Knowledge Bank

Filing depends on your income, taxpayer type and statutory conditions. A return can be compulsory even when no tax is payable, for example under certain transaction or foreign-asset reporting conditions. Companies generally must file regardless of profit or loss.

The Income-tax Act, 2025 applies from 1 April 2026 and uses the term “tax year”. Earlier income periods remain subject to the Income-tax Act, 1961 and its transition provisions. Identify the income period before choosing forms or referring to section numbers.

The form depends on your taxpayer status, residential status, income sources and reporting requirements. A simple salary return may use a different form from a business, capital-gains or foreign-income return. Check the eligibility instructions for the relevant period.

Compare the total tax under each available regime using your actual income and eligible deductions. The default regime and rules for opting out matter, especially for business income. Do not choose solely by comparing slab rates.

Keep your PAN, income statements, Form 130 (Form 16 for earlier years) where applicable, bank interest certificates, investment and deduction records, capital-gains statements, and business accounts. Reconcile these with AIS and Form 168 (earlier Form 26AS), and retain supporting documents even when they are not uploaded with the return.

Form 130 (earlier Form 16) is the employer's salary and TDS certificate. Form 168 (earlier Form 26AS) shows tax-credit information, while AIS provides broader information reported to the department. Check all applicable records against your own documents rather than treating one as a complete income statement.

Taxable savings interest, deposit interest and other income should be reported even if no tax was deducted. A deduction or exemption may be available under the applicable regime, but it does not automatically remove the reporting requirement.

Advance tax means paying estimated income tax during the income period instead of waiting until return filing. Applicability depends on your expected net tax liability and statutory exceptions. Review estimates as income changes to avoid a shortfall and related interest.

A tax audit depends on the applicable turnover or receipts limits, cash-transaction conditions and presumptive-tax rules. It is separate from a company’s statutory audit. Review the requirements for your business and income period before assuming an audit is unnecessary.

Eligible businesses or professionals may calculate taxable income using prescribed methods instead of normal profit computation. Eligibility, receipt limits and record-keeping requirements still apply. Declaring lower income or leaving a scheme can have additional consequences.

Generally, expenses incurred for business purposes may be deductible subject to the law. Personal expenditure, capital items and specifically disallowed payments require different treatment. Maintain invoices, payment records and a clear business purpose, and check TDS-related conditions.

The treatment depends on the asset, holding period, transfer date and available exemptions. Property, shares and mutual funds do not always follow the same rules. Keep purchase costs, sale records and improvement expenses, and obtain a transaction-specific calculation.

A revised return may correct mistakes within the permitted window. An updated return is a separate route with eligibility restrictions and possible additional tax; it is not a general way to claim a larger refund. The correction route depends on the period and error.

A refund may arise when taxes paid exceed the final liability in a processed return. Verify the return, validate an eligible bank account and check processing status on the official portal. Resolve any mismatch or pending response that prevents processing.

Check the notice in your official portal account, identify the income period and response deadline, and collect the requested records. Do not ignore it or reply without understanding the issue. Seek professional help where a demand, assessment or penalty is involved.

Tax Deducted at Source collects income tax when specified payments are made or credited. The payer deducts and deposits the tax, and the recipient can generally claim the corresponding credit against their final tax liability.

Salary, interest, rent, contractor payments, professional fees and certain property transactions can attract TDS. The payment category, payer’s status, recipient’s residential status and applicable threshold determine whether deduction is required.

No. Obligations differ by payment type and payer category. Certain individuals and HUFs have obligations based on business conditions, while specific transactions can require deduction even outside a business. Review each payment rather than applying one rule to all expenses.

PAN identifies a taxpayer; TAN identifies a tax deductor or collector. Most regular TDS deductors need a TAN. Some specified challan-cum-statement transactions use PAN instead, so check the requirements before applying.

Many non-salary payments require deduction at credit or payment, whichever happens first, while salary generally follows payment-based rules. Advances and year-end provisions may also matter. Confirm the timing rule for the specific transaction.

Identify the payment category, recipient’s residential status, PAN availability and relevant income period. Then check the official rate table and applicable provisions. Rates and thresholds can change, and a valid lower-deduction certificate may alter the result.

Salary TDS is generally calculated using estimated annual taxable salary and the employee’s applicable tax regime, not one flat rate. Employers should consider eligible declarations and evidence, previous employment income where provided, and changes during the year.

Deposit deadlines depend on the deductor, deduction period and transaction type. Government deductors, March deductions and challan-cum-statement cases can follow different timelines. Check the current official calendar rather than assuming every payment shares the same deadline.

Regular TDS reporting commonly uses salary and non-salary statement categories, with Form 130 (earlier Form 16) for salary and Form 131 (earlier Form 16A) for many non-salary deductions. Property and other specified transactions have separate forms. Use the forms applicable to the relevant period and law.

Review Form 168 (earlier Form 26AS) and relevant information on the income-tax portal, and compare them with your TDS certificate and receipts. Credit depends on correct deduction, deposit and reporting by the payer. Keep evidence of the underlying income and deduction.

Ask the deductor to verify the PAN, challan and statement details and submit a correction where needed. Keep the certificate and payment records. Do not assume the mismatch fixes itself simply because tax was deducted from your payment.

Eligible recipients may use prescribed declarations or apply for a lower or nil deduction certificate where the law permits. These routes have specific conditions and do not cover every payment. A recipient’s verbal request alone is not sufficient.

TDS is generally a credit against the recipient’s final income-tax liability. If total tax credits exceed the actual liability, an eligible refund can be claimed through the return. TDS does not normally remove the need to report the underlying income.

Interest, fees, penalties and expense disallowance may apply depending on the default. Deduct and deposit any shortfall, correct reporting, and calculate the applicable consequences. Depositing the principal alone may not fully resolve the compliance issue.

Yes. Property purchases and non-resident payments have distinct rules, and the seller’s residential status is important. Overseas payments may also require treaty analysis and remittance documentation. Check before making an advance or final payment.

Goods and Services Tax is an indirect tax on supplies of goods and services. Depending on the supplier’s location and place of supply, a transaction may attract CGST with SGST or UTGST, or IGST.

Registration depends on aggregate turnover, the state, the nature of supplies and compulsory-registration provisions. Thresholds and exceptions are not identical for all businesses. Check the full eligibility rules before assuming a small business or online seller is exempt.

Typically, you need PAN, business constitution documents, authorised-signatory details and proof of the principal place of business. Authentication and additional evidence depend on the application. Use the current portal checklist for your entity type.

GST registrations are state- or union-territory-specific. A business operating from establishments in multiple states may need multiple registrations. Supplying customers in another state does not, by itself, always require registration there; review the business presence and supply model.

The composition scheme offers simplified compliance for eligible taxpayers, subject to turnover and supply restrictions. Composition taxpayers generally cannot collect GST separately or claim input tax credit. Compare the restrictions and customer requirements before choosing it.

Input tax credit, or ITC, allows an eligible registered person to offset qualifying GST paid on inward supplies against output tax. A purchase invoice alone is not enough: statutory conditions, supplier reporting, receipt of supply and other requirements must be satisfied.

Credit can be blocked by law, relate to personal or exempt use, fall outside the permitted period, or fail invoice, receipt or supplier-reporting conditions. Check the specific purchase and reconcile records before claiming or reversing credit.

GSTR-1 reports outward-supply details. GSTR-3B is a summary return for tax liability, eligible ITC and payment. They serve different purposes and should reconcile with each other, your books and relevant inward-supply statements.

Eligible taxpayers may opt for the Quarterly Return Monthly Payment, or QRMP, scheme. Quarterly filing does not mean all tax payment obligations become quarterly. Check eligibility, the election window and monthly payment requirements before opting in.

An active registration generally still has filing obligations for the relevant returns, even during a no-business period. A nil return is appropriate only when its conditions are met; purchases, credit or other liability may mean the return is not nil.

Determine the supplier’s location and the legally defined place of supply, then apply the interstate or intrastate rules. The customer’s billing address alone may not settle the issue, especially for services, exports and special transaction types.

Under reverse charge, the recipient pays GST on specified supplies instead of the supplier. It does not apply to every purchase from an unregistered seller. Check notified categories, registration implications, payment treatment and ITC eligibility.

An e-way bill is an electronic document used for specified movements of goods. Applicability depends on consignment value, movement type, exemptions and relevant state rules. Check the requirements before dispatch, including movements that are not sales.

E-invoicing involves reporting prescribed invoice data to an authorised Invoice Registration Portal and obtaining an Invoice Reference Number and QR code. A normal PDF is not an e-invoice. Applicability depends on notified turnover criteria, document types and exemptions.

GST returns are generally corrected through permitted amendments or adjustments rather than simply replacing a filed return. Reconcile the issue, identify the allowed correction window and check the notice deadline. Keep invoices, workings and evidence supporting your response.

The Employees’ Provident Fund is a social-security savings arrangement administered by EPFO. For covered employees, contributions build retirement savings, with associated pension and insurance benefits under the applicable schemes.

Coverage depends on establishment size, type and the applicable law or notification; voluntary coverage may also be available. Review headcount and the employment arrangement, including relevant contract labour, rather than assessing coverage only from permanent payroll.

Enrolment depends on establishment coverage, the employee’s wages at entry, prior EPF membership and applicable exceptions. An existing member does not automatically stop being eligible after a pay rise. Check membership history when hiring.

A Universal Account Number links a member’s EPF accounts across employers. Employees should normally give their existing UAN to a new employer rather than create another one. Keep identity details consistent to help transfers and claims.

EPF builds a provident-fund balance, while the Employees’ Pension Scheme provides pension benefits subject to eligibility and service conditions. For eligible members, part of the employer contribution goes to EPS. Pension entitlement is not simply the EPF account balance.

Not necessarily. Contributions use the legally applicable wage base, subject to scheme rules and relevant limits. Salary labels alone do not decide whether an allowance is excluded. Review wage components and current legal requirements when setting up payroll.

Maintain accurate member and wage details, prepare the Electronic Challan-cum-Return, and pay contributions within the applicable deadline. Reconcile payroll with the filing and handle joiners, exits and corrections promptly.

Use EPFO’s official member services or UMANG to review the passbook and contribution entries where available. Compare wage months with payslips and allow for processing time. Raise missing contributions with the employer and, if unresolved, EPFO.

Transfers generally preserve continuity when moving to another covered job. Final settlement or advances depend on applicable eligibility conditions; leaving a job does not make every withdrawal immediately available. Check current claim rules and keep KYC details updated.

Accurate identity and bank details support account access, transfers and claim processing. A nomination helps identify beneficiaries for eligible benefits. Update details through the official process and resolve name or date-of-birth mismatches before submitting a claim.

Employees’ State Insurance is a social-insurance scheme administered by ESIC. It provides medical care and specified cash benefits for eligible insured persons, with benefits for dependants in applicable circumstances.

Coverage depends on the establishment type, location, employee strength and applicable notifications. Rules can differ across states and notified categories. Check coverage for the actual business location rather than assuming one nationwide headcount rule covers every employer.

Employees of covered establishments are insured subject to the applicable wage ceiling and other statutory conditions. Special rules can apply to particular categories. Check the current ceiling and the definition of wages before excluding someone from coverage.

Both employer and employee generally contribute, with the employer responsible for remitting the total. The employer bears its own share; it should not be recovered from the employee. A statutory exemption can apply to the employee share for eligible low-wage workers.

ESI contributions are based on the statutory definition of wages, not the amount received after deductions. Different pay components may be included or excluded under the rules. Keep a documented payroll calculation rather than using net salary.

Benefits include medical care and, subject to qualifying conditions, sickness, maternity, disablement and dependant benefits. Coverage, contribution history and the nature of the claim determine eligibility. Not every benefit is automatically payable immediately after registration.

Not always. If wages cross the ceiling during a contribution period, coverage and contributions generally continue until that period ends. Review the contribution-period rules before removing the employee from ESI payroll.

The insurance number identifies the insured person’s ESIC record. An employee with an existing number should normally provide it to the new employer instead of being registered again. Accurate personal and family details help access eligible services.

Yes. A principal employer can have compliance responsibilities for covered contract workers. Verify contractor registration, worker coverage, contribution records and payroll evidence. A contractor invoice or contractual promise alone does not establish statutory compliance.

Delayed payments can lead to statutory interest, damages and other recovery or enforcement action. Resolve missing filings and contributions, check any assessed charges, and reconcile the employee records. Late payment can also affect access to benefits or claims.

Registrar of Companies compliance covers filings and legal obligations for companies and LLPs under their respective laws. It includes annual filings and event-based updates. Tax and GST compliance do not replace ROC compliance.

A company and a Limited Liability Partnership are different legal structures, with different ownership, governance and filing requirements. An LLP has partners, while a company generally has shareholders and directors. Choose based on funding plans, operations and compliance needs.

A Corporate Identity Number identifies a company registered with the MCA; an LLP Identification Number identifies an LLP. These differ from PAN and GSTIN. Use the relevant identifier when checking master data and filing entity-specific forms.

A Director Identification Number identifies a director, while a Digital Signature Certificate is used to electronically sign prescribed filings. They serve different purposes. Ensure the signer’s credentials, authorisation and portal association are valid before submission.

Companies generally file financial statements through the applicable AOC-4 form and an annual return through MGT-7 or MGT-7A, depending on eligibility. The correct form and attachments depend on the company category and current rules.

LLPs generally file Form 11 for the annual return and Form 8 for the statement of account and solvency. Accounts, audit requirements and other obligations depend on applicable conditions. LLP filing requirements are not the same as a company’s.

Generally, an entity remains subject to applicable filings while it is active, even without sales or profits. No activity does not automatically mean dormant status or closure. Confirm obligations until a legally effective change of status occurs.

An Annual General Meeting lets company members consider matters such as financial statements and other required business. Requirements and exemptions depend on company type. LLPs do not follow the same company AGM framework.

No. Some deadlines follow a financial year, while others run from an AGM, resolution, appointment or another event. Extensions and entity-specific rules may apply. Track the triggering event and statutory window rather than using one generic calendar.

DIN holders must follow the applicable director KYC rules, including the current filing cycle and requirements for updating details. Check the latest MCA instructions and DIN status rather than assuming director KYC follows the company’s annual-return schedule.

Follow the applicable consent, eligibility, board or shareholder approval and filing requirements. Appointment, resignation and removal are different processes. Update statutory records and prescribed MCA forms within the relevant timelines.

Identify whether the move is within the same local area, across ROC jurisdictions or to another state. Approvals, supporting documents and filings differ by change type. Updating a letterhead or website does not complete the statutory process.

Yes. Companies must maintain applicable accounting records, registers and meeting records, with requirements for retention and access. Annual MCA filings do not replace these underlying records. LLPs also have their own record-keeping obligations.

Additional filing fees, penalties and enforcement consequences may apply. Persistent defaults can affect the entity and its officers. Identify all pending filings and obtain a regularisation plan instead of treating payment of one late fee as a complete resolution.

No. Closure requires the applicable legal process, such as eligible strike-off or another route, after addressing liabilities and required conditions. Continue applicable compliance until closure is effective. Obtain advice on the appropriate process and outstanding obligations.