Family of M R T & Associates, Chartered Accountants wishing you all HNY-2017

When the mid-night bell rings tonight.
Let it signify new & better things for you.
Let it signify a realization of all things you wish for. Let it signify a year of courage & believes.

Wishing you a very...very...very prosperous 2017 😄 Happy New Year

Regards,
CA Rahul Gupta
www.linkedin.com/in/cargupta
www.fb.com/mrt.charteredaccountants

PM Salutes🙌 Citizens for Fight👊Against Corruption

Prime Minister Narendra Modi, in his address📢 to the nation ahead of the 2017 New Year, has saluted the crores of citizens who have endured hardships in India's fight against corruption.

He also announced👏 2 schemes for houses for the poor under PM Awas Yojana. In 2017, for up to ₹9 lakh loan, 4 % discount will be given; For up to ₹12 lakh loan, there will be 3 % rebate. On ₹2 lakh of loan, 2% rebate will be given😌.

He also said that in the next 3 months, 3 crore 'Kisan credit cards💳' will be converted to Rupay cards. Anywhere farmers will have to use these cards. He also highlighted that rabi crop sowing and fertilizer use is up this time⬆.

Here are the excerpts from his speech:-

🔰 Hardship faced by Citizens will be a shining example✨ of how foundation for a bright future is laid. This is a historic example of how govt and citizens are together fighting for truth and virtue.

🔰 We will try to take banks to normal situation as soon as possible🙏, especially in villages and remote areas. Banks have been informed about this.

🔰 What India has done is unprecedented in world history🌏. 500 and 1000 notes were being used more for parallel economy. In our economy there were mountains of notes. Inflation, black marketing was going up.

🔰 Yes, in some banks🏦 there have been serious faults. Shameless attempt to benefit has also come to light. They won't be spared. This is a golden opportunity for the banking system.

🔰 For medium enterprises🏭, we have decided to increase credit guarantee for them to 2 crore from 1 crore. NBFC loans will also be covered under this scheme. Govt has told banks that cash credit limit for small enterprises be increased to 25 % from 20 %.

🔰 For pregnant women👩, a new scheme is being started. ₹6000 will be credited to women's accounts for registration, delivery, vaccination, nutrition. To start with, only in 53 districts covered and only ₹4000 will be given.

🔰 New scheme for senior citizens - on up to ₹7.5 lakh deposit, yearly 8% interest for 10 years.

🔗The PM finished by mentioning Mahatma Gandhiji👓 - "In 1917, there was Gandhi's Champaran Satyagraha. After 100 years too, there is value for honesty in India.

🔗Today there is no Gandhi but his path is relevant. We will not let the fight for honesty stop. We have youth, ability, resources. Lets all come together and develop India."

Regards, CA Rahul Gupta
(Practicing Chartered Accountants)
M R T & Associates, Chartered Accountants
www.linkedin.com/in/cargupta
www.fb.com/mrt.charteredaccountants

Demonetization is really a surgical strike against Black-Money, Fake-Currency, Terrorism & Corruption??

EITHER (Mr. A said) PM Modi is successful in long-term to establish "Digital India" and "Make in India" via demonetization on the four pillar:

(1) stop black money,

(2) fake currency,

(3) Terrorism and

(4) corruption

OR (Mr. B said) the Reality is:

Common people are dying..!

Wages lost..!

70% biz sales down..!

Farmers badly effected..!

Poor people are hungry..!

and PM Modi messed up India’s Economy!

Mr. A (CA Rahul Gupta): May be your facts are more accurate then mine.

-- For ex. for the establishment of Delhi metro, Indian Govt took a loan of Rs.60,000 crore from Japan considering govt have no money (and after demonetization more than Rs.74,000 crore money deposited into Jan-Dhan accounts only)

-- People who died in line in front of temple consider like he/she receive swaarg, and people who died in line during deposit/exchange of money was considered as because of govt mismanagement..??

-- Wages lost for those who don't have their proof of working and payer refuse to pay....this is not because of demonetization, its a open "Gunda-Raaj"...

-- 70% biz sales down for those who was running their business on entries and adjustments. Proof is sensex and nifty.

-- Strategically farmers are more intelligent then us. They better know how to take loan against kishan credit card @4% interest rate; how to take subsidy against non-paid electricity bills, non-paid loans etc.

-- If you find beggars at Amritsar railway station where Golden Temple is serving food free of cost then what you and me can do to solve the situation.... I think no solution..

Mr. B: Sir, no offence, but if you as a CA are saying this statement, then I assure you that this country in a deep deep shit. I am being veracious when I say that I have not come across even a single CA who is appreciating this step.... But, WOW... I did not expect this statement from a CA, especially you... You guys understand how the system works and are the first hand interaction point between the government and the industry.... but I am stunned.... A CA making this statement... I have nothing left to say....

Mr. A: Sorry to disappoint you Mr. B.... And may be you have bigger circle of CA Professionals then me who is not appreciating this step. However, in between my known 1000's of CA professional 75-80% are appreciating the step....

11-Dec Report: The latest thing catching the eye of the public because of demonetization are the frequent reports of major raids in some or the other part of the country where-in huge stashes of gold, old demonetized cash, or new currency have been seized by the tax authorities.

For example, as per this report, the first seven months of 2015 saw Income Tax raids seize assets worth about Rs.102.50 crores. The same figure for the same seven months of 2016 (IDS Scheme) was about Rs.330 crores. We are just 4 weeks into demonetization, and the raids have started just 2-3 weeks back. In this short span, the value of assets seized has easily surpassed the 7-months figure of 2015 and is all set to overtake even the 7-months figure of 2016.

"I-T raids uncovered Rs.3,185 crore of undisclosed income since demonetization"Dec 22, 2016 - 10:30 IST - New Delhi: Over RS.3,185 CRORE OF UN-DISCLOSED INCOME has been detected while RS.86 CRORE WORTH NEW NOTES have been seized by the I-T department.

Mr. B: You continue to astound me. You are comparing IT-raids with Demonetization? You are so interested in quoting about facts? Then listen to this:

(1) 65% of Indian population does not have accounts (Number taken by the Aadhar Card Vigilance Committee) and you are creating cashless economy??

(2) You say that honest people are depositing taxes but please inform the biggest source of black money??? It is Political parties. Political establishments have no accountability and they are exempt from RTI but others continue to suffer. If BJP was so vocal about black money eradication (which they are not, especially since PM Modi came into power because of Black money), a simple step would have been to disclose political party funding patterns.

(3) About 65% of labours are daily wage earners who are not able to earn their living... And you are asking them to go cashless?? When I say poor are hungry, I am talking about them and not so called Amritsar beggar (The fact that you did not understand this point gives the actual glimpse between the reality and an assumption).

(4) Everyone is saying, this will be good in the long term, but riddle me this, when no investor will invest in the country due to no credibility of the government, how will that be good for the country?? You as a CA are aware of the difficulties in raising capital and finance in the country. With this it will much more difficult as the businesses will not be able to survive and the economy will be a shut shop. WAIT FOR 2017.... JUST WAIT AND WATCH.

Mr. A: This is a endless discussion.

There was a joke in Dainik Jagran few days back when a writer said - "Because of demonetization, one more important point come out of knowledge that, there are 125 crore economist in our country who are giving their expert opinion on the step of demonetization."

At the end you are right - WAIT FOR 2017.... JUST WAIT AND WATCH

Mr. B: Black-Money can be generated again in a split second....

Mr. A: This is only why MODI Govt. is trying their hard to introduce cashless economy AND it is not about MODI specifically, it is about the whole team who are working behind him....anyone have to step out to change the mindset of the people who are holding or will try to generate black money.

May be you have experience or having classes how to generate black money Mr. B.

Mr. B: How can you introduce cashless economy in a population with 65% having no bank accounts? If they really wanted to curb black money...simple step would have been to disclose the political funding... But...this is hypocrisy... Which you guys are supporting blindly....

Mr. A: For them MODI Govt. introducee Pradhan Mantri Jan-Dhan Yojana. Only a photo and a declaration sufficient by an individual. And records says - 20% of the total population take benefit of the Yojana.

And for political parties following reforms are proposed-

(1) significance in the context of the Election Commission's recommendations to the government to amend laws to bar tax exemption to parties that do not contest elections and win seats in Lok Sabha and Assembly polls AND

(2) to ban anonymous donations above Rs 2,000 to political parties.

(Example of reform is some Rao was suspended who caught in I-T raid in TN.)

Mr. B: Sir, these are all cover stories and recommendations... They have already passed laws by which no political establishment can come under scrutiny.. Instead of asking people to stand in queue, they should have made a provision to amend that particular law..

Mr. A: One side we are praying while giving bribe to someone that God please do something. Why not people in power are doing anything to stop these non-sense and another side we are hoping to let banker come to our home, ask us whether we have money to deposit/exchange is not possible. I love your comment which looks sensible - WAIT FOR 2017.... JUST WAIT AND WATCH.

Mr. B: True dat, lets WAIT AND WATCH.

So, its really a endless discussion. Reality will be in front of the people in 2017.

Regards, CA Rahul Gupta

(Practicing Chartered Accountants)

M R T & Associates, Chartered Accountants

How Start-up Funding Works - A Hypothetical Startup Goes from Idea to IPO

"How Funding Works – Splitting The Equity Pie With Investors"

Companies generally cannot grow without receiving large amounts of outside funding. But promoters can't take too much outside funding if they want to maintain control of the company they nurtured, and ownership of their intellectual property.

If promoters take outside funding, they are forced to focus entirely on short-term returns, as opposed to on long-term growth, or a higher vision or social mission.

- Right now, India is experiencing an enormous loss of capital, with many of India's brightest young minds and companies deciding to move abroad. Promoters do this because it is the only way they can raise substantial capital while still maintaining control of their company or ownership of their intellectual property.

The above issue can be address by issuing "Shares with Differential Rights". For example, Class A shares are sold to the public and/or to investors with principally financial interests in a company and they often carry voting rights many times lower than of Class B shares, while receiving a larger dividend. Class B shares are generally held by a company's promoters or senior management, and carry significantly higher voting rights than Class A shares. Live example is Google in which Larry Page and Sergey Brin control 58.4% of the voting shares, while owning only 13.9% of the profits.

- Indian regulations actually envisage the issuance of shares with differential voting rights. Section 43 of the Companies Act, 2013 recognises that the equity share capital of a company includes equity shares capital with "Differential rights as to dividend, voting or otherwise". But with this enabling framework also come certain constraints. For instance, the Companies (Share Capital and Debentures) Rules, 2014, requires that such shares cannot exceed 26% of the total paid-up equity share capital.

- SEBI has been supportive of introducing this product by allowing listed companies like Tata Motors and Gujarat NRE Coke to issue shares with differential voting rights.

Embracing this will hugely beneficial to the government's plans to "Make in India", "Create in India" and "Brand in India", by allowing Indian companies to Remain in India and Grow in India.

Special comments by CA Rahul Gupta (www.linkedin.com/in/cargupta), founder of M R T & Associates, Chartered Accountants. For more details, contact us at mrtandassociates@gmail.com

Regards, CA Rahul Gupta

M R T & Associates, Chartered Accountants

Got your Form 16? Prepare to file IT return!!

Search & Seizures and Data Matching by Income Tax Department during Demonetisation

I.Tax Department has conducted the fifth cycle of data matching which has identified an additional 67.54 lakh potential non-filers who have carried out high value transactions in F.Y. 2014-15 but did not file return of income for A.Y 2015-16.

It is the great opportunity for those who are liable to file their return for the Financial Year 2014-15 (Assessment Year 2015-16) and Financial Year 2015-16 (Assessment Year 2016-17); to finalize their books and file the return before March-2017.

Upload your documents at incometaxefiling.mrt@gmail.com

You should prepare well in advance to avoid any last minute hassles. If you are a salaried person it is advisable for you to collect below mentioned documents before start filing your tax return:
• TDS certificate in Form 16 (for Salaried Individuals)
• Interest cum TDS certificate in Form 16A (from your bank)
• Bank Account statements/passbook of all your bank accounts (updated)
• Details of investments made during the year / at the end of the year
• Tax Challan deposited for the last year
• Last year’s Tax Return
• Form 26AS

I would say “Bharo return early, karo relax jaldi”

In case of any query/help please get in touch with me CA Rahul Gupta at incometaxefiling.mrt@gmail.com

Regards,CA Rahul Gupta

M R T & Associates, Chartered Accountants

Conversion of Private Limited Company into One Person Company (OPC)

Comparison between One Person Company (OPC) and Private Limited Company

To avail the advantages of One Person Company, many of the Corporates are willing to convert their small Private companies into One Person Company (OPC).

The conversion will reduce the compliance manifold, this is one of the key reasons of such a conversion.

Which Private Company can convert into OPC:

Any private company other than a Company registered under section 8 of the Companies Act, 2013 (or section 25 of the Companies Act, 1956) having a paid-up capital of less than Rs. 50 Lac and an average turnover of less than Rs. 2 Crore, in the specified period, can convert itself into OPC.

Laws governing conversion of Private Company Into OPC:

• Section 18 of Companies Act, 2013 • Rule 7(4) of the Companies (Incorporation) Rules, 2014

Procedure :

1. Board Meeting: 

• Approve the conversion subject to approval of members; • Authorise Directors for providing Affidavit that the conforming that all members and creditors of the company have given their consent for conversion, the paid up capital company is rupees 50 lakhs or less or turnover is less than rupees 2 crores as the case may be; • Authorise Directors for taking NOC from all the members & Creditors of the Company on the Conversion. • Calling of General Meeting.

2. General Meeting:

• Pass Special Resolution for conversion of company into OPC.

3. E-filing & Attachments:

• MGT - 14: Withing 30 days of passing of the Special Resolution.• INC-6: With NOC received from members & Creditors, Affidavit by Directors, Special Resolution, List of Members & Creditors, Latest Audited Balance Sheet & Profit & Loss Account. INC-6 shall be filed after MGT-14 has been filed and approved.  • INC-3: The Consent of Nominee in INC - 3 alongwith his/her PAN card and residential proof shall also be attached with INC-6.

Regards, CA Rahul Gupta

M R T & Associates, Chartered Accountants

Concept of per capita income - Meaning, Uses and Limitations

"Delhi Registers India highest per capita income"

National capital Delhi has registered the highest per capita income among all states and union territories of the country, during 2015-16 at about Rs.2,80,000. Delhi's per capita income is over three times the national average. It is followed by Chandigarh and Sikkim with per capita incomes of Rs.2,42,386 and Rs.2,27,465, respectively.

What does per capita income mean?

Income per capita is a measure of the amount of money earned per person in a certain area. It can apply to the average per-person income for a city, region or country, and is used as a means of evaluating the living conditions and quality of life in different areas. It can be calculated for a country by dividing the country's national income by its population.

BREAKING DOWN 'Income Per Capita'

Income per capita counts each man, woman and child, even newborn babies, as a member of the population. This stands in contrast to other common measurements of an area's prosperity, such as household income, which counts all people residing under one roof as a household, and family income, which counts as a family those related by birth, marriage or adoption who live under the same roof.

Uses of Income Per Capita

Perhaps the most common use of income per capita is to ascertain an area's wealth or lack of wealth. The figure is useful in assessing an area's affordability. It can be used in conjunction with data on real estate prices, for instance, to help determine if average homes are out of reach for the average family.

Limitations of Income Per Capita

Because income per capita is the overall income of a population divided by the number of people included in the population, the figure does not always give an accurate representation of the quality of life due to the function's inability to account for skewed data. Specifically, the metric does not account for the effects of income inequality. For instance, if there is an area where 50 people are making $1 million per year and 1,000 people are making $100 per year, the per capita income is $47,714, but that does not give a true picture of the living conditions of the entire population.

For this reason, to obtain an accurate picture of the quality of life in a given area, it is important to consider income per capita in conjunction with other income measurements, such as the median income and the percentage of residents living below the poverty line.

Regards, CA Rahul Gupta

M R T & Associates, Chartered Accountants

A History of Demonetisation in India

"A history of demonetization in India"

-- The central government's move to withdraw Rs.500 and Rs.1,000 currency notes in circulation on Tuesday at such short notice may have come as a surprise, but it's not the first time the govt. has demonetized banknotes.

-- Withdrawal of high-denomination notes is a radical measure the govt. normally resorts to in an attempt to counter forgery.

-- It has been done at least twice (2-times) in India's history in the past time. This time, the attempt is to crack down on black money.

-- In January 1946, Rs.1,000 and Rs.10,000 banknotes were withdrawn.

-- In 1954, Rs.1,000; Rs.5,000 and Rs.10,000 notes were reintroduced and were again demonetized by issuing an ordinance on the morning of 16th January, 1978.

Regards, CA Rahul Gupta (Email: mrtandassociates@gmail.com

Source: Newspaper mint, 15-November-2016

Demonetization in India; 8-November-2016

"Demonetization in India"

November 8, 2016 announced at 8:00pm. What exactly it was..??

Dear Friends,
Please do not create panic ....and support this surgical strike against black money of our Govt.
We have to do following steps:
😉Find out Rs. 500 and Rs. 1000.
👻Buy only essential items in cash.
😇Use Rs. 100 or less note, available at you with your future planning & needs.
👂🏻Take suggestion from Chartered Accountant prior to Exchange of money.
🗣Find out the source of Cash which will be exchanged to the bank.
👉Because Income tax dept. will issue notice for that.

Regards, CA Rahul Gupta
For suggestions & query
(M) 8527180143
Email I'd : mrtandassociates@gmail.com

Just have consider in Quick way 👉

1. Why is this scheme?

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for anti-national and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

2. What is this scheme?

The legal tender character of the notes in denominations of ₹500 and ₹1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.

3. How much value will I get?

You will get value for the entire volume of notes tendered at the bank branches / RBI offices.

4. Can I get all in cash?

No. You will get upto ₹4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.

5. Why I cannot get the entire amount in cash when I have surrendered everything in cash?

The Scheme of withdrawal of old high denomination (OHD) notes does not provide for it, given its objectives.

6. ₹4000 cash is insufficient for my need. What to do?

You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.

7. What if I don’t have any bank account?

You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.

8. What if, if I have only JDY (Jan Dhan Yojana) account?

A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.

9. Where can I go to exchange the notes?

The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.

10. Need I go to my bank branch only?

For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.
--> For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
--> In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.

11. Can I go to any branch of my bank?

Yes, you can go to any branch of your bank.

12. Can I go to any branch of any other bank?

Yes, you can go to any branch of any other bank. In that case you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds ₹4000.

13. I have no account but my relative / friend has an account, can I get my notes exchanged into that account?

Yes, you can do that if the account holder relative/friend etc gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.

14. Should I go to bank personally or can I send the notes through my representative?

Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.

15. Can I withdraw from ATM?

It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs upto a maximum of ₹2,000/- per card per day upto 18th November, 2016. The limit will be raised to ₹4000/- per day per card from 19th November 2016 onwards.

16. Can I withdraw cash against cheque?

Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of ₹10,000/- in a day within an overall limit of ₹20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. upto 24th November 2016.

17. Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?

Yes, OHD notes can be deposited in Cash Deposits machines / Cash Recyclers.

18. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?

You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.

19. How much time do I have to exchange the notes?

The scheme closes on 30th December 2016. The OHD banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.

For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India till 31st March, 2017.

20. I am right now not in India, what should I do?

If you have OHD banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff).

21. I am an NRI and hold NRO account, can the exchange value be deposited in my account?

Yes, you can deposit the OHD banknotes to your NRO account.

22. I am a foreign tourist, I have these notes. What should I do?

You can purchase foreign exchange equivalent to ₹5000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes.

23. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?

You can use the OHD notes for paying for your hospitalisation charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.

24. What is proof of identity?

Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.

25. Where can I get more information on this scheme?

Further information is available at our/GOI website (www.rbi.org.in)

26. If I have a problem, whom should I approach?

You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944

Regards, CA Rahul Gupta
For suggestions & query
(M) 8527180143
Email I'd : mrtandassociates@gmail.com
www.linkedin.com/in/cargupta