The assessment of income tax is a crucial process that determines the amount of tax that an individual or a business entity needs to pay to the government. In this blog, we will discuss the procedure for assessment in income tax. Step 1: Filing of Income Tax Return The first step in the assessment process is the filing of the income tax return (ITR). The taxpayer needs to file the ITR by the due date, which is usually July 31st of the assessment year. However, for certain categories of taxpayers, the due date may be different. Step 2: Scrutiny Assessment or Non-Scrutiny Assessment After the ITR is filed, the Income Tax Department may choose to conduct either a scrutiny assessment or a non-scrutiny assessment. In a scrutiny assessment, the tax officer scrutinizes the ITR and may ask the taxpayer to provide additional information or documents. The tax officer may also conduct a detailed inquiry into the taxpayer's financial affairs. In a non-scrutiny assessment, the tax officer accepts the ITR without any inquiry or verification. Step 3: Issue of Notice If the tax officer chooses to conduct a scrutiny assessment, he will issue a notice to the taxpayer. The notice may be issued within 6 months from the end of the financial year in which the ITR was filed. The notice will specify the reasons for the scrutiny assessment and the documents or information that the taxpayer needs to provide. The taxpayer needs to respond to the notice within the specified time, which is usually 30 days. Step 4: Submission of Documents and Information After receiving the notice, the taxpayer needs to submit the required documents and information to the tax officer. The taxpayer may also request an extension of time if he is unable to submit the documents within the specified time. Step 5: Assessment Order After the tax officer receives the documents and information, he will scrutinize them and determine the tax liability of the taxpayer. The tax officer may also make adjustments to the income or deductions claimed by the taxpayer. After completing the assessment, the tax officer will issue an assessment order. The assessment order specifies the total income of the taxpayer, the tax liability, and the amount of tax payable or refundable. Step 6: Appeal If the taxpayer is dissatisfied with the assessment order, he can file an appeal before the Commissioner of Income Tax (Appeals) within 30 days from the date of receipt of the order. The Commissioner will hear the appeal and may confirm, modify, or cancel the assessment order. Step 7: Further Appeals If the taxpayer is still dissatisfied with the decision of the Commissioner of Income Tax (Appeals), he can file a further appeal before the Income Tax Appellate Tribunal (ITAT). The ITAT is a quasi-judicial body that hears appeals against the decisions of the tax authorities. Conclusion what is the procedure for change of object clause of private company ?

What is the procedure for change of object clause of private company ?

by admin

Introduction

The object clause of a private company is an essential part of its memorandum of association. It specifies the primary objects for which the company was formed and defines the scope of its activities. However, there may be instances where a private company may need to change its object clause to expand its business or to align with its current operations. In this blog, we will discuss the procedure for changing the object clause of a private company.

Step 1: Board Resolution

The first step in changing the object clause of a private company is to pass a board resolution. The board of directors needs to convene a meeting and pass a resolution approving the proposed change in the object clause. The resolution should specify the details of the proposed change and the reasons for the change.

Step 2: Call for Extraordinary General Meeting (EGM)

After passing the board resolution, the company needs to call for an extraordinary general meeting (EGM). The notice of the EGM should be issued to all the shareholders of the company. The notice should specify the date, time, and venue of the EGM, along with the agenda and the proposed changes to the object clause.

Step 3: Hold EGM and Pass Special Resolution

The EGM needs to be held on the specified date, and the shareholders need to pass a special resolution to approve the change in the object clause. The special resolution should be passed by a majority of not less than three-fourths of the members present in person or by proxy.

Step 4: File Form MGT-14

After passing the special resolution, the company needs to file Form MGT-14 with the Registrar of Companies (ROC) within 30 days of passing the resolution. Form MGT-14 is a notice of the resolution passed at the EGM, and it should be accompanied by a certified copy of the special resolution and the explanatory statement.

Step 5: File Form INC-24

Along with Form MGT-14, the company also needs to file Form INC-24 with the ROC within 30 days of passing the special resolution. Form INC-24 is an application for the approval of the change in the object clause, and it should be accompanied by the following documents:

The special resolution adopted at the EGM in its entirety
A copy of the updated memorandum of association
A copy of the board resolution approving the change in the object clause
a duplicate of the EGM notice
a duplicate of the EGM minutes
Step 6: Obtain Approval from ROC

After filing Form MGT-14 and Form INC-24, the ROC will review the documents and approve the change in the object clause if everything is in order. If the ROC requires any further clarification or documents, the company may need to provide them before obtaining the approval.

Step 7: Update MOA and AOA

After obtaining the approval from the ROC, the company needs to update its memorandum of association (MOA) and articles of association (AOA) with the new object clause. The updated MOA and AOA should be filed with the ROC within 30 days of the approval.

In conclusion :

Changing the object clause of a private company requires following a specific procedure. It involves passing a board resolution, calling for an EGM, passing a special resolution, filing Form MGT-14 and Form INC-24 with the ROC, obtaining the approval from the ROC, and updating the MOA and AOA. By following this procedure, a private company can change its object clause and expand its business or align with its current operations.

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