PM Mitra Scheme : PM Mitra Scheme : on 6 oct 2021 held the cabinet meeting  Prime minister narendra modi, takes some decisions in these PM Mitra Scheme is one of them, This scheme is for the textile sector. Its full name is Pradhan Mantri Mega Textile Integrated Textile and Apparel Scheme.

Seven new textile parks will be set up under this scheme. According to the government, this is going to bring a big revolution in the textile and manufacturing sector. After the cabinet meeting, Union Minister of Commerce and Industry and Textiles Piyush Goyal said that there is a lot of enthusiasm in the textile sector.

the cabinet has approved the mitra scheme Under the PM-Mitra Yojana (Mega Integrated Textile Region and Apparel), 7 textile parks will be built in the country and about 21 lakh people will get direct and indirect employment from these textile parks. Governments of Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh and Telangana have shown interest in developing Mitra-Park

Piyush Goyal said that it has been decided to create an integrated textile value chain under the PM Mitra scheme. For this, Rs 4445 crore will be spent in the next 5 years. Under this, 7 textile parks will be set up across the country.

He also said that there was talk of capturing 5-F for a strong hold in the field of economy. 5-F means fiber to farm, fiber to factory, factory to fashion and fashion to foreign. All these links together strengthen the value chain, but now they are all different.

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According to Mr. Pyush Goyal cotton is grown in Gujarat and Maharashtra, from there it goes to Tamil Nadu, where spinning takes place. Goes to Rajasthan and Gujarat for processing. The garments are made in Delhi-NCR, Bengaluru, Kolkata and have to go to Mumbai and Kandla for export. All this can now be done in an integrated manner.

The Union Minister said that 7 lakh people will get direct employment and 14 lakh people will get indirect employment due to this step of the government. He told that talks are being held with the states for textile parks. These parks will be set up in the state which will give cheap land, water and get labor easily. Along with this, it will also be seen that there should be a demand for textiles.

Mr. Piyush Goyal said that the estimated cost of setting up 7 parks will be Rs 1700 crore. The units which will make big investment in the beginning, will also be provided help on first come first serve basis. A unit of up to Rs 30 crore can be given by the government in 3 years.

He told that the textile park will be built in greenfield or brownfield places located in different states. 500 crore will be provided to develop all green field parks. While an amount of Rs 200 crore will be allocated for the development of brownfield park.

The government said that under the PM Mitra scheme, work from spinning, weaving, processing, dyeing and printing to manufacturing of clothes will be done at one place. According to the government, this will reduce the cost of logistics. Due to the presence of the entire value chain at one place, the cost of logistics will come down.

Under this scheme, Mitra will develop the Parks in Special Purpose Vehicle Public Private Partnership mode. The ownership of this special purpose vehicle will be with the state government and the government of India. According to the government, the scheme aims to help Indian companies emerge as global companies.

World class industrial infrastructure will be developed to attract investment in PM Mitra scheme.

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*Environmental benefits*

• One of the biggest advantages of driving electric is the improvement it can make to the environment we live in.
• Pure electric vehicles have no tailpipe, so they don’t emit any exhaust gases, which reduces local air pollution particularly in congested cities.
• Electric vehicle are an attractive solution for councils challenged to clean up air quality to improve their residents’ health and quality of life.

In india’s electric vehicle (EV) market is estimated to be a Rs. 50,000 crore (US$ 7.09 billion) opportunity by 2025, with two- and three-wheelers expected to drive higher electrification of the vehicles.

In 2020, India was the fifth-largest auto market, with ~3.49 million units combined sold in the passenger and commercial vehicles categories. It was the seventh largest manufacturer of commercial vehicles in 2019.

The two wheelers segments dominate the market in terms of volume owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In addition, several initiatives by the Government of India and major automobile players in the Indian market is expected to make India a leader in the two-wheeler and four-wheeler market in the world by end of this year (2021).

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*Market Growth*

Indian automobile exports stood at 1,419,430 units from April 2021 to June 2021 as compared to 436,500 units in April 2020 to June 2020. EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh units in FY20 driven by two wheelers. According to NITI Aayog and Rocky Mountain Institute (RMI) India’s EV finance industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030. A report by India Energy Storage Alliance estimated that EV market in India is likely to increase at a CAGR of 36% until 2026. In addition, projection for EV battery market is forecast to expand at a CAGR of 30% during the same period. Premium motorbike sales in India recorded seven-fold jump in domestic sales, reaching 13,982 units during April-September 2019. The luxury car market is expected to register sales of 28,000-33,000 units in 2021, up from 20,000-21,000 units sold in 2020. The entry of new manufacturers and new launches is likely to propel this market in 2021.

. In H12019, automobile manufacturers invested US$ 501 million in India’s auto-tech start-ups according to Venture intelligence.

• Investment flow into EV start-ups in 2019 (till end of November) increased nearly 170% to reach US$ 397 million.
• On 29^th July 2019, Inter-ministerial panel sanctioned 5,645 electric buses for 65 cities.
• NATRiP’s proposal for “Grant-In-Aid for test facility infrastructure for EV performance Certification from NATRIP Implementation Society” under the FAME Scheme was approved by Project Implementation and Sanctioning Committee (PISC) on 3rd January 2019.
• Under NATRiP, following testing and research centres have been established in the country since 2015.
  • International Centre for Automotive Technology (ICAT), Manesar
  • National Institute for Automotive Inspection, Maintenance & Training (NIAIMT), Silchar
  • National Automotive Testing Tracks (NATRAX), Indore
  • Automotive Research Association of India (ARAI), Pune
  • Global Automotive Research Centre (GARC), Chennai
• SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being set up in the country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0 (automation and data exchange in manufacturing technology)

*FIRST ELECTRIC VEHICLE IN INDIA*

Japanese auto company Suzuki Motor Corp is now set to enter the electric vehicle (EV) market by 2025. Suzuki, which operates in partnership with Maruti in India is likely to launch its first EV in the country Maruti Suzuki, which has been India’s best selling car company will now launch its first EV. According to reports, the all-electric compact model will be available first in the Indian market by 2025. Suzuki India which works in partnership with the Indian company plans to launch it first in India, before entering other markets.

Currently, Maruti Suzuki’s top-seller compact four-wheelers include Alto, WagonR, Baleno and Swift. Owing to the success, there is no reason to not believe that the first Suzuki Electric Vehicle wouldn’t be in this segment. The company would test the waters in India before launching the EV in its home market Japan and Europe. The auto market will be keen on the development as the EV market in India remains to be explored. Despite electric vehicles introduction is catching on, factors like high prices and range anxiety have been limiting the market.

MANUFACTURERS

The electric vehicle (EV) ecosystem in India continues to be at a very nascent stage. However, the central government has already announced the second phase of its ambitious FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) policy and aims to step up EV adoption in the country across segments.

while accelerating the adoption of electric cars, electric scooters and electric motorcycles as well as electric buses in the country. Here is a list of top 10 EV manufacturers in the country:

• Hero Electric
• Tata Motors
• Ather Energy
• Mahindra Electric
• Lohia Auto
• Twenty Two Motors
• Byd Olectra
• Hyundai Kona electric
• Ashok Leyland
• MG Motor

*vehicle charging station startup*

Electric Vehicle charging station business is de-licensed by the government of India, as an initiative of make in India. So it is hassle-free to open an electric car charging station in India. Considering the global rise in the electric vehicle market to billions, electric vehicle charging startups started to boom rapidly along with the electric cars charging stations business opportunity in India. India is one of the rapidly growing markets in the EV sector with almost quite a few companies investing currently. So Indian startups and investors have a great opportunity to rise and invest in this sector. And the best part is that any individual can invest in the electric mobility sector, following the guidelines of the government and Ministry of Power(MOP). With the support of the Central Government and State Government, electric car charging stations have started penetrating the Indian startup sector under EV make in India scheme-FAME.

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In this blog, we will be discussing about how to do a startup in India and how we apply for this:-

A start-up is defined as a company or a project initiated by an entrepreneur to seek, develop, and validate a scalable business model. Entrepreneurship refers to all new businesses, including self-employment and businesses that never intend to become registered, whereas startups refer to the new businesses that intend to grow large beyond the solo founder.

1.STARTUP STATS IN INDIA:-

Did you know that India is the 3rd largest startup ecosystem in the world India is expected to witness year-over-year growth of a consistent 13-15%.

The Indian government defines a startup as an entity less than seven years young with an annual turnover of less than 250 million rupees and headquartered in India.

2.STARTUP ANNOUNCEMENT AND AMENDMENT:-

Our beloved PM Narendra Modi announced the Start-up India campaign in 2016 to promote and encourage entrepreneurship. This mainly revolves around financing, incorporation, tax exemptions etc, to ease the functioning of startups. With these benefits being provided by the Government, the majority of the start-ups have young owners, this shows the diversity and volumes of talents that India has.

According to the revised announcement on 23rd May 2017, an organization will be considered as a Startup, if it is incorporated in India as a

• private limited company (as defined in the Companies Act, 2013).

• partnership corporation (registered under section 59 of the Partnership Act, 1932).

• limited liability partnership (under the Limited Liability Partnership Act, 2008).

What Are The Eligibility Criteria For Startup Registration In India?

1. 1.Being incorporated or registered in India for less than seven years and for biotechnology startups up to 10 years from its date of incorporation.

2. 2.Annual turnover not exceeding Rs 100crores in any of the preceding financial years.

3. 3.Aims to work towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.

4. 4.It is not formed by splitting up or reconstruction of a business already in existence.

5. 5.It can be incorporated as a private limited company, a registered partnership firm, or a limited liability partnership.

What Are The Benefits Of Startup India Scheme?

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New Income Tax Slab 2020-21 | Old Vs New Tax |

!!! Which is Better !!!

The new income tax calculations were announced with the new budget on 1st February by FM Sitharaman. According to the new budget, individual taxpayers can switch back and forth between the new tax regime and the old structure. The Central Board of Direct Taxes Chairman, PC Mody says that the new tax regime offers lower slabs without exemptions. Therefore, as an individual tax payer, if you opt for the new structure, you have to forego all tax breaks under this scheme to avail the reduced tax rates. Salaried individuals can switch between the old and the new structure.

This has no doubt created confusion amongst tax payers. Some people believe that the new tax structure is only beneficial to certain tax payers whereas other say that this is creating more confusion in the computation of taxes. In this article, we will highlight and discuss in detail the new income tax guidelines for the FY 2020-21 and also do a mock calculation of taxes with both the old and the new structure to show which one is finally beneficial for you.

As a taxpayer, you have two options available:

1. New Income Tax Structure – Forego all exemptions and breaks and avail lower tax rates

2. Old Income Tax Structure – At the existing income tax rates, benefit from the exemptions and tax breaks.

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The old regime have just 3 applicable tax rates of 5%, 20% & 30%, as against 6 granular rates of tax under new tax regime. Under the new tax regime, concessional tax rates are proposed for taxpayer earning income up to Rs. 15 Lakh. Income above Rs. 15 Lakh is unaffected whether it’s a new tax regime or an old tax regime.

New tax regime requires taxpayers to forgo most of the exemptions & deductions and so taxpayers are in a dilemma of making the right choice. Common question is – which tax regime is better – Old tax regime with higher tax rate offering exemption & deductions or the new concessional tax rate regime without any exemptions & deductions? Let us first compare the tax liability without any deductions & exemptions on income at every peak point of income slab in case of individual & HUF taxpayer (who is not a senior citizen & not salaried taxpayers):

(In New Income Tax regime, Tax slab rates are same for all individuals including senior citizens and Very Senior citizens).

Tax Deductions and Exemptions not allowed in the new tax structure

1. Section 80C – The most popular tax deduction under Section 80C of up to ₹1.5 Lakh is not applicable in the new tax structure. This means that any profits made from investments such as Life Insurance, PPF, School tuition fees, ELSS, PF etc. is not applicable. However, one can still claim deduction under Section 80CCD for employer contribution to the employee NPS.

2. Section 80D – Tax exemption under section 80D which allows for deduction for medical insurance premium and preventive health checkup is also not allowed.

3. LTA – Leave Travel Allowance exemption which is given to salaried individuals twice a year in a period of four years is also not allowed.

4. HRA – HRA or House Rent Allowance is a house rent limit provided by the employer to the employee for renting a house. In the old tax structure, one could claim a deduction up to a certain limit, but in the new tax structure it is not allowed.

5. Standard Deduction – A standard deduction of ₹50,000 was initially available to salaried individuals. This is not permitted in the new tax structure.

6. Section 80TTA – Section 80TTA provides an exemption of up to ₹10,000 on income generated from interest earned. This is not allowed in the new tax regime.

7. Section 80DDB – Section 80DDB provides benefits for disability up to ₹40,000. This is also not allowed in the new tax structure in case you were planning to switch over.

8. Section 80E – Section 80E allows for a tax break on the interest paid for education loans. This is also not permitted in the new structure.

9. Section 80G – Section 80G which concerns donations, says that one can claim a deduction of the equivalent amount made towards a donation. This also cannot be claimed in the new tax structure.

10. Section 24 – Section 24 for a Home Loan Interest allowed an individual to claim a tax deduction on the interest paid on a home loan up to an amount of ₹200,000. This benefit is also not available to you if you go for the new tax slabs.

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Though the new tax regime is simple to follow, yet it will be worthwhile to do the mathematics before opting for it. The million dollar question is, how should tax payers make this choice? Both regimes have their own sets of pros and cons. The choice would necessarily dependent on:

1. Income slab of every individual.

2. Extent of exemptions and deduction available with the taxpayers.

3. Alternate investments options & returns thereon if taxpayers prefer not to opt for the new regime.

4. Short term and long term financial goals of the taxpayers.

CRUX

One needs to calculate the total income tax under old as well as new regime individually. So long as the benefit of exemptions and deduction is more than impact of higher tax rate under the old tax regime, it would be advisable not to opt for the new tax regime but continue with the old tax regime. It makes sense to evaluate before taking a final call.

To be more specific, if any taxpayer have an admissible deduction & exemptions of more than Rs. 3 Lakh then it will generally be advisable for such taxpayers to remain in the old tax regime irrespective of their income slab.

Please ensure to file your income tax return as it has lots of benefits. I would soon be writing an article on it, so that you do not miss out such an important thing.

For any query, write back to us and we would be happy to help you

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How to Save Maximum Income Tax in India.

!!! 18 Legal Ways !!!

With the end of the financial year nearing, one question on every tax-paying citizen’s mind is ‘How can I save income tax?’ As the income increases, so do our worries about investing in the correct instruments and investing enough, so that we don’t end up paying too much in taxes.

Tax saving isn’t rocket science. If you know where to invest and what will provide maximum tax benefit, you can make the most of your investments. Before going to understand how to save the Income tax, first we have to clear the meaning of Income tax.

What is Income Tax?

Income tax is a portion of your income that you pay to the government. This tax is collected on an annual basis. The authorities use this money to perform administrative tasks.

Approximately 1.46 Crore people have filed tax returns in the financial year 2018-19. A total of ₹11.17 Lakh Crore has been generated as revenue from such tax collection from the masses, as reported by the Central Board of Direct Taxes (CBDT).

As the CBDT facilitates the more intricate tax collection and related services, individuals should develop an idea regarding how to save tax in India. There are different ways through which you can save tax. Some of them are:

Top 18 Best Legal Ways to Save

Tax on Your Income

18. Invest up to 1.5 Lakh under Section 80C:

When you invest in any of the options listed below, you can claim a tax deduction of up to Rs. 1.5 Lakh under Section 80C of The Income Tax Act, 1961.

• Tax Saving Fixed Deposits: These give you the dual benefit of tax exemption and high rate of returns. Tax Saving Fixed Deposits are ideal for those who want to invest their money in low-risk instruments.

• PPF (Public Provident Fund): PPF is a government established savings scheme with a maximum duration of 15 years. The interest earned on PPF is tax-free.

• ELSS Funds: These are the type of mutual funds that invest 80% of your money in equity shares. The lock-in period of ELSS funds is 3 years.

• NSC (National Saving Certificate): NSC has a tenure of 5 years and a fixed rate of interest. The interest you earn on your NSC investment falls under the limit of Rs. 1.5 lakh under Section 80C limit. You can claim tax deductions on this investment if no other investments are using up the limit.

• Life Insurance Premiums: If you have Life Insurance Policies towards which you pay regular premiums, you can use them to claim tax deductions.

• Home Loan Repayment: If you have taken a home loan and are paying premiums towards its repayment, the principal amount on your home loan is tax deductible up to Rs. 1.5 lakh per annum.

• Payment of tuition fees: If you are paying tuition fees for yourself, your spouse or children, you can you can use them to claim tax deductions.

• EPF (Employee Provident Fund): Under the EPF Act, 12% of the employee’s salary goes towards the Employees Provident Fund investment. This deduction is also counted towards the Rs. 1.5 lakh investment limit under Section 80C.

• Senior Citizens Savings Scheme: If you invest in SCSS, you can claim tax deductions under this. The maximum tenure of a SCSS is 5 years and it is available to those above 60 years of age.

• Sukanya Samriddhi Yojana: Parents with a girl child below the age of 10 can claim a deduction under this investment. Under this scheme, the investment holds for 21 years or until the girl marries after turning 18. The interest earned in this investment is tax free.

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17. Pay Health Insurance Premiums:

Health is the important focus today. What will you do if you have all the money and the lifestyle that you desired, but your health does not support you. Health is always to kept over wealth as later can easily be achieved if you have former. With the spread of disease, investment in health insurance is a must. You get a benefit upto 50000, if you are below 60 years old and parents are above 60 Years old. 25000 self-benefit and plus 25000 if you invest for your parents.

If your age is 45 and your parents age is 62, you get a benefit upto 50000/-. Also 5000 Rs medical checkup is also allowed as benefit.

Always advisable to go for cashless Mediclaim. It is always helpful and go for a policy which gives you maximum benefits. Don’t see the premium amount but see the benefits, as a difference of Rs. 2000 annually in the premium amount is not be checked. We spend 1000 Rs a day sometimes to party with friends and chill.

16. Tax deduction on house rent:

You can claim Rent paid to your tenant as a deduction for your Income tax purposes if you are a salaried person. Check the CTC Breakup given by your Company. In that, check the House rent allowance breakup given by your employer. Then see the rent you are paying to your tenant. Lower of two is the deduction that you will get. However, as per income tax there is a formula for claiming the HRA for tax benefits

• The actual rent that is paid should be less than 10% of the basic salary.

• In case you’re staying in a metro, 50% of the basic salary and 40% if you live in a a non-metro city.

• The actual amount received as the HRA from the employer.

Also, there are HRA Calculators online, check any of them. Fill in the details and you will get know how much benefit you can claim.

15. By buying a house:

Under Section 24, you can get deduction from taxable house property income, of Interest paid on Home loan upto `2 lakhs. Also, first time home buyers can claim an additional deduction from taxable income of 50,000 on home loan interest under section 80EE, provided the following criterions are met:

• The loan should not be more than `35 lakh

• The residential house value should be less than `50 lakh

• The home buyer should not have any other residential property registered in his name.

14. Donate to Charity

Donations made to specific organizations in cash are eligible for tax waiver amounting to ₹2,000 under Section 80G of the income tax act. Wire and bank transfers, on the other hand, enjoy complete or partial tax exemptions, respectively.

If you are donating to an organization facilitating scientific research or rural development, you are eligible to enjoy deductions under Section 80GGA.

Partial waivers in case of cash donations are granted, while transfers made through cheque or draft enjoy complete tax waiver.

13. Money Spent on Donation to Political Party:

There is no upper limit to tax deductions on money spent on giving a donation to a political party. Such deductions are a part of Section 80GGC. Such a donation amount equals to 100% deduction.

12. Profit from Selling Shares or Equity Mutual Funds

Only after 1-year holding (Long Term Capital Gains)

Maximum Tax-free Gains: Rs. 1 Lakhs

If you invest in stocks or mutual funds then you can make your profits 100% non-taxable up to Rs. 1,00,000.

For example, if you have invested Rs. 100,000 in TCS stock and in 11 months your investment becomes Rs. 1,20,000 then you have to pay tax on 20,000 profit. However, if you hold it for another month, then you are not liable to pay any tax on the profits.

Same is applicable to equity mutual funds.

Remember any long term capital gain over Rs. 1 Lakh attracts a tax of 10%. Further, in such case, you will not be able to avail indexation benefits

11. Dividends Received on Shares or Equity Mutual Funds

Stocks and Mutual Funds (Equity focused) distribute dividends to all the shareholders. The dividends are tax-free in the hands of the receiver.

Like in the previous example, where you bought stocks worth Rs. 100,000, let’s assume you receive dividends of Rs. 2000 after 10 months. Even though one year is not completed since the time you bought stocks, you still don’t have to pay any tax on such dividends received.

10. Money Received from Provident Funds (after 5 years)

You will save tax on investments in Provident Account in the year of investment. The good news is that you don’t have to pay taxes on interest received from EPF/PF investments (note that Interest received on Fixed Deposit is taxable).

You have to keep your Provident Fund active for at least five years before you start withdrawing money (however not recommended unless an emergency)

9. Fixed Deposit:

Do you know, your funds can be safe in bank plus can save you taxes? If you do not want to take high risk like investing in shares or mutual fund, investing in Fixed deposit is always a safe option. If you invest in Fixed deposit for a period of 5 years, you get a tax benefit u/s 80C of IT Act. Also you can take Overdraft against that Fixed deposit for your business purpose in case required by you, The amount of taxes that can be saved is less, but at least there would some savings.

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8. Educational Loan:

Education expenses are increasing daily. Every parent wants their child to get the best education and why not? They are the future of tomorrow. For the best education, you may definitely take educational loan from a financial or charitable institution. So here comes a benefit.

Income tax act provides benefit to individuals taking the loan be it parent or the child. Also, the befit available is only of the interest paid on the loan. Principal component paid cannot be claimed for tax purpose. If a loan is taken from relative, then the benefit cannot be claimed.

7. Wedding Gift:

A wedding is an eventful occasion for the entire family, especially for the individual getting married. In India, it is a humongous event where the bride and groom are showered with gifts. Under Section 56(2), such gifts are non-taxable. Be it a gift, cash, or cheque, gifts received on getting married do not attract tax. Such gifts can be from your relatives or friends.

6. Income from Agriculture:

Any kind of income from agricultural land defined as per section 10(1) is exempted from tax. Such an income can be related to rent from land, revenue from land, the amount generated through agriculture products, and the amount through a farm building.

5. HUF and Extra Income:

If you are someone who earns secondary income apart from your primary salary income, then you can save money paid as tax for the income apart from salary. For example, money earned from freelancing will constitute a secondary income. You will have to open a separate HUF account for the secondary income. And then you can invest that amount under section 80C to avail tax benefits for that amount.

4. Amount Received Through Inheritance:

The amount received through inheritance in the form of a Will is not taxable in India. Therefore, the amount you receive as per a Will shall not be taxed in India.

3. Expenses to treat Disabled Dependent:

Such deductions are a part of Section 80DD. Fixed deductions of Rs. 75000 are allocated for a person with 40 to 80% disability and Rs. 125000 for more than 80% disability. Such expenses should be for treating a disease, rehabilitation or training. You will have to furnish a certificate of disability to avail of the benefit of such deduction.

2. Expenses for Treating Specific Diseases:

This deduction is part of Section 80DDB. Tax benefits are applicable for expenses incurred towards treating specific diseases such as Dementia, Cancer, Aids, etc. For such diseases, tax deductions up to Rs. 40000 are applicable. In case the expenses are for a dependent senior citizen, then the amount increases to Rs. 1 lakh.

1.Income from Gratuity

Maximum Tax-free Amount: Rs. 20 Lakhs

Gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by his widow, children or dependents on his death is exempt subject to certain conditions.

The maximum amount of exemption is Rs. 20 Lakhs.

CRUX

Before choosing a tax-saving instrument, it is important to factor in the risk level, lock-in period, liquidity and returns. There is no point in opting for a tax-saver product if doesn’t suit your also individual needs. It also helps to stay updated about the latest developments in tax-saving provisions. Barring Section 80C, many taxpayers are not familiar with the other sections of the Income Tax Act using which they can significantly reduce their tax burden.

I hope that the above tips help you plan your taxes better. Also keep in mind, that if you are a business owner, check your Form 26AS on income tax site to see if someone has deducted your tax. If you are a salaried person, ensure that you collect your Form 16 form your Employer to get a complete detail of the salary breakup and the taxes deducted.

With these tax saving investment tips and tricks, you can invest your wealth wisely and save significantly on your Income Tax. Ensure that you plan your finances and explore a wide variety of saving instruments before filing for your Income Tax Returns. Happy saving!

Please ensure to file your income tax return as it has lots of benefits. I would soon be writing an article on it, so that you do not miss out such an important thing.

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The Government Has Given Various Relaxations For Making Compliance In Various Laws. Which Are Bifurcated As Follows:-

UNDER INCOME TAX

Government has provided following relaxation under the Income Tax to all type of assesses

1. Due date of linking Aadhar and PAN is extended till 30th June 2020 form 31st March 2020

2. The dates for making donation & payments under section 80G, 80C & 80D under the Income Tax Act, 1961 for eligibility as deduction in FY 2019-20 has been extended to 30th June 2020 form 31st March 2020

3. The due date for filling of Income Tax return of FY 2018-19 is extended to 30th June 2020 form 31st March 2020

4. The due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 and 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.

5. The rate of payment of TDS has been cut off by 25% for contacts, professional fee, commission, dividend, brokerage etc.

6. All delayed payments of advance tax, self-assessment tax, TDS, TCS, equalization levy, STT, CTT made between 20/03/2020 and 30/06/2020 will be charges at reduced interest rate i.e., 9% p.a. instead of 12% p.a.

7. The due date for issue of notice, intimation, order, investment in tax saving instruments, investments for rollover benefit of capital gains under Income Tax has been extended to 30/06/2020.

8. The government has given relaxation of filling TDS return of March, 2020 quarter to 30th June 2020 from 30th April 2020 without any penalty.

9. “The Period of ‘Vivad se Vishwas Scheme’ for making payment without an additional amount will be extended to 31st December 2020”

10. “Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.”

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UNDER GOODS AND SERVICE TAX ACT (GST)

The government has given following relaxations under the goods and service tax act (GST) to the stakeholder due to COVID-19;

1. The deadline to file February, March, April, and May month GST Return has also been extended to 30th June 2020.

2. Fin Min also announced that the companies with less than Rs 5 Cr turnover, will not have to pay interest, late fee, or penalty, however, for bigger companies, no late fee and penalty will be charged but the interest will be levied at a reduced rate of 9 per cent.

3. The due date of filling the Annual return of GST for FY 2018-19 is extended to 30th June 2020 from 31st March 2020

4. Due date of filling CMP-08 for composition taxpayer has been extended to 30th June 2020 form 18th April 2020.

5. The due date for opting into composition scheme has been extended to 30/06/2020 from 31/03/2020

6. The various time limits has been extended to 30th June 2020 for reply to Notice issued by the government and for filling of appeal by the assesses falls between 20/03/2020 to 29/06/2020.

UNDER THE COMPANIES ACT, 2013 TO COMPANIES, LLP’S (Falls under the Ministry of Corporate Affairs)

1. Considering the need to take precautionary steps to overcome the outbreak of the coronavirus (Covid-19), the Government has in-principle decided to relax the requirement of holding Board meetings with physical presence of directors under section 173 (2) r/w rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board’s report, etc. Such meetings may till 30th June, 2020 be held through video conferencing or other audio visual means by duly ensuring compliance of rule 3 of the said rules.

2. No additional fee shall be charged for late filing during a moratorium period (01/04/2020 to 30/09/2020) in respect of any document, return, statement etc required to be filed in MCA system irrespective of its due date

3. Additional time of 6 more months given to newly incorporated companies for declaration of commencement of business in e-form 20A. Now, it can be filed up to 1 year from the date of incorporation of company

4. Applicability of CARO-20 which was supposed to be effective from FY 2019-20 has been shifted to FY 2020-21

5. The mandatory requirement of holding Board meetings shall be extended by a period of 60 days till next 2 quarters i.e., till 30th September 2020

6. A company director who does not comply with minimum residency requirement of 182 days or more in India shall not be considered as violation

7. Independent Directors (lDs) are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.

8. SRNs where last date of Resubmission (RSUB) falls between 15th March 2020 to 31st May 2020, additional 15 days beyond 31st May 2020 would be allowed.

9. Names expiring any day between from 15th March 2020 to 31st May would be extended by 20 days beyond 31st May 2020 (applicable to both Companies and LLP).

10. FM also said that direct listing of securities by the public companies can be done in permitted foreign jurisdictions. Separately she said that private companies which list non-convertible debentures (NCDs) on the stock exchanges will not to be considered as listed companies.

UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016 (IBC)

1. No fresh cases or proceeding will be initiated under this code

2. Criteria for application before NCLT under this code has been increased to 1 crore form 1 lakh

3. Debts due to COVID-19 situation are out of the defaults under IBC

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OTHER ANNOUNCEMENTS UNDER THE VARIOUS GENERAL LAWS WHICH AFFECTS THE COMMAN MAN

1. FM Sitharaman announced that there will be no penalty for not maintaining the minimum balance amount in the bank accounts.

2. FM has waived off extra charges on using other bank’s ATMs, giving people the facility to use nearby ATMs without paying any extra charge.

3. The government has announced MSME loan scheme of Rs. 3 lacs Crore to the MSME sector who have already taken loans on a reduced rate of interest @ 9.5% p.a. with one year moratorium repayable within four year. The loans will be given 20% to the current debt owns to the banks and financial institutions.

4. Due Date for filing Employee Provident Fund (EPF) electronic challan cum return for the month of March is extended to 15/05/2020 from 15/04/2020

5. Statutory PF Contribution by Employer and employee has been reduced to 10% from 12% for May, Jun, Jul 2020.

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* Companies Fresh Start Scheme 2020: *

Companies can file pending forms, returns without late fees; can make a fresh start.

“The Fresh Start scheme and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19,” said a statement by the Ministry of Corporate Affairs (MCA). The USP of both the schemes is a one-time waiver of additional late filing fees by the companies or LLPs with the ROC during the period starting from 1st April 2020 and 30th September 2020, it added. However, the normal fee will be payable for filing the statutory compliance.

Modi government has announced yet another regulatory relief for the companies registered in India. The government has introduced a fresh scheme – Companies Fresh Start Scheme, 2020 – to make a fresh start on a clean slate. Under the scheme, companies can file their pending documents such as Annual Return and Financial Statements without paying higher additional late fees. Adding to the Companies Fresh Start Scheme, the MCA has also introduced LLP Settlement Scheme to give relief to Limited Liability Partnerships.

In order to give an opportunity to the defaulting companies and to enable them to file the belated documents, MCA has introduced “Companies Fresh Start Scheme, 2020 (CFSS-2020) for condoning the delay in filing the returns with the Registrar, in so far as it relates to charging of additional fees, and granting of immunity from launching or prosecution or imposing penalty.

What is CFSS-2020?

Under this scheme, a ‘defaulting company’ can file belated forms with MCA-21.

‘Defaulting company’ means a company which has made default in filing of any forms, documents, statements, returns etc., including annual statutory documents on MCA-21 under the Companies Act, 1956 or the Companies Act, 2013 and the rules thereon.

Purpose of CFSS Scheme?

• This Scheme will enable companies to make good of any filing-related defaults, irrespective of their duration of the default, and to make a fresh start as a fully compliant entity.

• This Scheme will help to incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19.”

• “The schemes, apart from giving longer timelines for corporate to comply with various filing requirements under the Companies Act 2013, significantly reduce the related financial burden on them, especially for those with long-standing defaults, thereby allowing them to make a “fresh start.”

• This Scheme was introduced by the request of various stakeholders.

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Objectives of CFSS Scheme:

• To enable companies to correct any filing-related defaults and make a fresh start as a fully compliant entity.

• To provide a similar facility to Limited Liability Partnerships (LLPs), the MCA has also revised the ‘LLP Settlement Scheme, 2020.

• The Fresh Start scheme and modified LLP Settlement Scheme will reduce compliance burden during the public health situation caused by COVID-19.

• Both the schemes are a one-time waiver of additional filing fees for delayed filings by the companies or LLPs during the period starting from April 1 and ending on September 30.

Significance of CFSS Scheme:

• The Schemes would significantly reduce the related financial burden especially for those with long-standing defaults thus giving them an opportunity to make a “fresh start”.

• Both the Schemes also contain a provision for giving immunity from penal proceedings, including against imposition of penalties for late submissions.

• It also provides additional time for filing appeals before the concerned Regional Directors against the imposition of penalties, if already imposed.

• The immunity is only against delayed filings in MCA 21 and not against any substantive violation of law.

Period of CFSS Scheme:

From 1st April 2020 and ending on 30th September 2020.

Non Applicability of this scheme:

1. Companies against which action for final notice for striking off the name has been initiated

2. Where application already filled by companies for striking of the name

3. Amalgamated Companies

4 Where application filled by companies for obtaining dormant status

5. Vanishing Companies

6. Form SH-7 for the increase in authorized capital

7. Form CHG-1, CHG-4, CHG-8, and CHG-9 for charge related documents

Certificate of Immunity

After filling an application, within 6 months after the expiry of the scheme for immunity electronically in the form CFSS-2020, a Certificate of immunity will be issued by ROC.

CRUX

ROC shall take necessary action against companies who have not availed this scheme and are in default.

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FAQ’S OF THIS SCHEME:

To redress the grievance of various stakeholders Ministry of Corporate Affairs has issued 50 FAQs on Companies Fresh Start Scheme (CFSS), 2020 and LLP Modified Settlement Scheme, 2020

1. Is the CFSS 2020 applicable on foreign company? Will the forms FC-1, FC-2 and FC-3 be covered under the scheme?

Ans: Yes.

2. How to file the belated returns for companies under liquidation?

Ans: Only Refund form, GNL-2 (149, 152, 153, 154, 156, 157, 158, 159 and others), INC-28 (Amalgamation/Merger/Demerger/445, 466, 481, Others), MGT-14 (Others) and GNL-4 are allowed to be filed if the company status is under liquidation.

3. Can Deactivated director activated through this scheme?

Ans: Yes. He can file DIR-3 KYC eform/Web form and INC-22A (Active) as applicable without any payment of fee provided such director is not disqualified under section 164 of the CA 2013.

4. Should the returns be filed for the subsidiary where its Holding is currently under liquidation? But the returns relate to the period where the holding had its normal business activities. How to deal this?

Ans: Yes.

5. Under this scheme whether AoC-4 for a year can be filed, without filling the AOC-4 for the previous year?

Ans: Yes, you can file without filing for the previous year. There is no restriction, however it is expected that complete and continuous year filing (without skipping intermediate year) will be good corporate governance.

6. Whether any separate AOC 4 and MGT 7 has to be filed for companies under liquidation?

Ans: There is no separate AR/BS for companies under Liquidation.

7. Whether CFSS scheme is applicable for the companies which have been automatically struck off due to non-filing of annual documents i.e. Annual Returns?

Ans: The struck off companies have to approach the NCLT for reviving their companies first and a copy order of NCLT approving for such revival under section 252 of the CA 2013 to be filed in Form NO.INC-28. Later on they can take the benefit of this scheme.

8. With regard to LLP settlement Scheme, should the Indemnity Bond be executed on Non Judiciary Stamp Paper? If yes, then on what denomination.

Ans: No indemnity bond is required under the LLP Settlement Scheme.

9. Applicability of CFSS to a foreign company having Project Office in India. (FC Forms to be filed in ROC).

Ans: Yes. CFSS is applicable for foreign companies.

10. For filing MGT 14, AOC-4 for the past year, do we need to apply for condonation also?

Ans: For filing MGT-14 beyond 300 days, condonation is required. However, AoC-4 for the past year(s) can be filed without any condonation.

11. If the Company is in Active mode, but the directors’ DINs are deactivated, what should we do?

Ans: Deactivated DINs for not filing the DIR-3 KYC can be activated by filing it now without the fee of INR 5000 during the currency of the CFSS, 2020 provided such director is not disqualified under section 164 of the CA 2013

12. In our case, company was struck off and as a result both directors were disqualified. Now Company was Revived by NCLT and Revival order has been passed.

(i) How to remove disqualification of director u/s 164(2)(a)?

Ans: The removal of disqualification is not automatic and the same cannot be cured under the provisions of CA, 2013.

(ii) INC 28 is not filed till date (as it is required to be filed within 30 Days).

Ans: INC-28 can be filed by an authorised signatory who can be added from backend by the jurisdictional RoC based on evidence produced by the company.

(iii) How to do Annual filing of Past year?

Ans: Past year filings can be made as per applicable norms.

13. Can a company also file its old annual returns for 3 to 4 years without late fees?

Ans: Yes, without additional fee,

14. The company is an inactive company. The company has defaulted in filing form SH-7. It now wants to file form SH-7 under CFSS 2020 scheme and simultaneously make application for striking off the name by filing form STK 2.

Ans: SH-7 can be filed with applicable fee and additional fee. The additional fee waiver is not applicable for SH-7 and charge related forms.

15. Please let us know the List of eForms eligible for additional fee waiver during the currency of the CFSS, 2020 and LLP Modified Settlement Scheme, 2020?

Ans: List of forms (CA56/CA13/LLP) eligible for additional fee waiver is available at the link: http://www.mca.gov.in/Ministry/pdf/CFSS2020_02042020.pdf

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16. A Company was not able to file Satisfaction of charge in CHG 4 as the DIN of the director was deactivated. Now with this scheme can the company first update its returns, get the din activated and then file CHG 4 under this scheme even though there is a delay of 1 year?

Ans: Deactivated DIN can be reactivated by filing DIR-3 KYC now without payment of INR 5000. Filing of CHG-4 towards satisfaction of charges beyond 300 days is NOT permissible, however for delay in filing satisfaction of charges, form no.CHG-8 may be filed and the power for such Condonation of delay (satisfaction) is vested with Regional Director(s)

17. Is CFSS-2020 scheme applicable to subsidiary of a foreign company registered in India and foreign company itself?

Ans: Yes.

18. Can LLP with Under Strike off or ‘Defunct’ status file form 8 and form 11 for past 3-4 years? (as per the scheme or even in general)?

Ans: No.

19. Can we file STK-2 without filing INC-20A in this scheme? As company has not started its business and even bank account is not opened by company. So want to strike off the name and close company to avoid any defaults and penalties.

Ans: STK-2 can be filed by a company who has not filed INC-20A within 180 days of incorporation. After a period of 180 days of incorporation, filing of form INC-20A is allowed to be filed first. Thereafter, they can file STK-2 if they desire so by following the relevant provisions of the Act relating to Strike off procedure.

20. How to rectify AOC 04 filed with inadvertent errors?

Ans: AoC-4 or any other STP form filed with inadvertent errors can be marked as ‘defective’ by the jurisdictional RoCs based on evidence and formal request. Once the particular STP is marked as defective fresh filing has to be made.

21. A Company already filed MGT-7 but AOC-4 is not yet filed. Can it file AOC-4 now?

Ans: Yes.

22. Where orders have been passed by Hon’ble NCLT to restore the name of the company under section 252/253 subject to filing of all the pending documents and returns and no time limit is given in the order to file pending documents /forms/returns. The company has not yet filed the copy of order of NCLT with ROC. Can company avail this scheme and file all the pending documents without any additional fee?

Ans: Yes, after filing INC-28 with a copy of order passed by NCLT.

23. What about the additional fee already paid by the entities? Is this not a hardship on them who have already paid heavy additional fee in order to abide the compliance.

Ans: The CFSS 2020 and LLP Modified Settlement Scheme 2020 have been notified in view of the COVID19 To provide a first of its kind opportunity to both Companies and LLPs to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.

24. In the CFSS,2020 please suggest whether it would be applicable to Project office of a company in India having FCRN no.?

Ans: Yes.

25. For filing commencement of business form to newly incorporated companies now additional 180 days is allowed but which companies are allowed such benefit. What is the cut off dates for newly incorporated companies i.e., to companies incorporated from which date this benefit will get passed on?

Ans: All newly incorporated companies are required to file a declaration for Commencement of Business within 180 days of incorporation under section 10A of the Companies Act, 2013. An additional period of 180 more days has been allowed for this compliance.(please see circulars issued in March, 2020)

26. In the case of a company whose status as per MCA is active (for filing) but whose all directors are disqualified, what is the way out to avail the benefits of the fresh start scheme?

Ans: Disqualification of Directors cannot be cured under the scheme.

27. An LLP is under non-compliance of one form. The LLP has applied for strike off in February 2020. Whether such an LLP can withdraw strike off application and file the form?

Ans: There is no specific process available for withdrawal of Form 24. If Form 24 is not yet approved, LLP may approach the jurisdictional ROC to ‘reject’ the form so that status of LLP gets marked to ‘Active’ and relevant filings can be made.

28. Can companies with paid up capital between 5 crores to 10 crores which did not file Active form since CS was not appointed file the form now since threshold was increased to 10 crores from 5 crores from 01.04.2020?

Ans: ACTIVE form can be filed without the fee of INR 10000.

29. What are options available to a company the name of which has been struck off by the ROC but is having business activities for availing this scheme.

Ans: The company has to approach NCLT and get an Order for reviving. Thereafter the company can take the benefit under CFSS.

30. Does the scheme cover default for DIR-3 KYC?

Ans: DIR-3 KYC can be filed without the fee of INR 5000.

31. Does the CFSS 2020 allows refund of the late filing fee and penalty which are already paid on Company fillings made before march 2020?

Ans: No.

32. Whether immunity certificate will be generated automatically once CFSS form is uploaded or it will be subject to approval of concern ROC.

Ans: Subject to examination and approval by the jurisdictional RoC.

33. Whether late fees/additional fees be waived off after filing of Immunity Form i.e. full amount will be paid in advance (while filing of any form out of 76 forms) and refunded back after filing of Immunity Form?

Ans: Additional fees would not be charged in respect of the 76 forms and such forms have already been displayed in MCA-21 portal.

34. Will MCA be refunding the Additional fees received as clients have paid the same while filing the same in ROC during 2019-20?

Ans: Additional fee waiver becomes applicable only during the currency of the scheme.

35. Can a company whose director has been disqualified can use this scheme?

Ans: The CFSS 2020 is applicable for defaulting companies to file the belated documents and does not extend to curing the disqualification of Directors.

36. Additional fee is still showing in enquire fees menu in MCA portal. Whether it needs to be updated in portal? Or it is get updated after filing forms and generating SRN.

Ans: Yes, it gets updated while generating challan.

37. In the original LLP Settlement Scheme, the additional fee was to be paid at INR 10 per day up to a maximum of INR 5000, in the modification LLP Settlement Scheme there is no additional fees. Is the understanding correct?

Ans: Yes..

38. If the director has been disqualified in FY 2016-17 and filling is pending, can still the benefit of the CFSS scheme can be availed by the company (if status of company is still active)?

Ans: CFSS 2020 does not cure the disqualification of Director. If there are no authorized signatories left in the company, the company may approach the jurisdictional RoC with a formal request to add one authorized signatory from backend. Later on the company may file the belated documents under the scheme.

39. Whether the scheme is applicable for companies already struck off by MCA and not voluntarily filed by the company?

Ans: The struck off companies may approach the NCLT for revival. Once the company is revived the belated documents may be filed.

40. Can you please explain again on the dual dates of August 31st and September 30th in LLP (Modified) Settlement Scheme, 2020?

Ans: The belated documents can be filed without additional fee till 31st August,2020. However belated documents could be filed till 30th September and no prosecution or punishment proceedings would be launched.

41. LLP is not in operation since incorporation in FY 2015-16, now wants to strike off from the register. LLP has already Form 11 for FY 15-16 but not Form 8, is it mandatory to file Form 8 availing LLP scheme before filing Form 24?

Ans: No. For list of attachments while filing Form 24, please refer to instruction kit available on the portal.

42. Which form to be file earlier CFSS-2020 or belated forms?

Ans: Belated forms have to be filed first. CFSS-2020 would be made available w.e.f 1st October, 2020.

43. Will this scheme be applicable on filing, if due date is falling between period April 2020 to September, 2020?

Ans: Irrespective of the due date additional fee waiver can be availed during the currency of the scheme.

44. Is every company availing this scheme need to file FORM CFSS-2020 before filling the all the belated documents or should we file the documents directly?

Ans: Belated documents have to be filed during the currency of the scheme. If the scheme benefits are availed, such a company has to file the CFSS eform on or after 1st October, 2020 and before 31st March, 2021.

45. Annual Returns as well as Auditor Appointment is not done since April 2015. Can the private limited company avail this scheme?

Ans: All companies can avail the scheme for filing belated documents.

46. If company is under NCLT, and Operations are managed by IP, whether he can opt under this scheme?

Ans: Yes, if the company status is not struck off and if it struck off it can take the benefit after it is revived.

47. Can there be a refund of late fee deposited for forms filed earlier the notification of scheme (forms filed are covered in scheme)?

Ans: No.

48. As under CFSS, CFSS Form needs to be filed between 01st October to 31st March, do we need to file any such form under LLP Modified Settlement Scheme to get immunity?

Ans: No such requirement for LLPs who have availed the benefit under the LLP Modified Settlement Scheme.

49. Is the Form CFSS 2020 currently available in the MCA portal for e-filing? If not, when will the form be made available?

Ans: The form CFSS 2020 would be made available w.e.f 1st October 2020 and till 31st March 2021 for filing purposes.

50. Form 8 is not allowing prefill for an LLP which is under defunct status. How should we avail the scheme for such LLP? Is the scheme available? Will new forms be made available then?

Ans: An LLP under struck off(Defunct) status cannot avail the benefit of LLP Modified Settlement Scheme.

Source- MCA

DISCLAIMER:

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How startup get funding ? How to raise funding for your startup? 10 Best Ways

The recipe for a successful business is a brilliant idea, strong enthusiasm and startup funding. According to recent stats, 29% of startups fail because they run out of cash. Startup funding is a critical component to your business venture and is a big issue to tackle. Even experienced entrepreneurs might face the obstacle of securing funds for their startup. The key is being ready and understanding the different options available through the different stages that your startup goes through. Finally, evaluating your options and not letting money stop you from pursuing your dreams.

There is an old management saying, “measure twice, cut once” which refers to the benefit of doing some planning. It’s the antithesis of “ready, fire, aim” which seems to be so prevalent in today’s society. The benefits you will receive from doing even some basic planning before you hit the fundraising trail are enormous.

This post has some basic advice on how to plan your raise before you hit the road. Many points will seem obvious, but we can tell you that most people get even the basics wrong.

Top 10 Best Ways to Raise Money

for Your New Business

1. Create a list

It sounds obvious but the starting point for any fund-raising planning is to create a list of prospects. I know this is CRM but I assure you most startups don’t do this or don’t do it well. Given the limited nature of how many people you’ll approach (i.e., not that many) I actually just do these in Google Sheets.

You can use this just internally for you and the people on your team helping you in the raise, or if you have existing investors or advisors you can open it up to share with them.

2. Personal savings

Put your money where your mouth is and go ahead and fund those early steps yourself. Investors will always try to figure out how invested you are in your idea and funding your own startup is definitely a good sign for them.

3. The business itself

The preferred startup funding source: let the business pay for itself and grow your business from the revenue coming in. In reality, this is the best type of funding and it shows that your business is truly taking off.

But your difficulty here is timing, as expenses typically come before revenue. Therefore you need to find a way to get cash up front. A great way to do this is by working with annual plans and prepaid orders.

Growing your business this way will allow you to keep total control and you’ll have a constant reminder of the importance of sales.

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4. Take help from family and friends

Self-made entrepreneurs often refuse to seek help from their family or friends. However, many of the world’s top business tycoons have admittedly borrowed money from their closed ones early in their entrepreneurial journey. Hence, you shouldn’t hesitate to do the same.

Taking short-term or long-term loans from family or friends doesn’t usually require you to pay added interests. In some cases, you don’t even need to pay them back. At the same time, it’s advisable that you only take a part of the total required funding from your family and friends in order to reduce the burden.

5. Seek grants from government and private bodies

Although you shouldn’t expect to cut a big check, there are several grants available, offered by both government and private bodies in the interests of promoting entrepreneurship, boosting the economy, generating employment opportunities.

These financial injections can help you set up the operations, purchase manufacturing equipment, and provide salaries to employees. However, winning grants can be tedious, time-consuming, and overall a complex process. In India, the government offers startup grants as part of its Startup India’s FFS (Funds of Funds) initiative.

6. Crowdfunding

Crowdfunding is a favorite of the digital economy, and probably the quickest way of obtaining finance for a new business. You don’t even have to be massively tech-savvy to launch a crowdfunding campaign, but what you do need is a compelling pitch, one which strongly references your start-up’s potential for growth, as well as a knack for interacting with your cash-rich community. If all goes to plan, you’ll have capital you don’t need to pay back, without ceding any operational control.

As a side benefit, crowdfunding is a nifty form of advertising, a way of stimulating public interest in your company before it’s even made its debut. The difficulty, needless to say, is in getting your voice heard in the vast crowdfunding landscape.

7. Get an angel investor on board

There are many online angel investment networks, as well as local investor groups you can pitch to in person, so do your research and start submitting your pitches.

Find the right angel investor and not only will you benefit from their financial support but also their wisdom: oftentimes, they offer mentor-ship as a side dish alongside their capital. On the other hand, they generally offer less financial backing than banks and venture capital funds.

8. Seek venture capital

Finding a venture capitalist who shares your vision, or at the very least believes in your ability to turn your idea into a successful, profitable venture, is a good way of raising cash. Of course, you will need a fine-tuned business model, ideally one that’s ready to scale.

The main con with this option is that venture capitalists are typically looking for the next big thing, and so many entrepreneurs struggle to convey the scale-ability of their enterprise. Venture capital funds, by their very nature, have a short shelf life as they generally seek to recover their investment, turn a profit then move on to the next fresh start-up.

9. Incubator or Accelerator

Business accelerators and incubators have sprung up all across the country, particularly near colleges with a strong business program. These spaces are part communal workspace and part mentor-ship development centers. Young businesses can get a great start here while partnering with some amazing people.

The downside? They are often focused on tech-heavy businesses, so you might struggle to find one that works for your company.

10. Bank loans

We use banks every day and bank loans are a very common source of startup funding.

A bank loan is money that you borrow over a fixed period of time from the bank. Depending on whether you borrow against an asset or not it is called secured or unsecured. Depending on whether the interest rate is fixed upfront or might change depending on certain market changes, it can be fixed or variable.

In order to get a loan, you will need to convince the bank of the viability of your project and your ability to pay back the loan on time without any problems. Your application will be thoroughly reviewed and typically banks will focus on your future cash flows, which is not always a great fit for startups.

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Needless to say, all of the aforementioned options require a good deal of consideration. What might be right for one budding tycoon may not be right for another. For example, you may have an excellent bank manager whom you implicitly trust, and a robust line of credit, making a bank loan the perfect option. Or you could have a supportive network of financially-secure family and friends willing to back your idea to the hilt. Perhaps a combination of funding options is best, but only you will truly know. The important thing is to go with a funding option with which you are comfortable and confident so that you can focus on turning your business idea into a success

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Understanding the Difference Between Bonds and Debentures

Bonds and debentures both are the debt instruments issued by the government, financial sector& public limited company.

As you are aware that finance and money are the backbone of any type of business. For expantion of business, funds are necessary and first need.

Funds can be raised through the debt instruments or by issuing the share capital of company to the investor or general public.

The businessman has the fear of lower stack in case of share capital if issued, so the businessman took funs by raising funds through debts and being free from les stack in comapny and paid some amount as interst on debt capital. and whenever the term of debt ends, he paid of as full and being free from making compliance or taking the process of redemption of share capital which is very lenthy process.

There is very minor differenece between the bond and debentures.

Defination of Bonds

Bonds are in secured in nature and issued in long run of time. Generally, they are secured by the underlying assets and rated by the Rating Agencies, which assured us for the safety of funds invested by us.

In general terms, it is an MOU between the issuer and an investor, that the investor will invest some amount in issuer organisation for a specific period of time for which the issuer pay him some amount as interst on periodically basis secured by the underlying assets of issuer.

In the Investment oppotunity, these has been treated as much safer then others. Bonds are generally issued by the government in India. Gold Bonds are the example of the same which are secured by the gold having security over the gold in the custy of custodian.

Bonds are not in speculative in nature.

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Defination of Debentures;

Debetures are the debt instrument which may or may not be secured in nature issued by the organisations. Debetures are defined in Companies Act, 2013 as a debt instrument issued by the company.

These may or may not be in redeemable in nature as the comapny has option to convert the same into equity in case of failure of repayment. So, it consists higher risk then the bonds.

Debetures is issued by the company in case of cash crunch of the company or to meet working capital requirement for starting a project. for example, in recent the Larsen & Tubro has issued carious type of debetures for a term of ten years for meet out ccapitla erquirement for startting its time-bound projects.

There are several type of debetures which may be difuracate as follows;

1 Unsecured Non Covertible debetures

2 unsecured convertible debetures

3 unsecured debentures with the option of conversion into equity or preference shares of company

4 Ir-reedemable debetures (These are not issued in India. As not allowed under the law.)

5 Secured convertible debetures

6 Secured debetures to be repaid on maturity of its term

7 Secured debetures with the option of conversion into equity on or before maturity

DIFFRENCE BETWEEN THE BONDS AND DEBENTURES

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A bond and a debenture both are forms of borrowed capital but the difference comes in the nature of both the instruments. A bond is backed by collateral while a debenture is not. But the scope of earning is always high with debentures. If you have the ability to gauge the creditworthiness of the provider of the debentures, you can definitely buy debentures for a better profit. But if you are new to the field of investment then bonds are a better choice for you. Bonds are relatively more secured as they are issued by Government agencies hence the returns are granted here. But if your risk appetite is high and wants to earn a better profit in less time, debentures will work better for you.

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