Frequently asked

Finclar is a tax and compliance practice at 14/2, 15th Cross St, Shastri Nagar, Adyar, Chennai - 600020. Contact Finclar to discuss the scope and current availability of an enquiry, including communication and document-sharing arrangements.

For an audit enquiry, ask who will perform the work, who is responsible for review, and how review responsibilities and deliverables are defined for the proposed scope. Ishaq Aqeel is listed as the audit lead on the audit page.

When comparing providers, ask who will handle the work, how review and communication will work, which tools apply to your scope, and what fees are included. See the published pricing information and explore the site's toolkit. Confirm current scope and terms with Finclar.

The pricing page lists Founder Starter at ₹4,999/month and one-time NRI ITR or property-sale packages from ₹2,499. Confirm current availability, included scope and applicable fees with Finclar before proceeding.

Ask for the proposed engagement terms in writing, including scope, fees, duration, review arrangements, exit terms and any confidentiality agreement. Review the site's terms and confirm which terms apply before proceeding.

S A Mohammed Inamul Hasan is listed for ROC / MCA and the separate automation and web-build vertical. For a project enquiry, discuss the requested deliverables, integrations, schedule and fees. The page lists a single workflow from ₹15K and a full website build from ₹35K; confirm current availability and the exact scope and price with Finclar.

For an automation enquiry, describe the apps involved, the data or task to connect, the desired outcome and any constraints. Ask whether the request fits current scope, which hosting and ownership arrangements are available, and what schedule and fees would apply. The existing page lists a self-hosted VPS estimate of ₹400-600/mo; confirm whether that option and its ongoing costs apply. See the automation page.

For a Tally or ERP enquiry, describe whether you need setup, migration, configuration or an integration. Ishaq Aqeel is listed for Tally enquiries. Discuss scope, availability, expected schedule and fees; the current page lists engagements at ₹15-50K depending on scope.

Ishaq Aqeel is listed as audit lead. Before proceeding, ask who will perform the work, who reviews it, which deliverables are included, and how working papers and supporting documents will be handled. See the audit page.

If you are outside Chennai, include your location and the support you are looking for. Contact Finclar to discuss current availability, communication options, confidentiality terms and suitable document-sharing arrangements.

Schedule depends on the requested scope, information available and current capacity. Share any known deadline and ask Finclar to discuss current availability, an estimated schedule and communication arrangements before proceeding.

₹0-4L: NIL · 4-8L: 5% · 8-12L: 10% · 12-16L: 15% · 16-20L: 20% · 20-24L: 25% · above 24L: 30%. Plus 4% cess and surcharge as applicable. Rebate u/s 87A makes taxable income up to ₹12L effectively tax-free in new regime.

No. Most Chapter VI-A deductions including 80C, 80D, 80E, 80G, HRA, home-loan interest (self-occupied) are not available in the new regime. Only 80CCD(2) (employer NPS), 80CCH (Agniveer) and 80JJAA (new employment) remain.

If your total deductions (80C + 80D + HRA + home-loan interest + 80CCD(1B)) are under ~₹2L, new regime almost always wins. If above ~₹4L, old regime usually wins. Between these, model both. See our regime comparison guide.

Non-audit cases: 31 July 2026. Audit cases: 31 October 2026. Transfer pricing (3CEB) cases: 30 November 2026. Belated/revised: 31 December 2026. Updated return u/s 139(8A): up to 24 months from AY end with extra tax.

Resident individuals get a rebate u/s 87A. New regime FY 2025-26: up to ₹60,000 if taxable income ≤ ₹12L. Old regime: up to ₹12,500 if taxable income ≤ ₹5L. Marginal relief applies just above the threshold.

15 June (15%), 15 September (45%), 15 December (75%), 15 March (100%). Applies if total tax liability ≥ ₹10,000. Interest u/s 234B/C if missed. Try our advance tax calculator.

LTCG on listed equity: 12.5% with first ₹1.25L exempt. Property: 12.5% without indexation (or 20% with indexation if bought before 23 Jul 2024). Unlisted equity: 12.5% no indexation. STCG on equity: 20% (up from 15%).

Least of: (1) actual HRA received, (2) rent paid − 10% of basic+DA, (3) 50% of basic+DA (metro) or 40% (non-metro). Only the lowest is exempt. Old regime only. Annual rent > ₹1L requires landlord's PAN on Form 12BB.

Self-occupied: cap of ₹2,00,000 per year (old regime only). Let-out: full interest allowed, but loss set-off limited to ₹2L u/s 71(3A). Pre-construction interest: 5 equal annual instalments from completion year.

Marginal relief applies. So an income of ₹12,10,000 doesn't lose the full ₹60K rebate — the relief caps incremental tax at the excess (~₹10,000). Use our tax calculator for exact computation.

Sec 194-IA applies because consideration ≥ ₹50L. Rate 1% of the higher of (consideration, stamp duty value) — the SDV floor applies from 1 July 2022 (Finance Act 2022). File Form 26QB per buyer-seller-instalment within 30 days of month-end of payment. If seller is NRI, switch to Sec 195 (rates 12.5% / 20% / slab + surcharge). Full checklist.

Yes — Sec 194-IB applies. Individual / HUF tenant (not under tax audit) paying rent > ₹50K/month deducts 2% TDS once a year in March or at vacating. (Rate dropped from 5% to 2% effective 1-Oct-2024.) File Form 26QC, issue Form 16C to landlord within 15 days. Full walkthrough.

Deposit the unutilised gain (or net consideration, for Sec 54F) into a Capital Gain Account Scheme (CGAS) at an authorised PSU / private bank before the ITR due date. The deposit counts as 'utilisation' for the exemption. Withdraw against Form C for the specified purpose. Close via Form G when reinvestment is complete or window expires. Mechanics.

No. F&O is non-speculative business income under Sec 43(5) proviso (d) — its loss can be set off against any head except salary in the same year (rent, business profit, even LTCG / STCG), and carried forward 8 years against business income only. Must file ITR-3 within the Sec 139(1) due date to preserve carry-forward. Full treatment.

You haven't linked PAN with Aadhaar under Sec 139AA(2). Cascading consequences: 20% TDS under Sec 206AA, 5% TCS under Sec 206CC, refund withheld, ITR processing stalled, DTAA benefit denied. ₹1,000 Sec 234H fee to fix online. Fix steps + cascade map.

Yes, from FY 2025-26 — but only in the new regime. FA 2025 lifted the Sec 80CCD(2) cap from 10% to 14% of Basic+DA for all employees in the new regime (was 14% govt-only earlier). Old regime stays at 10% for private. Ask your HR to opt-in via Form 12BB and choose your contribution % within the cap. Full mechanics.

New regime kills the Sec 24(b) deduction for self-occupied property. For let-out property, the interest is deductible against rental income but the resulting loss can't be set off against other heads — and can't be carried forward. Old regime: ₹2L self-occupied cap, unlimited let-out (with ₹71(3A) ₹2L set-off cap + 8-yr c/f). Full table.

Monthly filers: 11th of next month. Quarterly (QRMP) filers: 13th of next quarter. Late fee ₹50/day (₹20 nil return), capped at ₹5,000-10,000 based on T/O.

Monthly: 20th of next month. QRMP filers: 22nd or 24th of next quarter (state-based). Tax payment is also due on this date — interest @ 18% on late payment.

Quarterly Return Monthly Payment — for taxpayers with T/O ≤ ₹5 Cr in preceding FY. You file GSTR-1 and 3B quarterly, but pay tax monthly via PMT-06 challan. Good if invoicing volume is low but mandatory monthly tax has cashflow implications.

GSTR-9 (annual return) is required for all regular taxpayers. GSTR-9C (reconciliation) is required if aggregate T/O > ₹5 Cr in the financial year. Both due 31 December following FY end. GSTR-9C is self-certified — no CA certification mandate.

GSTR-2B is the auto-drafted, static ITC statement on the 14th of every month. Per Sec 16(2)(aa), you can only claim ITC on invoices appearing in 2B. Reconcile your purchase register monthly to 2B — if missing, follow up with suppliers. Try our 2B reconciler.

Mandatory if aggregate turnover ≥ ₹5 Cr in any preceding FY. You generate an IRN (Invoice Reference Number) via the IRP portal which adds a QR code on every B2B invoice. Without IRN, the invoice isn't valid for ITC for your customer.

Simplified scheme for small taxpayers (T/O ≤ ₹1.5 Cr; ₹75L for service providers). Flat rates: 1% (manufacturers/traders), 5% (restaurants), 6% (services). No ITC available. Must file quarterly CMP-08 and annual GSTR-4.

ASMT-10 is a scrutiny notice u/s 61. Reply via ASMT-11 within 30 days with a reconciliation explaining the alleged mismatch. Most ASMT-10s arise from mechanical GSTR-1 vs 3B differences. See our GST notice playbook.

No. Sec 16(2)(aa) requires the invoice to appear in your GSTR-2B (which is auto-drafted from suppliers' GSTR-1). If supplier delays, ITC is blocked till the invoice appears in a future 2B. Follow up with supplier promptly.

Yes if your aggregate turnover crossed ₹5 crore in any FY since 2017-18. Once you're in, you stay in — even if turnover drops below ₹5 Cr later. From 1-Nov-2024 the 30-day reporting cliff applies (AATO ≥ ₹10 Cr) — miss the cliff and the invoice loses validity. 14-day setup checklist.

Manufacturers / processors with significant input ITC → LUT (no IGST, refund of unutilised ITC). Traders / merchant exporters with light inputs → IGST-paid (auto-refund via ICEGATE in 15-30 days). Services exporters → almost always LUT (no shipping bill, no auto-refund). Full decision tree.

Affordable residential (carpet area ≤ 60sqm metro / 90sqm non-metro and gross ≤ ₹45L): 1% no ITC. Regular residential: 5% no ITC. Commercial: 12% with ITC. Ready-to-move-in (CC issued) and pure land sales are outside GST. Builder + buyer decision tree.

Sec 194 (dividend): 10% > ₹10K · Sec 194A (interest non-bank): 10% > ₹40K · Sec 194C (contractor): 1% individual/2% other · Sec 194H (commission): 2% · Sec 194J (professional): 10% · Sec 194-IA (property): 1% > ₹50L · Sec 194-O (e-commerce): 1% · Sec 194Q (purchase from resident): 0.1% > ₹50L · Sec 195 (NR): per DTAA or domestic rate.

Sec 206AA — TDS at the higher of (a) applicable rate or (b) 20%. For payments to non-residents without TRC/Form 10F, also a higher rate applies. Always collect PAN before any payment.

Quarterly: Q1 (31 July), Q2 (31 October), Q3 (31 January), Q4 (31 May). Forms 24Q (salary), 26Q (non-salary resident), 27Q (non-salary non-resident), 27EQ (TCS). Late filing fee u/s 234E: ₹200/day capped at TDS amount.

Self-declaration to bank/payer to suppress TDS on interest u/s 197A. 15G: residents under 60 with tax payable on total income = NIL AND interest ≤ basic exemption. 15H: senior citizens with tax payable = NIL. NRIs not eligible. Try our eligibility wizard.

Monthly deposit: 7th of next month (for TDS deducted Apr-Feb). March TDS: 30 April. Late deposit: Sec 201(1A) interest @ 1.5% per month from date of deduction to date of payment. Plus possible Sec 271H penalty for delays > 1 year.

Business: T/O > ₹1 Cr (or ₹10 Cr if cash receipts/payments ≤ 5%). Profession: gross receipts > ₹50L. Also triggered if you opt out of presumptive (44AD/44ADA) and total income exceeds basic exemption. Due 30 September. Penalty u/s 271B: 0.5% of T/O capped at ₹1.5L.

Even for a Pvt Ltd with T/O < ₹10 Cr, timing depends on the agreed scope, records available, company structure and current capacity. Discuss the expected schedule and milestones with Finclar for your circumstances. Audit due date for AOC-4 is 30 days post AGM (latest 29 October if AGM on 30 September).

Yes. We write to the previous auditor for a no-objection certificate (NOC) before accepting the engagement. Formal removal at AGM via Sec 140 of Companies Act if mid-term. Template letter in our templates page.

Ask which deliverables and working papers are included in the agreed scope, who is responsible for review, and how documents can be shared under the applicable confidentiality arrangements.

Within 30 days of AGM. If AGM is on 30 September (last permissible date), AOC-4 is due 29 October. MGT-7 (annual return) follows within 60 days — i.e. 28 November. Late filing additional fee: ₹100/day with no upper cap.

The KYC every DIN holder files with MCA. From 31 March 2026 it is due once every three financial years, by 30 June (it was annual, by 30 September, until then); most directors next file by 30 June 2028. One form, DIR-3 KYC Web, also updates mobile, email or address within 30 days of a change. Missing it deactivates the DIN.

Yes. DPT-3 is mandatory for all companies (except govt cos and banking cos) whether or not they have deposits. The form captures outstanding loans, advances and exempt deposits. Due 30 June every year.

Companies must file MSME-1 half-yearly if they have outstanding payments to Micro/Small Enterprises > 45 days. Due 30 April (for Oct-Mar period) and 30 October (for Apr-Sep period). Penalty applies for non-compliance.

Timing depends on the application, the information provided and any follow-up required. Ask Finclar to discuss current availability and an estimated schedule for the proposed scope. Confirm any applicable statutory requirements against current official guidance.

Determine residence separately for each year using section 6. Day-count tests have exceptions for qualifying visits, overseas employment and ship crew; citizenship, specified income and deemed-residence conditions also matter. The 120-day rule is not a blanket rule for everyone with income above a threshold. For Tax Year 2026-27 use section 6 of the 2025 Act; earlier years use section 6 of the 1961 Act. Official sources and income-scope guide (updated 26 September 2026).

RNOR means resident but not ordinarily resident. Eligibility is assessed each year, not granted as a fixed three-year exemption. Indian receipt and accrual rules still apply. Foreign accruals from a business controlled in India or a profession set up in India can also be included. For Tax Year 2026-27 see sections 5 and 6(13) of the 2025 Act; earlier references are sections 5 and 6(6) of the 1961 Act. Official sources and income-scope guide (updated 26 September 2026).

Check the account type, your residential status, the source and purpose of the funds, the proposed transfer date and any earlier remittances. Ask your authorised dealer bank to confirm the applicable FEMA conditions and documents. Tax-form requirements need a separate review of the transaction; an account label or amount alone does not settle them. See our NRI enquiry preparation guide.

For NRI sellers: Sec 195 TDS at 12.5% on LTCG (holding > 24 months) or 30% on STCG. The buyer deducts and deposits. We typically apply for a lower-deduction certificate (Form 13) to reduce TDS to the actual tax payable — often saves 5-7× the cash outflow.

Yes — India has DTAAs with 80+ countries. We obtain the Tax Residency Certificate (TRC) from your country of residence, file Form 10F online, and apply DTAA rates (often lower than domestic). For ROR with foreign income, foreign tax credit is claimed via Form 67.

Only income accruing or arising in India: Indian property rent, dividend, FD/NRO interest, capital gains on Indian assets, Indian employment income. Foreign salary, foreign investments — not taxable (unless ROR).

Depends on your Indian-source income. If > ₹15L (Indian rent, FD interest, capital gains): FA 2020 inserted a 120-day trap — stays in 120-181 days + 365 days in 4 preceding FYs makes you RNOR (not full resident, but Indian business / employment income brought to tax). Below ₹15L Indian income, the relaxed 182-day rule still applies. All four tests.

File Form 67 on or before the end of the relevant AY. Convert USD income + US WHT at SBI TT buying rate of the last day of the preceding month. Claim FTC = lower of (US tax paid, Indian tax on that head, DTAA cap). Salary FTC has no DTAA cap; dividends/interest/royalty do. Common mistakes.

Two-stage: (1) At exercise — (FMV at exercise − strike price) × shares is taxed as salary perquisite at your slab. (2) At sale — (sale price − FMV at exercise) × shares is capital gain (LTCG 12.5% above 12/24 month holding threshold).

Employees of DPIIT-recognised eligible startups under Sec 80-IAC can defer perquisite tax on ESOP exercise to the earliest of (a) 48 months from end of relevant AY, (b) sale of shares, or (c) leaving the company. Game-changer for early employees. See full ESOP guide.

Rule 11UA — two methods: (1) Net Asset Value, (2) Discounted Cash Flow (DCF). DCF requires a merchant banker / SEBI Cat-I valuer certificate, valid 6 months. Most startups use NAV for early stages and switch to DCF once revenue is visible.

Pre-seed/seed: 8-10% of fully-diluted cap table. Series A: 10-15%. Series B+: 12-18% cumulative. Investor rounds typically include a 'top-up' which falls on existing shareholders (not new investors).

Perquisite at vest (FMV × vested shares) — taxable in India as salary. The Indian sub usually doesn't deduct TDS since the grant comes from the US parent. Self-compute and pay advance tax. Plus mandatory Schedule FA disclosure of foreign assets — non-disclosure attracts ₹10L penalty under Black Money Act.

For tax holiday and ESOP perquisite deferment. Eligibility: DPIIT-recognised, incorporated after 1 April 2016, turnover ≤ ₹100 Cr. Provides 100% tax deduction for 3 consecutive years out of first 10. Apply via the DPIIT portal.

FA 2025 raised the new-regime Sec 87A rebate threshold from ₹7L to ₹12L (max rebate ₹60,000). Salaried earners under ₹12.75L (after ₹75K standard deduction) now pay zero tax in the new regime. Old regime still caps at ₹5L / ₹12,500. Marginal relief at the cliff. See Sec 87A analyzer.

From 1-Oct-2024 the entire buyback consideration is taxed as deemed dividend in the shareholder's hands at slab rate (resident) or DTAA rate (NR / FPI). The original cost becomes a capital loss to set off against future gains. From 1 April 2026 (Finance Act 2026) buybacks are taxed as capital gains again, with an additional tax on promoters. Read our Sec 115QA shift brief for the founder/HNI playbook.

FA 2024 (effective 23-Jul-2024): Sec 112A LTCG on listed equity: 10% → 12.5%, exemption ₹1L → ₹1.25L. Sec 111A STCG on listed equity: 15% → 20%. Sec 87A rebate excluded from both (clarified in FA 2025). See Sec 112A & Sec 111A calculators.

Inserted by FA 2024, w.e.f. 1-Apr-2025. Partnership firms / LLPs must deduct 10% TDS on aggregate annual partner payments (remuneration, salary, commission, interest, bonus) exceeding ₹20,000. Profit share Sec 10(2A) is outside. Firms / LLPs must now obtain TAN if they didn't have one.

Debt MFs (equity ≤ 35%) acquired on/after 1-Apr-2023 are taxed at slab rate as short-term gains regardless of holding period — no indexation, no LTCG benefit. Pre-Apr-2023 units retain the legacy 20%-with-indexation treatment. Market-linked debentures (MLDs) covered too.

FA 2025 abolished Sec 56(2)(viib) entirely w.e.f. 1-Apr-2025. Startups can now raise capital at any premium without angel-tax exposure. For issues between 1-Apr-2023 and 31-Mar-2025, the section applied to NR investors too (FA 2023 expansion). Pre-Apr-2023 issues to NRs were exempt.

FA 2023 inserted Sec 43B(h). Payments to Micro / Small enterprises must be made within 15 days (no agreement) or 45 days (with agreement) of supply. If unpaid by the Sec 139(1) ITR due date, the entire expense is disallowed in the year of incurrence and re-allowed in the year of actual payment. Medium enterprises excluded. See field guide.

FA 2025 changed Sec 194I (audit-side rent TDS) threshold from ₹2,40,000 per FY to ₹50,000 per month, w.e.f. 1-Apr-2025. Practical effect: even a single month above ₹50K triggers TDS, whereas earlier you could shelter low-rent months.

Yes. Employer NPS contribution under Sec 80CCD(2) is the one Chapter VI-A deduction permitted in the new regime — up to 14% of Basic+DA (raised by FA 2025 from 10%). Sec 80CCH (Agniveer Corpus Fund) and Sec 80JJAA (new employment) also continue under new regime.

Yes — FA 2025 omitted Sec 206C(1H) with effect from 1-Apr-2025. From FY 25-26, only Sec 194Q (buyer's 0.1% TDS on goods purchases > ₹50L per seller, by buyer with previous-FY turnover > ₹10 Cr) applies. Sellers no longer collect TCS on goods. Full priority-rule write-up.

Two mandatory annual ROC filings every company makes. AOC-4 = financial statements + auditor's report (due within 30 days of AGM). MGT-7 = annual return on shareholders, directors, indebtedness (due within 60 days of AGM). Small companies + OPCs file the shorter MGT-7A. ₹100 per day late fee per form, uncapped. Full walkthrough.

Every individual holding a DIN — on an active company, a struck-off shell, or no company at all — files DIR-3 KYC Web once every three financial years, by 30 June (from 31 March 2026, under G.S.R. 943(E)). Miss it and the DIN is deactivated until filed with the late fee. Step-by-step.

Annual MCA filing by 30 June covering outstanding loans, deposits and exempted receipts (director loans, inter-corporate loans, share application money pending allotment). Every Indian company files — including dormant. Auditor certificate required. Field guide.

Partly. Form STK-2 under Sec 248(2) is the voluntary strike-off path. ₹10,000 fee, filed with C-PACE. Since 1 May 2023, overdue financial statements and annual returns must first be filed up to the end of the year business stopped. Conditions: no operations for 2 FYs, zero liabilities, bank closed, no pending prosecution. Full eligibility.

Twice a year: by 30-October (Apr-Sep half) and 30-April (Oct-Mar half). Discloses outstanding payments to registered Micro and Small Enterprises > 45 days. Medium enterprises are OUT of scope. The same data feeds IT Sec 43B(h) disallowance scrutiny. Walkthrough.

Within 15 days of the AGM at which the auditor is appointed (or re-appointed every 5 years). Annual ratification was abolished by Companies (Amendment) Act 2017 — ADT-1 is now only at appointment, not annually. Full guide.