Bonus shares increase the investments of a shareholder automatically without paying any cost. Therefore, Cost per unit of shares decreases and it results in higher profits.
If new registered office is situated outside the city, village or town, then as per Section 12(5) of Companies Act, 2013, the company is required to obtain prior approval of shareholder. Accordingly, the company has to make following compliances.
Trading in the share market has increased a lot and not only persons who are engaged in hardcore share trading, other persons also invest funds in the share market. Every income in India is liable to Income tax. Similarly, profit or loss earned from share trading is also liable to income tax.
Apart from Loans from Banks and NBFCs, companies do have options to borrow funds from shareholders or members. However, since funds are involved of the shareholders, therefore, company law contains detailed provisions related to loans and deposits from Member or shareholders. Companies are required to follow detailed procedure to obtain deposits and also are required to repay the same within committed time.
Companies are always in need of funds and it keeps on looking for various sources of funds such as share capital, Loans from banks or Financial institutions, loans from other persons etc. Issuance of shares involves a lot of compliances and it compromises shareholding as well. Similarly, loans from banks and NBFC is subject to detailed compliances, availability of mortgage or security and timely payment of interest and principal amount. Therefore, companies prefer acceptance of loans from other persons.
Inheritance of property is a very common scenario and these properties are sold subsequently as well. In India, the sale of inherited property can have potential tax implications, particularly regarding capital gains. Capital gains tax is levied on the profit earned from the sale of an asset, including inherited property.
Dormant companies are required to carry out less compliances as compared to active companies. Further, Status of dormant company can be changed to regular on filing an application with RoC.
Remuneration means any money or its equivalent given to any person for services rendered by him/her and includes the perquisites mentioned in the Income-tax Act, 1961.
CBDT has recently issued comprehensive guidelines for the procedure of compulsory selection of income tax returns for thorough scrutiny during the financial year 2023-24.
Voluntary Winding up takes place when the company is not making any profits or owners don’t want to run the Company any further. However, a company does not get wind up by merely leaving it unattended.
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