INCOME TAX AND COMPANY LAW - FOR NEWLY FORMED COMPANY

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2011 We have incorporated a pvt ltd company during Feb 2010. During 2010-11, there were no transactions.
During 2010-11, we have started doing business (trading).
At this stage, I need guidance from experts when we have to file returns both for ROC and Income Tax.

CA Navin Jain

CA Navin Jain (Expert)
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23 July 2011 its compulsory to file income tax return for
the FY 2010 -11 irrespective whether transaction is made or not.

As per Companies act if you draft the balance sheet auto 31.3.11 then file the ROC return also.

but you can also draft the balance sheet for the period from feb. 20011 to 31.3.12, then no need to file return with roc for the year ended 31.3.2011

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2011 I wud lyk to correct u Jain sir..
Company was incorporated in February 2010..not in Feb '11.

Wot's ur opinion then?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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31 July 2024 For a newly incorporated company, there are specific filing requirements under both the Income Tax Act and the Companies Act. Here’s a detailed guide on the timelines and obligations for filing returns for both ROC (Registrar of Companies) and Income Tax:

### **1. Income Tax Filing**

#### **Filing Deadlines:**

1. **For the Financial Year 2010-11 (Assessment Year 2011-12):**
- **Due Date for Filing Income Tax Return (ITR):** The due date for filing the income tax return for a company is generally 30th September of the assessment year. For the financial year 2010-11, the due date would have been 30th September 2011.
- **Note:** Since the company was incorporated in February 2010 and had no transactions in the FY 2010-11, you would need to file a “Nil” return or a return showing no income.

2. **For Subsequent Financial Years:**
- Ensure that the return for each financial year is filed within the due date (usually 30th September of the assessment year).

#### **Filing Procedure:**

- **File Income Tax Returns:** File the return using the appropriate ITR form for companies, typically ITR-6.
- **Maintain Books of Accounts:** Ensure that books of accounts are maintained and are compliant with accounting standards.
- **Audit Requirement:** If the turnover exceeds the specified limit or if other conditions apply, get the accounts audited and file the audit report along with the ITR.

### **2. ROC (Registrar of Companies) Compliance**

#### **Filing Deadlines:**

1. **Annual Filing:**
- **Annual Return:** The company must file its Annual Return in Form MGT-7. This must be filed within 60 days from the date of the Annual General Meeting (AGM).
- **Financial Statements:** The company must also file its financial statements in Form AOC-4. This must be done within 30 days from the date of the AGM.

2. **First AGM:**
- **Due Date for First AGM:** The first AGM should be held within 18 months from the date of incorporation. For a company incorporated in February 2010, the first AGM should be held by August 2011.
- **Filing After AGM:** Once the AGM is held, file the Annual Return and Financial Statements with the ROC.

#### **Filing Procedure:**

- **Form MGT-7:** File the annual return, which provides details about the company’s shareholders, directors, and other statutory information.
- **Form AOC-4:** File the financial statements, including the balance sheet, profit & loss account, and other financial reports.
- **Keep Records:** Maintain all statutory records and comply with the provisions under the Companies Act.

### **Summary of Actions:**

1. **For Income Tax:**
- File a return for the financial year 2010-11 (Assessment Year 2011-12) even if there were no transactions.
- Continue to file annual returns in subsequent years.

2. **For ROC:**
- Hold the first AGM within 18 months from incorporation.
- File the Annual Return and Financial Statements within the stipulated time after the AGM.

**Recommendation:**
- **Consult a Professional:** It is advisable to consult a chartered accountant or company secretary to ensure compliance with both Income Tax and ROC requirements. They can assist with the accurate filing of returns and maintaining proper statutory records.