FIRSTBIGLEAP

Income Tax Return filing (FY 2012-13) has started - Have You ??‏

2013-06-18T12:14:00.000+05:30

Income Tax Return Filing for FY 2012-13 has started. ITR Forms for the FY 2012-13 has already been notified. We would also like to start the process so that we can file your return timely and 100% error free. We are filing returns for all class of assesses with the best quoted professional fees.

Why You Should Choose us to file Your Tax Returns ?

20+ Years of experience within the Group
Personalized care by Chartered Accountants and Tax Experts
Authorised E-return by Government of India.
Full Support by Phone / e-mail
Your Personal Data Security Assured
No Spams/ Unsolicited emails

Please note that IT Department is sending Tax Notices to so many assessee, for various known and unknown reasons. The reason might be a mistakes while filing their income tax returns which have miserable consequences. Therefore, each assessee should take their return filing matter seriously and make sure to file tax return which is error free disclosing all details.

Simply it’s very hard for individuals to tackle the issues like rectification of return after getting notice u/s 143(1), filing a defective return u/s 139(9), readjustment of tax refund u/s 245, rejection of TDS credit. We would suggest you to get help of experts for filing your returns. An expert referred to here is who has ample knowledge about all the provisions and new amendments of the Income Tax Act and file so many IT returns every year.

Who needs to file ITR ?

You need to file an Income Tax Return if your total taxable income exceeds the basic exemption limit before taking into account deductions.
For the financial year 2012-2013, the basic exemption limit is Rs.2,00,000. For women, the limit is Rs.2,00,000, while for Senior Citizens it is Rs.2,50,000.
However, filing tax returns is required even if full tax has been deducted at source or there is no liability to pay further tax and have no other income.

Who Can file with us ?

Salaried Individuals
Self Employed / Consultants
Non-Resident Indians(NRI) / Persion of Indian Origin(PIO)
Company
LLP / Partnership Firm
Tax Practitioners - for their clients

How You can file with us ?

File your returns in the most easiest way by following the below steps:

Make the payment
Email us your details and payment confirmation- rahul.jayaswal@outlook.com
Tax Computation discussed.
IT Return filed on receiving your confirmation - filing done with or without DSC
ITR-V / Acknowledgement and other details mailed - return copy emailed if not received directly from department

We would be processing the Tax computation as soon as we get the details. Please provide us following details & documents:

Form16/ Salary Certificate, if any;
Details of LIC income, if any;
Details of rental income, if any;
Tax investment made, not incorporated in form 16;
Details of housing loan (details of interest and principal paid on housing loan, address of the house property for which loan is taken), if any;
Details of TDS deducted & TDS certificate, if any;
Details of business income, if any;
Details of transactions in shares, Demat statements, if any;
Scanned copy of PAN Card OR ( Details mentioned on card , Full Name, Father's name and date of birth);
Full address;
Mobile Number;
Bank Account details (Account number, name of bank, IFSC and MICR code).

Once you provide the above we will file your Income Tax Return.

Benefits of online Tax Filing :

Every assessee should prefer filing income tax return online to avail full benefits associated with it and to remain hassle free. With online income tax filing the processing speed is really quick and it helps to keep personal information private, get instant notification of Income Tax Return receipt, check the status of tax return or tax refund and get acknowledgement receipt immediately. Moreover, online income tax return allows to pay taxes at any time and from anywhere through the net-banking account without being in the long queue at the Bank. So, by opting online income tax return filing one can save a lot of precious time, money and energy.

Our taxation services includes :

Tax planning and save taxes service, Tax refunds services, ITR Rectification, Assistance in allotment/ Correction/ Surrender of PAN number, Issuance of Digital signature Certificate.

Please note that : Online filing of income tax return has become mandatory for assesses having income above Rs.5 Lakhs. E-filing income tax return can be done with or without digital signature.

Thanks and regards,

Rahul Jayaswal,

Call Us - "91 9903902004"

Visit us on - Firstbigleap.com
E-mail- rahul.jayaswal@outlook.com

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FAQ on Income Tax Return Filing and more..

2013-06-18T12:10:00.002+05:30

I have changed my job during the Financial Year. What should I do?

It is seen in most of the cases that when an individual switches a job, he/she forgets to mention income received from previous employment to the current employer. Each employer provides a Form 16 which contains the details of salary income received by the employee and tax deducted on it. Both current and previous employer prepares a Form 16 calculating taxable income in which it gives a maximum exemption limit of Rs. 200,000 (for FY 12-13 & FY 13-14). Thus it happens that one individual gets the benefit of exemption limit more than once. This often leads to less deduction of TDS due to which interest becomes applicable on remaining tax payable amount. You should always mention the below details to your current employer:

Income received from previous employment. This will help the current employer to calculate your consolidated income for the financial year.
Amount of TDS deducted on your income from previous employer. The current employer will deduct TDS accordingly.
Tax saving investments made on your behalf by the previous employer.

The return is prepared by consolidating all income received during a financial year. Gross Taxable Income (GTI) is calculated and taxes are paid after giving the maximum exemption limit only once.

I have forgotten to mention my tax investment details in Form 16. How can I claim it?

Often salaried individuals forget to provide their tax saving investment details to the current employer while preparation of Form 16 or deduction of TDS. Due to this excess tax is deducted from the salary and it leads to the problem of claiming refund of TDS. The tax saving investments made can still be shown while filing the income tax return and the excess TDS can be claimed. Even if you have switched your job and made the tax saving investments during the financial year, the details of such investments can be furnished in the ITR Form. The maximum deduction that can be claimed on these investments cannot exceed the taxable income during the financial year. Please note that no documents for such investments are to be furnished while filing the Income Tax Return.

I receive HRA and also make payment of housing loan. Can I claim both benefits?

In the Income Tax Act, HRA and Interest on Borrowed capital (Housing Loan) are two different topics and has no interlink with each other. One can claim HRA if he satisfies the necessary conditions for claiming it. It has no interdependence on claiming of interest on housing loan. Further, Interest on Housing loan can be claimed if one makes payment for the loan interest during the financial year. The amount of exemption to be claimed depends if the house property is let out or self occupied.

What are the investments I can make under 80C? What is the maximum limit?

You can claim a maximum deduction of Rs. 1 lakh under 80C of Chapter VI of the Income Tax Act, 1961. If you are in the tax bracket of 30% then you can save taxes of up to Rs. 30,000 if investments are made in 80C. The following investments can be made under section 80C:

Public Provident Fund (PPF)
Voluntary Provident Fund (VPF)
Home Loan Principal Repayment
Life Insurance Premiums
Senior Citizen Savings Scheme (SCSS)
5-year Bank FDs
5-year or 10-years NSCs
Post Office Time Deposit Scheme
Term Deposit Schemes from Government Companies
Equity Linked Savings Scheme (ELSS)

What are the other investments that I can make apart from 80C?

Deductions under Chapter VIA of the income tax act can be claimed by salaried individuals if you make payment for the investments. The lists of common investments are shown below:

80 D – Medical Insurance Premium

80 E – Interest on Education Loan

80 G – Donations made

How should I plan my income and investments for the financial year and by when?

You should plan your taxable income and make tax saving investments before 31^st March of the financial year. If the planning is done properly before time, it helps to reduce payment of unnecessary taxes. If the investments are not fully utilized i.e you still have options of making investment to save taxes, you can still get time to make such investments to reduce tax. Further, if less tax is deducted from your salary and you still have some tax liability, you can make an estimate of the tax liability and make advance payment of it to be relieved from the interest which is applicable on less tax payment and when the tax payment is above 10,000.

I also have other income apart from salary income. What should I do?

Many salaried individuals have other income too apart from their salary income like rental income, business income, capital gains income, other sources income, etc. If you earn such income it must be included in your Gross Taxable Income (GTI) while filing the return and necessary taxes should also be paid on it. Taxes would be applicable as per the normal income tax slab for an individual. If TDS has already been deducted on it then remaining tax payment, if any, should be made. If there are any losses then it can be adjusted as per the provisions of the income tax act.

I have some tax liability. How and when should I make the payment?

There may be cases where you may be required to make some tax payment due to less deduction of TDS or having other income on which TDS has not been deducted. In case of salaried individuals, taxes are deducted as TDS from the salary. When less TDS is deducted then you should calculate your tax liability and make payment of the taxes as advance tax to save yourself from interest applicable on late payment of taxes. If you have some other income and no TDS has been deducted or less TDS has been deducted then you should make tax payment as per your income tax slab. The tax should be paid as advance tax or else interest would be applicable on late payment.

Excess tax has been deducted from my salary. How do I claim the refund?

Sometimes employer deducts excess tax from salary. It may be when you fail to provide your tax saving investment details to the employer or by mistake excess TDS payment has been made. In such a case you need to file your Income Tax return in order to claim the refund of the amount. Also, you need to provide your Bank Account details (Name, Account no., Type & MICR) in order to get the refund credited. ECS option can also be selected and cheque is issued if payment is above Rs. 50,000.

I want to file my Income Tax Return. What details should I provide?

There are few basic details which you need to provide while filing your Income Tax return. Below mentioned details are mandatory:

Full Name
Father’s Full Name
Date of Birth
Full address (permanent or current address)
Mobile Number
Email Id
Jurisdiction Ward
PAN number

Apart from these basic details, details of income are to be provided as per your source of income and ITR form to be submitted.

What documents do I have to send to the income tax department after filing my return online?

Many are confused about the documents that they have to send to the income tax department along with the Acknowledgement. No documents apart from ITR-V (duly signed only if filed without Digital Signature) are required to be sent to the Income Tax Department (CPC) after filing the income tax return. The department processes the return based on the details filled in the form and does not ask for any proof until and unless it finds any discrepancy in the return. Even the documents of tax savings investments or expenses are not to be sent to CPC along with ITR-V form.

Full TDS has been deducted from my salary and I have nil tax payment. Do I need to file my income tax return?

If your income is above Rs. 500,000 it is mandatory to file income tax return. In case your income is below Rs. 500,000 it is not mandatory to file income tax return but there are some conditions to it which needs to be satisfied. Further, it is always recommended to file your income tax return to maintain your income record for the financial year and to declare a valid proof of you income when needed.

My salary income is less than 5 lakhs. Do I need to file my income tax return?

Department had issued a notice in which it said that you do not have to file income tax return if income is below Rs. 5 Lakhs. But the above is only true if you satisfy the below condition:

Only Salary income earned and full TDS deducted on it.
Interest on savings bank account is less than Rs. 10,000.
No other source of income.
No tax payable or refund

If these conditions are not satisfied, you are required to file your income tax return. Further, filing of income tax return has also following benefits:

3 Years returns are required for Loan Application
Income Tax Returns are to be produced while applying for visa
Maintaining your Tax Return and Income related documents is a must for everyone
Acts as a legal proof of your income during the financial year

What is ITR-V? What do I have to do with it?

Many are confused with ITR-V to be an ITR-5 Form (‘V’ for roman five). ‘ITR-V’ stands for Income Tax Return-Verification Form. It is an acknowledgement which is generated automatically after filing a return online. It contains the basic details of income mentioned in the ITR Form while filing the return along with the date of filing the return, acknowledgement no and the details from where the return was filed. If the return is filed online with Digital Signature then it is not required to be sent to CPC Bangalore for processing. In case the return is filed without Digital Signature, you have to duly sign the ITR-V and send it to CPC Bangalore (address along with instructions mentioned in the ITR-V) within 120 days of filing the return. After the ITR-V is received by the department, an ITR-V receipt is emailed to the email id mentioned in the return form. If there is any mismatch in the signature then the ITR-V is rejected and you are required to send it again.

How do I know that my return is processed?

When you file your return online, the return is processed by CPC Bangalore. The status of the return can be checked online at the Income Tax Department website i.e. www.incometaxindiaefiling.gov.in Further, once the return is processed the department sends an intimation u/s 143 (1) which states the status of your return filing. The following 3 status are reflected in the intimation:

If there is any tax demand determined the department will mention the reason for the demand and the amount of tax payable after interest. If you find any discrepancy against the demand you can file a rectification u/s 154 stating the reason of discrepancy.
If there is any refund processed the department would calculate the interest and mention the net refund amount.
If there is no demand no refund, the intimation would reflect ‘0’ under Tax payable/refund. No further action is required.

source-taxmantra.com

FILE TAX RETURNS/ IT RETURNS EVEN IF TAX IS DEDUCTED AT SOURCE (TDS

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Filing of return is the constitutional duty of every individual as it earns the dignity of consciously contributing to the development of the nation. Apart from this Income Tax Returns validate the credit worthiness of the individual before financial institutions and make it possible for him to access many financial benefits such as bank credits etc.

Deduction of TDS is separate from filing of return of income. Under the Indian Income Tax Laws, even if full tax has been deducted at source, there is requirement to file return of income. Non- Filing of return of income attracts penalty.

There are cases when the tax has been deducted at source from rent, interest commission or any other income. In case it is refundable one has to file the income tax return in order to claim refund of TDS. Further details of TDS Certificates and all requisite information should be mentioned in the relevant column of income tax return in order to take the benefit of refund. Thus return filing is mandatory in order to claim refund of the tax deducted at source.

Source-taxmantra.com

2013-06-12T22:28:00.002+05:30

HOW YOU CAN REDUCE YOUR TAX LIABILITY

A quick Glance at some tips on Saving Tax

As the time draws near for Filing tax returns for the previous year, one tends to realize things that could have be done to lower tax liability. But as they say, there is no gain in crying over spilt milk

However, even though if you can’t do anything about the tax you paid on 31^st March or tax that you have to pay now along with interests, there’s still time to plan your taxes for the current year and be a smart tax payer.

Before you fret and fume at the complexity of rules and regulations of tax laws in this country, have a glance at what the Income Tax Act, 1961 itself provides to help you save on your tax flows but also pave a way for a secure future by way of greater savings through greater investment.

Good news for persons having Gross Total Income below Rs. 5 Lakhs is that one gets a relief upto Rs.2000 against their total tax payable.

With about 10 months to go for the financial year end, here are a set of tips that can help you plan your money to generate growth and reduce outflows.

Sr. No.	Investment	Section under which Relief is there under Income Tax Act	Tenure	Type	Remarks
1.	Public Provident Fund,	80C	15 years	Liquidity: Moderate.Income:Tax-free.	8.5% Interest announced for FY 2012-13.Suitable forRisk-averse investors, self-employed professionals and those not covered by the EPF.
2.	Equity Linked Saving Schemes of mutual funds	80C	3 years	Returns: Market-linked. (4% in past three years.)Income:Dividends and capital gains are tax-free	Suitable for:Investors willing to take calculated risks.
3.	National Saving Certificate and Fixed Deposit in Banks	80C	5 years and 10 years for NSC/5 years for FDs	Liquidity:Moderate.Income:Fully taxable at normal rates.	Suitable for:Risk-averse investors looking for short-term options, senior citizens and those in low tax bracket.
4.	Senior Citizens Saving Scheme	80C	5 years	9.3% Interest, Liquidity: High.Income: Fully taxable at normal rate.	Suitable forRetirees looking for regular stream of income.
5.	Life Insurance Policy	80C	Any tenure as per policy	Premium allowable upto maximum of 10% of Capital Sum assured.
6.	Rajiv Gandhi Equity Savings Scheme	80C	3 years	Liquidity:High.Income:Dividends and capital gains are tax-free.	Suitable for:First-time investors who want to save more tax.
7.	Principal on Home Loan	80 C		Rs.1.5 Lakh for existing loan takers/Rs.2.5 Lakhs for new Loans subject to conditions mentioned below in Note 2.
8.	Certain Pension Funds	80CCC
9.	New Pension Scheme (Refer note 3)	80CCD		10% of salary	Applicable for both salaried and non salaried Individuals
10.	Medical Insurance Premium	80D	Any tenure as per policy	On the health of self/spouse/dependent children/parent(s), maximum exemption amount Rs.15000, Rs.20000 in case of Senior Citizen being a person above age 60.
11.	Payment in relation to Preventive Medical Check-up of self or dependent family members	80D		Upto Rs.5000 payment whether in cash or any other mode of payment.	Upto Rs.5000
12.	Interest Component of Home Loan	24(b)	As per Repayment Schedule	Upto Rs.1,50,000

Note 1: Please Note contribution even to a Voluntary Provident Fund, provided it is recognized is allowable as deduction 80 C.

Note 2: However this exemption is allowed only under the following conditions.

The increase in exemption limit is only for this year alone.
This increase in exemption limit does not apply to existing home loan takers. It is only for the loan sanctioned by the financial institutions during 1st April 2013 to 31st March 2014.
The loan is taken for your first home i.e., you as a taxpayer do not already own a residential property on that date.
The value of the property does not exceed ₹ 40 lakhs.
The loan amount does not exceed ₹ 25 lakh.

Note 3: CONTRIBUTION TO NEW PENSION SCHEME (TREATMENT

UNDER INCOME TAX ACT, 1961)

Note 4: In case of Capital Gains, exemptions can be availed as per Sections 54, 54B, 54EC,54F,54G,54GB

References: The Economic Times and taxmantra

Tax Slab/ Income Tax Rates

2013-06-07T00:36:00.002+05:30

Tax Slab/ Income Tax Rates

Income Tax Rates for Assessment year 2013-2014 (Previous year 2012-13)

Income Tax Rates/Slab for Assessment Year 2013-14 (Previous Year 2012-13)	Rates/ %age
Up to 2,00,000 Up to 2,00,000 (for women) Up to 2,50,000 (for resident individual of 60 years till 80 years)	Nil
200,001 – 5,00,000 Up to 500,000 (for resident individual of 80 years and above, Tax is nil)	10% Nil
5,00,001 – 10,00,000	20%
10,00,001 upwards	30%

INCOME TAX RETURN

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1. What is the Last Date for filing an Income Tax Return?

The last date to file your Income Tax Return is 31st July. For financial year ended on 31st March, 2013, the last date of filing return is 31st July, 2013.

2. Is it mandatory for me to file an Income Tax Return if I have a PAN?

No. You need to file an Income Tax Return if your total taxable income exceeds the basic exemption limit before taking into account deductions.

For the financial year 2012-2013, the basic exemption limit is Rs.2,00,000. For women, the limit is Rs.2,00,000, while for Senior Citizens it is Rs.2,50,000.
You do not need to file an income tax return if your total taxable income does not exceed the basic exemption limit before taking into account deductions, even though you may have a PAN.

3. What are the consequences if I do not pay income-tax?
In case, you fail to pay due amount of income tax , you will be charged interest @ 1% per month from 1st April following the financial year, until you pay your tax.

5. What happens if a return is filed late?

If you miss the deadline, you can file a belated tax return by 31 March. But, if there is balance tax payable, you will have to pay interest on the balance at the rate of 1 per cent per month. This can go up to 2 per cent if you have not paid the required advance tax. If you are entitled to a refund, you don’t have to pay any interest if you file late.

5. What is the penalty for delaying or not filing a tax return??

A penalty of Rs 5,000 will be levied if the return is not filed by 31 March. But, if there is a reasonable cause for delay, the penalty may be waived.
You can also be imprisoned for three months to three years, besides being fine.

So, it pays to start preparing tax returns early.

6. What documents are needed to correctly assesses and file your income tax return?
While no documents (see Checklist for filing tax return) need to be attached when filing an income-tax return, you need to do all the supporting paperwork and retain the records as you will have to produce them if your case comes up for scrutiny.

- Permanent Account Number (PAN),

- Salaried employees need Form 16

- Form No. 16A, which is also a TDS certificate issued for tax deduction on income from sources other than salary, from all those who have deducted tax at source, such as banks where you have term deposits.

- Details of all bank accounts operated during the year with details of deposits, withdrawals and interest earned.

- Property owners need to retain municipal tax receipts, rent details, and other such papers. If you have bought a house on loan, get a certificate of interest and principal paid.

- Bills, documents and contract notes for assets sold during the year are needed as are the corresponding purchase papers

- Details of tax payments made during the year are needed only if you have made or self assessed advance tax payments.

refrence -incometaxreturnindia.com

Why file tax returns? Is it Mandatory

2013-02-12T19:13:00.000+05:30

Filing tax returns is an annual activity which must be fulfilled as a moral and social obligation by every citizen of this nation. The tax as applicable must be paid by the assessee failure of which will invite interest and penalties from the IT department. While most people are aware of the requirement of filing tax returns many are still unclear about the overall implications and repercussions of not filing returns on time.

Legal and social implications of filing tax returnsThere are several allied issues which are associated with the filing of tax returns. Filing the returns provides legal sanction to your income whether or not you are liable to pay taxes for that assessment year. The government has now in fact made it mandatory for all citizens to file returns whether or not they come under the taxable bracket. Filing returns makes it easier for individuals and firms to enter into subsequent transactions as the income they have shown is now in the knowledge of the tax department and the tax for the same has been paid as per records. This also a means by which every right thinking citizen of the nation contributes to the progress and development of the nation. The money collected through taxes is the corpus from which the government undertakes welfare activities to improve the living conditions of the citizens.

Advantages of filing tax returns

Apart from helping the cause of the nation, filing income tax returns on time has many other individual advantages associated with it.

Processing of home, educational and other types of loans require income tax returns to be shown to the lending institutions. Thus filing returns makes loans easier to process.
It is mandatory to have income tax returns for the processing of any VISA.
Registration of immovable properties in most states requires production of the tax returns of the last three years. Filing returns makes such registration procedures easier.
Issuing of financial instruments of all kinds such as credit cards mandates the production of tax returns.
Filing returns whether eligible for taxes or not helps pad up legally tenable income which will be useful subsequently to account for the wealth or property owned.

Consequences of not filing IT returns on timeThere are several disadvantages of not filing the tax returns on time under the various provisions of the income tax department.

The various losses incurred by an individual or a firm in terms of business losses both speculative as well as non speculative, capital losses both short term as well as long term and various other types of losses which have not been reflected through proper tax returns in a financial year cannot be shown for exemption the subsequent years for the purpose of tax calculation as laid down under the Section 80 of the IT Act.
In case the original IT return under Section 139(1) of the IT Act has not been filed then the revised return under Section 139(5) also cannot be filed subsequently when the assessee needs it.
Under the Sections 235(A), 235(B) and 235(C) of the IT Act, non filing of returns by assesses can attract a penalty of Rs. 5000 from the IT department.

While filing of income tax returns may seem a voluntary activity on the face of it, there are legal provisions against those who do not do so. Even if a person is not eligible for taxes under the current provisions of the IT Act, it is wise to file the returns for the same so as to be on the right side of IT laws. Additionally filing of proper returns on time lends you a peace of mind and declares all your income shown as legal since they have been taxed for. Individuals, companies, partnership firms, LLP, AOI, BLP and HUF are all liable to file the tax returns before the deadline.

source-bankbaazar.com

How and when TDS Deductions can be saved and avoided

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Even though many of us are familiar with tax filing, the process of TDS deduction is still confusing for many. When and where TDS is applicable, what are the procedures to reduce it and how to claim the deducted amount at the time of filing tax returns are few of the queries we have. So, here we discuss TDS deductions with a focus on how and when it can be reduced to help you in everyday life.

Understanding TDS:

The Indian tax structure is broadly a two dimensional approach towards payment of tax liabilities. In the first method- self assessment, taxes can be paid voluntarily after evaluation of income during a financial year. In the second method, Tax Deductions at

Source or TDS, as the name suggests, is the spot deduction of tax from the income source itself, at the time of earning. This is to simplify the taxation procedure for the government and to ensure that the payment making and receiving individual / company is accounting the same without fail.

TDS is applicable for earnings from several financial instruments and business transactions like sale of property, interest income from banks, commissions and incentives, payment received for contracts and services, vendors, dividends and awards or prices earned as money.

There is no uniform rate for TDS deduction. Depending on the source of earnings, it can range from 1% for sale proceeds to 30% .

From Salary and Commissions

It is mandatory as per Indian Income Tax rules that companies as well as working professionals who earn above the aforementioned figure should deduct tax at source from the payments they make.

Employers normally will ask employees to fill an investment declaration form. If you have done an early homework to save your TDS deduction by investing in several tax saving instruments under Sections 80C, 80D, or planning to do within that financial year, do declare the details in the form with required proofs to save TDS. If despite all your investments, your salary is still above the exemption limit, TDS will be deducted monthly.

The employer will issue a TDS certificate (also referred as Form No.16 (a)) at the end of the financial year which can be produced while filing income tax return to get the credit of the TDS ( if applicable) during the personal income tax assessment.

TDS is applicable for payments including commissions, service fees, professional fees and payment via contracts. Here the TDS certificate issued will be Form 16 B which like Form 16 A, can be produced while filing income tax return to get reversed if applicable.

TDS from Property, Awards and Incentives:

TDS is applicable in case of earnings sale of property, rental / lease income, cash prizes, lottery winnings etc. The amount of deduction may vary from 1% in case of sale proceeds to nearly 30% in case of cash awards.

Individuals seeking TDS refund in the above mentioned situations can submit form 15G/H which is a self deceleration that your income is below taxable limit. This is applicable only for Indian residents including senior citizens and Hindu Undivided Families (HUF’s). Form 15G can be filed by all Indian residents whose total financial income for the designated financial year is below the threshold limit while senior citizens need to avail Form 15H for the same purpose. It is imperative to note that Non resident Indians are not allowed the use of forms 15G and 15H and need to apply separately.

In case of rental income, TDS will be deducted only if the rent you receive is not less than Rs1.8 lakh a year. In case of joint ownership of rented / leased property, where the specific share of the property is decided, the limit of Rs 1.8 lakh can be claimed separately by each owner.

Income generated through bank deposits-

TDS is deductable on interest income paid by banks and financial institutions in respect of FDs (exceeding Rs.10000 in a FY) and term deposits (exceeding Rs.5000 in a FY).

If your income is below the taxable limit, but the interest earned from your deposits is above Rs 10,000, you can request your bank not to deduct tax by submitting form 15 G and 15 H to the bank at the beginning of the financial year.

Another effective way is to opt for multiple smaller fixed deposits across various banks.

Splitting the interest earned across two financial years in such a way that the overall annual interest earned from any of the FD not exceeding Rs 10,000 is another workable option.

In certain cases, dividing fixed deposits under two different heads can also be useful in avoiding. Individuals can divide deposits in their names and have some under a HUF account to avoid interest generation cross the taxable limit.

And never forget to carry your PAN card for all fixed deposits over Rs.50000, because on not receipt of PAN number banks may deduct 20% TDS which is non reversible.

Reversing TS collected

As you file your tax returns, you will know the tax bracket you are which determines the balance tax to be paid or that can be reversed. So do keep a track of the TDS that you have paid with Form 26AS or annual tax statement. All the taxes deducted on your behalf will be listed in it and it can be availed from the concerned sources along with Form 16. Otherwise missing taxes will be considered unpaid by the income tax authorities.

Source	Deduction pattern	How to reduce TDS	How to reverse TDS	Conditions (if any)
Salary	Monthly by employer	Submitting investment declaration with proofs	At the time of filing ITR (with proofs of investments under 80C and 80D. Form 16 A	Ensure to have a tax savings plan under 80c and 80D
Incentives , Commissions, Services, Contracts, Rental Income	At the time of payment	Possible only to reverse	At the time of filing ITR (with proofs of investments under 80C and 80D. Form 16B	Only if eligible under 80C and 80D clauses
Sale of Property	At the time of transaction	If the transaction as per papers is below 20 lakhs in panchayaths and below 50 lakhs in municipality / corporation limits	NA	As per costs shown in documents
Bank Deposits	During interest remittance by bank	Form 15 G / 15 H, Splitting of accounts across banks / HUFs ( if applicable), splitting of interest in two FY	Form 15 G / 15 H,	Will not be reversed if a single deposit is above 50,000 and PAN no. not submitted

source- BankBazaar.com

Benefits of Filing your Income Tax Return on time

2012-07-27T00:07:00.000+05:30

Under Income Tax Law if your total income exceeds the basic exemption limit: You have to file the Income Tax Return within the prescribed time, i.e. by the due date.

The due dates of filing returns for Assessment Year 2012-13 are the following:

Category	Due Date

Most people fall in this category – Salaried employees, pensioners and other persons whose accounts are not required to be audited	31st July 2012
Companies and other persons whose accounts are to be audited	30th September 2012

What happens if a person does not file the Income Tax Return by the due date

You have to Pay Interest on Income Tax Due if you don’t file on time If you do not file the Income Tax Return by the due date:

You are liable to pay interest at the rate of one percent for every month after the due date till the date of filing the return.

If No Tax is due: Interest is calculated on the amount of tax payable after adjustment of pre-paid taxes like advance tax, TDS etc. So, if there is no tax payable on the basis of the Income declared in the Tax Return, there is no liability for the payment of interest.

You don’t get the benefit of Carry Forward of Losses if you don’t file on time Under income tax law, if you have sustained a Business loss or loss under the head “Capital Gains”, you can carry forward the loss ONLY if you file the Income Tax Return by the due date.

Therefore, if you have sustained a loss, you must file your Income Tax Return in time if you want to carry forward the loss for future adjustment with your Income.

Possibility of Penalty or Prosecution by the Income Tax Department

Say you could not file the Income Tax Return by the due date: To avoid any penalty by the Income Tax Department, you must file your Income Tax Return before the end of the relevant assessment year that is 31st March 2013.

Possibility of Penalty and Prosecution: If you do not file your Income Tax Return by 31st March 2013, the Income Tax Department may impose a penalty of Rs. 5000, even though the tax payable by you may be Zero.

Further, if a person has failed to file the Income Tax Return by 31st March 2013 and the tax payable after adjustment of advance tax and TDS exceeds Rs. 3000, he may be prosecuted for imprisonment also. However, this law is used in practice very rarely.

Other reasons for filing the returns of income within time If a refund is due after adjustment ofprepaid taxes, it is necessary to file the Income Tax Return to get the refund from the Income Tax Department.

Bank Loans: Further, the return is a declaration of your income and it will be extremely helpful when you are applying for a loan from bank. Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns.

Visas of foreign countries: Many countries want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your income tax returns.

Is filing the Income Tax Return compulsory?

2012-07-14T18:07:00.002+05:30

As an Individual you are required by law to file your Income Tax Returns, if your total income without allowing deductions (such as Section 80C etc) exceeds the basic exemption limit.

For Assessment Year 2012-13, the basic exemption limits are the following:

• For Men below the age of 60, the exemption limit is Rs. 1,80,000.

• For Women, below the age of 60, the exemption limit is Rs. 1,90,000.

• For Senior Citizens, whose age is between 60 years to 80 years, the exemption limit is Rs. 2,50,000. This is identical for men and women.

• For Super Senior Citizens, of the age of 80 years or more, the exemption limit is Rs. 5,00,000.

What does Total Income without allowing deductions (such as Section 80C etc) actually mean?

Let’s say, your gross total Income is Rs. 2,00,000. You have paid Rs. 50,000 in LIC premium for claiming deduction under Section 80C. Your Taxable Income is Rs. 1,50,000 (Rs. 2,00,000 - Rs. 50,000). The tax payable on Rs. 1,50,000 is Zero.

However, even in this situation, you are required to file your Income Tax Return as your gross total Income exceeds the basic exemption limit of Rs. 1,80,000. (assuming you are not a senior citizen).

Exemption for filing Income Tax Return for Salaried Employees

For the Assessment Year 2012-13, there is an exemption from filing the Income Tax Return for Salaried employees, subject to the following conditions.

• Your Total Income after deductions (such as Section 80C etc) is upto Rs. 5,00,000.

• Income other than Salary should be only from Saving Bank Interest, upto Rs. 10,000. If you have any other source of Income like House Property, Capital Gain, or even interest from fixed deposits, you will have to file your Income Tax Return.

• You must declare this Interest Income from the Saving Bank to the Employer. The employer then has to deduct the TDS taking into account your Interest Income.

• If you have a refund due, you need to your file your Income Tax Return to claim this refund.

This exemption is difficult to get in actual practice. You will most likely have to file your Income Tax Return.

This is because, you must declare your Interest Income to your employer before 31st March of the Financial Year. But in most cases, the Bank issues the Interest statement after 31st March. So it is virtually impossible to report the Bank Interest to the employer in time.

Compulsory filing of Income Tax Returns if you have foreign assets.

For the Assessment 2012-13, it is mandatory to file your Income Tax Return if you have any foreign assets. Even though you may not have any taxable Income.

When is e-filing your Income Tax Return compulsory?

For the Assessment year 2012-13, e-filing of the Income Tax Return has become compulsory for the following cases:

• If your Total Income exceeds Rs. 10 Lakhs, then you must e-file your Income Tax Return.

• If you own foreign assets, you must e-file.

I have paid all my taxes, do I still need to file my Income Tax Return?

As explained above, the law has placed an obligation on you to file the Income Tax Return even if you have no tax due

refrence:yahoofinance

STEPS INVOLVED IN STARTING A BUSINESS

2012-06-16T13:01:00.000+05:30

The current economic climate of India is ripe with opportunity for individuals ready to strike out on their own with a business idea. Of course, a lot of groundwork has to come before the actual act of starting a venture.

This includes creating a business plan, market research, funding sources and the business model. Once you have validated your idea with these steps, it is time to delve into the legalities and paperwork involved in launching a business in India. We have listed the main parts of the process below based on a few reliable published sources.

Company Incorporation

File the desired company name with the Registrar of Companies and make sure it is available for use.
Submit the main objectives of the company to the Registrar of Companies (ROC) for scrutiny. You will be informed of approval or any objections within 10 days.
Obtain a Director Identification Number (DIN) online from the Ministry of Corporate Affairs portal. This process calls for submitting attested support documents as proof of identity and address.
Obtain a Digital Signature Certificate – a requirement for all those who have to sign ROC forms and related documents. The certificate can be obtained from one of the private agencies authorized by MCA 21.

Stamping of Documents:

Pay stamp duties and submit various incorporation forms and documents, including unsigned copies of the Memorandum and Articles of Association for stamping.

1. Memorandum of association – This lists the main, ancillary, subsidiary and other parts of the company. It also lists the authorized share capital of the company and the names of its first directors.

2. Article of Association – describes the rules and procedures for the routine conduct of the company.

These documents have to be executed by the promoters in their own hand and in the presence of witnesses.

Certificate of Incorporation:

• Submit digital and physical copies of the following documents to the ROC in order to obtain your Certificate of Incorporation:

o Forms e-form 1 (stating that all requirements of the incorporation process have been completed), e-form 18 (informing the ROC of the location of the registered office of the company) and e-form 32 (stating the appointment of proposed directors) have to be filed electronically;
o Signed and stamped forms of the Memorandum and Articles of Association
o Initial consent of directors
o Original approval of name letter
o Stamped Power of Attorney documents

Tax-related Procedures

• Permanent Account Number (PAN) – A PAN card can be obtained by filing an application with the Income Tax department using Form 49A along with supporting documents. In recent years, the government has tried to simplify this process through service centres such as UTI Investor Services Ltd or TIN Facilitation Centers.

• Tax Account Number (TAN) – This is required for anyone responsible for deducting or collecting tax. Use Form 49B for this and submit it at any TIN Facilitation Centre authorized to receive e-TDS returns

• There is a mandatory registration process for Value-Added Tax (VAT) and other tax requirements such as professional tax and service tax

Labour Law Procedures

• Registration with the Office of Inspector, Shops, and Establishment Act: the steps involved in this may vary by state.

• Registration with the Employees’ Provident Fund Organization: This is required only if the number of employees is 20 or more.

• Registration with the Employees’ State Insurance Corporation – a social security scheme to provide protection to workers in the organized sector and their dependents in contingencies such as sickness, maternity, death, disablement or occupational disease

The steps and procedures described above may vary depending on the state and type of business. Tackle these in a proactive and systematic manner to ensure you don’t get caught in a legal tangle that will delay the launch of your business or hamper its operation.

For more information, refer to:

http://www.mca.gov.in/

http://www.incometaxindia.gov.in/

Success Keys for People Working from Home

2012-05-30T08:37:00.000+05:30

We all want to do something extra, something of our own and some of us work on weekends or late night hours back. Working on your own hours in your pajamas whenever you feel like it and never having to leave your house but unfortunately, working from home is not necessarily all that simple. Sure, there is the advantage of forever avoiding rush hour traffic, but there is also the much more difficult than expected task of dividing at-home time with working-at-home time.

“I am starving; I’ll just run out for a quick bite and get right back to work.” The reasons are endless for procrastinating on getting work done. The key to successfully working from home is being able to differentiate when it’s time to work and when it’s time to simply be at home.

Okay, this was not intended to dash your hopes of successfully working from home; it can most certainly be done. For the doers, here are some of the suggestions from the experts :

1. Dress for work

Successfully working from home requires a disciplined mindset, and you need to take yourself seriously. This might seem silly. You may ask, “Why can’t I work in my underwear,no one will know.” Well, you will know. If you went to the office in your underwear, there’s no way anyone there would take you seriously, and deep down you know you won’t either.

2. Be truly accountable for your time

Seriously write down and track your time spent working. This is a great way to begin to hold yourself accountable for your valuable time spent. Journal what you did throughout the day, and be honest if you find yourself chatting on the phone when you really should be calling in those orders.

3. Work with a buddy

Peer pressure is a fantastic source of accountability. If you are lucky enough to know another person who works from home, set up days to work together to be sure each other is keeping up with work-at-home best practices. Doing this may also help you catch on to techniques that work for your fellow at-home worker or even smart house/work division ideas.

4. Know when to get away

No one is perfect, and sometimes prioritizing your work when you’d rather be doing the laundry (hard to believe) might mean that you need to get out of the house. Heading out to the library or a coffee shop is a great idea to avoid those distractions as well as making a nice change of scenery. Working at home and living at home means you might not be getting out much!

5. Avoid multi-tasking

Blending your work to-do list, your home to-do list, and your things-I-just-want-to-do list can become a work-at-home nightmare. Getting a few things done for work, then unloading and then checking Facebook before getting back to work may seem harmless, (it’s all stuff you need to get done anyway!) but it’s not the way to maximize your productivity.

6. Stay focused

Like I mentioned above, staying on task is vital to successfully working from home. You may find it easier to follow through if you’re able to have a separate work computer from your at-home computer. Ideally, a completely separate workspace would be perfect, but physically delineating between work and home is immensely helpful however you can do it.

7. Center your concentration

You don’t just need to hold your time accountable – you’ll also need to hold yourself mentally accountable. Being physically present doesn’t matter when you work from home if you’re not mentally present for your work.

8. Don’t self-destruct

It’s all about time management. If you’re looking into working from home, the concept of working 9 to 5, Monday through Friday at the office probably sounds dreadful. To succeed at home you’ll need to set your own “office” hours, though they may not be the same as conventional hours. Poor time management can mean you’ll find yourself working here-and-there seven days a week, and that’s the fast track to a major burn out.

The great perks of working from home can all too often become the downfall of many work-from-home hopefuls. The key to succeeding in this unsuspectingly difficult line of work is, and always will be, personal accountability.

MUST FOR A BUSINESS WEBSITE

2012-05-27T10:08:00.000+05:30

With Internet Penetration rate rapid increase, every small business requires an effective website. Even the smallest business is expected to have at least some sort of web presence. Companies like Hostgator India with Google providing free websites or simply paying the kid down the street to set up a run-of-the-mill boring website is more than likely not worth your money. Being a smart small business owner, your website should be a money maker, not a money-taker.

Every business website worth your money should have the following 6 essential features:

1. Information Capture Form

Having an Information capture form can be priceless. Often, viewers of your site will be visiting at off-business hours, and though they may want to contact you with questions or business, but probably due to some reason they don’t, for e.g.: No time to contact you or they forget till morning. Even the best website may not be able to convert a looker into a customer but allowing your website visitors to give you their information, will make 24X7 Open Hour service.

2. Social Links

Today with most of people are connected using Facebook, Twitter, and linked in, etc. and spend more times in reading every article online. You know, very social website has its own tiny icons offering, “Share this,” “email this,” or “like this.” These little icons are a great way for word to be spread about your website or information on your website. Allowing your readers to share your information is essentially a customer testimonial that they like what you have to say and want to share it with their friends.

A website is likely not enough for most business’ web presence these days. Creating these social media links on your webpage will create a sort of circular rope of connectivity, which is fantastic for search engine optimization.

3. Contact Information

An emboldened “Contact Us” page, as well as reiterated near the top of the homepage, and contact information at the bottom of each page are a great idea even if they are ever so tiny. This gives confidence to your customers about your presence and creates a trust on you. This one seems really obvious to have the basic business contact information on the site, but it happens! Also there’s no reason to hide this information. A lot of the time, for whatever reason, it’s difficult to find a basic phone number and address for a given company. Having a phone number, address, and email address in more than one location isn’t a bad idea, either.

4. Customer Reviews and Testimonials

Well, there is an old saying - No better marketing than word of mouth marketing. Well, in this day and age, customer reviews and testimonials on your website are just as close as we can get. Of course your own website content will scream from the rooftops how great of a company you are, but having the word of satisfied customers makes your claims slightly more believable.

5. A Blog

To optimize your search engine blogs are a great way to drive traffic to your website. Blogs are like a more personable voice for your company. Blogs are great to upload new information and exciting news about your company more frequently than you would for your webpage.

Simply put, blogs help make Google happy, and search engine optimization is all about making Google happy. The best way to make the almighty Google happy is to refresh new information frequently, have a lot of it, and include a lot of key words. The happier Google is with these simple factors, the higher your website will appear on a Google search list. A blog is the surefire easiest way to go about doing so.

6. Newsletter Sign Up

Similarly to a blog, a newsletter allows viewers of your site to sample your product or services without yet having to buy into anything. A newsletter can help build up those tentative but interested prospects into actual customers or clients through constant contact. The content of your newsletter can be similar to that of your blog, but sending a newsletter is actively and consistently contacting your database with your unique information.

It may seem that this is an awful lot of work for a product we can’t physically touch, but investing in your website may be one of the smartest moves you’ll make to really launch your small business to new levels.

MARKETING STRATEGIES START UPS MUST USE AT INCEPTION

2012-05-19T11:19:00.000+05:30

The very things that are considered drawbacks of owning and running a small business can be easily leveraged to become your company’s greatest strengths. By simply building that close, one-on-one rapport with your contact list, you’ll inevitably be ahead of the multitude of faceless mega-chains. Sure, adding that personal touch takes a bit more time and effort than may sound like fun, but in reality, by building these relationships you are also building and marketing a friendly company brand.

There are a few different ways to market a small business with little or no money. A modest marketing budget doesn’t mean that a smaller company can’t get off the ground. Here are seven free or inexpensive marketing ideas perfect for any small business:

1. Email

These days, it seems more common for people to have an email account than a home phone number. Take the opportunity to gather the email addresses of all of your contacts and compile a few different categories (example: vendor, past client, prospective client, etc.) to blast out a few different marketing pieces on occasion. Creating a consistent marketing plan for each of these categories and sticking to a timeline will ensure that your contacts are keeping your business in mind.

2. Freebies

Sure, this may put a dent into the company bank account, but offering free samples or related freebies is a tactic proven to convert prospects into clients. If you have a business that offers a unique product, consider providing smaller samples of the product to interested but hesitant prospects. Giving a taste of the product demonstrates high confidence in the merchandise and will build consumer trust.

If your small business is a service-based company, offering something as simple as a custom pen with the businesses contact information or slogan may do the trick. Offering these types of freebies isn’t necessarily demonstrating the abilities of your business, but it is offering a token, however small, as a gift. Plus, who doesn’t love free stuff?

3. Business Cards

Having a business card to hand out to customers or new acquaintances with your name, title, and contact information is great. But why not make the most of that business card and add a little something extra? Utilize of the blank back of that card and add a unique web address to access further information about your product or services or even extend a special offer.

4. Thank You Notes

This is a personal touch that every small business can afford. Take 10 to 20 minutes out of a day, once a week, to thank a few special regular clients or individuals who sent a referral your way. Finding a piece of personal mail that isn’t a bill in your mailbox these days is, sadly, quite a unique occurrence. Pleasantly surprise your customers with quick thanks that will undoubtedly build a positive connection to your business.

5. Invoices

This is a piece of regular correspondence between many small businesses and their clients. It costs nothing extra to add a little more to that necessary billing process. It could be as simple as adding a branded signature in those blank spaces in the invoice to thank clients for their business or offer bit of helpful information related to your industry. If you’re feeling really personable, get out the pen while stuffing the envelopes to handwrite a quick personal thank you, complete with their name and your signature.

6. Online Offers

An offer doesn’t necessarily have to cost the business much money – or any. Enticing clients via email, social media or on conventional marketing pieces to visit your website to print out a coupon for 10% off or a special new customer incentive can be just the thing. If you’re feeling adventurous, you may want to check out online discount sites such as Groupon to build your business by extending a special offer to a completely new pool of prospects. Just be aware that these sites are far from inexpensive.

7. Referral Encouragement

For many small businesses, a strong referral base can make or break their bottom line. By providing that extra level of customer service to make your company stand above the norm, you’ll inevitably build a strong customer base, happy to promote your company; sometimes you might just need to ask! This could be as simple as reminding pleased clients that your company is strongly referral-driven.

SIDBI FOCUSES ON SME - SETS A TARGET CORPUS OF 500 CR.

2012-05-18T01:47:00.000+05:30

Start Ups with Innovative and High technology businesses need capital to grow and Venture Funds are recognized globally as the most suitable form of providing risk capital to innovative and high technology businesses.

In order to meet the venture capital needs of SME units and enable them to achieve rapid growth by taking advantage of opportunities in the emerging sectors, SIDBI Venture Capital Ltd. has set up SME GROWTH FUND.

SME GROWTH FUND is registered with Securities and Exchange Board of India (SEBI) as a Venture Capital Fund and has been structured as a unit scheme to make primarily equity or equity-related investments in the growth oriented businesses having significant business activity in India. The Fund seeks to achieve attractive risk-adjusted returns for its contributors through long-term capital appreciation. The fund has a targeted corpus of Rs.500 crore with a life of 8 years.

TARGET GROUP

The focus of SME GROWTH FUND’s is to invest in unlisted entities in the small and medium enterprises in manufacturing as well as services sector as also businesses providing infrastructure or other support to SMEs. The Fund may also invest very selectively in listed entities, to take advantage of attractive opportunities in growing companies.

The Fund will typically invest in companies at early stage as well as in second round financing for those with a track record of proven technology or business model and opportunities for growth and earnings.

SME GROWTH FUND will focus at wide range of growth sectors, such as life sciences, retailing, light engineering, food processing, information technology, infrastructure related services, healthcare, logistics and distribution, etc.

INVESTMENT PATTERN

Equity or Equity-linked capital investment are primarily mode of financial assistance by SME GROWTH FUND. It shall also endeavor to provide mentoring support and other value addition to enable the funded companies to achieve rapid growth and achieve / maintain their competitive edge in domestic and international markets.

The Fund will seek a strategic stake in the funded companies with board representation and other rights as venture capital investor.

INVESTMENT CRITERIA

SME GROWTH FUND is looking for investment in projects offering potential for attractive growth and earnings. Key criteria for project selection are –

— Strong and committed core team: The Fund will look for businesses managed by a team with a demonstrated performance track record, commitment and energy.

— Growth potential: The Fund will like to invest in promising businesses having potential for sustainable high growth.

— Long-term competitive advantage: The Fund will prefer to invest in innovative business operations with a sustainable competitive advantage.

— Viable business plan: The venture should have a viable business plan which offers above average profitability leading to attractive return on investment.

— A Clear exit plan: The Fund, being of limited life, will seek to invest in ventures offering a strategy for clear exit within a reasonable time period. The exit could be by way of IPO, offer for sale, merger and acquisition or sale to a strategic or a financial investor.

— The fund is presently in the divestment stage.

Angel capital is not an easy process and can be extremely competitive

2012-04-16T01:37:00.000+05:30

Obtaining angel capital is not an easy process and can be extremely competitive. An entrepreneur can follow several strategies, so they can increase their chances of receiving angel funding. Angel investors primarily look for 6 important components when agreeing on an investment:

1. The promise of a large ROI
Angel investors expect more than just getting their money back—they also seek a profitable return on an investment since their investments tend to be high risk. As one financial analyst claims, “For every dollar that an angel puts into a company, s/he would like to take seven dollars out after taxes in seven years.”

2. The rationale behind every investment
Angel investors have a history of being successful entrepreneurs and many are delighted in helping build and create an enterprise that will promote the economic development of a community. Entrepreneurs should give angel investors a legitimate reason to invest in their company and cherish the skills and expertise an angel investor will bring to their enterprise.

3. A promising pitch and convincing business proposal
An entrepreneur should consistently practice and refine their pitch so it will be flawless. In addition to presenting a promising pitch, angel investors also desire to see an entrepreneur’s business plan, detailing the ideas and objectives of their company. This business plan should include any financial projections, comprehensive marketing plans, concise details about the target industry, and who the prospective consumers will be.

By preparing a flawless pitch and strong business proposal, the entrepreneur will undoubtedly increase their chances of obtaining angel capital. They should also tailor their pitch and business plans according to the type of angel investor they are planning to pursue. There are three major types of angel investors that business owners should be aware of.

a. Angel investors concerned with economic gain- these investors are motivated by the prospect of a large economic reward, especially if the company gains public recognition.Entrepreneurs who seek these types of angel investors should not only stress the purpose of their business idea(s) but also mention shareholder percentages and ROI in their pitch and business plans.
b. Hedonistic angel investors- these investors are attracted to investing because of the thrill associated with risky ventures. They also believe that the entrepreneur’s concepts are worthwhile and desire to help the entrepreneur market their innovative ideas. While the process of successfully obtaining angel capital is an extremely competitive process, new business owners who seek funding from these investors should have a well-prepared, convincing pitch and business plan.
c. Altruistic angel investors- these investors take pleasure in helping young companies thrive and enjoy promoting community development and job growth. Entrepreneurs who seek capital from these types of investors should perhaps stress the advantages of economic growth in communities and economically sound technologies.

4. A solid management team
To attract angel investors, an entrepreneur must also present a solid and trustworthy management team that is skillful, competent, and experienced in their industry. The entire team should have a firm record of success, be knowledgeable on marketing products and services, managing employees, and have insight on conducting proper financial matters. It is a proven fact that a strong management team can contribute to the successful growth of a company.

5. Proper business structure and organization
An entrepreneur’s business must be properly structured for investment. This includes an angel investor’s percentage of ownership as part of the business deal. Angel investors are also likely to be involved in company operations through active mentoring, management, or being a member of the board. Most angel investors will expect this type of formal agreement, as well as a large return on investment, in exchange for providing the new company with the needed business capital.

6. A well-defined exit strategy
The entrepreneur and angel investor should agree upon a time frame for the investment. This means that for a given period of time, the angel investor will provide the needed capital, expect to be actively involved in a company, and will anticipate an exit after that phase comes to an end. The most common exit strategy of an angel investor is through the sale or merger of a company.

source-go4funding

OUTLOOK OF FINANCIAL YEAR 2012 -13

2012-04-11T07:46:00.000+05:30

Happy Financial Year 2012 -13 to all our readers!!

2011 -2012 has been an eventful financial year, perhaps a record year in terms of overall volume of financing for Venture Capital in India. One element that has continued to keep the confidence going around is increasing quality and quantity of startup entrepreneurs.

We saw a stepped up inflow of funds in Traditional growth equity firms which provided a later stage support to venture backed companies, which augers well for entrepreneurs and the venture industry. Valuations, especially in ecommerce were beginning to look heady, in the middle of the year.It seems like venture capital is getting its roots entrenched , though predicting an year is tough– we hope for a great year in 2012 -13.

In 2011-12, Public markets were choppy throughout the year in India, and globally in the latter half. The exit front in 2011 -12 was actually bit disappointing as dozen plus venture backed companies (largely Internet related), which could be half a billion or more in value, primary exit theme for most of those was IPOs (initial public offering).

With trends over the last six years been:

· 2006 - Mobile Value Added Services;

· 2007 - Education, Real Estate;

· 2008 - Healthcare, Retail;

· 2009 – Microfinance;

· 2010 - Rural, Agriculture;

· 2011 – Ecommerce and so on.

Not many themes have continued the momentum – I do hope ecommerce does. And for 2012, maybe we will be back to mobile VAS (times are changing there), or Education.

The Outlook of 2012-13 looks to be driven more by the health of the markets, rather than by the availability of a good pipeline. Investors may start thinking about diversifying their exit options – both in Internet companies where traditional thought in India has been around IPOs (for lack of an M&A market), but also in terms of looking at investment areas where the dependency on IPOs is less (good old outsourcing!).

Wish you all the best for FY 2012 -13!!!

What questions an Investor asks an Entrepreneur ?

2012-04-06T23:27:00.000+05:30

What ignited the spark in you to start a new business venture or to make significant changes in an existing business? How did the idea for your business come about?
How do you find people to bring into your organization that truly care about the organization the way you do?
How important have good employees been to your success?
What three pieces of advice would you give to college students who want to become entrepreneurs?
If you had the chance to start your career over again, what would you do differently?
What would you say are the top three skills needed to be a successful entrepreneur?
What have been some of your failures, and what have you learned from them?
How long do you stick with an idea before giving up?
How many hours do you work a day on average?
Describe/outline your typical day?
How has being an entrepreneur affected your family life?
What motivates you?
How do you generate new ideas?
How far are you willing to go to succeed?
What is your greatest fear, and how do you manage fear?
What are your ideals?
How do you define success?
What is the best way to achieve long-term success?
Is your company profitable or what is your profit for last year?
Where did your organization's funding/capital come from and how did you go about getting it? How did you obtain investors for your venture?
How do you build a successful customer base?
How did you decide on the location for your business?
Do you believe there is some sort of pattern or formula to becoming a successful entrepreneur?
If you could talk to one person from history, who would it be and why?
Who has been your greatest inspiration?
What book has inspired you the most? (OR What is your favorite book?)
What is your favorite aspect of being an entrepreneur?
To what do you most attribute your success? What would u say are the five key elements for starting and running a succesful business?
What has been your most satisfying moment in business?
What do you feel is the major difference between entrepreneurs and those who work for someone else?
How do you go about marketing your business? What has been your most successful form of marketing?
What kind of culture exists in your organization? How did you establish this tone and why did you institute this particular type of culture?
In one word, characterize your life as an entrepreneur.
What are some of the biggest mistakes you've made?
How can you prevent mistakes or do damage control?
What are your hobbies? What do you do in your non-work time?
What makes you happy?
What sacrifices have you had to make to be a successful entrepreneur?
Excluding yours, what company or business do you admire the most?
Where you see yourself and your business in 10 years? 20 years?
If you were conducting this interview, what question would you ask?

Indian Funding Deals of the Week - March 26th to April 1st 2012

2012-04-04T23:14:00.003+05:30

Funding, M&A Deals of the Week [Mar 26^th to April 1^st 2012]

Funded Company / Acquired Company	Deal Type	Who Funded / Who Acquired	Funding Amount	Remarks
Kalki Communication Technologies	Private Equity	IFC & Global Environment Fund	Rs. 23 Crore	Not Available

Raining Clouds Technology Pvt. Ltd.	Seed Funding	Vijay Shekhar Sharma	Rs. 1 Crore	to develop their Appsurfer App further

Staffoncontract.com	Seed Funding	Vishal Gondal	Rs. 50 Lakh	To develop platform further & market it

Exotel Telecom Pvt. Ltd.	Series A Funding	Mumbai Angels & Blume Ventures	Rs. 2.5 Crore	For Tech development & marketing of their cloud telephony platform

iimjobs.com	Seed Funding	One97, IVP & other individual investors	Undisclosed	To develop better platform & ramp up engg team.

Linc Pen & Plastics Ltd	Minority Stake	Mitsubishi Pencil Co. Ltd	Rs. 20 Crore	(13.5% stake) strategic investement

Proof of Performance Data Services Pvt Ltd	Series A	Yournest Angel Fund	Undisclosed	To strengthen its technology platform & Infrastructure

Yatra.com	Minority Stake	Salman Khan	Undisclosed	5% stake in Yatra.com

Universal Components	Majority Stake	TVS Group	Rs. 100 Crore	For general business expansion

Grover Vineyards	Merger	Vallee de Vin	N/A	to make joint entity – Grover Zampa Vineyards

Spear Logistics Pvt Ltd	Series B	Ambit Pragma Ventures	Rs. 7 Crore	For Business expansion

Enterprise Nube Services Pvt Ltd	Series A	Accel Partners	Rs. 8 Crore	N/A

IFMR Rural Channels & Services	Series A	Lok Capital + 1	Rs. 26 Crore	For offering financing in rural locations

Shriram Housing Finance Limited	Private Equity	Valiant Partners	Rs. 170 Crore	N/A

E2E Rail	Series A	VenturEast Proactive Fund and Zephyr Peacock	Rs. 30 Crore	For General Expansion

Mobimasta	Acquisition	Affle & D2 Communication	N/A	To scale up Indian Business

Tulsi Castings and Machining Ltd	Private Equity	India Venture Advisors	Rs. 40 Crore	N/A

Games2Win.com	Minority Stake	Nirvana Venture Advisors	N/A	10% Stake

source-trak.in

Branding by Solopreneurs

2012-04-04T01:02:00.000+05:30

Strong branding is critical in our ad-cluttered world. After all, you want to ensure that you're the first provider in your niche that comes to customers' minds.

But what if your brand is, well, just you? How can you be memorable and stand out?
Never fear -- solopreneurs can have snappy branding, too. Here's a quick guide and some examples of one-person businesses that have great, memorable brands:

Make it visual. Simple branding is best, especially if you can make an association in people's minds that helps them remember you. Two of my local realtors are Ed Aro and Penny McLaughlin. You guessed it -- Ed's logo is an arrow, and Penny's is a one-cent piece with her face on it in profile instead of Lincoln. Penny has had so much success with her brand that she grew into a real-estate empire with eight brokers, a.k.a. "Penny's Team." Their trucks are often seen around town, with that familiar penny logo on the side.

Be sure it's tweetable. Social media is increasingly important in coming up with your brand concept. Look what happened to Netflix when they didn't check if their chosen spinoff brand name, Qwikster, was available on Twitter. It turned out to be already taken by someone who wanted to post about their drug use. When you're choosing a brand name, consider how and whether it would work in social media.

Have fun. Some of my favorite solopreneur brands have humorous or whimsical elements. For instance, a proofreader and writing-consultant friend of mine, Stefanie Flaxman, is the Revision Fairy -- check out her cool cartoon. And franchise expert Joel Libava is the Franchise King, down to posing with a red-velvet-and-gold crown (once again, great visual). What better way to instantly communicate that he's the top expert in his field?

Make sure it fits. If the entrepreneurs I've cited above were uncomfortable with the brands they've created, their brands would flounder. You may be living with this brand for a long time, so don't go with a brand concept that embarrasses you. Customers will sense that, and you won't promote your brand as enthusiastically.

Be consistent. Once you've come up with your branding, you want to use it everywhere. Get new business cards, magnet signs for your car, stationery and a new sign for your store. Don't leave any of your old, less-awesome branding lurking around to confuse people.

8 Categories of Angel Investors

2012-03-31T09:15:00.002+05:30

In today’s competitive business world, there are times when you run out of capital funds. The easiest and most convenient source of funding during such times, are the angel investors. This however doesn’t mean that you accept cash from any angel investor. Choosing the right kind of angel investor is also an important consideration.
While there are several kinds of angel investors, they can widely be categorized as –

Return on Investment (ROI) Angels

One thing about ROI angels is that, they invest only when the market is doing well. This is because; such investors are mainly concerned with the financial rewards they will be able to reap given the high-risk investments they make. For the ROI angels each investment is like another significant addition to their already diversified portfolio.

Corporate Angels

These angels are most often former business executives who have either been replaced from large corporations downsized or taken voluntary retirement. While these investors seem to be making investments only for the sake of profitability, they are actually looking for a paid & secured position in the company they are investing in.

High -Tech Angels

Though these investors are less in experience, the investments made by them in modern technology is quite significant. These investors value profitability as much as they value the exhilaration of introducing a novel technology in the market.

Entrepreneurial Angels

These are successful investors who have their own brilliant businesses, which provide them with a steady flow of income for making high-risk investments in start-up companies. While they make all efforts to help entrepreneurs launch their start-ups, they do not actively get involved in the operations of the company.

Core Angels

These are investors with extensive business experience, who have accumulated enormous amount of wealth over extended period of time. One important fact about these investors is that, they usually tend to make high-risk investments in spite of their losses, which adds-up to their diversified portfolio. Core Angels not just make capital investments but also useful knowledge investments.

Professional Angels

Being professionally employed as lawyers, physicians, etc, these angels make investments into companies of their fields. At times, they may invest in several companies simultaneously. Professional angels are extremely valuable for initial capital investments.

Micromanagement Angels

These are considered to be the most serious types of investors. While most of them are born with a silver spoon, most others acquire their wealth through sheer hardwork. These investors usually seek a board position & tend to implicate the business strategies they have incorporated in their own companies into the companies they are investing in.

[This article has been contributed by www.smegetmoney.com

Investors Like Ideas, But Measure You On EXECUTION

2012-03-15T06:55:00.000+05:30

After the idea, it’s all about execution. I often hear from investors that a great idea is necessary, but not sufficient. The most important thing is a proven team, meaning one who has built a startup before, and has experience with the execution process in this domain.

We’ve talked before about the best personality traits for a good entrepreneur, but have never talked about the importance of process. Yes, even entrepreneurs need to follow a disciplined execution process if they want to maximize their probability for success.

Here is our adaptation of the key steps to ensure a winning execution in any business:

Create a vision and instill values - The vision may be yours alone, but the communication has to include your team, potential investors, and customers. For most people the communication is the hard part – written, verbal, over and over again.
Define a focused strategy - Limit the focus to a few critical areas that will yield the highest possible return. If your strategy has more than ten elements, it’s not focused. Not everything can be a priority. Do not spend any time on unimportant goals.
Get stakeholder commitment - People who are not committed cannot be held accountable for delivering ambitious results. The guiding coalition must demonstrate 100 percent unity, or there will be a mutiny. The worst case is a silent mutiny.
Align the objectives of principals - I have seen startups implode when principals were pitted against each other on mutually exclusive objectives, like adding more technology versus keeping costs down. Quantify time and cost goals early, get agreement from all, and measure results regularly to verify alignment.
Every process needs a system - Define and use well-thought-out systems, manual or automated, to ensure repeatable success of every key process. The most basic element of every startup system is a written, agreed, and measurable business plan.
Manage priorities You must relentlessly communicate to all constituents the current priorities, and keep the total to a manageable number. One of the biggest mistakes I see in startups is a new and larger set of priorities every week, causing the team to lose momentum and lose commitment.
Provide team support and training - People are your most valuable asset, so start with the right ones, and make sure they have the tools and training to deliver the results you are asking for. Don’t assume they know everything you know, or learn as fast as you do.
Assign and orchestrate actions Leaders must make sure all team members are taking the right actions (and behaviors) on a daily basis to deliver long-term performance. Even after all the previous steps, great leaders can’t afford to be merely observers. Lead by action.
Measure, adapt and innovate - Things change in a startup, and things will go wrong. You won’t notice if you don’t measure. Measure four or five key drivers, not twenty or thirty things. Motivate everyone with an insatiable curiosity to make things one percent better every day (kaizen).
Reward and punish What gets measured and rewarded gets done. Be exceedingly generous with praise, celebration, recognition, small rewards, and sometimes money. Set high standards for performance and use the three T’s (train, transfer, or terminate) to deal with people unable to effectively execute the plan.

We are not suggesting that you task execution will be perfect if you precisely follow these steps. There are far too many pitfalls and risks in a startup to imply they can all be avoided. But if you adopt this blueprint, it’s much less likely that when things get tough, your investors will be thinking of an alternate meaning for the term “Execution.”

Five Leadership Lessons from Steve Jobs !!!!

2012-03-05T21:00:00.000+05:30

Whether you’re a “Mac or PC,” the recent passing of Apple co-founder Steve Jobs at the age of fifty-six from pancreatic cancer provides a salient moment of reflection for any organizational leader.

Jobs’ legacy and impact on the world is likely to stretch far into the future compared to the brief thirty-five years of his professional career, which took seed in his family’s garage when the idea of Apple was planted with Stephen Wozniak in 1976.

Beyond his cultural and technological contributions, Jobs offers leadership lessons that can be gleaned from his own words. Below are five lessons from his quotes. They provide insight into the Steve Jobs’ “operating system” for life.

The Risk Lesson - “Innovation distinguishes between a leader and a follower.” The very nature of innovation requires a stark departure from the status quo and deviation from the norm. The best leaders have the vision to understand that fact and the tenacity to lead an organization to that future state despite organizational inertia and resistance.

Jobs did this time and again as evidenced by the introduction of the Macintosh home computer in 1984, his subsequent departure and return to the company, right up to the latest iteration of the iPhone.

The Succession Lesson - “…Some people say, ‘Oh, God, if [Jobs] got run over by a bus, Apple would be in trouble.’ And, you know, I think it wouldn’t be a party, but there are really capable people at Apple. My job is to make the whole executive team good enough to be successors, so that’s what I try to do.”

Succession planning is one of the most important roles that senior leadership takes to ensure the long-term viability of an organization. The best companies and leaders strive to achieve this internally by ongoing talent assessment and pushing that planning below the executive level to ensure a funnel full of high potential individuals.

Apple’s current CEO Tim Cook went through a similar grooming process since joining the company in 1998, collaborating with Jobs ever since in preparation to lead.

The Mission Lesson - “Almost everything—all external expectations, all pride, all fear of embarrassment or failure–these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

Many leaders are more inclined to lead with their head or their gut instincts, rather than their heart. Such an emotive mission simply seems too soft and may even be considered a weakness to traditional, hard-nosed leadership sensibilities.

However, Jobs’ illness forced him to live from his passion and creativity, which produced revolutionary product innovations, growth and profits for the organization.

The Team Lesson - “So when a good idea comes, part of my job is to move it around, just see what different people think, get people talking about it, argue with people about it, get ideas moving among that group of 100 people, get different people together to explore different aspects of it quietly, and—just explore things.”

In virtually every area of life, teams make better decisions than individuals. While Jobs had a reputation of being difficult to work for, he routinely admitted to only hiring senior executives who were competent, smart, and “loved” Apple—so that they would put the interests of the organization ahead of their individual interests.

The company’s success, high employee retention and consistent recognition as one of “best places to work” are proof of his team-centric philosophy.

The Perseverance Lesson - “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.”

Jobs is often referred to as both a genius and modern-day Thomas Edison. Interestingly, Edison’s driving perseverance is exemplified in his famous quote, “Genius is one percent inspiration, 99 percent perspiration.”

Few would disagree that Jobs embodied Edison’s quote, and perseverance is a requisite skill of all effective leaders.

Not only did Jobs lead an extraordinary company, he led an extraordinary life—and we’re the better for it.

Question:

How has Steve Jobs’ vision and technology impacted you personally or professionally?

You can leave a comment here

SPORTS PERSON TURNING ENTREPRENEUR

2012-03-03T08:04:00.000+05:30

While Anil Kumble is an icon and one of the only two bowlers in the history of cricket to have taken all 10 wickets in a test innings, Vasanth Bharadwaj has represented the Indian Table Tennis team at the World Table Tennis Championships in 1987.

Together, these two sportsmen have founded TENVIC, a venture imparting behavioural training programmes based on sports for people development in corporate organisations. Talking about how the idea of launching a venture together came along, the duo shares, "The sporting ecosystem in India is unorganised and we aim at making this more structured, thus helping sports enthusiasts develop skills to excel in their area or sport of interest."

So, was the sports background of any help in the business arena? "Having seen sports up-close as a language that appeals to the entire world, helps us create opportunities for brands to ride this vehicle to reach consumers." share Kumble and Bharadwaj. Kumble further shares how he manages both roles effectively, "My sporting experience and learnings derived from it complement my entrepreneurial abilities aptly - they don't interfere with each other."

Hakimuddin S. Habibulla, Olympian and founder and principal consultant (Sports Performance), Winning Matters Consulting Pvt Ltd, is another sportsperson who transitioned towards entrepreneurship.

He represented India in swimming at the 2000 Sydney Olympic Games in the 200m Freestyle, has been the national champion for four consecutive times and won over a hundred medals at various competitions. "It was in 2006, when a couple of schoolmates and I happened to reflect on our sporting careers, which had been compromised at different levels due to a lack of a sporting ecosystem in the country. This led to the start ofGoSports (India) Pvt Ltd, which made microlevel interventions with India's top athletes, to provide the proof-of-concept that Indian athletes had the ability to be amongst the best in the world if they were provided the right support at the right time.

At the end of 2010, the time was right to make macro-level interventions and I co-founded Winning Matters Consulting Pvt Ltd in 2011 to bring the best minds together to work with the key stakeholders of Indian sport - primarily government and industry - towards enabling India's sporting ecosystem," he shares.

Talking about how his sports background helped him carve a niche in the business arena, Habibulla expresses, "I chose to work with my strengths. Athletes are doers who are constantly overcoming different challenges under pressure - personal and environmental.

And these are some of the traits an entrepreneur ought to be equipped with too. Hence, it can easily be stated that sportspersons are naturally gifted with qualities that can help them achieve success in their entrepreneurial journey as well."

Process for Formation of Private Limited Company in India

2012-02-21T08:57:00.000+05:30

Minimum requirements:

• Minimum 2 Shareholders

• Minimum 2 Directors

• The directors and shareholders can be same person

• Minimum Share Capital shall be Rs. 100,000 (INR One Lac)

• DIN (Director Identification Number) for all the Directors

• DSC (Digital Signature Certificate) for one of the Directors

Steps involved in formation of an Indian Private Limited Company

Step No.

Steps

Timeframe (Working days)

Processing

DSC

Documents required Self attested:

• Address proof
• Identity proof

DIN Approved DIN is a pre-requisite for incorporation process

Apply for DIN and get a provisional DIN

• •	Certification/Attestation of Director’s personal details Sending the same to the DIN Cell and getting it approve

Pre- Name Application Search

• •	The Promoters have to provide atleast 6 (Six) names in the order of priority. To make an online search of availability of names as desired by the Promoters

Application for Name Availability

• 6 names for the proposed Company

• Main Object Clause

To draft the Main Object Clause to be pursued by the Company after incorporation.

Representations before RoC on behalf of Promoters

Changes to be made in the Name application, if any, suggested by the RoC

Documents required

•	Printing of Altered Memorandum and Articles of Association (MOA / AOA)

Other Forms like:
• Form 32
• Form 18
• Form1
• Letter of Authority/PoA

Drafting the MOA & AOA and after getting it vetted by Promoters, sending it for printing. • Processing of eForms: Stamping of documents namely:

• MOA
• AOA
• Letter of Authority/PoA
• Form1

Final Process:

•	Filing all the above documents with the ROC, follow up with the ROC, making changes to the MOA / AOA/otherIncorporation documents as suggested by the ROC

• Online uploading of e-Forms
• Payment of Registration fees
• Collecting the Certificate of Incorporation

FIRSTBIGLEAP

Income Tax Return filing (FY 2012-13) has started - Have You ??‏

FAQ on Income Tax Return Filing and more..

FILE TAX RETURNS/ IT RETURNS EVEN IF TAX IS DEDUCTED AT SOURCE (TDS

HOW YOU CAN REDUCE YOUR TAX LIABILITY

Tax Slab/ Income Tax Rates

Tax Slab/ Income Tax Rates

INCOME TAX RETURN

Why file tax returns? Is it Mandatory

How and when TDS Deductions can be saved and avoided

Benefits of Filing your Income Tax Return on time

Is filing the Income Tax Return compulsory?

STEPS INVOLVED IN STARTING A BUSINESS

Success Keys for People Working from Home

MUST FOR A BUSINESS WEBSITE

MARKETING STRATEGIES START UPS MUST USE AT INCEPTION

SIDBI FOCUSES ON SME - SETS A TARGET CORPUS OF 500 CR.

Angel capital is not an easy process and can be extremely competitive

OUTLOOK OF FINANCIAL YEAR 2012 -13

What questions an Investor asks an Entrepreneur ?

Indian Funding Deals of the Week - March 26th to April 1st 2012

Funding, M&A Deals of the Week [Mar 26th to April 1st 2012]

Branding by Solopreneurs

8 Categories of Angel Investors

Return on Investment (ROI) Angels

Corporate Angels

High -Tech Angels

Entrepreneurial Angels

Core Angels

Professional Angels

Micromanagement Angels

Investors Like Ideas, But Measure You On EXECUTION

Five Leadership Lessons from Steve Jobs !!!!

SPORTS PERSON TURNING ENTREPRENEUR

Process for Formation of Private Limited Company in India

Funding, M&A Deals of the Week [Mar 26^th to April 1^st 2012]