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Cost Inflation Index is a term used in the context of income tax in India. It refers to the index that helps taxpayers determine the inflation-adjusted purchase price of an asset, which in turn is used to calculate capital gains. The government of India announces the Cost Inflation Index every year, which is applicable for the upcoming financial year. This article will help you know more about CII for the FY 2022-23.

The Cost Inflation Index is a measure of inflation that is used to calculate the inflation-adjusted purchase price of an asset. It is a tool that helps taxpayers determine the capital gains tax they need to pay while selling an asset. In other words, it helps taxpayers adjust the purchase price of an asset for inflation when calculating capital gains.

The Cost Inflation Index is utilized to adjust prices for the effects of inflation. In essence, as the inflation rate increases over time, prices will also increase. The Cost Inflation Index (CII) aids in estimating the yearly rise in prices of goods and assets due to inflation.

Over time, the cost of a product tends to rise, resulting in a reduction in the purchasing power of money. For example, if 15 items can be purchased for Rs. 30 today, tomorrow the same amount may only be able to buy 10 items due to inflation.

The government of India via Central Board of Direct Taxes has recently announced the Cost Inflation Index for the financial year 2022-23. The Cost Inflation Index for the financial year 2022-23 is 331, which is an increase from the previous year’s index of 317.

The variation in the number of CII holds significance as it is utilized to determine the inflation-adjusted purchasing value of assets, which ultimately impacts long-term capital gains.

The Cost Inflation Index (CII) is calculated by dividing the CII for the year the asset was sold or transferred by the CII for the year the asset was acquired or bought.

Assuming you bought a house for Rs. 50 lakhs in May 2005 and sold it for Rs. 80 lakhs in June 2022. The CII for the year the house was bought in is 497, and the CII for the year the house was sold in is 331.

Thus, the cost inflation index is 331/497 = 0.666.

When calculating taxes, the CII is multiplied by the purchase price to determine the indexed cost of acquisition, which represents the actual cost of the asset.

Therefore, the indexed cost of acquisition would be 50,00,000 X 0.666 = Rs. 33,30,000.

The long-term capital gain would be the selling price of the asset minus the indexed cost of acquisition, i.e., 80,00,000 – 33,30,000 = Rs. 46,70,000

Here, the long-term capital gain is 46,70,000, which attracts the tax liability on this amount for the sell of the asset.

Indexation can assist in saving taxes by adjusting the purchase price of the house with current market prices.

• The CII is updated every year by the government of India. It is important to use the correct index while calculating capital gains tax.
• The CII is applicable only for the computation of long-term capital gains tax. Short-term capital gains tax is calculated using the applicable tax rate.
• The CII is useful for taxpayers who sell assets such as real estate, shares, and mutual funds. It helps them determine the capital gains tax they need to pay on the sale of the asset.

CII for the FY 2022-23: The Cost Inflation Index is an important tool that helps taxpayers determine the inflation-adjusted purchase price of an asset, which is used to calculate capital gains. It is updated every year by the government of India and is applicable only for the computation of long-term capital gains tax. Taxpayers must use the correct index while calculating capital gains tax and keep in mind the various factors that affect the calculation of the Cost Inflation Index.

One Person Company (OPC) has comparatively lower compliance requirements than Private Limited or Public Limited Companies, resulting in lower OPC Annual Compliance costs.

OPCs are required to file two annual forms, namely MGT 7A and AOC 4, every year. It’s important to understand what these forms are and their respective due dates for OPC Annual Filing.

• E-Form AOC 4 is an important annual filing requirement for One Person Companies (OPCs), which contains all the financial transactions and monetary details of the company for the respective financial year.
• It is an Annual Financial Report that comprises the Balance Sheet, Profit and Loss Account, Auditor’s Report, and the Consolidated Financial Statements.

• Regarding the due date for filing AOC 4 for OPC for FY 2022-23, it should be filed with the relevant Registrar of Companies (ROC) within 180 days of the completion of the financial year.
• Therefore, the deadline for submitting E-Form AOC 4 for OPC for FY 2022-23 will be September 27, 2023, if we take April 1, 2023, as the starting day while counting 180 days.

• Form MGT 7A was introduced by MCA through the Companies (Management and Administration) Amendment Rules, 2021 on March 5, 2021, for One Person Company (OPC) and Small Companies.
• OPCs and Small Companies are required to file Form MGT 7A annually with the relevant Registrar of Companies (ROC).
• This form contains the updated list of directors and shareholders of the OPC.

• For the financial year 2022-23, the due date for filing Form MGT 7A for OPCs is within 60 days from the date of the Annual General Meeting (AGM).
• Although OPCs are exempted from conducting an AGM, the due date for filing Form MGT 7A is still counted from the normal date of AGM.
• For instance, if the AGM is to be held on September 30, 2023, the due date for filing ROC Form MGT 7A for FY 2022-23 would be November 28, 2023, as per the MGT 7A help kit.

Besides the obligations mentioned above, there are certain event-based compliances that One Person Companies must adhere to. These are outlined below:

• The event-based annual compliances for an OPC are primarily related to internal administration and external business management.
• Furthermore, an OPC must also comply with the filing obligations of legal authorities, such as GST returns, PF, and ESI regulations. 

• In case of delayed filing of ROC Forms AOC 4 and Form MGT 7A, the penalty has been prescribed as INR 100/- per day for each day during which the default continues.
• It is imperative forOne Person Companies to file their ROC Annual Compliance Forms within the stipulated time to comply with the Companies Act, 2013 and the Income Tax Act, as well as other applicable regulations.

In India, every registered company is required to submit its annual accounts and returns to the Registrar of Companies within 30 and 60 days, respectively, from the conclusion of the Annual General Meeting. It is essential for all companies to adhere to the specified time limits for filing their ROC Annual Filing Forms, as stated by the Ministry of Corporate Affairs. If a company fails to comply with the ROC Annual Compliance regulations, it may be subject to significant fines, which will be in addition to the standard fees charged by the Ministry of Corporate Affairs, and there is no way to avoid them.

Due date for filing of Form MSME-1 (MSMe Half yearly Returns): 30.04.2023

• Companies registered under MSME Act, 2006 need to file Form MSME 1.
• Form MSME 1 is mandatory for companies with outstanding payments to MSME companies for over 45 days.
• MSMes need to file a half-yearly return with the Registrar for their outstanding payments to Micro or Small Enterprises.
• The due date for filing Form MSME 1 for FY 2022-23, from October 2022 to March 2023, is 30th April 2023.

Due date for filing of Form PAS-6: 30.05.2023

• All Unlisted Companies and Deemed Public Companies need to file Form PAS-6, a ‘Reconciliation of Share Capital Audit Report’, on a half-yearly basis.
• The Ministry of Corporate Affairs has already prescribed the PAS 6 format.
• The due date for Form PAS 6 for the half-year ending on 31.03.2023 is 30th May 2023.

Due date for Form DPT 3: 30.06.2023

• Companies with any amount of loan or advances as on the last day of the financial year i.e. 31st March need to file Form DPT-3, an Annual Return of Deposits, every year.
• Form DPT 3 needs to be filed within 90 days of the end of the financial year.
• The due date for filing Form DPT 3 for FY 2022-23 is 30th June 2023

Due date for filing FLA Return: 15.07.2023

• Companies need to file Foreign Liabilities and Assets Annual Return (FLA Return) with the Reserve Bank of India (RBI) every year.
• The due date for FLA Return for the FY ending on 31st March 2023 is 15th July 2023.

Due date for Form DIR 3 KYC: 30.09.2023

• Every individual who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, needs to file Form DIR-3 KYC before 30th September of the immediately next financial year.
• The due date for Form DIR 3 KYC for the Financial Year 2022-23 is 30th September 2023.

Due date for ADT-1: 14.10.2023

• Companies need to file Form ADT-1 to intimate the ROC (Registrar of Companies) about the auditor’s appointment after the completion of the AGM.
• Form ADT-1 needs to be filed within 15 days from the conclusion of the AGM in which such appointment of auditor is made.
• The due date for filing Form ADT 1 for the financial year 2022-23, if the AGM date is 30.09.2023, is 14.10.2023.

• ROC E-Form AOC 4 is an MCA form for filing financial statements of the company with the ROC.
• For AOC 4 XBRL, the due date for FY 2022-23 will be 29.10.2023.

• ROC Form MGT 15 is mandatory to be filed by all the Listed Companies.

• It is a form to be submitted with ROC for filing of Report of Annual general Meeting.

Due date for MGT 14- 29.10.2023 (If the AGM was held on 30.09.2023 and any resolution was passed there in)

• Form MGT 14 is to be submitted with the ROC for filing of Special resolution/Ordinary Resolution with MCA regarding Board Report and Annual Accounts.
• The Due Date for filing Form MGT 14 shall be 29th of October 2023, if the AGM was held on 30.09.2023.
• Whenever there is any resolution passed in a board meeting, it becomes mandatory to file such resolution so passed with Registrar of Companies in ROC form MGT 14.

• Form MSME 1 is a form that needs to be filed by the companies that are registered under MSME Act, 2006.
• It is a form that needs to be filed by the companies which has an outstanding payment for MSME Companies for more than 45 days.
• All the MSMes are required to file a half-yearly return with the Registrar for the outstanding payments to the Micro or Small Enterprises.
• The Due date for filing Form MSME 1 for FY 2022-23, for the period of April 2023 to September 2023 shall be 31st October, 2023.

Due date for filing form MGT 7 & MGT 7A- 28.11.2023

• Form MGT-7 must be filed with the Registrar of Companies (ROC) by all the Private Limited Companies and Public Limited Companies registered in India every year.
• Form MGT-7A must be filed with the Registrar of Companies (ROC) by all the One Person Company registered in India every year.
• It is an electronic form provided by the Ministry of Corporate Affairs to all the corporations in order to fill in their annual return details.
• The due date for filing MGT-7 is 60 days from the date of Annual General Meeting.
• That means the due date for filing ROC Annual Filing – Form MGT 7 and MGT 7A (As per the MCA Help Kit) for the Financial Year 2022-23 is 28.11.2023. (If we take the day of the AGM into consideration)

Due date for filing of Form PAS-6- 29.11.2023 (For the half year ending on 30.09.2023 – for all unlisted companies, deemed public companies)

• Form PAS-6 is a ‘Reconciliation of Share Capital Audit Report’ which needs to be submitted twice a year on a half-yearly basis by the unlisted public company.
• For the half year ending on 30.09.2023, the Due Date for Form PAS 6 shall be 29th November, 2023.

• For companies who do not require to get their books of account audited, the due date for IT Return for such companies shall be 31st July, 2023.
• For the companies who require to get their books of account audited, the due date for ITR filing for such companies shall be 30th September, 2023.

LLP Annual Filing is a crucial process that every Limited Liability Partnership (LLP) must undertake. It involves the preparation and submission of two ROC forms to the Registrar of Companies each year.

The first form, Form LLP 11, is an Annual Return that must be filed within 60 days from the end of the financial year. The second form, Form LLP 8, is a Statement of Account & Solvency that must be filed within 30 days from the end of six months of the financial year.

LLPs must comply with statutory requirements such as Annual Return, Income Tax Return, Profit and Loss Account, and Balance Sheet, even if they do not conduct any business activities. Similar to companies, LLPs must maintain their financial year from 1st April to 31st March.

• LLPs registered in India must file an Annual Return with the Registrar of Companies every year.
• The Annual Return needs to be filed in LLP Form 11 within 60 days from the closure of the financial year.
• The Due Date for LLP Annual Return Filing in LLP Form 11 for the FY 2022-23 is 30th May 2023.
• LLPs must submit their Annual Returns and Financial Statements with the MCA, even if they do not have any business.
• LLP Form 11 is a summary of all the changes made in the Management of an LLP during a financial year.
• A NIL return must be filed even if there are no changes or no business conducted by an LLP as it is a mandatory requirement of the Limited Liability Partnership Act.

• In addition to LLP Form 11, LLPs must file LLP Form 8 with ROC every year.
• LLP Form 8 is a Statement of Account and Solvency.
• The Due Date for filing LLP Form 8 falls within 30 days from the end of six months of the financial year’s closure.
• The Due Date for filing LLP Form 8 for FY 2022-23 is 30th October 2023.
• LLP Form 8 includes a declaration by designated partners on the solvency state of the LLP.
• LLP Form 8 also contains information about the Statement of Assets and Liabilities and Statement of Income and Expenditure of the LLP.

• Income Tax Return Filing is mandatory for LLPs as well as individuals and businesses.
• LLPs must file Income Tax Returns before the due date.
• For FY 2022-23, the due date for filing Income Tax Returns for LLPs that does not require Tax Audit is 31st July 2023.
• For LLPs requiring Tax Audit, the due date for filing Income Tax Returns for FY 2022-23 is 30th September 2023.
• LLPs must file Nil Income Tax Returns even if they did not conduct any business during the financial year.

• If an LLP fails to file its annual filing forms within the prescribed time, it will be liable to pay a penalty of Rs. 100 per day per form.

• The penalty will be applicable from the due date of filing the return till the actual return is filed.

The Designated Partners of an LLP are responsible for maintaining proper Books of Accounts and filing an Annual Return with the MCA each financial year. To avoid penalties, it is advisable for LLPs to file their LLP Form 8 and LLP Form 11 before the due dates.

Introduction

Digital marketing is an essential investment for businesses to establish a strong online presence and increase their returns. However, choosing the wrong digital marketing agency can be a costly mistake that could lead to negative consequences. Therefore, it is crucial for entrepreneurs to carefully consider various factors when selecting the best digital marketing agency. In this article, we will explore "What is a digital marketing agency?, "Different services offered by digital marketing agencies in India", and "How to choose the right one for your business?".

What is a digital marketing agency?

Digital marketing involves utilizing the internet to promote brands, products, and services. Digital marketing agencies assist businesses with their digital marketing campaigns by leveraging various digital platforms to connect brands with potential customers. These agencies offer a range of services that include search engine optimization, social media marketing, content marketing, email marketing, and digital advertising. With the proliferation of digital media, many individuals and agencies are venturing into digital marketing as it is a profitable business that can provide a good income.

Different services offered by a digital marketing agency in India

Social media marketing

Content marketing

Online advertising

Mobile marketing

SEO (search engine optimization)

Video marketing

Email marketing

Benefits of hiring a digital marketing agency in India

1. Increasing consumer base

When creating pay-per-click advertisements on platforms like Google, Facebook, or Instagram, paying for ad space is only one factor. The appearance and other requirements of the ad are equally important. When you hire a digital marketing agency to create your ads, they will ensure that the ads reach potential customers and look professional. Although it may seem like an added cost, it is an investment. Hiring a good digital marketing agency will ensure that your ads generate a positive return on ad spend.

2. Eliminates recruitment hassles

Doing everything by yourself may lead to burnout, and hiring a full-time employee can be expensive. Even hiring an inexperienced employee would require training, which costs time and money. A digital marketing agency, on the other hand, already has a team of skilled professionals in place. This saves you time and money, which you can reinvest in your marketing efforts.

3. Assistance in expanding your business

The pandemic has taught business owners that not using digital marketing can result in significant losses. However, if your business has primarily operated offline, establishing an online presence can be time-consuming. Creating a website, running social media ads, and sending newsletters to subscribers may all be required. A digital marketing agency can take care of these time-consuming tasks, allowing you to focus on your core strengths.

4. Enables concentration on other activities

Your strengths are what set you apart from other businesses. Unless you specialize in digital marketing, it may not produce the desired results and may result in financial loss. Hiring a digital marketing agency frees up your time, allowing you to concentrate on your strengths and improve your operations, ultimately providing your customers with better service.

How to choose the best digital marketing agency in India?

Choosing the right digital marketing agency is crucial for the success of any business. Here are some points to consider when selecting the best digital marketing agency in India for your company:

1. Industry knowledge

It is important that your digital marketing agency has a good understanding of your industry, your competitors, and your business goals. The agency's key personnel should be knowledgeable about your company's strategy and have experience in your industry.

2. Transparency and reporting

Transparency is critical when evaluating a digital marketing agency. The agency should provide regular reports on its operations and progress toward achieving key performance indicators (KPIs). Reports should include details such as the order of selected keywords, the increase in the number of organic visitors, the rate of website bounce, and comparative research with competitors. It is important to be able to communicate directly with the agency's contact person and receive information about SEO keywords and other data.

3. Agency structure

Before selecting a digital marketing agency, it is important to investigate its structure. How many people are employed by the agency? What is the team and organization's structure? The agency should be able to provide examples of their professional experience and have a proven track record of success. It is also important to have a good working relationship with an account manager who has the necessary professional skills and chemistry to meet your needs. It is important to consider the agency's area of expertise, such as SEA advertising, content, analytics, SEO, consulting, or a 360 ° agency.

A good digital marketing agency will provide round-the-clock assistance, thoroughly examining your company's online presence and helping you achieve your goals. By considering these factors, you can select the best digital marketing agency in India for your company's needs.

Conclusion

In conclusion, it is important to select a digital marketing expert with a wealth of experience in creating effective digital marketing campaigns for businesses of various sizes if you aim to expand your customer base, attract more leads, and increase your sales through phone and email transactions. Therefore, careful consideration is necessary when choosing your digital marketing expert.

Introduction

A wholly owned subsidiary is a company with 100% of its shares owned by another corporation, which is the parent company. A parent company can acquire a wholly owned subsidiary or create one through a split-off. The parent company usually owns 51% to 99% of the subsidiary, and in cases where complete or majority ownership cannot be obtained, the parent company may create a subsidiary, associate, or joint venture where it owns a minority stake. In this article, we will discuss the functions of wholly-owned subsidiaries in India.

How does a Wholly owned Indian Subsidiary work?

A wholly owned subsidiary is typically in a different country from the parent company. The subsidiary may have its own executive structure, products, and customers but works with the parent company's approval and may or may not have direct input into all the activities and management of the parent subsidiary. This could result in it being an unconsolidated subsidiary. Having a wholly owned subsidiary allows the parent company to operate in different geographic areas and markets, helping it to cope with changes in the market or geopolitical and trade practices.

Minimum criteria to start a Wholly Owned Subsidiary

The following are the minimum requirements to start a wholly-owned subsidiary company in india:

• At least 2 directors

• At least 2 shareholders

• A minimum of 1 lakh rupees capital

• Directors’ Boards: Indian Businesses’ directors can be NRIs, PIOs, Foreign Nationals, and Foreign Citizens, provided they have a Digital Signature Certificate and Director Identification Number (DIN).

Basic features of a wholly-owned Indian subsidiary

A wholly owned subsidiary is typically formed as a private, share-limited, guarantee-limited, or liability company. Establishing a private company with a wholly owned subsidiary is recommended since a private limited company can make available many exemptions under the Indian Companies Act, 2013.

Functions of a wholly-owned Indian subsidiary

The following are the functions of a wholly-owned subsidiary company in India:

1. Although the parent company has analytical and tactical control of its wholly owned subsidiaries, the real power of a subsidiary that has a long operational background abroad is usually very less compared to the parent corporation. When a company uses its employees to run its subsidiary, it becomes much easier to develop standard operating procedures rather than taking over an existing company and running it.

2. The parent company can apply for access to data and other protection guidelines for the acquired subsidiary to reduce the risk that other companies may be able to lose their intellectual property. Moreover, the use of similar financial structures, and the sharing of administrative and similar marketing programs may also lead to lower costs for all the businesses, and the parent corporation guides a wholly owned subsidiary’s invested assets.

3. Establishing a wholly owned subsidiary may cause the parent company to payoff the assets, mainly if other companies wish to bid on the same business. Building ties with all the sellers and local buyers also takes a lot of time, delaying companies’ activity. Cultural differences can become a huge problem when hiring workers from an outside affiliate.

4. The parent company always takes on all the risks of owning a subsidiary, which may increase if the local legislation is considerably different from the laws in the parent company’s country. For instance, Volkswagen AG, which is wholly owned by the Volkswagen Group of America, Inc., and its leading brands: Audi, Bentley, Bugatti, Lamborghini (wholly owned by Audi AG), and Volkswagen, are basic examples of a wholly owned subsidiary system.

Conclusion