How to reduce your Loan burden smartly?

How to reduce your Loan burden smartly?; Personal Loan; 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; Top-up Loan; 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; Loan Burden; 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; EMI; 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.

What is the 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?; credit utilization Ratio; 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; Credit card limit; 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.


Rajput Jain & Associates

Rajput Jain and Associates Blogs has been selected by as one of the Top 30 Indian Tax and Accounting Blogs on the web.

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. 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: 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


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; time limit for FORM FC-GPR; 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).

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 carry, 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.; Entity User Registration; 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.; Business User Registration; 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 all the required details and attach the relevant documents as mentioned above while making reporting in this form and then submit the Form.; RBI; RBI; RBI; RBI; RBI; 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.

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. 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: 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;Parthan Mantri Matru Vandana Yojana; 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 :;Targets of Parthan Mantri Matru Vandana Yojana; 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:/ 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.


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 (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;Eligible criteria for KVP; 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;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 ↓
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;Social Security Schemes; 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);Pradhan Mantri Suraksha Bima Yojana (PMSBY); 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);Pradhan Mantri Suraksha Bima Yojana (PMSBY); 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);The Atal Pension Yojana  (APY); 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;Pradhan Mantri Jan Dhan Yojana; 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);Pardhan Mantri Mudra Yojana (PMMY); 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:



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;Bhamashah;Bhamashah Yojana


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.


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; PMAY; 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:/, visit the official PMAY website;

•      Press the link below: https:/ 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:/ 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:/ 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:/

• 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.


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. 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: or call at 09811322785/4 9555 5555 480)

Key updates on GST- Compliance Before 31st August 2020

Key updates on GST- Compliance Before 31st August 2020;GST; GST


Adhering to tax-related compliance introduced by the Indian government is obligatory for taxpayers in India. Failure to comply with the due dates for filing GST returns as well as the GST rules which result in the government imposing severe penalties on taxpayers in India. The tax compliances have experienced a complete improvement in the last 6 months. Given the prevailing Coron-19 pandemics, the entire compliance schedule has been changed.

It is not only about income tax but also about GST. We’ve been reviewing income tax compliances over the past week and now we’re going to cover compliances that need to be completed by August 31 to escape fines and late fees. Tax compliance was difficult, especially during the COVID period, when human health and safety were of primary importance. All the GST compliance requirements, the deadlines for which are August 31, 2020, are given below.

GST Milestones expiring 31 August 2020

Many deadlines for GST implementation expired on August 31, 2020. To prevent late payments and fines, it is important to recall those due dates and to file the returns. Let’s see which time-limit expires on August 31, 2020.

After taking into account the notifications the final deadlines will be as follows: 
 2 Yr  from the prescribed date falls between Final due date to submit a refund application
1st January 2020 to 19th March 2020 The respective day between 1st January 2020 to 19th March 2020
20th March 2020 to 31st March 2020 31st August 2020

Due to COVID 19 Situation and after Hon’ble FM Ms. Nirmala Sitharaman Ji “Corona is an act of God” and business loss now is the time to avoid late Fee, Interest, and Penalties.

Deadlines are as under:

·Refund Application FY 2017-18: Online thru Form GST RFD-01

·GSTR-4 (FY 2019-20): Filed by Composition Taxable Person (Notification No. 59/2020).

·GSTR-5: Filed by Non- Resident taxable person.

·ITC 04: ITC-04 is related to job worker and submitted by the principal every quarter. The last date of ITC 04 of the 4th quarter of 2019-20 and the first quarter of 2020-21 is 31st August 2020. (Notification No. 55/2020 dated 27.06.2020).

·As per Notification No. 55/2020 dated 27.06.2020, the due date for the month of March 2020 to July 2020 is extended to 31st August 2020 (Point No. 5 to 9).

·GSTR-5A: Filed by OIDAR service providers.

·GSTR-6: Filed by Input Service Distributors (ISD).

·GSTR-7: Filed by TDS deductor.

·GSTR-8: Filed by E-commerce Operator.

·Letter of Undertaking (LUT) FY 2020-21: Notification No. 55/2020 Letter of Undertaking (LUT) is a document that exporters can file to export goods or services without having to pay taxes. Any registered individual will be able to supply LUT in GST RFD 11 type and export products without paying the integrated fee.

·Other related GST compliances (except few provisions covered in the exclusion clause of N.N 55/2020-CT dated 27.06.2020) which falls during the period 20.03.2020 to 30.08.2020 and which has not been made.

E-Invoicing: E-Invoicing is soon for becoming necessary, We built a knowledge pool for fast integration. Details are an attached post : 

Details about the E- Invoices 

Applicability of E-invoice Framework for GST

Basic details of Invoice registration Portalirp on GST

Moving to the September GST compliance timeline, here is a detailed description of our September compliance calendar:;GST Planner; GST Planner

GST Returns Application late fee;GSTR-4 Late Fees; GSTR-4 Late Fees

The late fee according to the GST Act is Rs. 100 a day per statute. So it’s under CGST 100 and under SGST 100. Max is Rs. 200 / day. The maximum amount is Rs 5,000/-. No late fees are paid on IGST.

Submission of return is mandatory under GST. And if there is no trade, you will have to file a refund from Zero. You can not file a return until you register the return of the previous month/quarter. Late filing of GST return would also have a cascading impact and will lead to heavy fines and penalties. The GSTR-1’s late filing fee is deposited in GSTR-3B ‘s liability ledger directly after such a delay.

Interest / Late Fee to be paid

The interest per annual is 18 percent. It must be based on the amount of outstanding tax owed by the taxpayer. It is to be calculated at the time of payment on the Net tax liability identified in the ledger. The time span is from the next day after filing due date to the final payment date.

Prosecution in GST;GST Prosecution; GST Prosecution

So here is the expectation that the compliances will be completed before all these extended due dates.

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. 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: or call at 09811322785/4 9555 5555 480)


Section 194-IA- 1 Percent TDS rate applicable on Sale of Real estate transactions with Form 26QB and Form 16B application;TDS on immovable property; TDS on immovable property

Basic key takeaways things Regarding Form 26QB: TDS relates to the sale of real estate/property according to the Finance Bill of 2013, where the cost of sale is equal to or greater than Rs 50,00,000. Section 194 IA of the Income Tax Act, 1961, provides that, as of 1 June 2013, the buyer can deduct tax at 1 % when making the property payment on the purchase of real estate immovable property. The seller will receive Form 16B for the deducted payment of TDS, while the buyer has to obtain Form 26QB as per the income tax Act 1961.

Provisions requirements as per section in Section 194-IA are giving below;Section 194IA; Section 194IA

A new provision of income tax i.e Form 26QB is a TDS Return-cum-challan form for the payment of TDS deductions made U/s 194-IA of IT Act, 1961. The section of this Act deals primarily with transactions concerning the sale of immovable property, and the relevant TDS along with Form 26QB must be submitted within 30 days which are counted from the end of the month in which TDS was deducted. For Example, if the financial transaction took place on March 14th then Form 26QB must be submitted Compulsory by April 30th of that year.

Tax Law Provide and laid down several primary regulations for selling and purchasing real estate property. In each and every that transaction covered by Section 194-IA, if such financial transaction value is greater than Rs. 50 lakhs, the buyer, also known as the deductor, is allowed to deduct TDS. The deductor (purchaser)  under this section 194IA will be required to issue to the deductee (seller) Form 16B.

The person buying of the property must deduct TDS from the overall selling valuation at the rate of 1 percent. A significant point to remember is that the purchaser, not the other party, has to subtract the TDS.

TDS shall not be deducted where the sale value is less than Rs. 50,00,000. In this event, if payment is in installments, TDS would have to be deducted from each payment.

The tax applies to the entire sum of the sale-even if the buyer or seller is more than one.

With effect from the FY 2013-14 budget, the 1 % TDS Rate deduction regulation on property sales was introduced to inspect underhanded property deals. With effect from June 2013, the regulation stipulates that on the sale of property exceeding Rs. 50 lakhs in India, a 1 percent tax on the total sale consideration must be deducted before making the payment to the vendor.

All the specifications for Form 26QB are provided under Section 194-IA.;TDS Form 26QB; TDS Form 26QB

These are:

  • Under Section 194-IA, at the time the transaction is done, the buyer must deduct TDS at a rate of 1 percent of the total selling price. TDS u / s 194-IA does not attract to Agricultural Land transactions. This taxation amendment does not apply to agricultural land sales transactions.
  • TDS on the sale of immovable assets shall not attract to transactions priced at less than Rs. 50 lakhs. For transactions above this cap, the entire cost of the transaction is deductible for TDS. For example, if the property costs Rs. 52 lakhs then you will pay TDS on Rs. 52 lakhs rather than Rs 2 lakhs (Rs. 52 lakhs – Rs. 50 lakhs).
  • The purchaser will deposit the 1 % TDS to the Income-tax department as per Govt’s specification. The permanent account number must be mandatory provide by both buyer and seller while filling out Form 26QB to confirm that sellers do not avoid taxes on the capital gains they generate.
  • If the payment is made in installments then TDS is deducted on a proportionate basis on each individual installment.
  • The buyer doesn’t need to obtain a Tax Deduction Account Number (TAN) to deduct and deposit TDS. However, PAN is mandatory for both the seller and the buyer in case TDS deduction occurs using Form 26QB.
  • The purchaser must deposit TDS and apply the Form 26QB within 30 days of the end of the month TDS was deducted.
  • If the payment involves multiple buyers and sellers, the deductor will be required to apply multiple Form 26QB.
  • After completing the complete process of deducting and depositing TDS, the buyer is mandated to provide the seller a TDS certificate within fifteen days of the transaction in lieu of the tax deducted and deposited to the Government.
  • The buyer is required to obtain Form 16B and furnish it to the seller.
  • TDS duly deposited and the properly filled Form 26QB, It must be deposited within 30 days from the end of the month in which TDS was deducted.
  • For the seller the PAN card is mandatory. If the PAN card is not available to the seller, otherwise 20 % TDS will apply.
  • After payment of the TDS, the buyer must give the TDS certificate to the vendor. This can be accessed in about two weeks from the date of deposit of TDS.
  • Obtaining a TAN number is not compulsory for the customer.

Points should be Buyer of Property identify:

Deduct tax @ 1 % from consideration for sale.

Collect the Seller’s Permanent Account Number (PAN), and inspect the same with the Original PAN Card.

Seller’s and buyer’s PAN should be mandatorily filled in the online form for furnishing sales transaction information.

Do not make any errors in quoting the PAN or other details in the online form, since there is no online error correction mechanism. You are required to contact the Income Tax Department for rectification.

Points should be Seller of Property identify:;Section 194IA; Section 194IA

Provide your PAN to the Department of Income Tax for the collection of TDS details to the Purchaser.

Check your Form 26AS Annual Tax Statement for the deduction of taxes deducted by the Buyer.

Information needed for Challan26QB:

The following details are needed when filling out the form 26QB) for Full Challan 26QB.

  • Sale & buyer’s PAN,
  • Copy of the Seller & Buyer PAN Card,
  • Information of seller & buyer, and amount of final consideration
  • Property descriptions in which transaction to complete.
  • The amount payable/credited & details of the tax deposit.

Frequently Asked Questions (FAQ) about On selling of property and application of  form 26QB and form16B:;Section 194IA; Form 26QB; Form 16B; Section 194IA; Form 26QB; Form 16B

Here we answered a few of the commonly asked questions about Form 26QB:

Q How to Download 26QB Form?

A. If you are wondering how to pay and access the form through Challan 26QB then here are the steps you need to follow:;CHALLAN; CHALLAN

  • Go to the TIN NSDL website and click on the link “e-payment: Pay Tax Online” located under the homepage’s “Services” tab.
  • On the next tab, click on Form 26QB (Online Form for Property Furnishing TDS) under the TDS on Property Sale menu:
  • Fill out the appropriate details

Download process: Form 26QB;TDS Form 26QB; TDS Form 26QB

  • When the payment has been made, the purchaser will have to wait a few days for the information to be reflected on the TRACES website. Registered users will be able to receive either Form 16B or Form 26QB, accepted in Form 26AS.
  • If the payment has been recorded in Form 26AS, the payment made on the sale of the property against TDS is reflected in Part F of Form 26AS under ‘Details of Tax Deducted at Source on      Sale of Immovable Property under section 194(IA). This will display information such as the   TDS certificate number, name of the deductee, PAN of the deductee, total transaction amount, booking status, date of transaction, TDS deposited, acknowledgment number, deposit date, and booking date.
  • Now click on the ‘Downloads’ tab to go to the TRACES website. Click on ‘requested files’ in the drop-down line. If an application is not submitted the user will be asked to submit a download request. Enter the nine-digit acknowledgment number reflected on Form 26AS Part F. After doing so, the user may display the application status. The application will be processed in a few hours, and the user can access Form 16B by entering the number of the submission. To receive Form 26QB a similar procedure must be followed.

Q What type of form 26QB and form16B are?

A. Form 26QB is a return cum challan which is used for payment of TDS to the government of India. Form 16B is a TDS certificate issued to deduct TDS by the buyer to the seller.

Q What is the depositing procedure of TDS?

A. following List of the process for filing TDS is as follows

  • Calculate 1 Percent of TDS on the overall consideration for sales. The seller will be paying Rs.59,40,000 after TDS for a property being sold for Rs. 60 lakhs.
  • Make the payment online on Form 26QB. It creates a challan. Notice that this has to be completed within 7 days from the end of the month TDS is deducted in.
  • The payment is reflected within 7 days on Form 26AS of the seller under Part F heading.
  • The buyer will then be allowed to provide the seller with a TDS certificate called Form 16B. This is available for free on the TRACES website.
  • To do this, register with your PAN and challan number on the TRACES web site.

Payment By Challan 26QB (Online & Offline) : To make your payment through Challan 26QB, here’s what you need to do:;CHALLAN;Form-26QB; CHALLAN;Form-26QB

  • Stage 1-Go / e-tax new / tds non tds.jsp services online.
  • Stage 2Click Form 26QB.
  • Stage 3- If you are a corporate taxpayer pick 0020. Others could just press 0021.

To fill Form 26QB, select one of the options given:

  • (0020) Corporation Tax (Companies)
  • (0021) Income tax (other than corporations)
  • Assessment Year and financial year
  • TDS deductor address and
  • Information on Property
  • After that, pick the Payment Mode
  • Payment of e-tax (via net banking facility) immediately
  • Payment of e-tax by subsequent date (payment by bank branch at a later date)

                Step 4 – Fill up the empty blanks and click on Proceed.

                Stage 5 Filled up empty blanks and press to Continue.

If you prefer the net banking option then you will use your Internet banking credentials to log in to your account and make the payment. You can access the Form 26QB when payment is completed.

However, if you choose the “Pat Later” option then a unique Acknowledgement Number will produce with Form 26QB for you. To make the payment, you need to print it out and take the form to your bank branch. You need to make the TDS payment using Form 26QB within 10 days of producing this form.

The taxpayer can log in to the TRACES website after completing the TDS payment and verifying that the payment is reflected in Form 26AS, and download Form 26AS from the Downloads menu after providing the relevant information.

A confirmation screen appears. The two options are given to user-” Print Form 26QB “and” Send to Bank. It also shows a specific acknowledgment number. Keep a record for future use of that acknowledgment amount. To take a copy of the document click “Print Form 26QB.”

Mode of Payment

You may make the Taxation payment instantly, i.e. via net-bank or by visiting one of the bank branches on a subsequent date. If the payment is made online, a print of the Challan 280 marked on 800 may be taken. If the payment is made at a branch, an e-receipt for Form 26QB will be generated along with a unique acknowledgment number. This has to be submitted with the cash or cheque to each of the approved lenders. The institution must generate the Challan until the tax sum is paid to the bank.

For the payment here is the list of some Authorised bank

  • HDFC Bank
  • Central Bank of India
  • Indian Overseas Bank
  • Jammu & Kashmir Bank
  • Axis Bank
  • Bank of Baroda
  • Corporation Bank
  • Andhra Bank
  • ICICI Bank
  • Dena Bank
  • IDBI Bank
  • Indian Bank
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Syndicate Bank
  • Oriental Bank of Commerce
  • United Bank of India
  • Vijaya Bank
  • Punjab and Sind Bank
  • Punjab National Bank
  • State Bank of India
  • Allahabad Bank
  • UCO Bank
  • Union Bank of India

Q How does this appear on the seller’s sales tax return?

A. Capital gains from property sales along with the TDS details found in Form 26AS would have to be recorded in the seller’s income tax return.

Q What is the Process for issuing form 16?

Ans Process for issuing form 16 are as under : 

  1. After 5 days, proceed to the TRACES portal ( to download Form 16B.
  2. Steps to get Form 16B downloaded:
  • Register & sign in as a taxpayer using your PAN on the TRACES portal (
  • Under the “Downloads” tab, pick “Form 16B (For Buyer).”
  • Enter the property transaction information for which you must submit Form 16B. Enter the Seller’s Assessment Year, Acknowledgement Number, PAN and press “Continue”
  • A screen appears for confirmation. To continue, click on “Submit Application.”
  • A message of completion should appear on the submission of a download request. To check for the download request please note the request number.
  • To download the requested files, click on “Requested Downloads.”
  • Request check with the request number. Select the row of requests and click on the “download HTTP” button.

Q How can I deduct TDS if I don’t have TAN?

A. To deduct TDS, the buyer need not have a Tax Collection and Deduction Account Number (TAN). Additionally, both the buyer and the seller need to provide their PAN for the transaction like TDS deduction.

Q. I had forgotten to subtract TDS when I bought a house. Now, what will I do?

A. Non-deduction of TDS on the remaining TDS balance faces a penalty value of 1 percent. To set the account straight you need to act and pay the penalty as soon as possible. Be sure to forward the TDS to the government and file the return of TDS within the specified period, as well as avoid certain penalties.

Q Is deduct TDS is required for purchasing agricultural land?

A. No. As per Section 194-IA, If you are purchasing agricultural land, you do not need to deduct TDS for the transaction

Q. Is the Deduction of TDS is Compulsory if I am Purchasing Agricultural Land?

A. No, As per section 194-IA there is no need to deduct TDS if you are Purchasing Agricultural Land.  Agricultural Land is an area  within the jurisdiction of Municipality or Cantonment Board which has a population of not less than 10,000 or It is Area in any area within below given distance measured are as under:

The population of the Municipality Distance from Municipal limit or Cantonment Board
More than 10,000 but does not exceed 1,00,000 Within 2 kms
More than 1,00,000 but does not exceed 10,00,000 Within 6 kms
Exceeding 10,00,000 Within 8 kms

Q. How to make payment of TDS by using Form 26QB?

A. By using Form 26 QB, you can avail of any of the options for remit TDS to the government Choose the E-tax payment option on the TIN NSDL webpage and payment online with net banking. Generate Form 26QB with a unique acknowledgment number, and use this form to visit your bank to pay. Form 26QB with acknowledgment number is 10 days validity.

Q. What penalties do Form 26QB enforce for non-compliance with the above TDS provision?

A. Penalties relating to Form 26QB of Section 194-IA

It is important to remember here that failure to deduct TDS, issue Form 16B or failure to file Form 26QB attracts attention and penalty. The penalties which apply are as follows:

Condition Penalty
Non-deduction of TDS The interest of 1% on the amount not deducted for TDS
Non-remittance of TDS to the government The penalty of 1.5 percent of the sum deducted each month
Delay in filing of TDS returns The penalty of 200 Rs per day for the default day


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. 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: or call at 09811322785/4 9555 5555 480)

New Small Business Idea that match with your Personality;Small Business; 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;Small Business; 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;Small Business; 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.


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;Small Business; 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; SMALL BUSINESS; 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.


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.

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. 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: or call at 09811322785/4 9555 5555 480)

Effective work from home and challenges & Advantages

How Effectively do Work from Home?;Remote Worker; 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;Work From Home Challenges; 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;Work from Home; 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.

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. 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: 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;bring back your business; 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.;BRING IT BACK; 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:;BRING IT BACK; 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;bring back your business; 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.

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. 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: or call at 09811322785/4 9555 5555 480)

Details of E-Invoice under GST

What is an E-invoice Process is initiated by the GST Network?;GST E-Invoice; GST E-Invoice

E-invoice is not a bill that you can download or create from the Official website of the GST department, but it is a system of digitally validating all B2B invoices via the GST Network (GSTN). Creating e-invoices directly from the portal isn’t feasible.

E-invoicing or authentication is needed to ensure that the invoices created by your accounting system are valid for processes such as the creation of e-way bills and filing of GST returns. The procedure requires the submission to the GST Portal of company bills created by various accounting system to verify them in a common way.

So the invoices generated by various GST return filing software may have various forms, the software can not all be directly generated to the GST system. The government has therefore decided to adopt a standard format (Schema), requiring all accounting software to follow a common format that can be uploaded for verification and confirmation to the GST portal.

To sum up, E-invoice is a standardized process or schema for the exchange of data between different manufacturers’ GST billing applications.

Note: “The roll-out of e-invoicing will be relevant to corporations with a turnover of more than 500 crs from 1 October onwards.”

The benefit of the GST E-Invoicing System?;Benefits; Benefits

The basic goal behind the tax departments’ adoption for the e-invoice program is the ability to pre-populate the returns and reduce the challenges of reconciliation. That is done through the IRP design process, which shares the invoice data with the GST system and also with the e-way bill system. Thus, one-time invoice uploading would ensure that most of the information needed in returns are auto-populated, and also in the e-way bill.

A few of the key benefits of e-invoicing are as follows:

  • The processing and validation of B2B invoices from the common portal would ensure the automated preparation of GST ANX-1 and ANX-2 in the new format. IT also makes GSTR 1 auto ready for B2B supplies.
  • E-invoicing may be further used for providing only vehicle information for generating e-way bills.
  • Invoices submitted for verification by vendors shall be exchanged directly with purchasers for reconciliation.
  • The output tax directly matches the input credit liability. For Debit / Credit Notes, Invoices, and other qualifying documents, e-invoice can be generated.
  • Debit / Credit Notes, Invoices, and other qualifying documents can be generated by e-invoice.

Introduction of e-Invoicing

While invoices generated by each system look more or less the same, it can not be understood by the computer system while the business users can fully understand it. For example, an accounting software-generated invoice “A” can not be viewed by a system that provides accounting software “B.”

Now there are hundreds of accounting/billing software generating invoices and they all use their own formats to store the data. Just because of that, the GST program is unable to read and understand these invoices whereas the invoice data remains the same.

To shorten the long story, the same information is being presented in different invoice formats today and there is no way a system can understand that.

Therefore, there is a need to standardize the format where an invoice’s electronic data is exchanged with others to ensure data connectivity.

How do we implement e-invoicing?;GST E-Invoice; GST E-Invoice

Initially expected to introduce the e-invoice under GST on April 1st, 2020. However, the new date for launching e-invoicing is 1 October 2020, as per the 39th GST Council meeting held on 14 March 2020.

To ensure that companies have enough time to adapt to the new electronic invoicing system, the GST Council has approved the implementation of e-invoicing. To begin with, that will be implemented on a voluntary basis.

  • It can be introduced on a voluntary (trial) basis starting 1 January 2020 * for taxpayers with a turnover of more than 500 crores.
  • Those with a turnover of more than 100 crores may adopt it from February 1, 2020 (on a voluntary trial basis).
  • The updated date for compulsory implementation of e-invoicing is 1 October 2020

*The latest e-invoicing date is revised as per the 39th meeting of the GST Council.

To whom e-invoice is applicable?

Electronic Invoicing shall apply to all businesses whose aggregate turnover exceeds “One Hundred Crore Rupees” in a financial year

Who will upload the e-invoice?

Under the e-invoice rule, the seller will electronically upload the invoice to the IRP system and collects the IRN (Invoice Reference Number) in the form of a physical copy of the invoice given to the recipient.

The IRP program is also configured to send the digitally signed e-invoice with QR code via e-mail to both the manufacturer and the recipient.

Documents required to send to the GST system?

The definition of e-invoice is protected according to the following articles. This means the creator of this document has to upload it to the IRP system.

    • Supplier invoice
    • Supplier credit note
    • Supplier debit note
    • Any other document which is required by law to be published by the document creator.

How E-Invoice vary from current invoicing practice?

E-invoice is a system in which a unique invoice reference number (IRN) must be electronically uploaded and verified to the invoice. It will have no effect on the existing physical (printed) or electronic (ex.pdf version) invoice issuing process.

The users will continue to see the physical or electronic (PDF / Excel) output of the invoices in the same way that occurred before the e-Invoice format was implemented into the program.

Procedure for generating GST e-invoice;GST E-INVOICE Flow chart; GST E-INVOICE Flow chart

It is the duty of the taxpayer or companies to produce the invoice / s, and then send them for approval to the Invoice Registration Portal (IRP). The portal will return the invoice to the manufacturer, along with a unique reference number, digital signature, and a QR code, after successful verification. The e-invoice will also be exchanged with the corresponding buyer on the provided e-mail ID

Stage 1: Formation of an Invoice

The seller/supplier will use his / her accounting or billing software to create an invoice in the prescribed format (e-invoice schema). It must have the required details.

For each B2B invoice, the supplier’s accounting program must produce a JSON. The JSON file is imported into the IRP.

Stage 2: Generation of an IRN

The next step will be to use a standard hash-generation algorithm to create a unique invoice reference number (IRN) by the vendor.

Stage 3: Uploading the Invoice

Now the seller will upload JSON to the Invoice Registration                      Portal, either directly or via third-party software, for each of the invoices, along with IRN.

Stage 4: Sign and Authenticate

If it’s not already uploaded by the supplier, IRP will validate the hash / IRN attached to JSON, or generate an IRN.

Then, it verifies the file against GST’s central registry.

Upon successful verification, JSON will have its signature attached to the invoice and a QR code.

The earlier created hack will become the new E-invoice IRN. The e-invoice will be the unique identifier for the whole financial year.

Stage 5: Data-sharing

The data uploaded will be shared with both the E-way bill and the GST program.

Stage 6: Download via e-invoice

The portal will forward the digitally signed JSON back to the seller along with IRN and QR code. The invoice is also sent to the customer on their registered email I d.

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. 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: or call at 09811322785/4 9555 5555 480)

Basic Details of Invoice Registration Portal(IRP) on GST

Introduction of IRP on GST e-invoicing; E-INVOIVE; E-INVOICE

E-Invoicing or ‘electronic invoicing’ is all set to be compulsory from 1 October 2020 for B2B and B2G transactions for large and medium-sized taxpayers, but voluntary implementation commenced on 1 January 2020. National Information Centre, along with other modes, provided e-Invoice registration facilities in the Invoice Registration Portal (IRP) via API mode. These APIs allow taxpayers & GSPs to combine their business systems & procedures with the mechanism of e-Invoice for easy and security flaw-free registration and invoice generation on their systems.

The Invoice Registration Portal (IRP) also makes it easier for developers or taxpayers to understand the e-Invoicing system integration with their business processes and allows login to access the APIs. IRP supports API documentation by supplying all the information such as URLs, / calling methods, JSON payload format, sample request payloads & sample responses, verifications being introduced, and similar details that the application developer requires to implement the systems.

IRN platform also supports developers in simulating end-to – end-use of APIs. This includes understanding the generation of request payloads, the encryption, and decryption of requests & replies, and the accuracy of the encryption evaluation.

What is Invoice Registration Portal (IRP)?

The Invoice Registration Portals are organizations that serve as registrars and run of invoice/credit note/debit note via a website for assigning Invoice Reference Numbers (IRNs). For either create or verify the Invoice Reference Number (IRN) of the submitted invoice, the invoice information can be submitted to the Invoice Registration Portal using a specified mode. Only such invoices with an approved IRN shall be considered valid according to law.

There is actually just one IRP-NIC. Multiple registrars (IRPs) will also be added in the future.


The functions of the IRP are as follows:

  1. Hash / IRN generation for invoices:

Where the invoices have been uploaded without hash, the                          Invoice Registration Portal generates the hash / IRN based on the IRN parameters for that invoice in the prescribed format.

  1. Hash / IRN validation for invoices:

Where the taxpayer produces hash on their systems, the hash is added to the invoice, and the IRN checks whether the specified requirements are met.

  1. Test on de-duplication:

IRP performs a hash / IRN test of an invoice for any duplicate or repeat by comparing the same with data stored in the Central Depository.

  1. Digital Validated Invoice Signage:

The Invoice Registration Portal digitally signs all of the approved invoices using the IRP’s private key. This signed digitally, is then made available to the manufacturer.

  1. Generation of QR codes with respect to invoices validated:

In addition to the digital signature, the Invoice Registration Portal also produces a QR code in respect of each invoice.   The resulting QR code can be used for checking/printing the invoice, and for easy view/access on handheld devices.  This feature is especially useful for tax officers and other stakeholders when they have no / limited Internet access to verify such information. The following parameters are available via QR code:

  1. Supplier GSTIN
  2. Recipient GSTIN
  3. Invoice number as the supplier has indicated
  4. Date of Invoice Generation
  5. Price invoiced (taxable and gross tax)
  6. Number of objects in a line
  7. HSN Principal element code (the line item with the highest taxable value)
  8. Special Reference Invoice Number (hash)

6. E-mail the invoice to:

The approved invoice is sent to the buyer’s and seller’s email address as indicated in the invoice.

  1. Offline Application:

The IRP will provide an offline app for authenticating offline invoice QR code and viewing its basic details. The complete invoice details would only be available after logging into the portal.

  1. Integration of the program with GST and E-Way Bill:

The information of the submitted invoice will be exchanged automatically with the GST system allowing for automatic updating of ANX-1 (of the seller) and ANX-2 (of the buyer). Furthermore, the information will also be exchanged automatically with the E-Way Bill framework wherever possible to make the E-Way Bill development process even simpler. Only then would the E-Way Bill system require vehicle numbers to complete the creation process of an E-Way Bill.

Generation of Direct Invoices at IRP

E-invoicing ensures that a prescribed format is followed for invoice details to be recorded electronically. GST taxpayers must follow a prescribed format that allows the system to read out the output generated by another system (readability of inter-systems). Therefore, if the invoice details are recorded in compliance with the prescribed format, this would result in a major improvement in the process of filing returns by software.

Therefore, it can be presumed that the purpose of the Invoice Registration Portal is not to create online e-invoices, but only to record day-to-day information of the invoices generated by the entity. For downloading invoice details into the IRP, The invoice will be available as a JSON file for uploading information of the invoices into the IRP.

The GSTN has provided eight unrestricted accounting/bookkeeping software to help generate an invoice as a JSON file. Accounting/bookkeeping apps other than the following eight would possibly have the same features. In addition, an Offline Tool will also be available for entering paper invoice details and generating the JSON file of the same.

Modes of Login to IRP

Multiple modes for recording an invoice on the IRP have been proposed:

On the Web:

The invoice information can be entered into the IRP database for registration/validation purposes of the same.

Based on API:

This mode would enable large taxpayers and accounting software providers to use their own software to communicate with the Invoice Registration Portal. The IRN, similar to the E-Way Bill system, can be produced validated for invoices either one at a time or in bulk.

SMS-based service:

This mode is designed to allow the invoice information to be entered in a specific format and submitted for processing to the Invoice Registration Portal via SMS.

Mobile App based on:

IRP offers a mobile app that executes some of the IRP                                  functions as mentioned above.

Resource-Based on Offline:

The invoice details may be entered on the Invoice Registration                 Portal website for registration/validation purposes of the same.

Basing on the GSP:       

Taxpayers may also use GST Suvidha Provider (GSP) services such as Clear Tax to help them carry out their compliances related to e-invoices.

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. 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: or call at 09811322785/4 9555 5555 480)