Some criteria used by IT department to select Income Tax Scrutiny:
- Cash Deposit of Rs. 10 lakhs or more deposited in bank accounts
- Spending Rs. 2 lacs or more through credit card during the FY
- Purchase of Mutual Funds of Rs. 2 lacs or more during the FY
- Purchase or Sale of of immovable property of Rs. 30 lacs or more
- Major variation in Gross Profit/Net Profit in current FY
- Taxpayer having income in 26AS but same income not disclosed
- Huge amount of unsecured loan in Balance Sheet
- Cases involving addition in earlier assessment year of Rs. 10 lacs or more
- If taxpayer has received notice u/s 148 for escaped income
- If information is collected from departments like Sales Tax, Service Tax, etc same needs to be verified for probable tax evasion
One Person Company (OPC) -The Next Big Thing In India
The revolutionary new concept of 'One Person Company' (OPC) has been introduced by the Companies Act, 2013. OPC provides a whole new bracket of opportunities for those who look forward to starting their own ventures with a structure of organized business. OPC has been doing well in the Europe, USA and Australia. In India, this concept of OPC is set to organise the unorganised sector of proprietorship and partnership firms by better regulation and control.
A few salient features of OPC are:
- Only a Resident Indian is eligible to incorporate an OPC
- Less paper work during incorporation
- Less compliance as compared to a private limited company
- Adding another shareholder in the future is possible
- Can be formed with a minimum capital of one lac rupees
- 100 percent control over the business of the company.
In the upcoming years OPC will have a promising future for Indian Entrepreneurship. OPC will give the young businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to markets etc. all in the name of a separate legal entity.