseas subsidiary shall be subject to the condition that the subsidiary company shall disclose in its balance sheet that the liability of the parent entity is limited to either equity or fund based commitment.
  • The overseas subsidiary operations shall be subject to host country regulations

 Opening of Representation office abroad of NBFC – Some specific Conditions

The NBFC can open a representative office abroad for liaison work, undertaking market study and research.

It shall be noted that representative office abroad cannot undertake any activity which involves an outlay of funds.

The representative office shall be subject to regulation by the host country

The parent NBFC shall also obtain periodical reports from such representative office abroad and if not provided the approval may be recalled or reviewed by RBI.

RBI may also recall or review the approval of the representative office is not carrying on any operations abroad.

Read about NBFC-MFI in India

FAQ’s on Overseas investment by NBFC

Q 1 Is there any permission required by NBFC for making the overseas investments?

Ans Yes, NBFC Is required to obtain NOC from RBI before making any overseas investment.

Q 2 is it mandatory for overseas branch/ subsidiary to comply with host country regulations along with compliance of RBI regulation for the Parent company?

Ans. Yes, the overseas entity must comply with the host country laws.

 Q 3 Can RBI recall the permission given for overseas investment/opening of offices abroad?

Ans. Yes, in case the overseas entity does not have any operations or is not providing a periodical report to the parent entity, then RBI may recall or review the approval.

Q 4 Can NBFC make overseas investments in the Non-Financial sector?

Ans No

The blog is posted by CS Akshay Gupta expert of RAJPUT JAIN & ASSOCIATES

CS Akshay Gupta is a diligent and innovative qualified Company Secretary, striving in matters related to Corporate Law. Akshay takes a deep interest in corporate, NBFC and FDI matters and his specialization includes corporate Compliance, FEMA Compliances, and NBFC Registration. As a Company Secretary, Akshay is passionate about matters relating to corporate funding, NBFC, and its compliances.

Don’t Worry! Our experts are here to help you. Get in Touch with our team for easy filing of SMF Form FCGPR.

Write to RAJPUT JAIN & ASSOCIATES  or call us on 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

How to reduce your Loan burden smartly?

How to reduce your Loan burden smartly?

www.carajput.com; Personal Loan

www.carajput.com; Company Strike off

As the name suggests, a top-up credit is advantageous to the applicant well above the previously existing debt. The tenure period for such advancement usually varies from 5 to 10 Yrs. Banks include borrowers who have a current home loan or personal loan with this kind of advance. Well, it is easy to use these loans, but banks have certain conditions for accepting this form of a loan. If your bank does not offer top-up loans, you can select a payment method with a lender that also provides a top-up loan. You need to be consistent for your current loan payments to get accepted for the same kind of top-up loans and you can do so with a unique amount of Equated Monthly Installments. For those that have current loans and are searching for monetary assistance at the same time, top-up loans are best. It will satisfy all of your criteria for personal and short-term business. It’s cheaper than most loans for corporate use.

Characteristic of a top-up loan

www.carajput.com; Top-up Loan

www.carajput.com; Top-up Loan

  • The credit amount authorized for your top-up loan will be decided by your pending home loan / personal loan.
  • Your debt experience plays a great part in your top-up loan acceptance for the current loan and your CIBIL.
  • Top-up loans are normally available at the same interest rate as you have your existing loan.
  • The duration can vary from five to ten years if it’s a home loan top-up, and if it’s a personal loan top-up, the duration can go up to two years.
  • Only if you have a current home loan or personal credit facilities from the same provider then you can qualify for a top-up loan.

Home loan tops are normally only given for housing construction, repair, purchasing, etc., while a personal loan top-up may be used for multiple criteria, including-

  • When you are searching for a short term finance solution for your business needs.
  • When you are searching for low-interest rates with long-duration resources.
  • To cover your wedding costs, holidays, etc.
  • When you need immediate funds to deal with your personal requirements.
  • A loan with limited paperwork is required.

Various factors and advantages of a top-up loan

  • It may be used for a number of professional or personal purposes.
  • The reasonable interest rate in comparison with other commercial loans.
  • The easy option for repayment.
  • Minimum paperwork and fast loan processing are expected as you already have an existing link with the lender they previously have your information.
  • Longer-term of loans

Way out of reducing your burden of loan efficiently 

www.carajput.com; Loan Burden

www.carajput.com; Loan Burden

Loans are, without a doubt, one of the most essential elements of life. Many of us have taken advantage of this to solve the financial crisis we face from time to time. Loans, however, may also prove to be a liability since they need to be repaid within a defined time period and with interest. With careful management, though, one can easily reduce the load pressure and lead a life that is essentially stress-free. Go through the write-up and learn for yourself some of the ways to smartly reduce your loan load.

1.Loan modification offers a great choice

Loan modification or the transfer of the balance will not only decrease interest but will also greatly minimize the loan burden. It implies that for a new loan that can be used by the same lender or some other one, one can pay off the current loan. In situations where the borrower has an existing loan that he has used at a high-interest rate, unwanted terms, etc., refinancing will prove to be beneficial because various lenders offer the same loan in improved conditions. The creditor would have to file for a balance transfer with the new lender and choose for a loan modification, who would refund the money back to the former leader, who will then close his loan account when accessing his new account with the new lender.

2. In order to minimize loans, existing resources should also be used

Borrowers may use bonds to redeem their debt against savings such as Public Provident Fund, life insurance premiums, etc. It is worth noting here that the Public Provident Fund requires the lender to take advantage of the loan from the investment’s third financial year, which will then be repaid over the next three years. Up to 25% of the balance can be the maximum amount that may be taken as a loan from the Public Provident Fund. The interest charged on loans is 2 percent more than the existing Public Provident Fund interest rate. If one accepts the above points, so there would be no shadow of evidence that he will be able to repay his loan amount without any trouble, every time and in his life, there will be nothing like the loan burden.

3.Anytime appropriate, opt for pre-payment or part-payment

Pre-payment and part-payment allow the borrower to pay off the balance of the loan and the interest before the deadline stated. The pre-payment of the loan reduces the remaining principal balance, which reduces the EMIs in exchange. But on the other side, there are times that the applicant has a surplus number. He will then take this option to pay in half for the home loan. The principal balance is decreased by these conditional installments on the home loan and the EMIs and interest paid on it are reduced. The financial pressure on the applicant is minimized by both non- and part-payments. At the very beginning, it is necessary to explain whether the lender provides pre- and part-payment facilities or not.

4.Choose for reasonable cost Equated Monthly Installment

www.carajput.com; EMI

www.carajput.com; EMI

If the lender fails to the repayment of the regular EMI, his credit score gets a beating that destroys his record and adversely affects his potential borrowing opportunities. Thus it is important for him to choose for a reasonable cost Equated Monthly Installment that can be quickly repaid. One should obtain the aid of the online EMI calculator to know about the EMI that he will have to spend on the loan he plans to take. This will allow the creditor to consider the Equated Monthly Installment he would have to spend and whether he would be able to afford it.

5.Rising the amount of repayment with a rise in your earnings

If you’re earning increases, then it is suggested that you should also raise your monthly EMI amount. Doing that will make sure that the loan is clear before the specific timeframe and that you are free to take care of more essential items in life. If one needs to clear more than one debt, so he can first aim to clear the highest interest debt. On the other side, if one has established credit card debt as well, then he can make it known that the first.

https://carajput.com/learn/basic-impact-after-implication-of-gst-on-the-personal-loan.html

What is Credit Utilization Ratio?

For each credit bureau, the procedure of determining the credit score is different, but basically, the variables remain the same. Your payment background is the most significant aspect that decides your credit score. A lower credit score will result from any defaults on your EMI and credit card payments. The Credit Utilization Ratio is the second most relevant aspect taken into consideration when determining the credit score. Let’s see what makes this ratio so important and how we can keep it under control—

How to calculate the credit utilization Ratios?

www.carajput.com; credit utilization Ratio

www.carajput.com; credit utilization Ratio

The credit utilization ratio is the ratio, as a proportion, of the total balance you used on your credit card and the overall credit balance you were given. In a way, this calculation indicates the amount of credit you use, hence the term, the calculation of credit utilization Ratio.

What is the perfect Credit Utilization Ratio? 

An optimal ratio of credit utilization will be Zero.  However, since not having a credit card is not ideal for your credit score, you need to use your credit card from time to time, which means that a credit utilization ratio of 0 is not feasible. It is also prudent to try to keep the credit utilization ratio as low as possible and to manage it. Anywhere below 30 percent is a good credit utilization ratio. If you use less than 30 percent of your credit cap, possible investors will deem you a prudent borrower.

How to get lower credit Utilization ration

It is no rocket science to decrease and retain your credit utilization ratio. You just have to take a close look at the new credit management plans and, appropriately, make the required adjustments. Here are a couple of guidelines to support you do it—

  1. Increase in credit card limit

www.carajput.com; Credit card limit

www.carajput.com; Credit card limit

This one is rational sufficient. If you expect the ratio to decline, raise the fraction denominator. Your credit usage ratio will decline immediately as you increase your credit cap. In order to get notifications on the changes or improvements available on your credit card, call your credit card company. Invite them to lift the credit cap. If you have got a pay increase lately, etc., you will use it to get a higher credit cap.

  1. Get multiple cards

It benefits you in several ways to have many credit cards, but it goes with a key difference that you must be very alert about them. Only because you can, do not engage in overspending. When you plan to have many credit cards, distribute your payments among them so that your credit usage percentage can be reduced. To retain a decent credit score, make sure you pay the dues on all credit cards on time. Bonus: you should synchronize the billing times in order to take full advantage of the credit card grace periods.

  1. Decrease the use of credit card

This is pure mathematics. If you want to decrease the ratio, lower the numerator. Decrease the amount of money you use on your credit card if you can. Try to control your payroll payments and just use your credit card when you really use it or only to keep it in use. For some time, at least, before your ratio increases and your credit score finally increases.

So, that now you understand why this ratio is an important element in your credit score estimation, make sure you measure your credit score.

Also, Read the related link;

Impact of GST on Personal Loan

How to obtain Tax saving through Business Loan

RBI governor announces the highlight for reducing in rate for extends the loan relief

Regards

Rajput Jain & Associates

Rajput Jain and Associates Blogs has been selected by https://www.feedspot.com/ as one of the Top 30 Indian Tax and Accounting Blogs on the web.

https://blog.feedspot.com/indian_tax_and_accounting_blogs/

This is the most comprehensive list of Top 30 Indian Tax and Accounting Blogs on the internet and I’m honored to have you as part of this!  It is great that we are the Top 30 Indian Tax and Accounting Blogs in India.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

FEMA Compliance for FDI in Equity share in India

FCGPR – FEMA Compliance for FDI in Equity share in India

OVERVIEW

FDI Stands for Foreign Direct Investment (FDI) Reserve Bank of India has made regulations and issued certain notifications in relation to the receipt of Foreign Direct Investment (FDI) in India.

RBI has allowed the receipt of Foreign Direct Investment (FDI) by the way of the issue of capital instruments in India.

Further, the company receiving Foreign Direct Investment (FDI) has to make reporting of receipt of FDI in form FCGPR.

Form FCGPR is required to be filed in case the company is issuing equity shares, Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCD) to a person resident outside India.

What is FCGPR?

FCGPR stands for the Foreign Collaboration general permission route. RBI has specified Form FCGPR for making reporting of Foreign Direct Investment (FDI).

Whenever a Company issues equity shares, Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCD) in consideration of money received from a person resident outside India by way of Foreign Direct Investment (FDI), then the company needs to file FORM FCGPR using FIRMS Portal.

Time Limit for filing FORM FCGPR

www.carajput.com; time limit for FORM FC-GPR

www.carajput.com; time limit for FORM FC-GPR

Form FCGPR needs to be filed within 30days of allotment of shares / Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCD).

Reporting FORM FC-GPR

Applicable Regulation 

Inward remittance of Foreign Direct Investment (FDI) by a person resident outside India is regulated by Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017

Document Required for filing FORM FCGPR

The following documents shall be required for filing Form FCGPR:
1 Board Resolution for Allotment of Shares / Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCD)

2 Memorandum of Association of the company in case the shares are allotted for the subscription to the Memorandum of Association (MOA)

3 Foreign Inward remittance Certificate (FIRC) from AD Bank

4 KYC from AD Bank

5 Valuation certificate regarding the value of shares from the Chartered Accountant

6 CS Certificate in the prescribed format

7 Declaration by Authorised representative of the Company

8 Debit Authorisation for debiting charges from the Bank

9 Declaration regarding issue price by the directors of the Company

10 Reason for delay in submission, if any

Routes of Foreign Direct Investment(FDI)

FDI can be received by way of the following routes:

1 Automatic Route: where no approval is required for getting inward remittance from a person resident outside India.

2 Government Approval Route: There are certain sectors in which government approval is required for receiving inward remittance from a person resident outside India.

Prohibited Sector for Foreign Direct Investment(FDI)

A person resident outside India cannot make any Foreign Direct investment in any of the following sectors:

1 Lottery Business. It includes the Government / private lottery or online lotteries

2 Gambling and betting including casinos

3 Chit Fund (except for investment made by NRI’s and OCI’s on a Non – repatriation basis)

4 Nidhi Company

5 Trading in Transferable Development Rights (TDR’s)

6 Real Estate business or construction of Farmhouses

7 Manufacturing of Cigars, cheroots, cigarillos and cigarettes, tobacco or of tobacco substitutes.

Note: The prohibition is on the manufacturing of the products mentioned and foreign investment in other activities relating to these products including wholesale cash and carries, retail trading, etc. will be governed by the sectoral restrictions laid down in Regulation 16 of FEMA 20(R).

8 Activities/sectors not open to private sectors investment i.e Atomic energy and Railway operations

9 Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities.

Process for filing FORM FCGPR

The following process shall be followed for reporting of Foreign Direct Investment (FDI) in India:

Step 1: Registration for Entity User on Firms Portal

The company has first of needs to get the registration of Entity user on the FIRM’s Portal in case the reporting of FDI is being made the first time for the Company.

In the case of subsequent reporting, the company does not need to make any registration for entity users.

Documents to be attached: Authority letter in signed Format, PAN of Entity, and PAN of Authorised Representative of the company.

After registering an entity user, the concerned authority will check and verify the details and documents filed and after being satisfied, a Password will be sent to the registered email ID which needs to change.

www.carajput.com; Entity User Registration

www.carajput.com; Entity User Registration

Step 2: Creation of Entity Master

After registration of entity user, there needs to create an entity master by logging into the FIRM’s Portal using the User ID and Password as created in the entity user process.

The Company needs to fill all the details as required in the entity master form in the FIRM’s Portal and then click on “Submit”.

Step 3 Registration for Business User on Firms Portal

After the creation of Entity Master, the company needs to apply for business user registration.

One important point to be noted is that here in the business user form the company needs to select the IFSC Code of the AD Bank from the Drop Down. So, the company should confirm the IFSC Code to be chosen in the form in advance from the Concerned Bank.

Documents to be attached: Authority letter in signed Format, PAN of Entity, and PAN of Authorised Representative of the company.

www.carajput.com; Business User Registration

www.carajput.com; Business User Registration

Step 4 Reporting of FDI Received

The Last step is to make the reporting of remittance received from a person resident outside India. The company needs to fill in all the required details and attach the relevant documents as mentioned above while making reporting in this form and then submit the Form.

www.carajput.com; RBI

www.carajput.com; RBI

 

www.carajput.com; RBI

www.carajput.com; RBI

www.carajput.com; RBI

www.carajput.com; RBI

After filing Form FCGPR, the AD Bank or both AD Bank and RBI as the case may be will check the form and in case any discrepancy is found in the Form, then they will reject the Form giving the appropriate reasoning or otherwise they will approve the Form.

In case the form got rejected, then the company needs to file the Form again after removing all the discrepancies.

Consequences of late filing of FORM FCGPR

If the Company makes reporting of Foreign Direct Investment (FDI) after the period of 30 days of allotment of shares / CCPS / CCDs, then the Form will first be checked by the DA Bank and then AD Bank will send the form further to the Respective regional Reserve Bank of India.

Further, the Reserve Bank of India will either charge late submission Fees (LSF) or ask the Company to go for compounding for approval of Form FCGPR.

How Rajput Jain & Associates can Assist 

We offer all kinds of Consultancy, Compliances, and Registration Services in relation to Foreign Direct Investment (FDI) in India. We have impaneled various experts to provide the expert advisory, Registration, and Compliances services for Foreign Direct Investment (FDI) in India.

The services that we offer include in Foreign Direct Investment (FDI) in India are:

  • FEMA Compliances related to Foreign Direct Investment (FDI)
  • Reporting to RBI in relation to Foreign Direct Investment (FDI)
  • Drafting of documents for reporting to RBI
  • Valuation of shares
  • Advising various routes for remitting the money in India
  • ROC Compliances in relation to Foreign Direct Investment (FDI)
  • Liaisoning with AD Bank and RBI in relation to compliances and FDI matters

Frequently Ask Question(FAQ)

Q 1 Where we can make reporting of Foreign Direct Investment (FDI)?

Ans Reporting of Foreign Direct Investment (FDI) can be made online using FIRMS Portal.

Q 2 What is the Time limit for allotment of shares for FDI received in India?

AnsThe shares need to be allotted within 60 days of receipt of Foreign Direct Investment (FDI) in India.

Q 3 Do we require to file form FCGPR for issuance of Preference shares or debentures?

Ans Form FCGPR is required to be filed if the Preference shares or debentures issued are fully and compulsorily convertible in shares, otherwise, it would be treated as ECB.

Q 4 Do we require to file form FCGPR for partly paid equity shares?

Ans Yes, Form FCGPR is also required to be filed for issuance of partly paid shares.

ALSO REMIND RELATED LINKS

Reporting of FORM FC-TRS to RBI

Reporting FORM FC-GPR

FDI reporting through a single master

CS Akshay Gupta is a diligent and innovative qualified Company Secretary, striving in matters related to Corporate Law. Akshay takes a deep interest in corporate, NBFC and FDI matters and his specialization includes corporate Compliance, FEMA Compliances, and NBFC Registration. As a Company Secretary, Akshay is passionate about matters relating to corporate funding, NBFC, and its compliances.

Don’t Worry! Our experts are here to help you. Get in Touch with our team for easy filing of SMF Form FCGPR.

Write to RAJPUT JAIN & ASSOCIATES  or call us on 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Top Govt Scheme Launched for the Public & National benefits

Top Govt Scheme Launched for the Public & National benefits

Pradhan Mantri Matru Vandana Yojana

www.carajput.com;Parthan Mantri Matru Vandana Yojana

www.carajput.com; Parthan Mantri Matru Vandana Yojana

Pradhan Mantri Matru Vandana Yojana – PMMVY is a maternity support scheme provided by the Indian government, in which pregnant women and lactating women receive a cash reward of Rs. 5,000. The opportunity is given for the family’s first living child to meet the unique maternal and newborn health conditions.

Targets of Parthan Mantri Matru Vandana Yojana

The Government-run policy seeks to meet the following goals:

  • To offer benefits for the income loss in cash benefits, so that the mother can take sufficient rest before and after the first living child is born. It is a partial payout and is part of a deal to give the woman on average a cumulative amount of Rs. 6,000. After institutional distribution, the remaining cash reward (of Rs . 1,000) comes under Janani Suraksha Yojana (JSY).
  • Enhancing wellbeing promoting activity in pregnant women and mothers who are lactating.

The benefit of PMMVY especially giving to : 

www.carajput.com;Targets of Parthan Mantri Matru Vandana Yojana

www.carajput.com; Targets of Parthan Mantri Matru Vandana Yojana

  • For pregnant women and lactating mothers except those who are in routine jobs with the Central / State or Public Sector Undertakings (PSUs) or those who under some statute enjoy similar benefits.
  • For qualifying pregnant women and lactating mothers getting their pregnancy with the first child in the family on or after January 01, 2017.

The date and point of a beneficiary’s conception are counted for the date of her Last Menstrual Period (LMP), as shown in the Mother and Child Security (MCP) card.

How to enrol for a Pradhan Mantri Matru Vandana Yojana?

A recipient may only register for the programme within 730 days of their Last Menstrual Period (MP). Under the system the LMP reported in the MCP card is regarded as the Date of Pregnancy.

Process for getting benefit under PMMVY

A. Offline Process

Step 1: Qualifying women wishing to take advantage of maternity benefits under the scheme must register for the scheme at an Anganwadi Centre (AWC) or an authorised (government) health facility, whichever is the implementation department for that specific State / Union Territory. You must file within 150 days of LMP.

Necessary Documents:

  • Copy of Proof of Identity
  • Copy of the Bank / Post Office Passbook
  • An agreement/consent properly granted between the claimant and her spouse,
  • Duly filled out Form 1A
  • MCP-card copy

The application form can be accessed free of charge from the AWC / approved health centre, or downloaded from the Ministry of Women and Child Development website. For future documentation, the claimant should get an approval of registration from the implementing authority.

Step 2: After 6 months of pregnancy, the recipient may demand the second instalment of the benefit by submitting the properly filled Form 1B at the AWC / approved health care facility, along with a copy of the MCP card showing at least one Antenatal Check-up (ANC) and a copy of the Form 1A recognition slip.

Step 3: In order to assert the third instalment, the recipient must request a properly filled out Form 1C along with a copy of the childbirth certificate, ID evidence and MCP card indicating that the infant has earned the first cycle of CG, OPV, DPT and Hepatitis B immunisation.

B. Online Process

Step 1: Visit https:/pmmvy-case.nic.in and log in to the PMMVY software using authentication information from the facilitator of the scheme (AWC / approved health facility).

Step 2: To enrol under the program, click on the ‘Current Beneficiary’ tab by filling in the information as per the Beneficiary Registration Form (also called Application Form 1A). You should follow the instructions for filling out the form given in PMMVY CAS User Manual.

Step 3: After 6 months of pregnancy, log in to the PMMVY CAS app again and click on the ‘Second Update’ tab and fill out Form 1B according to the guidance in the user manual.

Step 4: After the child’s birth and completion of his/her first CG, OPV, DPT and Hepatitis B immunisation period, log in to the PMMVY CAS app and click on the ‘Third Update’ tab and fill out Form 1C according to the instructions given in the user manual.

See the ‘Offline Protocol for Availing Maternity Benefits under PMMVY’ segment above to know the documentation needed at each of the points.

Situations

A.       In the case of Miscarriage or still Birth

A recipient will be entitled to claim the remaining instalment(s) for a potential pregnancy in the event of a miscarriage or stillborn.

For example, whether the recipient had a miscarriage after earning the first cash reward payment, she will then be able to collect the second and third instalments for a subsequent birth.

B.       In the case of Infant Mortality

In the case of child mortality, a recipient will not be entitled under the programme to seek compensation if she had already received all the maternity benefit instalments under PMMVY.

KISAN VIKAS PATRA

www.carajput.com;KISAN VIKAS PATRA

www.carajput.com; KISAN VIKAS PATRA

Introduction

Kisan Vikas Patra (KVP) is an investment scheme in the form of certificates available at Indian Post Offices. It’s a small fixed rate investing plan intended to double the contribution over a specified period of time (124 months in the issue currently available). The scheme is established to enhance consumption and savings among the population over the long term. It is ideal for investors who are hesitant to take chances, have excess capital and are searching for guaranteed returns.KVP certificates may be obtained from select public sector banks as well as from India Post Offices, in compliance with the existing laws.

Varieties of KVP

  • Single Holder certification: Provided to an individual adult or on behalf of a minor
  • Joint A: Provided collectively to two adults. This is liable to the individuals or the person who survives until maturity
  • Joint B: Provided jointly with two adults and charged to either the owner of the survivor before maturity

Characteristics of KVP

Kisan Vikas Patra is a Government-scheme who provide fixed return and that produces secured dividends. The main characteristics of the Scheme are as follows:

  • Certificates are currently available in the Rs 1,000, Rs, 5,000, Rs 10,000 and Rs 50,000 variants.
  • Certificates are readily accessible at all Indian Post Offices and KVP Application forms can be found online as well as at Indian Post Offices and at some select banks.
  • The maturity period can vary on the basis of rate changes made by the ministry of finance. The maturity value is pre-printed on the issued certificate.
  • Kisan Vikas Patra can be moved quickly from one post office to another and from person to person.
  • Kisan Vikas Patra Account may be initiated with a minimum initial Rs.1000 deposit (in Rs.100 multiples);
  • There is currently no upper limit on contributions under the KVP.
  • According to terms and conditions, premature encashment permitted after two and a half years.

Eligible criteria for KVP

www.carajput.com;Eligible criteria for KVP

www.carajput.com; Eligible criteria for KVP

Eligibility conditions for investment in the KVP scheme are as follows:

  • In Kisan Vikas Patra, the Hindu Undivided Families (HUFs) and the Non-Resident Indians (NRIs) can not contribute.
  • The applicant must be an adult Indian citizen.
  • The parent/guardian can invest on the minor’s behalf

Advantages of KVP

KVP is not designed to target tax-savvy buyers. There are no tax deductions on the principal sum and the interest. But it also gives customers a few primary advantages. Some of the advantages are Explain here:

  • Kisan Vikas Patra can be used as collateral for receiving loans from banks at desired rates.
  • Long-term development of wealth as Kisan Vikas Patra helps you to remain invested for nearly 10 years and doubles your cash.
  • Transferable from person to person and from the post office to post office.
  • Ensured returns as a KVP certificate is a tool backed up by the government.
  • The customizable investing instrument, as KVP, does not have an upper limit.

Maturity Period of KVP

www.carajput.com;Advantages of KVP

As per the latest amendment of the scheme, the maturity period is 10 years and 4 months (124 months). The sum invested will return after the term of the scheme has been finished. For example: If an individual has spent Rs.10,000, at maturity he/she will get Rs.20,000 at the end of the maturity.

Documents needed to receive Kisan Vikas Patra

To get a KVP certificate, the Applicant must supply copies of the following documents:

  • Proof of identity for KYC process (Aadhaar card / PAN / Voter ID card / Passport / Driving licence)
  • Application Form for KVP
  • Proof of Address
  • Certificate of Date of Birth

Download form to apply for KVP

To request for a Kisan Vikas Patra certificate, you must submit the application form online or get that from the Post Office directly. You need to fill out and submit this form at the Post Office.

Points to be remembered;

  • The purchase amount must be specifically shown in the form below. Prevent cutting and rewriting
  • Please state the check no. on the form if you make the payment by check
  • Specify whether KVP is acquired on the basis of single or joint ‘A’ or joint ‘B’ subscription. Where bought jointly, state the names both of beneficiaries
  • The full name, date of birth and the nominee’s address (if any) must be specified on the form
  • On submission of the form, the KVP certificate shall contain the name of the applicant, the date of maturity and the sum of the maturity
  • The document should be forwarded to the Post Office’s corresponding Postmaster General, where it is submitted
  • Payments can be made via Cheque or Cash against the KVP form
  • If the beneficiary is a minor, Specify the date of his / her birth (DOB), the name of the parent, the name of the guardian

Transfer of Kisan Vikas Patra

1.Post office to another post Office

The Department of Post, India has provided consent to the move of a certificate from one post office to another for the comfort of subscribers.

To facilitate the transfer from the registered post office to some other post office, the account holder must fill out the KVP Transfer Form-B and send it to the registered post office along with all the documentation required:

              Records required for transfer of KVP Post Office:

  • Form B, properly filled and approved
  • Identity of proof (Aadhaar Card / PAN Card / Voter ID)
  • Address proof (Passport / Electricity bill / Water Bill / Bank statement)
  • Original certificate of KVP
  • Transfer confirmation certificate, signed by the account holder

2. One person to another person

The recipient must request a written application at the registered Post Office for the move of KVP Certificate from one person to another. In the following situations, the transfer is necessary-

  • Passing of a Deceased ‘s Certificate to his / her successor
  • From sole proprietors to mutual owners
  • From cooperative owners to sole proprietors
  • From beholder to statute magistrate

Calculation of maturity amount of Kisan Vikas Patra (KVP)

  • A detailed description of the measurement of the maturity and interest rates under Kisan Vikas Patra is given below.
  • Note: Minimum contribution expected to be Rs.1000
 

Duration →

15th Jan 2000-28th Feb 2001 1st March 2001-28th Feb 2002 3rd March 2002-28th Feb 2003 After 1st March 2003
Year↓ Amount Accrued ↓
1 NA NA NA NA
2 NA NA NA NA
2 Years 6 Months Rs.1246 Rs. 1209 Rs. 1195 Rs. 1170.51
3 Years Rs. 1302 Rs. 1274 Rs. 1256 Rs. 1207.95
3 Years 6 Months Rs. 1407 Rs. 1327 Rs. 1305 Rs. 1267.19
4 Years Rs. 1478 Rs. 1409 Rs. 1382 Rs. 1310.8
4 Years 6 Months Rs. 1585 Rs. 1470 Rs. 1439 Rs. 1355.9
5 Years Rs. 1668 Rs. 1572 Rs. 1534 Rs. 1435.63
5 Years 6 Months Rs. 1779 Rs. 1644 Rs. 1602 Rs. 1488.49
6 Years Rs. 1874 Rs. 1770 Rs. 1672 Rs. 1543.3
6 Years 6 Months Rs. 2000 Rs. 1857 Rs. 1800 Rs.1649.13
7 Years NA NA Rs. 1883 1713.82
7 Years 3 Months NA Rs. 2000 NA NA
7 Years 6 Months NA NA NA 1781.06
7 Years 8 Months NA NA Rs. 2000 NA
8 Years & 8 Years 7 Months NA NA NA Rs. 1850.93
8 Years 7 Months NA NA NA Rs. 2000
More than 8 years 7 Months NA NA NA NA

Rate of interest offered under the scheme i.e. Kisan Vikas Patra

The interest rate applicable to Kisan Vikas Patra (KVP) can adjust periodically depending on the Ministry of Finance’s announcements. The average interest rate for KVP is 6.9 per cent per annum, which double the savings in 124 months.

Historical interest rates paid under the Kisan Vikas Patra scheme * are:

Time Period Interest Rate of KVP
Q1 FY 2020-21 6.9%
Q4 FY 2019-20 7.6%
Q2 FY 2019–20 7.6%
Q1 FY 2019–20 7.7%
Q4 FY 2018-19 7.7%
Q3 FY 2018-19 7.7%
Q2 FY 2018-19 7.3%
Q1 FY 2018-19 7.3%
  • KVP compounded interest annually

Withdrawal of money before the expiry of the period

Investors are entitled to withdraw their investments under the scheme at any given time but there are some limitations:

  • No interest will be granted on premature withdrawals made within 1 year. Even the beneficiary will have to pay a tax according to scheme legislation.
  • Premature withdrawals made after 1 year for up to 2.5 years shall earn interest but at a discounted rate.
  • Premature withdrawal after a 2.5-year period will not incur any fines and will therefore earn interest at the appropriate rate.

Calculation of premature redemption value

  • Here’s an instance of measuring the balance assigned to the KVP certificate on premature redemption. Let’s say the denomination for a certificate was Rs.1000:
Encashment After Amount to be Received (Including Interest)
2.6 yrs but less than 3 yrs Rs.1,176
3 yrs but less than 3.6 yrs Rs.1,215
3.6 yrs but less than 4 yrs Rs.1,255
4 yrs but less than 4.6 yrs Rs.1,296
4.6 yrs but less than 5 yrs Rs.1,339
5 yrs but less than 5.6 yrs Rs.1,383
5.6 yrs but less than 6 yrs Rs.1,429
6 yrs but less than 6.6 yrs Rs.1,476
6.6 yrs but less than 7 yrs Rs.1,524
7yrs but less than 7.6 yrs Rs.1,575
7.6 yrs but less than 8 yrs Rs.1,626
8 yrs but before 8.6 yrs Rs.1,680
8.6 yrs but less than 9 yrs Rs.1,735
9 yrs but before maturity Rs.1,793
On maturity Rs. 2,000

Tax liability for Kisan Vikas Patra

Under this scheme, no tax-benefits are available. The accumulated interest is taxable under ‘Income from Other Sources,’ paid annually. And, 10 per cent TDS is deducted from the interest. Thus the final maturity amount is excluded from tax deductions.

Kisan Vikas Patra (KVP) vs. Fixed deposit(FD) vs. National Saving Certificate(NSC)

A Fixed Deposit is applied to a bank or NBFC managed financial instrument that provides borrowers with higher interest rates than saving accounts.

National Savings Certificate is an Indian Government Savings Bond that is used in India as a tool for small deposits and income tax saving schemes.

Basis of difference Kisan Vikas Patra (KVP) Fixed Deposits (FD) National Saving Certificate (NSC)
Investment Minimum- Rs.1000

Maximum- No limit

Minimum- Rs.50

Maximum- Not Limited

Minimum- Rs.100

Maximum- Rs.1,50,000

Rate of Interest 6.9% annually Differs from bank to bank. Highest ROI is offered by IDFC bank i.e, 8.50% 6.8% annually
Maturity Period 10 years and 4 months 10 years. However, subscribers can withdraw money after 7 days from the date of investment 1. NSC under VIII issue mature in 5 years.

2. NSC under IX issue mature in 10 years.

Premature Withdrawal Withdrawals are allowed before maturity but it is advised to keep the corpus invested for 8 years to get best returns Money can be withdrawn as and when the subscriber wants, after 7 days Withdrawals before maturity are very difficult and restricted
Liquidity Lock-in period of 2 and a half years No lock-in period. The tenure of Fixed deposits range from 7 days to 10 years Lock-in period of 5 or 10 years
Tax Treatment Returns on KVP are taxable Tax saver FDs are tax exempted for up to Rs.1.5 Lakh under Section 80(c) Enjoys tax benefits and exemption under Section 80(c)

Prime Minister’s Social Security Schemes

www.carajput.com;Social Security Schemes

www.carajput.com; Social Security Schemes

Insurance plans and pension schemes in India are being widely overlooked. A relatively small number of Indians vote for protection schemes. Prime Minister Modi initiated three Social Security Programmers to allow more people to participate in those programmers: Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana and Pradhan Mantri Suraksha Bima Yojana

Here’s a summary on the three schemes of social security:

1. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

www.carajput.com;Pradhan Mantri Suraksha Bima Yojana (PMSBY)

www.carajput.com; Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Due to the increasing importance of life insurance, the Prime Minister launched the PMSBY which provides life cover for people aged 18 to 70-year-old. For a small premium rate of only Rs. 12 per annum, this scheme guarantees that all those living below the poverty line can afford life cover.

In the event of an unexpected death or the insurance holder’s total disability, a sum of Rs. 2,00,000 will be paid to the family. And in case of partial handicap a sum of Rs. 1,00,000 will be given. In reality, PMSBY is interconnected with Jan Dhan Yojna. All who have their accounts under the Jan Dhan Yojana Scheme are liable under this scheme for life protection. The prime amount is deducted annually directly from the account. The insurance cover will be discontinued until the person is 70 years old or if the account balance isn’t adequate to subtract the annual premium.

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

www.carajput.com;Pradhan Mantri Suraksha Bima Yojana (PMSBY)

www.carajput.com; Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The PMJJBY is a Government-backed life insurance scheme. Figures reveal that just 20 per cent of the Indian population opts for insurance of any kind. This system is targeted at supporting insurance policies and increasing customer numbers.

Anyone between the ages of 18 and 50 years, can get the benefit of the Pradhan Mantri Jeevan Jyoti Bima Yojana. To get the benefit of this scheme, you must pay Rs. 330 per annum (and taxes) amount. It provides a sum amount of two lakh rupees in sustainable life insurance protection in case of death due to any cause unexplained. An insured person has to keep a savings bank account with respect to the participating bank.

3.The Atal Pension Yojana  (APY)

www.carajput.com;The Atal Pension Yojana  (APY)

www.carajput.com; The Atal Pension Yojana  (APY)

In Hindustan, the percentage of the population who apply for pension plans is very limited, in general, and especially among the weaker masses. Prime Minister Modi launched the Atal Pension Yojana to allow the working poor to get benefit from pension schemes. This scheme focuses on the employees from India’s unorganized market. The scheme is available to all holders of bank accounts. A guaranteed income would be applicable to members between Rs. 1K and Rs. 5K if they enter the scheme between 18 years and 40 years of age. For five years, if apply before December 31, the Central Government will pay 50 per cent of the gross contribution or Rs. 1K per annum (whichever is lower). The termination threshold for the donation and the initiation of the pension is 60 years.

Also, check out these two other significant schemes which are directed specifically at the economically weaker classes:

1. Pradhan Mantri Jan Dhan Yojana

www.carajput.com;Pradhan Mantri Jan Dhan Yojana

www.carajput.com; Pradhan Mantri Jan Dhan Yojana

The scheme aims to offer standard bank and debit card accounts to everyone. A person at zero balance can open an account with any branch of the bank. Few key highlights are, for all Aadhaar-linked accounts, Rs. 5K overdraft facility, A Rupay Debit Card pre-loaded with Rs. 1,00,000 accidental insurance cover.

2. Pardhan Mantri Mudra Yojana (PMMY)

www.carajput.com;Pardhan Mantri Mudra Yojana (PMMY)

www.carajput.com; Pardhan Mantri Mudra Yojana (PMMY)

Under the Pradhan Mantri Mudra Yojana (PMMY), the Mudra Loan is made available to micro and small non-farming & non-corporate enterprises. Here are the Loan Details:

Amount

 

The upper limit of Rs. 10,00,000. For e.g.

·         Shish – Loans up to Rs. 50,000

·         Kishore – from Rs. 50,001 – Rs. 5,00,000

·         Tarun – from Rs. 5,00,001 – Rs. 10,00,000

Fees of Processing Shishu and Kishore – no fee

Tarun – 0.5% of the loan amount

Eligibility Both for New as well as existing enterprises
Time period 3-5 years

Bhamashah Yojana

www.carajput.com;Bhamashah Yojanawww.carajput.com;Bhamashah Yojana

Introduction

On 15 August 2014, Rajasthan’s government launched Bhamashah Yojana in a straightforward way for the simple allocation of financial and non-financial benefits of government schemes to female beneficiaries. The Bhamashah Yojana is known to be the first step towards digital transformation in the state. The scheme is named after Bhamashah, a popular minister, financier and general of the army who was a close assistant of Maharana Pratap when he became financially vulnerable to the degree that he reached the point of poverty. The financial and qualifying candidates are distributed from the end to the end and advantage and non-financial service.

Objective

Launched with the aim of women’s financial inclusion and advancement, the Rajasthan Bhamashah Yojana was initially launched in 2008, when about 50 lakh women registered, and at that time only 29 lakh accounts were available. The initiative seeks to make women financially stable and through the Bhamashah Card Yojana provides the benefits of several other schemes.

The Bhamashah card issued under this yojana in the house woman’s name is connected to a bank account. The card also provides the women with biometric authentication and key banking features, along with several cash incentives that are deposited directly into the bank account.

Bhamashah Card

The applicants who apply for the Bhamashah scheme will get their Bhamashah cards which are made in their family’s woman’s name. Using the card all family members will be eligible to take advantage of the rewards. Candidates can register for the card using online as well as offline tools.

For access the Bhamashah card is

  • University tuition Stipend for
  • Loan for small business startup
  • Free medical care for such conditions and procedures at designated hospitals
  • Recognition of Unrestricted and Subsidized Ration recipients
  • Women pursuing vocational training to develop their careers

Characteristics of Bhamashah Yojana

  • The scheme aims to pass benefits provided by the Government of the State directly to the helpless women in society
  • The scheme allowed 1.5 Million women to open their bank accounts and take advantage of the benefits
  • The Bhamashah Card also gives Rs.30000 medical protection to the needy and the vulnerable in the event of medical emergencies
  • Women carrying the Bhamashah Card will buy ration from the stores using the biometric method.
  • Government benefits from Bhamashah Yojana are paid directly to the beneficiary’s account, which also leads to minimising wrongdoing
  • The Bhamashah Card is issued to the students and mentally disabled individuals qualifying for the scheme
  • Men can also take advantage of Bhamashah Card benefits by paying Rs.20 or Rs.25.

Qualification to apply Bhamashah Yojana

The following conditions must be fulfilled to apply for the Bhamashah Yojana-

  • Adults needing financial assistance to start up a business
  • People needing medical care requiring financial support for operations.
  • Children must be registered in government schools and colleges that offer enrolment in learning institutions to train for coaching tests.
  • Women who fight for their identities and want to set themselves up as leaders

How to Apply for Bhamashah Yojana

1. Offline application

To qualify for the scheme offline, the candidates will visit the camp in both rural and urban areas arranged by the state government for each ward in all the village panchayat.

2. Online application

Even the qualifying candidates can apply online for the Bhamashah Yojana by submitting their Aadhaar number. The applicant will be asked to fill out a form the details of which will be used for the Bhamashah card production.

If the candidate does not have her Aadhaar number, the candidate may use e-Mitra- Kiosk to get her Aadhaar card and then apply for the scheme.

How to modify Bhamashah Portal Info

In the event of any modifications to the Bhamashah card, candidates are required to access the official website and make the changes themselves. You may update the following information on the Bhamashah online portal-

  • A family member expired
  • Change of place of residence address
  • Changes in related records, for example, bank account
  • Addition of new family member
  • Marriage for every family member

But the applicant would have to use her SSO ID to edit Bhamashah online.

Necessary documents to apply for Bhamashah Card

Please send the following documents when applying for the Bhamashah card online-

  • A copy of the application
  • Certificate of caste
  • Letter of expérience (for businesses)
  • Certificate of birth
  • Proof of identity (Aadhar card, passport, ration card, etc.)

Pradhan Mantri Awas Yojana

www.carajput.com; PMAY

www.carajput.com; PMAY

If you are trying to buy a house under Pradhan Mantri Awas Yojana ( PMAY) from the government, you might consider buying it under the Credit-Related Subsidy Scheme (CLSS). The government has extended the time-limit for subsidised CLSS housing until March 31, 2021. Pradhan Mantri Awas Yojana (Urban) was initiated on 25th June 2015 to provide pucca houses to all deserving beneficiary by 2022 to ensure accommodation for everyone in urban areas. Pradhan Mantri Awas Yojana (Urban) Project launched on June 25, 2015, to provide accommodation for citizens in urban areas by 2022. The Project offers central assistance to implementing partners by States / Union Territories (UTs) and Central Nodal Agencies (CNAs) to provide accommodation for all qualifying families/beneficiaries against approximately 1.12 cr validated housing demand. The size of a house for the Economically Weaker Group (EWS) may be as large as 30 sq according to PMAY(U) guidelines. Mt. carpet region, however, Member States / UTs have the ability to raise the size of houses in conjunction and Ministry approval.

How to get your name on the PMAY list

If you’ve already enrolled for Pradhan Mantri Awas Yojana ( PMAY), the PMAY List includes four ways to find your name and information.

Pradhan Mantri Awas Yojana List: Candidates to the Pradhan Mantri Awas Yojana (PMAY) look forward to having their own house under the government’s flagship ‘Housing for All’ scheme by 2022. The main feature of the PMAY system is the Credit-Related Subsidy, which allows the owner to hold down the expense of buying the property. There are various criteria for qualification and after registering, the PMAY applicant receives a registration ID from which he or she can check the application’s viability. If you’ve already requested for Pradhan Mantri Awas Yojana ( PMAY), the PMAY List includes 4 ways to find your name and information. You might want your Aadhaar number, mobile phone, registration ID or examination ID to find the information, as the criteria vary in each case.

The list Pradhan Mantri Awas Yojana can either list PMAY Urban or list PMAY-Gramin (rural). Here are four ways to search the Urban PMAY List and PMAYG list.

1. Check PMAY Urban List

A. With the use of Aadhar Card

•      By visiting https:/pmaymis.gov.in, visit the official PMAY website;

•      Press the link below: https:/pmaymis.gov.in/Find Beneficiary Details.aspx

•      To go to the next tab, click on ‘Search Beneficiary’ in the top pane. There was formerly an alternative to pick ‘Search By Name’ from the drop-down menu of ‘Search Beneficiary.’

•      Type your Aadhaar number on the next page and submit it.

•      Specifics of your PMAY response will be shown along with the status upon submission of the requisite information.

B. Without Use of Aadhar Card

You can check the Pradhan Mantri Awas Yojana list with your personal information and mobile number or with your assessment ID if you don’t have the Aadhaar number available with you.

https:/pmaymis.gov.in/Track Application Status.aspx connect

• Enter personal information or assessment ID to obtain compliance status for PMAY compliance.

2. Check the list on PMAY-G

A.with the help of Registration number

If you have the registration number, please visit the official PMAY-Gramin website at https:/rhreporting.nic.in/entity/Beneficiary.aspx to see your name and other info on the PMAY Rural List.

B. Without the help of registration number

However, if you don’t have the registration number, the information might be available on the official PMAY-Gramin website.

• On your computer, to link https:/rhreporting.nic.in/entity/Beneficiary.aspx.

• You will be required to select State, District, Block, Panchayat, Scheme name, and other information on the next page.

• Your contact information, bank details, website details, fines, and complete details will be given upon request.

Tax planning tips for availing tax-saving benefits

National committee on deduction benefits u/s 35AC

Regards

Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

New Small Business Idea that match with your Personality

New Small Business Idea that matches with your Personality

www.carajput.com;Small Business

www.carajput.com; Small Business`

Everybody wants to do something that gives them the opportunity to earn more money and becoming a businessman is possible. One of the existing paths to wealth is to establish your own company. Entrepreneurship is one of the critical decisions that need to be taken and it involves a number of risks and also has its own benefits. Just the same Beauty of becoming your boss is still above any other form of work. There are several items you have to focus on to launch your own business. Choosing the correct idea is a difficult call for an entrepreneur, which is an important choice. To start your own business, you need to understand the environment in order to set up your own company.

A new and vibrant part of the Indian Economy is the small business market. This sector is the nursery for entrepreneurial talent development and is now an important component of the production chain. The government is shifting to small and medium-sized enterprises and businessmen in both industrialized and emerging countries as a way of economic development and a practical means of solving problems. It is a foundation of creativity, development, and work formation. To run a successful small business you don’t need to be a genius but you need some help. So that’s just what this book is, a roadmap into the enjoyable world of ownership and management in small businesses.

India Company gets up

Our honorable Prime Minister has unveiled a 19-point course of action for start-up companies in India. Honorable Prime Minister, emphasizing the value of the Standup India Project, said the work-seeker must become an employment maker. The Prime Minister declared that the plan anticipates loans from the Scheduled Castes, Scheduled Tribes, and at least two young enterprises Categories Gender. It was also reported that the loan to one crore rupee limit is to be in the 10 lakh. A startup India platform will be established as a common point of touch for the whole business community to allow for the sharing of information and access to finance.

We’ve assembled a collection of the new small business concepts from which you can pick. So read on to figure out which one would better match you.

1. Kinder garden & daycare

www.carajput.com;Small Business

www.carajput.com; Small Business

Indian families were turned nuclear in the 21st century. Finding that both parents work full-time jobs has become very normal. In this case, it becomes necessary to have daycare for children between 3yrs -12yrs aged age groups. Merging play area and daycare will render the company a searched-after service provider for all the working parents.

2. Pregnant woman activities class

This company will prove very profitable if you sell it well after getting a swift certification. Remember that you will get your certifications from a recognized training center to get your customers to trust in your activities.

3. Handcrafted Gift Store

www.carajput.com;Small Business

www.carajput.com; Small Business

When it comes to gifting, several people struggle for creative ideas. Whether it comes to gifts receiving qualified support goes a fairway. Corporate Gifting services are in great demand nowadays. The correct gift should make you leave the recipient with a positive vibe.

4. Flip Market

It has become quick to locate buyers for used products, with the aid of platforms such as OLX. When you have the ability to see a used product’s correct worth, you will earn a decent profit by selling it digitally.

5. The consumer market in Chocolate

Chocolate is one of the best Home Business items. If you like chocolate producing make it your company. To start this business, you need a chocolate recipe, utensils, cookware, molds, and packaging material. To purchase the candy, you need to join up with shopping centers or independent shop keepers. You should also be talking about building an identity online.

6. Education classes  

Starting from Education Class is one of the best ideas for home-based small businesses. You can start this business if you have good teaching skills and knowledge-how. To start this company you will need a couple of wooden benches and blackboards. This business at first demands mouth marketing or advertising

7. Food Chain  Services

In Beginning Food Chain services is a very attractive concept for a small company focused on your residence. If you are good at cooking tasty food at a good price you should start this company, everybody needs food. It has become very easy to market your delights with the new App-based delivery companies. The expenditure needed for this enterprise is very small. The positive mantra of this company is buttery food with the right quality.

8. Yoga session

www.carajput.com; SMALL BUSINESS

www.carajput.com; SMALL BUSINESS

One of the profitable and valuable, home-based business options is to start a yoga class. In India, the healthcare professions are rising at a higher pace. People shift their mindset from an appropriate treatment approach to preventive care. You can start your own yoga session when you’re a certified yoga teacher or expert in yoga. There is also a high demand for internationally certified Yoga teachers.

9. English Language Coaching Training

Spoken English coaching is a common concept for small companies located in the home. If you are fluent in English you can start coaching classes in Spoken English. English is a language that is accepted internationally. People are likely to invest time in developing a spoken English-related ability. With low investments, the class can be begun. But in teaching English, you have to be fantastic and highly qualified.

10. Wedding Planner   

Don’t connect this with organizing activities. Planning for the case is a far wider concept. But wedding planning is an area which is very sophisticated. Planners for weddings are also in demand. You should launch your own wedding preparation company, provided you have design experience and employees. This company needs moderate effort. It’s also a kind of concept for small enterprises.

11. Foodstuff store

The next idea for a small business is the diet food shop. A number of people are involved in weight loss and ready to consider diet food. And launching a Diet Food shop would certainly turn out to be a profitable business. I would recommend that you obtain your personality-qualified qualification before proceeding.

12. Antique Remodeling

If you enjoy working with wood and lovely, usually useful items but don’t have the artistic ability to build your own, antique redevelopment could be your ticket to success. You don’t have to spend a lot of time to get started, depending on what exactly you do, but you’ll need to travel across the country to get the best bits of objects you can get.

13. Herbal oil and organic milk

www.carajput.com;Small Business

www.carajput.com; Small Business

Another, low investment, new business idea. As people are increasingly health aware, there is a development for healthy products. India’s traditional medicinal philosophy, Ayurveda, prescribes certain vitamin and herbal beverages to avoid, treat, or hold health issues.

Unfortunately, India’s market for these herbal and vegetable juices remains relatively under-catered. You can open a highly profitable new business of producing and selling such medicinal juices with some knowledge about the medicinal benefits of vegetables, herbs, and roots.

There’s relatively low investment in this market. You must ensure a fresh daily supply of the raw material. In fact, only fresh juices are of therapeutic benefit and, thus, you would not be allowed to sell boxed or frozen variations that can be processed.

14. Oxygen cafe

Admittedly, a lightweight oxygen cafe is relatively inexpensive for households and workplaces. Notwithstanding this, they are valued or used by a few men. From a small shop or commercial premises, you may sell a full oxygen-cafe operation. You may even sell the service from your home if storage permits. Oxygen cafe indicates when a consumer wears an oxygen mask and inhales over an hour or more the therapeutic consistency of this vital product. Inhaling such oxygen has other safety advantages found in it.

It is said to slow down the cycle of aging thereby promoting healthy skin. It also removes the toxins a customer inhales during the day. This program is especially valuable in busy, heavily air-polluted cities.

It’s a new medium-investment business idea but demand is high.

15. Nonmilky ice creams

www.carajput.com; SMALL BUSINESS

www.carajput.com; SMALL BUSINESS

Milk – free ice creams are once again a largely untapped market in India. It means ice cream produced without milk, including yogurt, food ingredients. Although this seems unlikely, it is true.

A number of firms around India are seeking to popularize coconut milk ice cream, almond milk, and soy milk creams. While slowly these small companies are making headway. Unfortunately, they don’t have a big promotional budget like the main, traditional brands of ice cream. You can get into this non-milky ice cream business too. Such ice creams are in immense demand. However, the non-milky ice cream market, which accounts for its uniqueness, remains mostly unorganized.

Such ice creams have the ability to hit it big in major cities where health-conscious consumers live. Therefore they seek to reject ice cream dependent on butter, which they claim is filled with calories.

Conclusion

The proposals to which we have applied are uncommon. And in a nation like India, these young companies seem to have immense promise. This country’s younger demographic is motivated to keep fresh thoughts and concepts.

Tradition and values run high here, at the same time. It is strongly recommended that you do an independent survey and test for their viability before beginning work on some of the projects that we mention.

Some of these proposals, naturally, need professional skills. In fact, you’ll be spending your vital money on the company. Consequently, it is advised to get recommendations from professionals from the area you choose.

Read related links also;

Kind of Business sturcture can be made in india

Details about support service of business or commerce

GST rollout Small Business need to file Return

Why Virtual Office is an essential Address for Small Business

How to name your business in India?

CFO Service for Small Business

Launching of Startup India portal

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Effective work from home and challenges & Advantages

How Effectively do Work from Home?

www.carajput.com;Remote Worker

www.carajput.com; Remote Worker

While COVID-19’s effect continues to expand across the globe, entities like Gartner support the health and safety of employees by introducing work from home policies. Whereas this may not be a huge effect for already remote employees, the change may be difficult for those who are used to working in an office every day.

However, you can reduce any disturbances with a little planning using some of the best practices below and continue to be a valuable member of your team. Here are 5 tips for beginners who work from home:

1. Defining a workspace

Most of the remote employees make use of a designated room as office space in their home. Every morning you will “commute” over there and stay there in working hours. If you have no other room in your house, don’t be scared! What you need is a room where there will be no disturbances. Find a private room, (with a door if you can!) and set it up with all the essential work such as your laptop, notebook, pens, etc. Try to copy your office environment as closely as you can. This means that if you don’t have a TV in your dressing room, you shouldn’t have one on it while working from home.

2. keep flowing your daily routine

When you’re used to doing exercise at 6:00 AM, read the paper or whatever else your morning consists of — try your best to stick to the same schedule. Take your shower, put on clean clothing, make your coffee, and get ready for the day of work. It would most certainly not add to efficiency as tempting as it may be to sleep until 10 minutes before your workday beginning and work from your pajama pants!

3. Develop and implement a routine

Sticking to a daily routine often means making sure you stick to your usual schedule of work. If you work regularly with an hour for lunch in your office from 8:00 AM to 5:00 PM do the same at home. Even when you’re working remotely, it’s easy to lose track of time and when you’re ready to go home, you don’t ‘pack up for the day’ which can always lead to overwork. Set your own limits, and make sure to remain on top of your schedule.

4. Miscommunicate

Communication is key to success in any situation, but it is much more essential when working remotely because you’re no longer only a few desks away from your colleagues and clients. When working remotely it can be easy to disconnect and lack of contact is never a positive thing for you — personally or professionally. When you have internal online chat messaging systems in your organization make sure you are still available. Call your colleagues or send them a greeting every day. If you’re not already doing so, schedule 1:1 weekly check-in meetings with your boss to determine your priorities, future projects, and daily activities. Using camera technology so that colleagues can see you. Even if you’re actually finding it really hard to manage not to have people around you, make a call and talk to someone.

5. Embrace breaks

Once you continue working daily from home, you can find yourself sitting for hours at your desk — sometimes refusing to sleep, drink enough water, or simply stretch. Notwithstanding what you might think, breaks will encourage efficiency! Taking a walk away from the screen to get some fresh air, enjoying a healthy lunch, doing a little yoga, or simply breathing will also help you to re-energize and refocus.

Challenges Faced during Work from home

www.carajput.com;Work From Home Challenges

www.carajput.com; Work From Home Challenges

A) The daily commute can be completely avoided and can be easily eliminated not only because of environmental reasons but also saves tonnes of money and energy for people.

B) multimedia-conferencing can and should be replaced by transporting people around the world for meetings (for cost and environmental reasons).

(C) The intention of calling meetings should be clear and specified, in addition to being very clear on who needs to attend and why.

Advantages of Work from Home

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www.carajput.com; Work from Home

A) Appliances

If you’re operating from home, all the facilities you’re having to need can come right out of your wallet – whether it’s internet access, power, or food/snacks that you might probably have picked up from the canteen and workplace pantry. While some of these costs are already factored into the household budget, due to increased consumption you can find a change in spending on these items.

(B) Assurance

One of the benefits of working in an office environment is that you don’t need to remain affixed to your desk and can take frequent breaks. It not only takes away your attention from problems but also reduces the pressure on your back caused by sitting for a long time in one place. From the other side, working from home will cause a decrease in your activity rates and raise your medical costs related to injuries caused by severe spinal pain, lower back, etc.

C) Incertitude

At work, technical meetings above and beyond meetings and phone calls give you an understanding of the company’s situation, the growth strategies, and other important details that you may overlook when operating from home. This could affect your professional life outcomes and increase your employment stress and anxiety.

D) Transportation

Once you’re WFH, that means you’re not likely to really go anywhere during working hours. In two-way travel, this route, you can save substantially. You could save anything between Rs. 100 a day for those who take public transport to over Rs. 200 a day for all who hire private transport, depending on your regular mode of transport.

know About- Way to bring back your business on track post-COVID-19

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Way to bring back your business on track post-COVID-19.

Way to bring back your business on track post-COVID-19

www.carajput.com;bring back your business

www.carajput.com; bring back your business

With the aid of exceptional public health and economic policies, India is facing the COVID-19 pandemic. The situation at Corona has forced businesses in a tight spot. Looking towards facts, the country has around 63 million enterprises providing services to over 114 million people and producing approximately 30% of GDP.

www.carajput.com;BRING IT BACK

www.carajput.com; BRING IT BACK

According to GOQII’s latest survey, about 26 percent of enterprises said their earnings and expenditures were largely impacted due to the virus outbreak. Small and medium-sized companies are suffering from issues such as lack of manpower and weak cash flow or liquidity. In the current situation, RBI’s decision to delay loan repayment for small and medium enterprises has come as a refreshing relief. Also the body of industry, CII has urged the government to set up the ‘CII COVID Rehabilitation and Relief Fund’ to support small and medium businesses.

Some of the ways in which the Government can help the different sector get a boost are described below:

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www.carajput.com; BRING IT BACK

1. Measure the Financial loss

This would be the first step in helping businesses survive after the crisis. Taking stock of the financial losses for months caused by a lack of employment would help the businesses take steps to restart. The enterprises will first and last be updated with their working capital and statements of profit and loss. This would prove to be extremely beneficial in making connections with the numbers of the previous year which would help to determine the figures that the company needs. This will also be a good idea to plan for consumers who have moved to rivals due to cost reduction in marketing and advertisement.

2. Long term tenures

The companies are looking for the Government’s financial help. The Government’s relief of the enterprises from loan repayments has come as a relief for this portion. Definitely this move will help them to overcome financial problems. Relieving bad loan standards for this particular industry may also be a saving move

3. Limits to working capital

With effective credit rules, the CII suggested raising working capital limits. Small enterprises will need additional working capital equal to the investors’ April-June wage bill (backed by a government guarantee of 4-5 percent with an RBI refinance guarantee) to leap out.

4. Agreement of Funds

Even in usual times, small enterprises find it difficult to arrange cash for the management of operations. So expecting them to arrange for cash in this serious emergency will be far too much. It is quite likely that, while trying to emerge from the pandemic effect, small businesses would require unsecured working capital loans to start their business. Quick bad credit business loans and online small business loans India are other financing solutions that can allow enterprises to get back on track post-COVID-19.

5. Project Long Term Repo

The Reserve Bank of India recently launched Long Term Repo operations worth Rs 100,000 crore to support financial institutions expand lending at affordable interest rates to keep the MSME segment functional. The Government-led banks are also encouraged to keep Rs 60,000 crore worth of loans ready. In addition, the Finance Minister announced the extension of the last date from March 31 to June 30 to file overdue Income Tax Return for all companies for the 2018-2019 FY. Also, the GST Returns deadline now is June 30.

6. Export market Inventory Management

The management of inventories may be a great support for exporting businesses. The development of warehouses at the block-level has been introduced in the Union Budget 2020. If the government could assign subsidized warehousing to exporters while organizing the supply chain side of things to improve the economy, it would be an advantage.

The government can decrease the load on the micro, small and medium enterprises sector with the help of the above-mentioned measures and immediate action. It has also been suggested that government agencies should not introduce delay fines as interruptions are clear due to the challenges created by the lockdown.

7. Make-in-India

Maybe now is the best time for the government to request that MSMEs generate locally. The Government’s e-Marketplace can be of great benefit to suppliers requiring procurement. Encouraging small companies to locally source and invest in online infrastructure will help improve the manufacturing sector and also raising our import costs.

8. Improving new ways of marketing the brand

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www.carajput.com; bring back your business

The COVID-19 pandemic is possible to modify customers ’ buying behavior. Therefore businesses, especially small businesses, would do well to embed it in their pattern of work. But if you want to raise the lockdown people would always hesitate to join crowded places and markets. Even business managers may avoid trade shows and events. Organizations that previously relied heavily on people who talk to customers will now have to modify new ways of selling their goods and services.

9. Informed to the customer

Businesses, especially the smaller ones, will do well not to forget that while people’s buying habits will most likely shift, their existing clients will always yearn for some relaxation they used to get from you. So it’s important that small businesses let their customers know they’re up and running once again. We will also do well to allow their consumers aware of their post-COVID-19 policies. And a few clients will also want to support and encourage a local and small enterprise that has strongly faced the crisis and is now making a comeback.

10. Settlement of outstanding due

The industry body also recommended outstanding clearance of all government dues to MSMEs, including MSMEs’ procurement payments for products and services to PSUs, GST refunds, various state and central government bonuses for MSMEs.

Know about- Effective work from home and challenges and advantages

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)