Category Archives: Legal Notice

What is TDS and when it is required to file TDS return?

TDS stands for Tax Deducted at Source. It is a type of indirect form of advance tax which is deducted from the earnings of Individual or organization prior to the amount is credited in account. Through imposing tax on the income of individual/ organization, our government generates revenue.

Rules & regulations regarding TDS are governed by the provisions of Income Tax Act, 1961. It is applicable on the income earned regularly or occasionally. It is not only limited to salary but also applicable on commission, interest, professional fees etc.  As it is payable on the earnings of individual or organization therefore tax liability arise only in case when earnings takes place.  TDS deduction takes place at the time when cash, cheque or credit payment is made to the payee account. TDS is payable as certain percentage of overall amount.

Advantages of TDS imposition

There are numerous advantages of Online TDS return filing. Some of them are as follows:

  • It prevents tax evasion.
  • Duly collection of tax and in timely manner.
  • Numerous people come under the tax bracket due to TDS.
  • For the government of India, TDS collection is a steady process.

TDS Return Filing

TDS return is a detail of TDS transactions made during the quarter. It is a quarterly statement which is required to be submitted with the Income tax department by the deductor. TDS return statement consist the PAN details of deductor and deductee along with the details of tax payment made to the government as well as information of TDS challan. It is mandatory for deductors to file TDS return.

TDS return filing due dates

Following are the TDS return filing due dates:

  • For the 1st quarter (1st April to 30th June) – 31st July
  • For the 2nd quarter (1st July to 30th September) – 31st October
  • For the 3rd quarter (1st October to 31st December) – 31st January
  • For the 4th quarter (1st January to 31st March) – 31st May

Provisions regarding late TDS Return Filing

As per the income tax provisions, late filing may attract penalty. There are penalty provisions regarding late filing of TDS return or when TDS return is not filed within the stipulated time as mentioned above. Fine penalty is imposed till the payment of TDS.

TDS Return Filing Forms

There are various types of TDS return filing forms and it depends upon the eligibility criteria. Every deductor has to pay the tax liability within the stipulated time and in prescribed forms.

Following are the types of TDS return filing forms on the basis of nature of income on which tax is deducted.

  1. Form24Q– This is for TDS deduction on salary as per section 192 of the Income Tax Act, 1962.
  2. Form 26Q– This is in case payments received other than salary as per section 193 and 194 of the Income Tax Act, 1961.
  3. Form 27Q– This is in case payment made to NRIs and foreigners other than salary as per section 200(3) of the Income Tax Act, 1961.
  4. Form 27EQ– This form shows the Tax Collected at Source (TCS) by the seller as per section 206C of the Income tax Act, 1961.

Forms are required to be furnished by the deductors with the Income tax Authority in due time.

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What is the importance of a joint venture agreement?

TATA Starbucks Private Limited, popularly known as the Starbucks, which started out in November 2012 now has 101 outlets in 7 cities in India. Did you know that this popular café is a 50:50 Joint Venture between TATA Global Beverage and Starbucks Corporation? Similarly, many insurance companies like Bajaj Allianz General Insurance, Future Generali India Insurance etc and others entities like Mahindra-Renault Limited are Joint Ventures in India.

Joint Venture company is a sought­-after form of corporate entity for conducting business in India. Though there are no separate laws for joint ventures in the country, there is always a requirement of a Joint Venture Agreement.

A well-drafted Joint Venture Agreement is capable of mitigating the risk attached to dispute in the future over expenses, control and profits among others. The Joint Venture Agreement can be beneficial in clearing up the possibility of disputes and protect the parties from any fall-outs later. The Joint Venture Agreements are known for distinguishing the joint venture from a partnership and describe the roles of responsibilities of the parties so that the transactions and the relationship run in a smooth manner providing the parties with nothing but profits.

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What are the term and condition of legal notice

Ubi Jus Ibi Remedium is Latin for “For every wrong, the law provides a remedy”.

If a right is provided by the law, then you may approach the court if it is infringed or invaded. The court shall meet the ends of justice and provide relief in the most appropriate manner.

In day to day transactions, we come across situations where we feel our legal rights have been infringed. Such situations may be of various natures, for example:

  1. A deficit in services provided to the consumer,
  2. Manufacturing defect in the goods sold to a consumer,
  3. Non-payment of the amount due to any individual, company, firm etc for the services rendered,
  4. Irregular termination of services of an employee by the employer;
  5. Wage dispute at the workplace;
  6. Family disputes;
  7. Property disputes;
  8. Rental or Tenancy disputes etc.

When faced with such situations, approaching a legal forum is thought to be the best idea. But, a legal professional shall always suggest serving a ‘Legal Notice’ as the first step.

A Legal Demand Notice is a formal communication to any person or entity informing about the infringement of the legal right and the intent of recoursing to legal forum against them if the required steps are not undertaken within a reasonable time as mentioned. It serves as both an opportunity and a warning.

A Legal Notice is of great importance and evidentiary value before the Courts, if they approached for resolving the dispute.

What details should a Legal Notice constitute?

The legal notice must be complete, detailed and correct in all respects to give appropriate information to the served party.

  1. The notice must be able to provide information regarding the
    1. Details of the parties involved,
    2. details of the transaction,
    3. all the important dates with respect to the dispute,
    4. details of the commitments made by the parties and their fulfillment/ breach,
    5. the cause of action,
    6. any oral or written communication undertaken by the parties prior to the said legal notice with respect to the dispute,
    7. the monetary value involved in the dispute,
    8. details of the receipts drawn,
    9. the relief sought, example- compensation with interest, replacement of goods etc,
  2. It is necessary to grant a time frame in the legal demand notice as an opportunity to make good the damages/ loss suffered or to fulfill the liability as per the law. The time frame may either be a reasonable period ranging from anything between 15 days to 30 days or as per specific provisions of any Act with respect to the nature of the dispute. Example- for cheque dishonor cases, a 15 days period from the date of service of the notice has to be mandatorily provided to the accused.
  3. The notice must be duly signed by the client and the lawyer if has been engaged. A legal notice is preferred to be sent via Registered Post or Courier and the acknowledgement along with the copy should always be retained.
  4. The legal notice must be drafted with extreme care for the choice of words, language of the content as well as the facts being mentioned. A good measure of caution is required to be taken since a legal notice is of evidentiary value before the court and any incorrect or misleading facts may land you in trouble and not fetch the results as expected.
    It is for this reason that a Legal Notice should be sent through an Advocate who has expertise in the subject matter and will be able to foresee the consequences of all the aspects of the Legal Notice.
  5. A reply to legal notice is not mandated under any law. Thus, after dispatch of the aggrieved person has to track down the status of any action undertaken by the person served and if no steps have been undertaken as per those mentioned in the Legal notice, the appropriate legal forum must be approached well within time.

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