Remuneration Of Managerial Personnel / Managing Director Under Companies Act 2013

Section 205(2) provides that provisions contained in section 204 and section 205 shall not affect the duties and functions of the Board of Directors, chairperson of the company, managing director or wholetime director under this Act, or any other law for the time being in force.
MANAGERIAL REMUNERATION 
Just as profits drive business, incentives drive the managers of business. Not surprisingly then, in a fiercely competitive corporate environment, managerial remuneration is an important piece in the management puzzle. While it is important to incentivize the workforce performing the challenging role of managing companies, it is equally important not to go overboard with the perks and the pay. In India, to keep a check on unnecessary profit squandering by companies and, at the same time, to ensure adequate and reasonable compensation to managerial personnel, the law intervenes to do the balancing act.
Remuneration to Managerial Personnel 
Section 197 of the Companies Act, 2013 prescribed the maximum ceiling for payment of managerial remuneration by a public company to its managing director whole-time director and manager which shall not exceed 11% of the net profit of the company in that financial year computed in accordance with section 198 except that the remuneration of the directors shall not be deducted from the gross profits.
Further, the company in general meeting may, with the approval of the Central Government, authorise the payment of remuneration exceeding 11% of the net profits of the company, subject to the provisions of Schedule V.
The net profits for the purposes of this section shall be computed in the manner referred to in section 198.
The remuneration payble to any one managing director or wholetime director or manager shall not exceed 5% of the net profits of the company and if there are more than one such director remuneration shall not exceed 10% of the net profits to all such directors and manager
taken together.
Except with the approval of the company in general meeting, the remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed,—
— 1% of the net profits of the company, if there is a managing or
whole-time director or manager;
— 3% of the net profits in any other case.
The percentages aforesaid shall be exclusive of any fees payable to directors for attending the meeting of the board/committees or for such other purposes as decided by the board.

Remuneration by a Company having no Profit or Inadequate Profit
If, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including
managing or whole-time director or manager, any remuneration
exclusive of any fees payable to directors except in accordance with
the provisions of Schedule V and if it is not able to comply with Schedule V, with the previous approval of the Central Government.
In cases, where Schedule V is applicable on grounds of no profits or inadequate profits, any provision relating to the remuneration of any director which purports to increase or has the effect of increasing the amount thereof, shall not have any effect unless such increase is in accordance with the conditions specified in that Schedule and if such conditions are not being complied, the approval of the Central
Government had been obtained.
Remuneration to Directors in other Capacity [Section
197(4)]
The remuneration payable to the directors including managing or
whole-time director or manager shall be inclusive of the remuneration
payable for the services rendered by him in any other capacity except
the following:
(a) the services rendered are of a professional nature; and
(b) in the opinion of the Nomination and Remuneration
Committee (if applicable) or the Board of Directors in other
cases, the director possesses the requisite qualification for the
practice of the profession.
Sitting Fees to Directors for Attending the Meetings
[Section 197(5)]
A director may receive remuneration by way of fee for attending
the Board/Committee meetings or for any other purpose as may be
decided by the Board. Provided that the amount of such fees shall not
exceed the amount as may be prescribed.
The Central Government through rules prescribed that the amount
of sitting fees payable to a director for attending meetings of the Board
or committees thereof may be such as may be decided by the Board of
directors or the Remuneration Committee thereof which shall not
exceed the sum of rupees 1 lakh per meeting of the Board or committee
thereof.
The Board may decide different sitting fee payable to independent
and non-independent directors other than whole-time directors.
Monthly Remuneration to Director or Manager
A director or manager may be paid remuneration either by
way of a monthly payment or at a specified percentage of the net
profits of the company or partly by one way and partly by the
other. [Section 197 (6)]
An independent director shall not be entitled to any stock option
and may receive remuneration by way of fees, reimbursement of
expenses for participation in the Board and other meetings and
profit related commission as may be approved by the members.
[Section 197 (7)]
Any director who is in receipt of any commission from the
company and who is a managing or whole-time director of the
company shall not be disqualified from receiving any remuneration
or commission from any holding company or subsidiary company of
such company subject to its disclosure by the company in the Board’s
report. [Section 197 (14)]
Remuneration Drawn in Excess of Prescribed Limit
If any director draws or receives, directly or indirectly, by way of
remuneration any such sums in excess of the limit prescribed or
without the prior sanction of the Central Government, where it is
required, he shall refund such sums to the company and until such
sum is refunded, hold it in trust for the company. [Section 197(9)]

Appointment Of Managerial Personnel / Managing Director Under Companies Act 2013

Managing Director is Key Managerial Personal of utmost importance. He is face of a company and its decision-making mechanism.

The executive management of a company is responsible for the day to day management of a company. The companies Act, 2013 has used the term key management personnel to define the executive management. The key management personnel are the point of first contact between the company and its stakeholders. While the Board of Directors are responsible for providing the oversight, it is the key management personnel who are responsible for not just laying down the strategies as well as its implementation.


Key Managerial Personnel

The Companies Act, 2013 has for the first time recognized the concept of Key Managerial Personnel. As per section 2(51) “key managerial personnel”, in relation to a company, means—
(i) the Chief Executive Officer or the managing director or the
manager;
(ii) the company secretary;
(iii) the whole-time director;
(iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed.

Managing Director
Section 2(54) of the Companies Act, 2013, defines ‘managing director’. It stipulates that a “managing director” means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, by whatever name called. The explanation to section 2(54) excludes administrative acts of a routine nature when so authorised by the Board such as the power to affix the common seal of the company to any document or to draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, from the substantial powers of management.
Whole Time Director
Section 2 (94) of the Companies Act, 2013 defines “whole-time director” as a director in the whole time employment of the company.
Manager
Section 2(53) of the Companies Act, 2013 defines “manager” as an individual who, subject to the superintendence, control and direction of the Board of Directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, whether under a contract of service or not.
Chief Executive Officer & Chief Financial Officer
Section 2(18)/(19) of the Companies Act, 2013 defined “Chief Executive Officer”/ “Chief Financial Officer” as an officer of a company, who has been designated as such by it;
Company Secretary
Section 2(24) of the Companies Act, 2013 defines “company secretary” or “secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries
Act, 1980 who is appointed by a company to perform the functions of a company secretary under this Act;

Appointment of Managing Director, Whole-Time Director or Manager
Section 196 of the Companies Act, 2013 provides that no company shall appoint or employ at the same time a Managing Director and a Manager. Further, a company shall not appoint or reappoint any person as its Managing Director, Whole Time Director or manager for a term exceeding five years at a time and no reappointment shall be made earlier than one year before the expiry of his term.
Section 196(4) of the Companies Act, 2013 provides that subject to the provisions of section 197 and Schedule V, a managing director, whole-time director or manager shall be appointed and the terms and conditions of such appointment and remuneration payable be approved by the Board of Directors at a meeting which shall be subject to approval by a resolution at the next general meeting of the company and by the Central Government in case such appointment is at variance to the conditions specified in Schedule V. Approval of the Central Government is not necessary if the appointment is made in accordance with the conditions specified in Schedule V to the Act.
Therefore, the appointment of a managing director or whole-time director or manager and the terms and conditions of such appointment and remuneration payable thereon must be first approved by the Board of directors at a meeting and then by an ordinary resolution passed at a general meeting of the company.
A notice convening Board or general meeting for considering such appointment shall include the terms and conditions of such appointment, remuneration payable and such other matters including interest, of a director or directors in such appointments, if any. A return in the prescribed form viz. MR.1 is required to be filed with Registrar within 60 days from the date of such appointment.
Section 196(5) provides that subject to the provisions of this Act, where an appointment of a managing director, whole-time director or manager is not approved by the company at a general meeting, any act done by him before such approval shall not be deemed to be invalid.

Appointment with the Approval of Central Government

In case the provisions of Schedule V of the Companies Act, 2013 are not fulfilled by company, an application seeking approval to the appointment of a managing director (Whole-time director or manager) shall be made to the Central Government, in e-Form No. MR.2.

As per section 200, the Central Government or a company may, while according its approval under section 196, to any appointment of a managing director, whole-time director or manager, the Central

Government or the company shall have regard to—

(a) the financial position of the company;

(b) the remuneration or commission drawn by the individual
concerned in any other capacity;
(c) the remuneration or commission drawn by him from any other
company;
(d) professional qualifications and experience of the individual
concerned;
(e) such other matters as may be prescribed.
As per Rule 6 for the purposes of item (e) of section 200, the Central
Government or the company shall have regard to the following matters
while granting approval to the appointment of managing director
under section 196:
(1) Financial and operating performance of the company during
the three preceding financial years.
(2) Relationship between remuneration and performance.
(3) The principle of proportionality of remuneration within the
company, ideally by a rating methodology which compares
the remuneration of directors to that of other executive
directors on the board and employees or executives of the
company.
(4) Whether remuneration policy for directors differs from
remuneration policy for other employees and if so, an
explanation for the difference.
(5) The securities held by the director, including options and details
of the shares pledged as at the end of the preceding financial
year.
Disqualifications
Section 196(3) of the Act makes a specific prohibitory provision
with regard to the appointment of managing director, whole time
director or manager. The section lays down that no company shall
appoint or continue the employment of any person as its managing
director, whole time director or manager who—
(a) is below the age of twenty-one years or has attained the age of
seventy years:
Provided that appointment of a person who has attained the
age of seventy years may be made by passing a special resolution
in which case the explanatory statement annexed to the notice
for such motion shall indicate the justification for appointing
such person;
(b) is an undischarged insolvent or has at anytime been adjudged
as an insolvent;
(c) has at any time suspended payment to his creditors, or makes,
or has at any time made, a composition with them; or
(d) has at any time been, convicted by a court of an offence and
sentenced for a period of more than six months.
Apart from this, Part I of Schedule V contains five conditions which
must be satisfied by a person to be eligible for appointment as managing
director, whole-time director or manager without the approval of the
Central Government. These conditions are as below:
(a) he had not been sentenced to imprisonment for any period, or
to a fine exceeding one thousand rupees, for the conviction of
an offence under any of the following Acts, namely:-
(i) the Indian Stamp Act, 1899,
(ii) the Central Excise Act, 1944,
(iii) the Industries (Development and Regulation) Act, 1951,
(iv) the Prevention of Food Adulteration Act, 1954 ,
(v) the Essential Commodities Act, 1955,
(vi) the Companies Act, 2013,
(vii) the Securities Contracts (Regulation) Act, 1956,
(viii) the Wealth-tax Act, 1957,
(ix) the Income-tax Act, 1961,
(x) the Customs Act, 1962,
(xi) the Competition Act, 2002,
(xii) the Foreign Exchange Management Act, 1999,
(xiii) the Sick Industrial Companies (Special Provisions) Act,
1985,
(xiv) the Securities and Exchange Board of India Act, 1992,
(xv) the Foreign Trade (Development and Regulation) Act, 1992;
(xvi) the Prevention of Money Laundering Act, 2002;
(b) he had not been detained for any period under the Conservation
of Foreign Exchange and Prevention of Smuggling Activities
Act, 1974;
Provided that where the Central Government has given its
approval to the appointment of a person convicted or detained
under sub-paragraph (a) or sub-paragraph (b), as the case may
be, no further approval of the Central Government shall be
necessary for the subsequent appointment of that person if he
had not been so convicted or detained subsequent to such
approval;
(c) he has completed the age of 21 years and has not attained the
age of 70 years:
Provided that where he has attained the age of 70 years; and
where his appointment is approved by a special resolution passed
by the company in general meeting, no further approval of the
Central Government shall be necessary for such appointment;
(d) where he is a managerial person in more than one company,
he draws remuneration from one or more companies subject
to the ceiling provided in section V of Part II;
(e) he is resident in India.
Explanation : For the purpose of above, resident in India includes
a person who has been staying in India for a continuous period
of not less than twelve months immediately preceding the date
of his appointment as a managerial person and who has come
to stay in India:
(i) for taking up employment in India, or
(ii) for carrying on a business or vocation in India.
But this condition shall not be applicable to the companies in
Special Economic Zones, as may be notified by Department of
Commerce from time to time.
However, a person, being a non-resident in India, shall enter
India only after obtaining a proper Employment Visa from the
concerned Indian mission abroad. For this purpose, such person
shall be required to furnish, alongwith the visa application form,
profile of the company, the principal employer and the terms
and conditions of such person’s appointment.
Reappointment of Managing Director
Under sections 196 and 203 of the Companies Act, 2013, appointment includes reappointment. Reappointment of a managing director of a company must be taken for consideration before the expiry of his term of office. If the reappointment of the managing director is approved and if it is not in accordance with the conditions specified in Schedule V then the approval of the Central Government must be obtained for such reappointment. Rest of the provisions for reappointment of a managing director are same as in the case of appointment of a managing director.

Appointment of Key Managerial Personnel
Section 203 of the Companies Act, 2013 read with Rule 8 mandates
the appointment of Key Managerial Personnel and makes it obligatory
for a listed company and every other public company having a paidup
share capital of rupees ten crores or more, to appoint following
whole-time key managerial personnel:
(i) managing director, or Chief Executive Officer or manager and
in their absence, a whole-time director;
(ii) company secretary; and
(iii) Chief Financial Officer:
Every whole-time key managerial personnel of a company shall
be appointed by means of a resolution of the Board containing the
terms and conditions of the appointment including the remuneration.
An individual shall not be appointed or reappointed as the
chairperson of the company, as well as the managing director or Chief
Executive Officer of the company at the same time unless the articles
of such a company provide otherwise; or the company does not carry
multiple businesses. However, such class of companies engaged in
multiple businesses and which has appointed one or more Chief
Executive Officers for each such business as may be notified by the
Central Government are exempted from the above.
A whole-time key managerial personnel shall not hold office in
more than one company except in its subsidiary company at the same
time. However, he can hold such other directorship with the permission
of the Board.
A whole-time key managerial personnel holding office in more than
one company at the same time, shall, within a period of six months
from such commencement, choose one company, in which he wishes
to continue to hold the office of key managerial personnel.
A company may appoint or employ a person as its managing
director, if he is the managing director or manager of one, and of not more than one, other company and such appointment or employment
is made or approved by a resolution passed at a meeting of the Board
with the consent of all the directors present at the meeting and of
which meeting, and of the resolution to be moved thereat, specific
notice has been given to all the directors then in India.
If the office of any whole-time key managerial personnel is vacated,
the resulting vacancy shall be filled-up by the Board at a meeting of
the Board within a period of six months from the date of such vacancy

Registration Consultant

Splan Registration Consultant firm provides services that help you to register your business or organisation more efficiently. We are Delhi based consultant providing our services across all the states of India. You can get various services such as NGO/Society registration, , ISO registration, Firm Registration, and many other registration solutions for your business from registration intelligence experts. We will provide you a complete solution for your all registration requirements. We will handle all the legal procedure of registration and our client do not need to face the hassles of departments. We are providing registration services across India. National Level NGO Bihar | National Level NGO Registration in Bihar | National Level NGO Consultants in Bihar | Consultants for National Level NGO in Bihar | Documents required for National Level NGO registration in Bihar | Procedure to register National Level NGO in Bihar | National Level NGO registration procedure in Bihar | Registrar of National Level NGO in Bihar | Where to register National Level NGO in Bihar | How to register National Level NGO in Bihar | National Level NGO registration office address in Bihar

Documents Required for National Level NGO | Society

• ID Proof of Nine Memeber's - Two from Delhi and Seven from seven different states.
• ID Proof should Be - Voter ID, Driving License, Aadhaar Card, Passport - Zerox Copy.
• Name of the society.
• One Electricity Bill or Water Bill or House Tax Reciept or any proprety Documents to show the office premises.
• It will take 15 to 20 Days to get register.
• Rest of the document we will prepare.
• For further Procedure or Details Contact us freely.

Documents Required for State Level NGO | Society

• ID Proof of Seven Memeber's - From the same state.
• ID Proof should Be - Voter ID, Driving License, Aadhaar Card, Passport - Zerox Copy.
• Name of the society.
• One Electricity Bill or Water Bill or House Tax Reciept or any proprety Documents to show the office premises.
• It will take 15 to 20 Days to get register.
• Rest of the document we will prepare.
• For further Procedure or Details Contact us freely.

Company StartUP Services

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Service Tax notification

As per Ministry of Finance, Government of India vide notifications No. 21/2015-ST & 22/2015-ST dated 06.11.2015, Swachh Bharat Cess(SBC) at rate 0.5% will be levied on the value of all taxable services w.e.f.15.11.2015. 
Regards SPLAN Corporate solutions 

10 Tips to Turn Your #Startup Dream Into a Reality

Every #entrepreneurial #venture starts with a good idea, evolves to a bunch of amazing ideas, and with any luck, ends up as a successful business.

But how do you move from that first idea to your final success? In our book, Small Business, BIG Vision, my brother and I talk a lot about this. We discuss how having a big vision is so important, but that it doesn't mean anything if nothing comes of it.

Here are 10 steps to move your dreams into reality:

1. Define the difference. You need to be clear about how your product is unlike other competitors.

Suppose your dream involves a new type of social media that lets you create online collections of visuals that people can share. Are you talking about Pinterest? Slideshare? Instagram? You need to set yourself apart. If your idea is not clearly defined, people may have a "been there, done that" view of it.

2. Look for the problem-need-want your idea solves. Will it shorten the time it takes to do something? Does it make it easier to find something? Can it make something more exciting or more functional? If your product or service doesn't address an identifiable problem, need or want, why would anyone spend money on it?

3. Use clear, strong words. This is not the time to say, "It's kinda like this...." Find the exact right words and avoid jargon. Instead, focus on a description that can fire the imagination. If you can't get people excited about your idea, it's not going to go anywhere beyond your head.

4. Do your homework. Are you the first with this idea, or will you have competition? Research online, visit conferences in your industry, talk to experts and search for mentors. Do your due diligence now. You don't want to discover that someone else got there first after you invest valuable time and money.

5. Do your homework again. Even if no one else has your idea, someone may have another plan to solve the same issue your idea addresses. Look at any tangential businesses that may usurp your potential customer. You can do this determining and analyzing your competition. Think of this to help you: What might people spend their money or time on instead of your product or service?

6. Define your customer base. If you say "everyone," you're just being lazy and you're kidding yourself. Who are your product or service's early adopters? Will people choose your idea over something they already spend time and money on, or will they decide this is a brand new way to spend time and money? Which people will really, really want what you have to offer, and who will have to be educated or talked into it?

7. Determine your resource requirements. What exactly do you need to get started? Can you build it in your basement using standard tools and materials? Does everything depend on a website that distributes the service? Can you handle the startup alone or do you need a team? And if so, a team that includes who? How much money do you need to get your idea off the ground? This is not a fast process. Expect to spend a fair amount of time on research, checking with suppliers, and talking with industry experts and specialists.


8. Build a prototype. Yes, this is critical with a product, but just as important if you're offering a service. If you're creating a service, your prototype can be a process map that details customer contact points and what has to happen internally to meet customer needs. A physical prototype should be working and include a clear understanding of function, reliability and production requirements. If you can't actually build a real prototype at least have computer-aided designs with detailed specs.

9. Do the math. No plan is complete without a thorough financial analysis. This includes a realistic and convincing revenue projection and accompanying costs. You should be able to detail the estimated break-even point and future profits. If you need help on this part, get it. A bush-league financial statement can kill even the greatest idea.

10. Write your plan. I'm not talking about the pitch you give potential money people -- I mean your internal plan for taking your dreams all the way to the finish line. You need to have this in place for yourself, so that when you wake up tomorrow you know what to do. It will keep changing, and that's okay. In fact, it's important to maintain flexibility in your plan.

When you take the leap with your big vision, you'll either bounce, crash or fly. But one thing's for sure, you'll never find out if you don't take action. 

11 Benefits of Company Registration. (Registering a Business)

1. Establishing Business Bank Accounts

You need to provide proof that your business is properly registered with the state to open a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities. It is also more professional to give your clients a business name for payment instead of your own full name.

2. Getting Loans

When you apply for small business loans, you're going to have to prove that you're actually a business. Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan. If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.

3. Reputation With Customers

Customers and clients, especially people you've never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a "fly-by-night" operation if your company isn't properly registered. When a business is on file with the state, it could put your clients at ease when making a decision about whether to spend money with your company.

4. Supplier Arrangements

A registered business also makes you eligible to receive supplier discounts that you wouldn't normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the state. Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.

5. Hiring Employees

A business registration allows you to hire full-time employees and pay them in accordance to state laws. When you register your business with the state you'll receive a state identification number that allows you to route state taxes on the employee's behalf. So if you plan to hire on employees to your business, it's best to take care of registering your business with the state before you even start the search for workers.

6. Perpetual Succession

Another important characteristic of a private limited company is perpetual succession. It is a popular saying that the directors may come and go the members may come and go, but the existence of a company remains forever. A company once incorporated remains alive unless and until it is wound up by complying with the provisions of Law. The death, disability or retirement of any of its members does not affect the continuity of the company, irrespective of change in its membership. There is no obligation for a Private limited company to commence business/trading within any set time period after its incorporation.

7. Project Cost and Risk Factors

For entrepreneurs going for hi-tech or high capital outlay projects it is always advantageous to go in for a company form of organisation. Where the financial stake involved is high, it is found that banks and financial institutions while sanctioning financial assistance, insist on having a private limited company.

8. Easy Transferability

Where it is proposed to sell the business as a going concern, all that is required is to transfer the entire shareholding to the purchaser and thus facilitate easy change in management and ownership. This will save time and money of the Promoters. Huge amount of stamp duty is saved.

9. Dual Relationship

In the company form of organisation it is possible for a company to make a valid effective contract with any of its shareholders/directors. It is also possible for a person to be in control of a company and at the same time be in its employment. Thus, a person can at the same time be a shareholder, director, creditor and employee of the company. For eg:  A) As a director he can receive remuneration. B) As a shareholder he can receive dividend. C) As a lessor he can receive lease rent. D) As a creditor he can lend money and earn interest. E) As a supplier he can supply goods from his/his family business.

10. Taxation

Sole traders and partnerships pay income tax. Companies pay Corporation tax on their taxable profits. There is a wider range of allowances and tax deductible costs that can be offset against a company's profits.

11. Raising Money from Public

Public Limited Companies can raise large amount of capital from the general public by issue of shares and public deposits. Private Limited Companies can raise capital only by private placement of shares and deposits.

Date extended till 7th September for taxpayers required to e-file their Income Tax Return for Assessment Year 2015-16

CBDT has extended date till 7th September for taxpayers required to e-file their Income Tax Return for Assessment Year 2015-16. In case you were unable to efile your return on or before 31st August, this is a gentle reminder. E-file early to avoid the last minute rush.
This year, nearly 30 Lakh taxpayers have already opted for the electronic verification facility using which you can avoid the signing and sending of the ITR-Verification form to CPC Bangalore. E-verification is possible through

i. Aadhaar One-time password (OTP) for which you would have to authenticate your Aadhaar and link it with your PAN, or
ii. Net-banking where you can login to your netbanking account and get redirected to the efiling account directly or
iii. E-filing OTP (available only if the Returned Income is below Rs 5 Lakh and no refund is claimed). 

Income Tax Deductions on Salaried for A.Y. 2014-15/ 2015-16

Gross total income of the assesses having income from salaries.

SECTION	NATURE OF DEDUCTION	REMARKS
80CCC	Payment of premium for annuity plan of LIC or any other       insurer Deduction is available upto a  maximum of Rs. 1,00,000/-	The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund. The Finance Act 2015 has enhanced the ceiling ofdeduction under Section 80CCC from Rs.100,000 to Rs. 1,50,000 with effect from A.Y. 2016-17Read more – Income Tax Deduction Under section 80CCC
80CCD	Deposit made by an employee in his pension account to the extent of 10% of his salary.	Where the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year. The Finance Act, 2009 has extended benefit to any individual assesse, not being a Central Government employee.Read More – Income Tax Deduction Under section 80CCD
80CCF	Subscription to long term infrastructure bonds	Subscription made by individual or HUF to the extent of Rs. 20,000 to notified long term infrastructure bonds is exempt from A.Y. 2011-12 onwards. This deduction is discontinued w.e.f. A.Y. 2013-14.
80CCG	Investment under Rajiv Gandhi Equity Savings Scheme, 2013	The deduction was 50 % of amount invested in such equity shares or ₹ 25,000, whichever is lower. the maximum  Investment permissible for claiming deduction under RGESS is Rs. 50,000. The benefit is in addition to deduction available u/s Sec 80C.
80D	Payment of medical insurance      premium. Deduction is available upto Rs.15,000/ for self/ family and also upto Rs. 15,000/- for insurance in respect   of  parent/ parents of the assessee.In case of senior citizens, a deduction              upto Rs.20,000/- shall be available under this Section. Insurance premiume of senior citizen parent/ parents of the assessee also eligible for enhanced deduction of Rs. 20000/-	The premium is to be paid by any mode of payment other than cash and the insurance scheme should    be framed by the General Insurance Corporation of India & approved by the Central Govt. or Scheme framed by any other insurer and approved by the Insurance Regulatory & Development Authority. The premium should be paid in respect of health insurance of the assessee or his family members. The Finance Act 2008 has also provided deduction upto Rs. 15,000/- in respect of health insurance premium paid by the assessee towards his parent/parents. w.e.f. 01.04.2011, contributions made to the Central Government Health Scheme is also covered under this section.Read More –Deduction U/s 80D for Mediclaim Premium to Individual, HUF, Senior CitizensBudget 2015  Proposed increase in Deduction Limit U/s. 80D which can be read here-Section 80D- Hike in Deduction Limit for Mediclaim
80DD	Deduction of Rs.40,000/ — In respect of (a) expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative. (b) Payment or deposit to specified scheme for maintenance of dependent handicapped relative. W.e.f. 01 .04.2004 the deduction under this section   has  been enhanced to Rs.50,000/- Further,  if the dependent is a person with severe disability a deduction of Rs.1,00,000/– shall be available under this sectionBudget 2015 has Further Proposed to hike the limit from A.Y. 2016-17 to  Rs. 75000 from existing Rs. 50,000/-  and for person with severe disability to Rs. 1.25 lakh from existing Rs. 1 Lakh. Read more-Budget 2015- Section 80DD deduction Limit Raised	The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.Note:A person with severe disability means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the “Persons with Disabilities (Equal opportunities, Protection of Rights and Full Participation) Act.,”Read More –Deduction u/s. 80DD for expenses on medical treatment of disabled dependent
80DDB	Deduction of Rs.40,000/- in respect of medical expenditure incurred.W.e.f.     01.04.2004, deduction under this section   shall        be available to the extent of Rs.40,000/- or  the amount actually paid, whichever is less.In case of senior citizens, a deduction upto Rs.60,000/- shall be available under this Section.Budget 2015 has proposed deduction of Rs. 80000/- for seniot citizen aged 80 year or More from A.Y. 2016-17-Read More-Section 80DDB- Limit raised & waived condition of certificate	Expenditure must be actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10I is to be furnished by the assessee from a specialist working in a Government hospital.Budget 2015 has Proposed for the purpose of claiming deduction under the section assessee will be required to obtain a prescription from a specialist doctor instead of Certificate.Read More – Deduction under section 80DDB with FAQ
80E	Deduction in respect of payment in the previous year of interest on loan taken from a financial institution or approved charitable institution for higher studies.	This provision has been introduced to provide relief to students taking loans for higher studies. The payment of the interest thereon will be allowed as deduction over a period of upto 8 years.         Further,                by Finance Act, 2007 deduction under this section shall be available not only in respect of loan for pursuing higher education by self but also    by                spouse    or children of the assessee.W.e.f. 01.04.2010 higher education means any course of study pursued after passing the senior secondary examination or its equivalent from any recognized school, board or university.Read More – Section 80E – Deduction for Interest on education Loan
80EE	Deduction in respect of interest on loan taken for residential house property	Vide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04- 2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40 lakhs. However the deduction is available if the assessee does not own any residential house property on the date of sanction of the loan.Read More – Section 80EE Income Tax Benefit on Home Loan Interest
80G	Donation to certain funds,     charitable institutions etc.	The various donations specified in Sec. 80G are          eligible    for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80GRead More – Deduction U/s. 80G of Income Tax Act, 1961 for donation
80GG	Deduction available is the least of(i) Rent paid less 10% of total incomeii. Rs.2000 per monthiii. 25% of total income	(1) Assessee          or his spouse    or minor child       should    not own        residential accommodation at the place of employment.(2) He should not be in receipt of house rent allowance.(3) He should not have a self-occupied residential premises in any other placeRead More – Section 80GG Deductions – For rent paid
80TTA	Deduction in respect of interest on deposits in savings account	Section 80TTA is introduced wef A.Y. 2013-14 to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower.Read More – S. 80TTA – Deduction in respect of interest on deposits in savings account
80U	Deduction of Rs.50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs.75,000/- shall be available u/s 80U.W.e.f. 01.04.2010 this limit has been raised to Rs. 1 lakh.Budget 2015 proposed to amend  section 80U  to raise  limit of deduction in respect of a person with disability from Rs. 50,000/- to Rs. 75,000 and for person withsevere disability from one lakh rupees to one hundred and twenty five thousand rupees.Read more-Budget 2015- Section 80U deduction Limit Raised	Certificate should be obtained on prescribed format from a notified ‘Medical authority’.Read More – Deduction U/s. 80U for disabled persons
87A	Rebate Of Rs 2000 For Individuals Having Total Income Upto Rs 5 Lakh	Finance Act 2013 has provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income  not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. WEF A.Y. 2014-15.Read More – Section 87A – Income Tax Rebate
80RRB	Deduction in respect of any income by way of royalty in respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available as :-Rs. 3 lacs or the income received, whichever is less.	The assessee who is a patentee must be an individual resident in India. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority alongwith the return of income.
80QQB	Deduction in respect of royalty or copyright income received in consideration for authoring any book of literary, artistic or scientific nature other than text book shall be available to the extent of Rs. 3 lacs or income received, whichever is less.	The assessee must be an individual resident in India who receives such income   in exercise of his profession. To avail of this deduction, the assessee must furnish a certificate in the prescribed form along with the return of income.
80C	This section has been introduced by the Finance Act, 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section is limited to Rs. 1.50 lakh only. Read More-Deduction under section 80C and Tax Planning

What is Form 26AS?

​A taxpayer may pay tax in any of the following forms:

(1) Tax Deducted at Source (TDS)

(2) Tax Collected at Source (TCS)

(3) Advance tax or Self-assessment Tax or Payment of tax on regular assessment.

The Income-tax Department maintains the database of the total tax paid by the taxpayer (i.e., tax credit in the account of a taxpayer).  Form 26AS is an annual statement maintained under Rule 31AB​ of the Income-tax Rules disclosing the details of tax credit in his account as per the database of Income-tax Department. In other words, Form 26AS will reflect the details of tax credit appearing in the Permanent Account Number of the taxpayer as per the database of the Income-tax Department. The tax credit will cover TDS, TCS and tax paid by the taxpayer in other forms like advance tax, Self-Assessment tax, etc.

Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form 26AS.

What are the forms of return prescribed under the Income-tax Law?

Under the Income-tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms). The forms of return prescribed under the Income-tax Law for filing of return of income for the assessment year 2014-15 (i.e., financial year 2013-14) are as follows (*):

Return Form	​ Brief Description
ITR – 1​​	Also known as SAHAJ. It is applicable to an individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses).
ITR – 2	It is applicable to an individual or a Hindu Undivided Family having income from any source other than "Profits and gains of business or profession".
ITR – 3	It is applicable to an individual or a Hindu Undivided Family who is a partner in a firm and income chargeable to income-tax in his/its hands under the head "Profits or gains of business or profession" does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.
ITR – 4S	Also known as SUGAM is applicable to individuals and HUFs who have opted for the presumptive taxation scheme of section 44AD/ 44AE.
​ITR – 4	It is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.
ITR – 5	It is applicable to a person being a firm, LLP, AOP, BOI, artificial juridical person, co-operative society and local authority. However, a person who is required to file the return of income under section 139(4A) or139(4B) or 139(4C) or 139(4D) shall not use this form (i.e., trusts, political party, institutions, colleges, etc.)
ITR – 6	It is applicable to a company, other than a company claiming exemption under section 11(charitable/religious trust can claim exemption under section 11​).
ITR – 7	It is applicable to a persons including companies who are required to furnish return under section 139(4A) or139(4B) or 139(4C) or 139(4D) (i.e., trusts, political party, institutions, colleges, etc.).
ITR – V	It is the acknowledgement of filing of return of income.

(*) The aforesaid table gives only a brief overview of the return forms and is not an exhaustive discussion. For more provisions of applicability/non-applicability of the ITR Forms, the readers should go through the discussion on each ITR Form covered in later part.​

​What is the period for which a person’s income is taken into account for the purpose of Income-tax?

Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1^st April and ending on 31^st March of next calendar year. The Income-tax Law classifies the year as (1) Previous year, and (2) Assessment year.

The year in which income is earned is called as previous year and the year in which the income is charged to tax is called as assessment year.

e.g., Income earned during the period of 1^st April, 2015 to 31^st March, 2016 is treated as income of the previous year 2015-16. Income of the previous year 2015-16 will be charged to tax in the next year, i.e., in the assessment year 2016-17.​

What are the benefits of Secretarial Audit?

Secretarial Audit can be an effective multi-pronged weapon to assure the regulator, generate confidence amongst the shareholders, the creditors and other stakeholders in companies, assure FIIs/FIs/SFCs/SIDCs/Banks and instill self regulation and professional discipline in companies. It is a tool of risk mitigation and will allow companies to effectively address compliance
risk issues. It helps the companies to build their corporate image. Secretarial Audit facilitates monitoring compliances with the requirements of law through a formal compliance management programme which can produce positive results to the stakeholders of a company:
(a) Promoters
Secretarial Audit assures the promoters of a company that those in-charge of its management are conducting its affairs in accordance with the requirements of laws and the owners‟ stake is not being exposed to unintended risk.
(b) Non-executive/Independent directors
Secretarial Audit provides comfort to the Non-executive/Independent Directors that appropriate mechanisms and processes are in place to ensure compliance with laws applicable to the company, thus mitigating any risk from a regulatory or governance perspective.
(c) Government authorities/regulators
It also facilitates reducing the burden of the regulators in ensuring compliances and they can take timely actions against the offenders.
(d) Investors
Secretarial Audit helps the investors in taking informed investment decision, as it evaluates the company in terms of compliance and governance norms being followed by the company.
(e) Other Stakeholders
It is an effective due diligence exercise for the prospective investors or joint venture partners. Further Financial Institutions, Banks, Creditors and Consumers can measure the law abiding nature of company management.
(f) Benefits to the company itself
— Companies that go the extra mile with their compliance programs lay the foundation for good governance. — Companies with an effective compliance management programme have lesser chance of receiving penalties, both monetary and by way of imprisonment. — Companies that imbibe business and personal ethics and an effective compliance management programme within their work culture often enjoy employee and customer loyalty and public respect for their brand, which can translate into better market capitalization and shareholder returns.
- Recognition for the company as a good corporate citizen.
The Secretarial Audit provides an in-built mechanism for enhancing corporate compliance generally and help restore the confidence of investors in the capital market through greater transparency in corporate functioning.