Author name: MHK Group

Every person who has taxable income in India during financial year has to file return of income in prescribed form within prescribed due date. The financial year is from 1st April to 31st March. Due dates for filing income tax returns for FY 2020-21 are as follows: Tax Audit Applicability: Particulars Criteria Business Sales / Turnover or Gross Receipt exceeds INR. 1 Crore (INR. 10 crores if the cash receipts andpayments do not exceed 5% of the total receipts and payments respectively) Profession Gross Receipts Exceeds INR 50 Lacs Businesses covered under presumptive taxation u/s 44AD If the Sales/Turnover or Gross Receipt is less than INR 2 Crore if such person is enrolled underthe presumptive taxation scheme who claims that the profits of the business are lower thanthe profits calculated in accordance with the presumptive taxation scheme (presently thisthreshold limit is 8% profit on the sales / turnover or gross receipts) would be required toobtain a tax audit report. Professions covered under presumptive taxation u/s 44ADA Declaring the income at amount less than 50% of the gross receipts and whose income exceedsthe basic exemption limit (which is Indian Rs 2.50 lacs at present) for relevant previous year butwhose gross receipts are less than INR. 50 lacs.

1. Permanent Account Number (PAN) PAN is a 10-character alphanumeric unique identifier issued by the Income Tax Department under Section 139A of the Income-tax Act, 1961. It is mandatory for: PAN is issued to individuals, HUFs, companies, firms, LLPs, trusts, and other entities. It helps in tracking tax compliance and linking all transactions with the Income Tax Department. The application is made using Form 49A (for residents) or Form 49AA (for non-residents) through NSDL or UTIITSL. 2. Tax Deduction and Collection Account Number (TAN) TAN is a 10-character alphanumeric code required under Section 203A of the Income-tax Act, 1961, by persons or entities who are liable to deduct or collect tax at source. It is mandatory for: TAN is different from PAN and is specific to the TDS compliance role. Application for TAN is made in Form 49B through NSDL. Criteria PAN TAN Purpose Taxpayer Identification TDS/TCS Compliance Mandatory For All taxpayers All TDS deductors and TCS collectors Form Used 49A / 49AA 49B Structure 10-character alphanumeric 10-character alphanumeric Issued By Income Tax Department Income Tax Department Penalty for Non-Compliance ₹10,000 u/s 272B ₹10,000 u/s 272BB

The Importer -Exporter Code (IEC) is a key business identification number which is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT. In case of import or export of services or technology, the IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies. The nature of the firm obtaining an IEC may be any of the follows- “Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society.” Consequent upon introduction of GST, IEC number is the same as the PAN of the firm. The IEC would be separately issued by DGFT.

The Shop and Establishment Registration in Maharashtra is governed by the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. It is mandatory for every shop, commercial establishment, hotel, theatre, place of public amusement or entertainment, and any other establishment employing one or more workers to obtain this registration. The objective of the Act is to regulate the conditions of employment, working hours, rest intervals, wages, holidays, and other employment-related aspects in such establishments. Registration must be obtained within 60 days of commencement of business and is carried out online through the Maharashtra Labour Welfare Board portal. The applicant is required to submit documents such as PAN card, Aadhaar card, proof of address, business PAN, ownership/rent agreement, and photographs. Upon approval, a Registration Certificate is issued, which is generally valid for a period ranging from 1 to 10 years, depending on the fee paid. Employers are also required to display the certificate at a prominent place in the premises. Furthermore,establishments must ensure compliance with various provisions of the Act such as maintaining statutory registers, adhering to prescribed working hours, providing mandatory holidays, and ensuring worker safety and welfare. Non-compliance may attract monetary penalties and prosecution under the Act. The 2017 Act is progressive in nature and promotes ease of doing business by enabling digital registration, self-certification, and electronic maintenance of records. It covers both organized and unorganized sectors and seeks to create a balanced framework between employer obligations and employee welfare.

The Micro, Small and Medium Enterprises (MSME) Registration in India is governed by the Micro, Small and Medium Enterprises Development Act, 2006. The registration is now known as Udyam Registration, effective from 1st July 2020, and is applicable to all businesses falling under manufacturing, service, and trading sectors (for registration benefits only in some cases). An enterprise can obtain MSME registration based on investment in plant & machinery or equipment and annual turnover, as per the revised classification under the Aatmanirbhar Bharat package: Revised MSME Classification (effective from 01.07.2020) Enterprise Type Investment (Plant &Machinery/Equipment) Turnover Micro upto 1 crore upto 5 crore Small upto 10 crore upto 50 crore Medium upto 50 crore upto 250 crore Udyam Registration is a voluntary and online process via the Udyam Registration portal. Aadhar number of the proprietor/partner/director and PAN of the enterprise are mandatory for registration. The system fetches data from GSTN and Income Tax portals for classification. Benefits of MSME (Udyam) Registration The registration is valid for lifetime, unless the enterprise crosses the threshold limits. Filing of Udyam Update is required if there are any changes in business activity, turnover, or investment. In summary, MSME registration is a strategic tool for small businesses to avail numerous government incentives and enhance their competitiveness in the market.