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2021

type of companies in india

India has been identified as one of the fastest growing major economies in the world, its service industry being the key contributor. India is going through a phase of extraordinary economic liberation and is encouraging foreign direct investment by granting more accessibility to its massive and diverse market. For these reasons, many companies are now targeting expansion by starting their own business in India. Foreign investors can register various types of companies in India. Depending on the purpose, goals, initial investment, and the duration (short term/long term) of business, investors can decide the structure for their business.

Nowadays, entrepreneurs opt for company form of organisation and look at the scope of entering into Corporate World. Various types of companies can be formed according to the requirement of business and its activities. In this blog, we will discuss the basic types of a company in India. Let us discuss about different type of companies in India. 

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2021

EPF

A provident fund is a government-managed, mandatory retirement savings scheme. It is managed by the Employee Provident Fund Organization. These funds also share some characteristics with pension funds provided by employers.

The purpose of Provident Fund is to provide employees with lump sum payments at the time of exit from their place of employment. This differs from pension funds, which have elements of both lump sum as well as monthly pension payments. 

2021

Non Deduction of TDS on Interest Income

It is common for many of us to have a fixed deposit in banks which earns some fixed amount of Interest. However, if the interest earned on such investment is higher than certain threshold limit, it is subject to Tax Deducted at Source. TDS on Interest income from such fixed deposits is governed under Section 194A of Income Tax Act, 1961. TDS on Interest income is applicable at the rate of 10% if amount of interest in a financial year exceeds Rs. 40,000 (prior to FY 2019-20, the limit was Rs 10,000). Banks are liable to make such deductions. These deductions take place at the time when the interest is paid by the financial institution to its customers.

2021

Brief Note on TCS with Applicable Rates from 1st April 2021

TCS or Tax Collected at Source is a tax levied by the government of India. Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. These goods or commodities are listed under Section 206C of the Income Tax Act, 1961.

2021

 Income Tax Slab Rates for FY 2020 21

Income tax is levied on the income earned by all the individuals, HUF, partnership firms, LLPs and Corporates as per the Income tax Act of India. The Indian Income Tax is a progressive tax system. This means higher the income higher the tax and vice versa. Hence, tax is levied as per the slab system if their income is above the minimum threshold limit. These slab rates are different for different categories of taxpayers.

Under slab system different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every budget.

2021

Important Changes applicable from 1st April 2021

April 1 has marked the beginning of the financial year 2021-22 and will bring a slew of income tax, GST and other important changes. Some of them were announced by the Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2021 in February.

These changes are going to affect your money matter to a large extent. Changes like new salary structure, rise in NPS fund manager's charges, banking rules due to merger of banks, income tax rule changes in terms of EPF investment, etc. are some of the glaring changes that are going to take place from 1st April 2021. Here are the most important changes that are going to have its direct impact on your budget and monetary affairs.

Financial Management