No, a company’s CSR (Corporate Social Responsibility) expenditure cannot be claimed as a business expenditure for tax deduction purposes under the Income Tax Act. Here’s why: Key Points: Tax Deduction Criteria:For an expense to be claimed as a business expenditure, it must be incurred wholly and excRead more
No, a company’s CSR (Corporate Social Responsibility) expenditure cannot be claimed as a business expenditure for tax deduction purposes under the Income Tax Act. Here’s why:
Key Points:
Tax Deduction Criteria: For an expense to be claimed as a business expenditure, it must be incurred wholly and exclusively for the purposes of earning income. Since CSR spending is directed towards fulfilling social obligations rather than business operations, it does not meet this criterion.
Non-Allowability for Tax Purposes: The Income Tax Act does not allow CSR expenses as a deduction while computing taxable income. This means that even though companies are required by law to spend a certain percentage of their profits on CSR, these expenses are not deductible as business expenses for tax purposes.
Conclusion:
CSR expenditure is a separate, mandated expense aimed at promoting social welfare. It is not considered a business expense because it is not incurred solely for the purpose of generating business income. Therefore, CSR spending cannot be claimed as a tax deduction under the Income Tax Act.
When determining a company's obligation for Corporate Social Responsibility (CSR) under Section 135(5) of the Companies Act, 2013, the “average net profit” is generally calculated on the basis of net profit before tax. Key Points: Accepted Practice:Although the statute does not explicitly state “befRead more
When determining a company’s obligation for Corporate Social Responsibility (CSR) under Section 135(5) of the Companies Act, 2013, the “average net profit” is generally calculated on the basis of net profit before tax.
Key Points:
Accepted Practice: Although the statute does not explicitly state “before tax” or “after tax,” the common interpretation—and the practice followed by most companies—is to use net profit before tax. This approach is supported by guidelines issued by the Ministry of Corporate Affairs.
Rationale: Using net profit before tax provides a more consistent measure of a company’s performance because it is not affected by variations in tax rates or tax planning strategies. This ensures that the CSR obligation is based on the company’s true operating performance.
Implication for CSR: The average net profit calculated over the preceding three financial years (using the before-tax figures) is compared against the prescribed threshold to determine if a company is required to spend on CSR activities.
Conclusion:
For CSR compliance under Section 135(5), companies use net profit before tax as the basis for calculating the average net profit. This is the prevailing interpretation and practice to ensure consistency and transparency in assessing CSR obligations.
Yes, CSR (Corporate Social Responsibility) activities can be undertaken in kind. This means that instead of providing cash, a company may donate goods or services—provided the donation meets the objectives of CSR as defined under Schedule VII of the Companies Act, 2013. Example: Donation of Books ScRead more
Yes, CSR (Corporate Social Responsibility) activities can be undertaken in kind. This means that instead of providing cash, a company may donate goods or services—provided the donation meets the objectives of CSR as defined under Schedule VII of the Companies Act, 2013.
Example: Donation of Books
Scenario: If your company is in the business of publishing books, you can donate books to schools, libraries, or community centers as part of your CSR activities.
Requirements:
Alignment with CSR Objectives: The donation should further a social cause, such as improving literacy, education, or community development.
Valuation: The fair market value of the donated books should be properly determined and documented.
Board Approval & CSR Policy: The donation must be in line with your company’s CSR policy and must receive appropriate board approval.
Documentation: Maintain records, receipts, and any other supporting documents to substantiate the donation as part of your CSR expenditure.
Key Takeaways
In-Kind Donations Are Allowed: Contributions in kind—like donating books—are permissible as CSR expenditure if they are aligned with the approved social objectives outlined in Schedule VII.
Compliance is Crucial: Ensure that the in-kind donation is properly valued, documented, and approved by the board to meet compliance requirements.
Enhancing Social Impact: In-kind contributions can be an effective way to make a direct impact on community development while also promoting your company’s core business strengths.
Under the Companies Act, 2013, CSR (Corporate Social Responsibility) expenditure must be incurred on activities specified in Schedule VII. Whether an event qualifies as CSR expenditure depends on its primary purpose and alignment with the approved social objectives. Key Points to Consider: QualifyinRead more
Under the Companies Act, 2013, CSR (Corporate Social Responsibility) expenditure must be incurred on activities specified in Schedule VII. Whether an event qualifies as CSR expenditure depends on its primary purpose and alignment with the approved social objectives.
Key Points to Consider:
Qualifying CSR Activities: The activities eligible for CSR spending are clearly outlined in Schedule VII. They typically include initiatives related to education, health, rural development, environmental sustainability, and other social welfare projects.
Purpose of the Event:
Marathons: If organized to promote community health, fitness, or environmental awareness, a marathon may be considered CSR expenditure. However, if it’s mainly used as a promotional or branding event, it may not qualify.
Awards Ceremonies: Awards given to recognize contributions toward social causes can be included, provided the primary objective is to further a social welfare activity.
Advertisements and TV Sponsorships: These expenditures are generally seen as marketing or promotional expenses. Unless they are directly linked to a social initiative outlined in Schedule VII (for example, creating awareness about a social cause), they would not be considered CSR expenditure.
Documentation and Approval: Any expenditure claimed under CSR must be supported by proper documentation and approved by the Board and the CSR Committee, ensuring that it aligns with the company’s CSR policy and the guidelines in Schedule VII.
Conclusion:
Eligible as CSR: An event like a marathon or an awards ceremony can qualify as CSR expenditure if its primary aim is to promote social welfare (e.g., public health, education, or environmental sustainability).
Not Eligible as CSR: Expenditures that are primarily promotional or used for brand building—such as general advertisements or sponsorship of TV programmes without a direct social objective—do not qualify as CSR expenditure.
By ensuring that the primary objective of the event aligns with the social causes specified under Schedule VII, a company can justify it as CSR expenditure. Otherwise, if the intent is mainly promotional, it should be treated as a marketing expense.
Even if the video recording of a board meeting held via video conferencing is lost due to technical issues, the meeting can still be considered valid. The key is whether proper records and documentation of the meeting are maintained. Here’s what you need to know: 1. Validity of the Meeting Meeting MRead more
Even if the video recording of a board meeting held via video conferencing is lost due to technical issues, the meeting can still be considered valid. The key is whether proper records and documentation of the meeting are maintained. Here’s what you need to know:
1. Validity of the Meeting
Meeting Minutes & Attendance: The validity of the meeting primarily depends on the accurate and complete minutes of the meeting and the attendance register. If these documents are properly maintained and reflect that all required directors participated and resolutions were passed, the meeting remains valid.
Board Resolution Certification: A certificate from the Company Secretary or another authorized officer can be issued, stating that the meeting was duly held, even if the video recording is unavailable. This certificate serves as additional evidence that the meeting took place as per the legal requirements.
2. Remedies for Lost Recording
Maintain Alternative Documentation: Ensure that all decisions, discussions, and resolutions are recorded in the meeting minutes. Supplement this with attendance records and any written communications exchanged during the meeting.
Issue a Certificate: The company may issue a formal certificate by the Company Secretary confirming that the meeting was conducted properly in accordance with the Companies Act, 2013, and the Companies (Meetings of Board and its Powers) Rules, 2014.
Backup Procedures: As a preventive measure, companies are encouraged to have robust IT systems and backup procedures in place to minimize the risk of losing the video recording in future meetings.
Conclusion
Even if technical issues prevent the retrieval of the video recording, the meeting remains valid if proper minutes and supporting documentation are maintained. The remedy lies in relying on these alternative records and, if necessary, obtaining a certificate from the Company Secretary attesting to the proper conduct of the meeting.
As per Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014, a director has the right to participate in a Board Meeting via video conferencing (VC) or other audio-visual means (OAVM) unless specifically restricted by the Articles of Association (AoA) of the company. Is it MandatoryRead more
As per Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014, a director has the right to participate in a Board Meeting via video conferencing (VC) or other audio-visual means (OAVM) unless specifically restricted by the Articles of Association (AoA) of the company.
Is it Mandatory for the Company to Provide VC Facility?
✅ Yes, if a director requests it in advance
If a director intimates their intent to participate via video conferencing at least 3 days before the meeting, the company is obligated to provide the facility.
The company must ensure that the VC/OAVM setup allows directors to hear and communicate clearly.
🚫 No, if the Articles of Association prohibit it
If the company’s AoA specifically restricts the use of video conferencing for Board Meetings, then the director cannot demand VC participation.
Key Compliance Points:
The minutes of the meeting must record the names of directors attending via VC.
The company must ensure that VC participation does not hinder decision-making.
Certain critical decisions (e.g., approval of financial statements, mergers, takeovers) cannot be conducted solely via VC.
Conclusion
If a director requests participation through video conferencing in advance, the company is required to provide the facility—unless restricted by the AoA. This ensures corporate governance, inclusivity, and compliance with the law.
Under Section 184(2) of the Companies Act, 2013, every director is required to disclose their interest in any company, body corporate, firm, or other entity in which they hold a stake. This is to ensure transparency and prevent conflicts of interest. When is the disclosure required? At the first BoaRead more
Under Section 184(2) of the Companies Act, 2013, every director is required to disclose their interest in any company, body corporate, firm, or other entity in which they hold a stake. This is to ensure transparency and prevent conflicts of interest.
When is the disclosure required?
At the first Board Meeting after becoming a director.
At the first Board Meeting of every financial year.
Whenever there is any change in their interest or concern in an entity.
What needs to be disclosed?
A director must disclose their direct or indirect interest in:
Any other company or body corporate in which they hold shares exceeding 2% of the paid-up share capital.
Any firm, partnership, LLP, or entity where they are a partner, owner, or hold significant influence.
Any contract or arrangement the company enters into with such an entity.
How should the disclosure be made?
The disclosure must be in Form MBP-1 and submitted to the company.
The company records it in the Register of Directors’ Interest.
What happens if a director fails to disclose?
If a director does not disclose their interest as required under Section 184(2), they may face:
A fine of up to ₹1,00,000, or
Imprisonment for up to 1 year, or both.
Key Takeaway: If you are a director in a company, always ensure timely disclosure of your interests to avoid legal consequences and maintain corporate governance compliance.
Filing your Income Tax Return (ITR) after the due date can lead to several consequences under the Income Tax Act, 1961. It's essential to be aware of these implications to avoid unnecessary penalties and interest charges. Interest on Outstanding Tax – Section 234A If there's any unpaid tax after theRead more
Filing your Income Tax Return (ITR) after the due date can lead to several consequences under the Income Tax Act, 1961. It’s essential to be aware of these implications to avoid unnecessary penalties and interest charges.
Interest on Outstanding Tax – Section 234A
If there’s any unpaid tax after the due date, interest is levied at 1% per month or part thereof on the outstanding amount. This interest accrues from the day immediately following the due date until the actual filing date or full payment of tax, whichever is earlier.
Example:
Outstanding Tax: ₹10,000
Delay in Filing: 3 months
Interest: ₹10,000 × 1% × 3 = ₹300
Late Filing Fee – Section 234F
A late filing fee is imposed based on the date of filing and total income:
Filing after the due date but before December 31:
Income up to ₹5,00,000: Late fee of ₹1,000
Income above ₹5,00,000: Late fee of ₹5,000
Filing after December 31:
Income up to ₹5,00,000: Late fee of ₹1,000
Income above ₹5,00,000: Late fee of ₹10,000
Note: No late filing fee is applicable if the total income does not exceed ₹2,50,000.
Loss of Certain Benefits
Carry Forward of Losses: Losses under the heads “Capital Gains” and “Profits and Gains of Business or Profession” cannot be carried forward to subsequent years if the ITR is filed late.
Interest on Refunds: Delayed filing may result in reduced or no interest on refunds due, as interest is calculated from the date of filing the return.
Prosecution and Penalty for Concealment
In cases where the taxpayer willfully fails to file the return, the Income Tax Department may initiate prosecution, leading to penalties and possible imprisonment, depending on the amount of tax evaded.
Recent Changes Post Budget 2025
The Budget 2025 introduced provisions for filing Updated Returns to encourage voluntary compliance:
Extended Timeframe: Taxpayers can now file updated returns within 48 months from the end of the relevant assessment year.
Additional Tax Liability: Filing an updated return attracts an additional tax on the unpaid liability:
Within 12 months: Additional tax of 25% on the due tax and interest.
Beyond 12 months but up to 24 months: Additional tax of 50% on the due tax and interest.
Beyond 24 months but up to 36 months: Additional tax of 60% on the due tax and interest.
Beyond 36 months but up to 48 months: Additional tax of 70% on the due tax and interest.
The Income Tax Act offers tax relief under several subsections of Section 80. Here’s a breakdown of the key investment options: Investment Option Description Relevant Section Life Insurance Premium Premiums paid on life insurance policies for self, spouse, and children. Section 80C Employee ProvidenRead more
The Income Tax Act offers tax relief under several subsections of Section 80. Here’s a breakdown of the key investment options:
Investment Option
Description
Relevant Section
Life Insurance Premium
Premiums paid on life insurance policies for self, spouse, and children.
Section 80C
Employee Provident Fund (EPF)
Contributions made to your EPF account as part of your employer’s scheme.
Section 80C
Public Provident Fund (PPF)
Deposits in the government-backed PPF scheme.
Section 80C
National Savings Certificate (NSC)
Investment in NSCs issued by post offices.
Section 80C
Tax-Saving Fixed Deposits
Fixed deposits with a lock-in period of 5 years offered by banks and financial institutions.
Section 80C
Equity Linked Savings Scheme (ELSS)
Tax-saving mutual funds with a lock-in period of 3 years.
Section 80C
Principal Repayment on Home Loan
The principal component of home loan repayments.
Section 80C
Tuition Fees for Children
Payments made for the education of your children (for up to 2 children).
Section 80C
Sukanya Samriddhi Yojana
Deposits made into the Sukanya Samriddhi Account for a girl child.
Section 80C
Tax-Saving Bonds (Infrastructure Bonds)
Investments in bonds notified under Section 80CCF (with a cap of ₹20,000).
Section 80CCF
Pension Fund Contributions (Other than NPS)
Premiums paid for certain pension funds are deductible.
Section 80CCC
National Pension System (NPS)
Contributions toward NPS are eligible for a deduction under Section 80CCD. An additional deduction of ₹50,000 is available under Section 80CCD(1B) over and above the limit available under Section 80CCD(1).
Section 80CCD(1) & 80CCD(1B)
Key Points to Remember:
Section 80C is the most widely used deduction and covers a variety of investments up to an overall limit (currently ₹1,50,000).
Section 80CCF provides additional benefits for investments in notified infrastructure bonds (with a separate cap).
Section 80CCD offers benefits on contributions toward pension schemes, with an extra ₹50,000 available exclusively under Section 80CCD(1B).
Ensure that you have proper documentation (receipts, certificates, statements) for each of these investments when filing your Income Tax Return.
These deductions help in reducing your taxable income and can significantly lower your tax liability.
Investments in the NPS offer attractive tax benefits under the Income Tax Act through two key provisions: 1. Deduction Under Section 80CCD(1) Who Can Claim: All individual taxpayers (both salaried and self-employed). What It Offers: You can claim a deduction on your contribution to the NPS, which isRead more
Investments in the NPS offer attractive tax benefits under the Income Tax Act through two key provisions:
1. Deduction Under Section 80CCD(1)
Who Can Claim:
All individual taxpayers (both salaried and self-employed).
What It Offers:
You can claim a deduction on your contribution to the NPS, which is calculated as a percentage of your salary:
For salaried individuals: Up to 10% of salary.
For self-employed individuals: Up to 20% of their gross income.
Note:
This deduction is available in addition to the standard deduction under Section 80C (though some NPS contributions may already be included in the overall 80C limit in certain cases).
2. Additional Deduction Under Section 80CCD(1B)
What It Offers:
An extra deduction of ₹50,000 is available exclusively for contributions to the NPS.
Key Point:
This additional deduction is over and above what you claim under Section 80CCD(1) or Section 80C.
It is available irrespective of your other investments and does not form part of the overall 80C limit.
Summary Table
Section
Eligible Contributions
Deduction Limit
Notes
80CCD(1)
NPS contributions (for salaried or self-employed individuals)
Up to 10% of salary (salaried) or 20% of gross income (self-employed)
Available along with regular deductions, may form part of 80C limits in certain cases
80CCD(1B)
Additional NPS contributions
Additional ₹50,000 deduction
Over and above deductions under Section 80CCD(1) and 80C; not affected by other limits
Key Takeaways
Investing in NPS can significantly reduce your taxable income.
You can enjoy a deduction based on your salary/income under Section 80CCD(1) plus an extra ₹50,000 benefit under Section 80CCD(1B).
Keep proper records of your NPS contributions and ensure that your investment is made through eligible channels to claim these deductions.
Whether CSR expenditure of a company can be claimed as a business expenditure?
No, a company’s CSR (Corporate Social Responsibility) expenditure cannot be claimed as a business expenditure for tax deduction purposes under the Income Tax Act. Here’s why: Key Points: Tax Deduction Criteria:For an expense to be claimed as a business expenditure, it must be incurred wholly and excRead more
No, a company’s CSR (Corporate Social Responsibility) expenditure cannot be claimed as a business expenditure for tax deduction purposes under the Income Tax Act. Here’s why:
Key Points:
Tax Deduction Criteria:
For an expense to be claimed as a business expenditure, it must be incurred wholly and exclusively for the purposes of earning income. Since CSR spending is directed towards fulfilling social obligations rather than business operations, it does not meet this criterion.
Non-Allowability for Tax Purposes:
The Income Tax Act does not allow CSR expenses as a deduction while computing taxable income. This means that even though companies are required by law to spend a certain percentage of their profits on CSR, these expenses are not deductible as business expenses for tax purposes.
Conclusion:
CSR expenditure is a separate, mandated expense aimed at promoting social welfare. It is not considered a business expense because it is not incurred solely for the purpose of generating business income. Therefore, CSR spending cannot be claimed as a tax deduction under the Income Tax Act.
See lessWhether the average net profit criteria in section 135(5) is Net profit before tax or Net profit after tax?
When determining a company's obligation for Corporate Social Responsibility (CSR) under Section 135(5) of the Companies Act, 2013, the “average net profit” is generally calculated on the basis of net profit before tax. Key Points: Accepted Practice:Although the statute does not explicitly state “befRead more
When determining a company’s obligation for Corporate Social Responsibility (CSR) under Section 135(5) of the Companies Act, 2013, the “average net profit” is generally calculated on the basis of net profit before tax.
Key Points:
Accepted Practice:
Although the statute does not explicitly state “before tax” or “after tax,” the common interpretation—and the practice followed by most companies—is to use net profit before tax. This approach is supported by guidelines issued by the Ministry of Corporate Affairs.
Rationale:
Using net profit before tax provides a more consistent measure of a company’s performance because it is not affected by variations in tax rates or tax planning strategies. This ensures that the CSR obligation is based on the company’s true operating performance.
Implication for CSR:
The average net profit calculated over the preceding three financial years (using the before-tax figures) is compared against the prescribed threshold to determine if a company is required to spend on CSR activities.
Conclusion:
For CSR compliance under Section 135(5), companies use net profit before tax as the basis for calculating the average net profit. This is the prevailing interpretation and practice to ensure consistency and transparency in assessing CSR obligations.
See lessCan CSR be done in kind ? i.e. If a company is in the business of publications of books whether it can donate books for the purpose of CSR ?
Yes, CSR (Corporate Social Responsibility) activities can be undertaken in kind. This means that instead of providing cash, a company may donate goods or services—provided the donation meets the objectives of CSR as defined under Schedule VII of the Companies Act, 2013. Example: Donation of Books ScRead more
Yes, CSR (Corporate Social Responsibility) activities can be undertaken in kind. This means that instead of providing cash, a company may donate goods or services—provided the donation meets the objectives of CSR as defined under Schedule VII of the Companies Act, 2013.
Example: Donation of Books
Scenario:
If your company is in the business of publishing books, you can donate books to schools, libraries, or community centers as part of your CSR activities.
Requirements:
Key Takeaways
-
-
-
See lessIn-Kind Donations Are Allowed:
Contributions in kind—like donating books—are permissible as CSR expenditure if they are aligned with the approved social objectives outlined in Schedule VII.
Compliance is Crucial:
Ensure that the in-kind donation is properly valued, documented, and approved by the board to meet compliance requirements.
Enhancing Social Impact:
In-kind contributions can be an effective way to make a direct impact on community development while also promoting your company’s core business strengths.
Whether events such as marathons /awards/ advertisements/sponsorship of TV programmes, etc. be part of CSR expenditure ?
Under the Companies Act, 2013, CSR (Corporate Social Responsibility) expenditure must be incurred on activities specified in Schedule VII. Whether an event qualifies as CSR expenditure depends on its primary purpose and alignment with the approved social objectives. Key Points to Consider: QualifyinRead more
Under the Companies Act, 2013, CSR (Corporate Social Responsibility) expenditure must be incurred on activities specified in Schedule VII. Whether an event qualifies as CSR expenditure depends on its primary purpose and alignment with the approved social objectives.
Key Points to Consider:
Qualifying CSR Activities:
The activities eligible for CSR spending are clearly outlined in Schedule VII. They typically include initiatives related to education, health, rural development, environmental sustainability, and other social welfare projects.
Purpose of the Event:
If organized to promote community health, fitness, or environmental awareness, a marathon may be considered CSR expenditure. However, if it’s mainly used as a promotional or branding event, it may not qualify.
Awards given to recognize contributions toward social causes can be included, provided the primary objective is to further a social welfare activity.
These expenditures are generally seen as marketing or promotional expenses. Unless they are directly linked to a social initiative outlined in Schedule VII (for example, creating awareness about a social cause), they would not be considered CSR expenditure.
Documentation and Approval:
Any expenditure claimed under CSR must be supported by proper documentation and approved by the Board and the CSR Committee, ensuring that it aligns with the company’s CSR policy and the guidelines in Schedule VII.
Conclusion:
An event like a marathon or an awards ceremony can qualify as CSR expenditure if its primary aim is to promote social welfare (e.g., public health, education, or environmental sustainability).
Expenditures that are primarily promotional or used for brand building—such as general advertisements or sponsorship of TV programmes without a direct social objective—do not qualify as CSR expenditure.
By ensuring that the primary objective of the event aligns with the social causes specified under Schedule VII, a company can justify it as CSR expenditure. Otherwise, if the intent is mainly promotional, it should be treated as a marketing expense.
See lesswhether the Video conference meeting will be called valid If due to some technical problem, the Video Recording of the meeting could not be retrieved? What is the remedy?
Even if the video recording of a board meeting held via video conferencing is lost due to technical issues, the meeting can still be considered valid. The key is whether proper records and documentation of the meeting are maintained. Here’s what you need to know: 1. Validity of the Meeting Meeting MRead more
Even if the video recording of a board meeting held via video conferencing is lost due to technical issues, the meeting can still be considered valid. The key is whether proper records and documentation of the meeting are maintained. Here’s what you need to know:
1. Validity of the Meeting
Meeting Minutes & Attendance:
The validity of the meeting primarily depends on the accurate and complete minutes of the meeting and the attendance register. If these documents are properly maintained and reflect that all required directors participated and resolutions were passed, the meeting remains valid.
Board Resolution Certification:
A certificate from the Company Secretary or another authorized officer can be issued, stating that the meeting was duly held, even if the video recording is unavailable. This certificate serves as additional evidence that the meeting took place as per the legal requirements.
2. Remedies for Lost Recording
Maintain Alternative Documentation:
Ensure that all decisions, discussions, and resolutions are recorded in the meeting minutes. Supplement this with attendance records and any written communications exchanged during the meeting.
Issue a Certificate:
The company may issue a formal certificate by the Company Secretary confirming that the meeting was conducted properly in accordance with the Companies Act, 2013, and the Companies (Meetings of Board and its Powers) Rules, 2014.
Backup Procedures:
As a preventive measure, companies are encouraged to have robust IT systems and backup procedures in place to minimize the risk of losing the video recording in future meetings.
Conclusion
Even if technical issues prevent the retrieval of the video recording, the meeting remains valid if proper minutes and supporting documentation are maintained. The remedy lies in relying on these alternative records and, if necessary, obtaining a certificate from the Company Secretary attesting to the proper conduct of the meeting.
See lessIf a director of a company requests for participation in a meeting through video conferencing, is it mandatory for the company to provide the video conferencing facility, especially where all the other directors are participating in person?
As per Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014, a director has the right to participate in a Board Meeting via video conferencing (VC) or other audio-visual means (OAVM) unless specifically restricted by the Articles of Association (AoA) of the company. Is it MandatoryRead more
As per Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014, a director has the right to participate in a Board Meeting via video conferencing (VC) or other audio-visual means (OAVM) unless specifically restricted by the Articles of Association (AoA) of the company.
Is it Mandatory for the Company to Provide VC Facility?
✅ Yes, if a director requests it in advance
🚫 No, if the Articles of Association prohibit it
Key Compliance Points:
Conclusion
If a director requests participation through video conferencing in advance, the company is required to provide the facility—unless restricted by the AoA. This ensures corporate governance, inclusivity, and compliance with the law.
See lessWhat is the interest in section 184(2) of the Companies Act, 2013 that has to be disclosed by the director?
Under Section 184(2) of the Companies Act, 2013, every director is required to disclose their interest in any company, body corporate, firm, or other entity in which they hold a stake. This is to ensure transparency and prevent conflicts of interest. When is the disclosure required? At the first BoaRead more
Under Section 184(2) of the Companies Act, 2013, every director is required to disclose their interest in any company, body corporate, firm, or other entity in which they hold a stake. This is to ensure transparency and prevent conflicts of interest.
When is the disclosure required?
What needs to be disclosed?
A director must disclose their direct or indirect interest in:
How should the disclosure be made?
What happens if a director fails to disclose?
If a director does not disclose their interest as required under Section 184(2), they may face:
Key Takeaway: If you are a director in a company, always ensure timely disclosure of your interests to avoid legal consequences and maintain corporate governance compliance.
See lessWhat are the consequence of late filing of return after due date or say late return?
Filing your Income Tax Return (ITR) after the due date can lead to several consequences under the Income Tax Act, 1961. It's essential to be aware of these implications to avoid unnecessary penalties and interest charges. Interest on Outstanding Tax – Section 234A If there's any unpaid tax after theRead more
Filing your Income Tax Return (ITR) after the due date can lead to several consequences under the Income Tax Act, 1961. It’s essential to be aware of these implications to avoid unnecessary penalties and interest charges.
If there’s any unpaid tax after the due date, interest is levied at 1% per month or part thereof on the outstanding amount. This interest accrues from the day immediately following the due date until the actual filing date or full payment of tax, whichever is earlier.
Example:
A late filing fee is imposed based on the date of filing and total income:
Note: No late filing fee is applicable if the total income does not exceed ₹2,50,000.
In cases where the taxpayer willfully fails to file the return, the Income Tax Department may initiate prosecution, leading to penalties and possible imprisonment, depending on the amount of tax evaded.
Recent Changes Post Budget 2025
The Budget 2025 introduced provisions for filing Updated Returns to encourage voluntary compliance:
Read:What are the due dates for filing Income Tax Returns?
What is the penalty If I fail to furnish my Income Tax return within the due date?
Can an Income Tax return be filed after the due date?
See lessWhat are the investment eligible for section 80 deductions under income tax act?
The Income Tax Act offers tax relief under several subsections of Section 80. Here’s a breakdown of the key investment options: Investment Option Description Relevant Section Life Insurance Premium Premiums paid on life insurance policies for self, spouse, and children. Section 80C Employee ProvidenRead more
The Income Tax Act offers tax relief under several subsections of Section 80. Here’s a breakdown of the key investment options:
Key Points to Remember:
- Section 80C is the most widely used deduction and covers a variety of investments up to an overall limit (currently ₹1,50,000).
- Section 80CCF provides additional benefits for investments in notified infrastructure bonds (with a separate cap).
- Section 80CCD offers benefits on contributions toward pension schemes, with an extra ₹50,000 available exclusively under Section 80CCD(1B).
- Ensure that you have proper documentation (receipts, certificates, statements) for each of these investments when filing your Income Tax Return.
- These deductions help in reducing your taxable income and can significantly lower your tax liability.
See lessWhat is the deduction of investment made in NPS scheme?
Investments in the NPS offer attractive tax benefits under the Income Tax Act through two key provisions: 1. Deduction Under Section 80CCD(1) Who Can Claim: All individual taxpayers (both salaried and self-employed). What It Offers: You can claim a deduction on your contribution to the NPS, which isRead more
Investments in the NPS offer attractive tax benefits under the Income Tax Act through two key provisions:
1. Deduction Under Section 80CCD(1)
2. Additional Deduction Under Section 80CCD(1B)
Summary Table
Key Takeaways
What are the investment eligible for section 80 deductions under income tax act?
See less