Choosing the right name

•  The first stage in the registration process is to come up with a unique name for the firm. The name must not be confusingly similar to any brand name or corporate name already in use.
•  Finding a name that is both original and relevant to their business aims and objectives can be difficult for many businesses.

Obtaining Digital Signature Certificates

• The next step in the registration procedure is to get digital signature certificates (DSCs) for the potential company directors. This is an essential requirement for submitting the application for private limited company registration.
• Getting DSCs can be difficult for many business owners, especially if they are not tech-savvy. But this procedure can be simpler if the entity hires the entity who provides legal services.

Obtaining Director Identification Number (DIN)

• A Director Identification Number (DIN) must also be obtained by the potential directors of the organisation. The Ministry of Corporate Affairs assigns this unique identifying number. The DIN is necessary for all interactions with the Registrar of Companies (ROC) as well as the submission of numerous papers pertaining to the company.

Document preparation

• The Memorandum of Association (MOA) and the Articles of Association (AOA) are two documents that must be drafted as part of the private limited company registration procedure. These documents provide a summary of the company’s goals, authority, and regulations.
• Many entrepreneurs find preparing these documents difficult, especially if they are unfamiliar with legal terms. But this procedure can be simpler if the entity hires the entity who provides legal services.

Filing the application

• Once all of the documents are ready, the application for private limited company registration must be filed with the Registrar of Companies. This can be a time-consuming process, and any errors or omissions may result in application delays or rejection.
• To avoid such errors and omissions, it is advisable for the entity to hire an entity who provides legal services for easy and errorless submission of private limited company registration application.

Compliance with regulations

• After the company registers, there are a number of rules and compliance requirements that the company must follow, including obtaining a PAN and TAN, adhering to GST regulations, and keeping accurate accounting records. Many business owners find it difficult to adhere to these rules, especially if they are unfamiliar with the legal and accounting standards.
• In such cases it is advisable for the newly-incorporated company to hire a Chartered Accountant who can guide them with the timely and accurate compliance of company act, income tax act, GST regulations, etc.

Therefore, it should be noted that forming a private limited corporation might be difficult and complicated. Entrepreneurs can overcome these difficulties and effectively incorporate their business by studying the procedures and getting professional assistance. Compliance with all regulations and criteria is critical to ensuring that the organisation is legally compliant and runs effectively.

We, at FinAccLe provides detailed assistance that will ensure the effective and timely private limited company registration. 

And we are aware of the fact that we have income tax on the income earned by us. But unlike traditional businesses, or some having a job profile, professionals often find it difficult to assess their income and tax payable on the income earned during the year.

So, in this article, we will be covering how a blogger would pay Income Tax on the income earned during the Financial Year.

A website is a unique magazine where the blogger posts content related to the platform’s specific topic. The website might be based on a theme linked to food, sports, esports news, kids, or astrology.

A blog is only a platform where a writer may share his ideas, knowledge, and research with readers. These blogs are published on a website, which may be owned by the blogger or by a company that offers blogging services, such as WordPress, Google Blogger, etc.

A blogger’s success and revenue are influenced by a variety of circumstances, including where he resides, where readers are most active, who his target market is, and many more. The entire thing is known as blogging. Thus, the expert is referred to be a blogger.

Sources of Income of a Blogger

A blogger’s revenue can fluctuate significantly, sometimes earning a lot and other times operating at a loss. A blogger therefore cannot rely solely on one source of revenue. He must therefore develop numerous means of income using his expertise in blogging.

Which income stream works for someone will rely on their blogging style, subject matter, and niche. However, there are some types of job that every blogger is competent at. Some of them are listed below.

• Advertisements: The most common method of income for bloggers is through advertisements. For a website, a blogger creates blogs. A website also constantly remains accessible so that readers can find it. A reader will see various floating windows with advertisements while he accesses the content on a website. These ads are delivered as part of the website ad services. Depending on their browser history, readers who browse the website can see a lot of adverts.

The blogger is paid each time a reader clicks on ad. Similar services are provided by Google AdSense. A website can register with Google AdSense, a service, to generate advertisements for its web pages.

As a result, a blogger monitors the quality and audience retention on its web sites. A blogger can make a lot of money from adverts because spending more time on the website results in returning visitors and higher website traffic. However, the cost of advertisements varies, and as a result, earnings may decline.

• Affiliate Marketing: This is a common way for bloggers to make money. In affiliate marketing, bloggers advertise various products on their blogs and provide personalized links on their web sites so customers can easily visit the retailer’s website. But what makes the links special?

The link is the website’s most unique feature. The market place customizes the link specifically for each affiliate marketer. The blogger will receive rewards from the online marketplace each time someone purchases a product after clicking on the blogger’s link to the marketplace page.

• Paid Review: There are numerous product varieties on the market. Additionally, some products require effective promotion in order to attract customers. As a result, companies approach well-known bloggers to write about their products. To produce an effective review of their items, they pay the blogger.

• Other Methods: As a blogger gains expertise and experience, he or she may be able to diversify their sources of revenue. A blogger can design blogs for other websites if he knows how to design better blog material; if he also knows how to optimize SEO, write blog posts, or has a combination of abilities, he can find employment. In accordance with his skills, he can also work freelance.

Tax Implications

• Because the individual is self-employed, there is one income category under “Business/Profession” where this employment may match nicely. Nevertheless, which is more appropriate for a blogger: a business or a profession? So, a blogger offers a wide range of services by himself. Hence, identifying a blogger as a professional works out well. As a result, he can pay his taxes on earnings from his profession.

How to file ITR for blogging

• A blogger can submit his ITR in one of two methods, according the regulations.
  • Regular Tax Scheme
  • Scheme for Presumptive Taxation under Section 44ADA
• If you decide to use the Normal Tax Scheme as a blogger, you must keep accurate records of all your income and expenses, including all receipts and bills. A blogger may claim a tax deduction for expenses he incurred for blogging purposes when submitting his ITR. The following expenses are ones that a blogger can easily claim a deduction for.
  • Expenses related to Website Maintenance.
  • Depreciation on several equipment used for the purpose of providing Blogging services.
  • Expenses for Hosting the website.
  • Remuneration Expenses.
  • Rent or lease Expenses for the premises.
  • Routine utility expenses like Electricity Bill, etc.
  • Expenses incurred to obtain legal services from the professional
  • Any other expenses incurred for the purpose of providing services of the blogging.

• In case you do not want to maintain the aforementioned records, then you can choose to pay taxes as per Presumptive Tax Scheme under section 44ADA.
• If you opt for this method, then you have to declare the Gross Receipts earned from the blogging business.
• 50% of the Gross Receipts would be treated as your Income from Business and Profession and the taxes is required to be paid after considering the incomes from other heads and Deductions to be claimed.
• You can contact Finaccle Advisory Pvt. Ltd. to get assistance in filing Income Tax Returns and complying other regulatory requirements.

Access to Accounting Expertise and Experience : When you redistribute work, you enable an organisation to assign a small group of specialists to focus on your organization’s work. This is a benefit because you can ensure that bookkeepers with the necessary skills are managing your organization’s financial activities. This provides a few benefits to your company. One of the most important is that obtaining services of Financial Accounting Online is inexpensive. You don’t have to be concerned about contracting or preparing books of accounts to handle specific work for your organisation.

Focus on Revenue Generation and Wealth Creation : Accounting and funding are unquestionably critical issues for any organisation. It is critical to understand where your organization’s income comes from and how it is spent. Failure to track such data can have a negative impact on your organisation and even influence issues such as benefits and edges. Nonetheless, there is no doubt that devoting significant time and effort to such issues can have a negative impact on your organization’s ability to focus on revenue. An insightful decision is to consider outsource the Financial Accounting Online. This is fundamental because it can free up assets to generate income. This includes R&D, marketing/advertising, and customer service in particular. When your organisation can put those procedures in place from the start, it will be less difficult to develop the business and lift benefits. The costs of redistributing Financial Accounting Online are well worth the ability to produce more pay and remain aggressive in business promotion.

Concentrate Resources on Outsourced Work : No organisation on earth has an unlimited supply of resources for projects like accounting and accounting-related ones. As a result, if they run into difficulties with certain of those tasks, it may have a detrimental impact on the level of service they provide to their clients. Therefore, it is sometimes more practical to re-appropriate the task than to complete it internally.

Spend Less on Finance and Online Accounting Software : If an entity decides to complete the Accounting and Financial tasks online then they might have to invest huge amount of funds in building Finance and Accounting software in order to complete it in most efficient manner. In such instances the entity should consider to outsource the services of Financial Accounting Online.

Benefits of availing several other services offered by the F&A Firms : Apart from Book keeping, if one outsource the services of Financial Accounting Online, they can avail several other services by minimal payment of funds like E- Commerce Accounting Services, Flexible Accounting Solutions, Budget Forecasting, Break-even Point Analysis, Accounting Supervision, etc. Hence, enjoy the expertise and experience of the Accounting and Finance Professionals and outsource the services of Financial Accounting Online.

Under the Companies Act, Private limited company must be registered. Online company registration is another option for private limited companies. Like other companies, private limited company are required to submit financial statements each fiscal year.

Why should I bother when there are so many rules that need to be followed while creating a private limited company? However, there are a lot of benefits of private limited company as well.

Advantages of Private limited company

1. Members : To establish a private limited corporation, there must be at least two members.

Members other than youmight be able to broaden your business idea and move it in the proper direction. They might also be able to provide you with the things you lack, such as the right resources, people, money, or intelligence. Additionally, this person might bring in contacts, which means you’ll be able to contact more people than those on your contact list.

There is now a limit to it. You are limited to 200 members.

2. Limited Liability : Each shareholder or member’s liability is limited at the amount of their investment. As a proprietor, you only enjoy the advantages, earnings, and assets of the company, and you bear full responsibility for all of its losses, debts, and liabilities. If you took a loan for this business and, you weren’t able to pay it back or any other loans you had taken out for it, YOU would still be responsible for paying these obligations, regardless of how well the firm did. If the business assets are insufficient in this situation, the creditor may also seize your personal assets, such as jewellery, real estate, and other possessions, in order to fully satisfy the obligation. Members of a Private limited company are only required to pay their own part of the unpaid share value if the company takes out a debt that it is unable to repay. This means that even if the debt or credit amount is still owed by the company, you are not liable for it if you have no balance due on the number of shares you own.
3. Perpetual Succession : A company continues to exist in the eyes of the law even in the event of the death, insolvency, or bankruptcy of any of its members since a corporation is a separate legal entity. Your firm becomes a different legal entity after Private limited company Registration and YOU (the founder, member, and director) are distinct individuals with regard to this business. Therefore, your firm acquires a Separate Legal standing once you register or incorporate it with the Ministry of Corporate Affairs (MCA). As a result, neither the Company’s existence nor that of its founders or members is reliant upon their lives. The corporation is unaffected even if the members, or even all of the members, go bankrupt or become insolvent.
4. Capital : This capital that you invest in the business is a LIABILITY of the business rather than an asset. And the term “Liability” refers to something that a business DOES NOT OWN but will someday have to pay back. This capital sum will be returned to you if the company decides to close its doors in the future or experiences financial trouble. This means that even if the company has losses, you won’t be affected by them, unlike in a private or partnership business where you can even suffer larger losses than the Private limited company.
5. Name : The name you choose for your company serves as both its identity and a business name. Therefore, be sure to pick a Name that is memorable, unusual, and unheard of. Make sure it does not sound identical to any other corporate entity or product name because it may be the Brand name by which many people will recognise your business (or product or service). You must submit an application on the MCA website if you want to learn the specifics of obtaining a Name for your Company. This name is only reserved for you for 20 days if they accept it. Which implies that you must take the online private limited company registration this time frame.
6. Separate Ownership and Management : Because Management and Ownership are separated in a private limited business, managers are accountable for both the company’s success and failure. You can always designate someone who is more qualified to run the firm as a Director. This individual will be involved in and responsible for the company’s growth as well as for the earnings you make as a shareholder.

There are several Financial and Legal Advisory firms that provides Onlineprivate limited companyregistration services. So, reap the benefits of private limited company and get online private limited company registration in surat India for your entity.

One Person Company, often known as OPC, is a traditional idea, much like a proprietorship firm, where one person owns and operates the entire company. The difference here is that we may now incorporate a company, which is a large-scale proprietorship REGISTERED with the central government with the aid of the advisory firms that provides company registration services in surat, India as opposed to just doing small-scale proprietorship activity. The entire and only person in this situation is the Incorporated Company. There is only just one individual that has a significant role in this company in terms of ownership and decision-making, and they are the Manager as well as Owner, i.e. Direct and Shareholder.

As per provision of section 2(62) of the Companies Act, 2013 defined (62) “One Person Company” means a company which has only one person as a member.

For the formation of OPC – Only a natural person who is an Indian citizen and resident in India­­-

• shall be eligible to incorporate a One Person Company;
• shall be a nominee for the sole member of a One Person Company.

The term “resident in India” means a person who has stayed in India for a period of not less than 182 days immediately preceding one calendar year.

Any Proprietorship entity is referred to as a One Person Company when it is registered with the Government of India (specifically, the Ministry of Corporate Affairs) (OPC) and only then will you be able to take advantage of the advantages that any OPC is granted by the Central Government, such as limited liability, existence after the founders have passed away, tax breaks, etc.

The advantages One Person Company Registration in India are listed below. 

• It is regarded as a separate legal entity, which means that it establishes its own corporate structure independent of the founders.
• You get Protected Liability as a result. Let’s put it this way: starting a sole proprietorship requires tremendous effort and, most importantly, a large financial investment from all available sources. Being the founder and owner means that you are personally liable for any obligations and liabilities, in addition to being responsible for the business’s benefits, assets, and earnings. You are only liable for the sum that you personally invested in your firm if it is an Incorporated Company, which is registered as a One Person Company. You are prohibited from using your personal assets to pay off the debts and obligations of the incorporated business company.
• By separating management from ownership, directors will eventually be in charge of running the company’s daily operations. The advantages of the investment in the company go to the shareholders, who are the true owners.
• Your entity will also have more credibility with potential clients, suppliers, and employees when it is registered with the Central Government, namely the MCA, as an Incorporate Company, i.e. registered as a One Person Company, which is helpful for effective operations.
• Most importantly, it aids in growth. You may grow your firm both organically and inorganically with the aid of this credibility.
• A special clause in One Person Company will guarantee that the Company will continue to exist. The MOA, or Memorandum of Association, of an OPC must list the name of a NOMINEE (with that person’s prior written approval), who will succeed the Director as a member of the company in the event of his death or inability to enter into a contract.

Exemptions provided to One Person Company

As was previously said, the Government of India supports the nation’s entrepreneurs and has therefore introduced new and more advantageous programmes for their development and the benefit of One Person Company owners.

OPCs have fewer compliance-related burdens because they have received a number of exemptions.

• The preparation of a cash flow statement as part of a financial statement is not required of OPC.
• The annual return can be signed by the company director if an OPC does not have a company secretary
• An annual general meeting is not necessary to be held by an OPC.

So, reap the benefits of the chance that the central government is offering and register your firm as a one-person company with the aid of advisory firms that provide Company Registration services.

Section 2 (1A) of the Income Tax Act specifies the circumstances under which sources are discussed by which agricultural income can be generated. The section’s definitions basically point out the following as the sources for agricultural income –

• Revenue generated through rent or lease of a land in India that is used for agricultural purposes.
• Revenue generated through the commercial sale of produce gained from an agricultural land.
• Revenue generated through the renting or leasing of buildings in and around the agricultural land subject to the following conditions.
  • The cultivator or farmer should have occupied the building, either through rent or revenue.
  • The building is used as a residential place, storeroom or outhouse.

The agricultural land or the land where the building is located, is being assessed for land revenue or subject to a local rate assessed.

Is Agricultural Income Taxable ?

Normally, Agricultural Income is exempted from Income Tax and is not included in the total income of the assessee as per section 10(1) of Income Tax Act, 1961. However, State Government can impose taxes on the agricultural income but if the total agricultural income of the assessee does not exceed Rs. 5,000 in a F.Y., the same will not be accounted in the calculation of total income of the assessee.

How to calculate Taxes on Agricultural Income ?

In case the agricultural land is not falling under the scope of the aforementioned section, one would need to do a separate evaluation just for that aspect of tax. If the agricultural income is well within Rs. 5000, the returns need to be filed through ITR 1, else ITR 2 needs to be used wherein there is a separate column for declaring the details of the income.

The tax calculation done here is in accordance with the fact that the income from agricultural sources is falling under Section 2 (1A) of the IT Act.

For all other normal purposes, the tax calculation will involve the following steps:

1. Including the Agricultural Income – Considering B is the base income of the individual and A is the agricultural income, tax first needs to be computed on the amount of B+A. Let’s call this tax as T(B+A).
2. Adding the basic tax slab benefit – Depending upon changes in the Income Tax rules, the basic tax slab might change, but for clarity’s sake, let’s consider that as S. That needs to be added to the agricultural income and another tax is be calculated on the amount. Let’s call this tax as T(S+A).
3. Income Tax liability – This is the tax that is subject to deductions. Thus IT = T(B+A) – T(S+A).