Mission Financial Stability for Statutory Compliance of GST, Income Tax, ROC and Financial Planning

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Showing posts from May, 2020

Why should I make more SIP investment when my existing SIP investment is making loss?

Ujjwal Mukhopadhyay F S Mission - 5/25/2020 11:59:00 am

1. What is the specified period of loss here? 1.1. Let us take the specified period is December 2007 to March 2009. 2. Why this is loss making period? Since the NAV is falling, in the taken period the NAV has fallen from ₹ 301 to ₹ 117. 3. Why this period is significant for investment? 3.1. In a falling market SIP manages to receive more units. 3.2. For example SIP of ₹ 5,000.00 in 12 December 2007 was allotted 16.59 units, when the NAV was ₹ 301.24 3.3 On the other hand the same SIP of ₹ 5,000 was managed to receive 42.67 units, when the NAV was ₹ 117.16 as on 22 March 2009. 3.4. Hence more units were received on 22 March 2009 on same amount of SIP investment of ₹ 5,000.00 than that of received in 12 December 2007. 4. How we can manage to get more return on investment in a falling market? 4.1. In a falling market if we decided to stop SIP we can manage our valuation as follows: 4.1.1. We stopped SIP after 12 December 2007, and hence as on February 2020, our investment ...

Why should I continue my SIP when it is showing loss on SIP investment so far I made

Ujjwal Mukhopadhyay F S Mission - 5/25/2020 11:58:00 am

1.1) SIP invested on 12 December 2007 Rs. 5000.00 1.2) 16.59 Units are alloted on SIP investment made on 12 December 2007, i.e.₹ 5,000.00 devided by ₹ 301.24 being NAV as on the date of investment. 1.3) Valuation as on 22 March 2009 of my such investment made on 12 December 2007 will be detarmined as, 16.59 units multiplied by NAV as on 22 March 2009 , as follows: 16.59 unites X Rs. 117.16 (NAV as on 22 March 2009: ) = Rs. 1,943.68 1.4) Such Valuation of my investment as on 10 May 2020 of those 16.59 units will be determined as multiplied by Rs. 585.45 ( NAV as on 10 May 2020) = Rs. 9,712.61 1.5) So my return on investment will be 4,712.61 i.e. ( ₹ 9,712.61-₹ 5,000) 1.6) If I consider the return as on 22 February 2020, at the NAV of ₹ 791.92 such valuation will be: i) 16.59 units X ₹ 791.92 = ₹ 13,137.92 ii) the return will be ₹ 8,137.92 i.e. ( ₹ 13,137.92 - ₹ 5,000.00...

Who are required to file Income Tax Return with DSC (Digital Signature Certificate)

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 01:24:00 pm

Every following taxpayers person is required to file 1. Individual or HUF (Hindu Undivided Family) who is subject to tax audit under section 44AB 2. A Company registered Companies Act. 3. A Political Party. 4. Person who is filing return in ITR 5 Changes by financ Act 2018 in filing income tax return from F. Y. ( Financial Year) 2018-19 1. Objective of the changes in form to turn the ITR into Scrutiny forms. 2. Primary and easy flag of doubtful returns. 3. Forms and it's relationship with nature of income. 3.1 ITR 1 to 4 having income or loss from one house property. 3.2 ITR 2/3 for income or loss from more than one house property. 3.3. ITR 2/3 in case of brought forward or carried forward losses. 3.4 ITR 2/3 Capital gain or loss on sale of investment / property. 4. ITR 2/3 income from other source at special rate 5. ITR 2/3 divided income exceeds ₹ 10 lakhs. 6. ITR 2/3 agricultural income exceeds ₹ 5,000.00 7. ITR 2/3 total income exceeds ₹ 50 lakhs. 8. ITR...

How rating downgrade effects Debt Fund of Mutual fund Industry

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 01:19:00 pm

Four names which become the nightmare are IL&FS, DHFL, Reliance Anil Dhirubhai Ambani Group(ADAG) and Zee / Essel. What is particularly noticeable that in corporate bond instruments not only the ability to repay the bond is important but also the willingness of repayment is also important , hence subjective factors are also present there. Another important point is no cap has now been provided by regulator on promoter's borrowing capacity, which also effects the financial ability of the borrower's. 1. Role of credit rating agencies 1.1 Credit rating agencies generally delay in downgrading funds which itself creates problems, such action puts question mark on the credibility of credit rating. Now regulatory authority has started scrutiny. 2. Mutual fund schemes are affected 2.1 Downgrading of funds from AA+ ( high-grade investment) to D (Investment in default) 2.2 Since October 2018 credit rating agencies have downgraded 319 bonds of 63 issuers, which is more than the total...

GST update GST Annual Return, TDS on GST, Registration of GST

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 12:09:00 pm

28th meeting og GST Council July 2018 1. Quarterly return for dealers having turn over of rs. 5 crore 2. Composition scheme is available to service se 3. Minor mistake in generation of e-way bill Circular No. 64/38/2018 dt. 14 Sep 2018 - penalty of rs. 1,000.00 will be lavied for deletion of eway bill for mistakes like: -name of the consignor/consignee -error in PIN code -error in address -error in document number -vehicle number 4. Audit report and Reconciliation statement: Notification No. 49/2018 dated 13 Sep 2018 GST (10th ammendment rules 2018) 4.1 FORM NGSTR-9C 4.2 'Part A' Reconciliation of turnover and Taxes 4.2.1 Basic details of suppliers, Reconciliation of turnover, tax paid, input tax credit 4.3 'Part B' Auditors' certificate. 5.TDS is not applicable for supply by one PSU to ano...

ROC Matters relating to Appointment of Directors, Increase of Share Capital, Board Meeting, Audit Committee, Commencement of business

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 12:06:00 pm

1. Appointment of first auditor 139 (6) Within 30 days of incorporation of company the board shall appoint by board mating and inform ROC by ADT 1 within 15 days of board meeting. The tenure shall be until the conclusion of 1st AGM. 2. the appointment of subsequent auditor for 5 years us 139 (1) 3. Increase of paid up capital form PAS3 4. Press release dated 11 September 2018 amendment of the companies (prospectus and allotment of securities) Rules 2014, issue of securities only in demat form and de-materialization of all existing securities in accordance to the provision of Depositors Act 1996. 5. Guidance on "Audit Committee" by companies Act. 2013. *Public companies paid up capital 10 cr. / turnover 100 cr. / outstanding loan, debenture, deposit 50 cr. 6. Rules on Board meetings *Companies (Meeting of Board and its Powers) Rules, 2014 7. Commencement of business: Companies (Amendment) Ordinance 2018 relating Section 10A...

Mutual fund Investment to meet Different Financial Goals, Retirement Planning, Purchase of House Building, Income Generation Planning, Children Education Planning, Purchase of car

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 11:57:00 am

Retirement goal: 1. With average life expectancy of 90 years one has to manage 30 years of retired life 2. When 35 years is one's average professional/ job carrier. 3. Simple arithmetic says that with the habit of investing Rs. 5,000.00 p.m. at early age of 25 years for a period of 35 years one can manage a corpus of 3.24 crore at a reasonable return of 12% CAGR 4. Due to deferring such habit the corpus suffers a lot Corpus becomes 95 Lakhs in 25 years Corpus becomes 25 Lakhs in 15 years 5. Alternatively when the percentage changes from 12% to 8% the change in corpus also becomes remarkable: Corpus becomes 1.15 crore in 35 years Corpus becomes 0.48 Lakhs in 25 years Corpus becomes 0.17 Lakhs in 15 years So to balance: 1. One has to chose equity based portfolio 2. Has to start early 3. Needs to stay long Residential Accommodation Planning: To manage the down payment one may consider good Multicap Fund when the time horizon is 5 years a...

Recent Change 2017 in Categorization of Mutual Fund By SEBI

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 11:11:00 am

In October 2017 SEBI announced the new rule of categorization: 1. 5 key group i. Equity 9 types ii. Debt 17 types v . Others (Fund of funds and index products) iii. Hybrid 7 types iv. Solution oriented One scheme per category and no duplication with similar objectives or portfolios. 36 max category the SEBI has fixed now New norm is not applicable to close end scheme. 4. Max limit of numbers of funds by fund house and restrictions in name 2. As on May 2018 total number of Mutual Funds are 2043 and Plan option and variants 9680 5. There is " solution oriented " funds namely retirement fund and children's fund 8. Mid cap next 150 stocks (so to stay away top 100 ( large cap) and small caps ( below the top 250)) and invest at least 65% of there portfolio in the 150 stocks and make up the emerging blue chips in the market hence the can now devote the remaining 35% to either mid or large cap...

Recent Changes from Financial Year 2018-19 in computationof Long Term Capital Gain on Equity and Equity oriented and Equity oriented fund

Ujjwal Mukhopadhyay F S Mission - 5/16/2020 11:07:00 am

The cost of acquisitions of equity and equity oriented fund acquired by the taxpayer before 1st February 2018, shall be deemed to be the higher of following: a) The actual cost of acquisition of such asset; or b) Fair market value or actual sales consideration whichever is lower. The Fair market value of equity share shall mean its highest price quoted on the stock exchange on January 31, 2018. While in case of units which are not listed on recognized stock exchange, the net asset value of such units as on January 31, 2018 shall be deemed to be its FMV. some examples.

Filing of Income Tax Return and related questions, Self Assessment Tax, Setoff and Carry Forward of loss, Belated Income Tax Return, IT Refund,Time limit, Late Fee, Revised Return, Defective Return

Ujjwal Mukhopadhyay F S Mission - 5/15/2020 11:13:00 pm

FILING OF ITR 1. What is Self Assessment Tax? Tax is required to be paid includes • Normal Tax • interest us 234 A,B,C • Fee us 234F After adjustment of • Advance Tax • TDS • Relief • MAT credit 2. What will be the consequences, If payment of tax as above is less than the tax and interest as is required to be paid? The amount so paid shall be adjusted against interest and fee first. The assessee will be treated as assessee in default and he is required to be paid interest and penalty us 220 and 221. SETOFF AND CARRY FORWARD 1. Can loss under BUSINESS and CAPITAL GAIN be setoff and carried forward even no ITR is filled? Loss under the head BUSINESS or PROFESSION and CAPITAL GAINS can be carried forward and setoff only if ITR is filed us 139(3). 2. Can loss under BUSINESS and CAPITAL GAIN be setoff and carried forward if ITR is filled after due date? No, ITR in case of loss is required to be filled within the due date. 3. Can setoff of loss is allowed without filing ITR?...

Investment in Gold, Gold ETF, Gold Fund, Sovereign Gold Bond to protect portfolio in events affecting globally like a pandemic caused by COVID 19

Ujjwal Mukhopadhyay F S Mission - 5/15/2020 08:01:00 pm

In past one year gold has delivered 50% return . As of recent gold fund assets have spiked, after many years of non satisfactory return. Gold as a wealth creator. Comparison of 15 years rolling return of gold and multi cap fund reveals that equity fund consistently outperformed gold by a wide margin. The only exception is in a recent phase, i.e. 2020s first quarter, when there is a sharp fall in equity market is noticed , due to the global crisis of pandemic caused by COVID-19. Gold shines when equity loses luster . Rather than the much known say gold is safe haven , or gold acts as protector of value. It is noticed that almost in every case is gold shines. When equity loses luster . So, we can see that gold can act as a as an instrument against equity validity. comparative portfolio building One portfolio is build with 100% equity . Another portfolio is built with 80% equity and 20% gold . The third variety is 80% equity and 20% fixed income . Now, equity, wi...

COVID 19 Relief Economic package focuses extensively on supporting MSMEs a comprehensive relief package of Rs 20 lakh Crore as announced by Prime Minister Mr. Narendra Modi on 12 May 2020

Ujjwal Mukhopadhyay F S Mission - 5/13/2020 06:11:00 pm

COVID 19 Economic Relief Package Finance Minister Nirmala Sitharaman has on 13 May 2020 detailed about stimulus package announced by PM Narendra Modi of Rs 20 lakh crore or 10 per cent of the Gross Domestic Product (GDP). Extensive support to MSME This package will exclusively have attention on MSME sector. Prime Minister announced a comprehensive relief package of rupees 20 crore, which is about 10% of the GDP of India. Six months extension to construction, Goods and service sector contract contractors will be allowed. Government announces liquidity injection of puppies, 90,000 crore. Which is one time provision for infusion of money against their receivables. Government also announces rupees 40,000 crore liquidity infusion to a partial credit guarantee scheme for NBFCs. The first 20% loss will be borne by the Government of India, who has guaranteed in this case. Government announces Rs. 30,000, crore Special liquidity s...

The Constitution (101st Amendment Act) 2016 for implementation of GST in India

Ujjwal Mukhopadhyay F S Mission - 5/12/2020 12:37:00 pm

1. The Constitution (101 st Amendment Act) 2016. 1.1. It is containing 20 Sections. 1.2. Article 279 A , a newly inserted Article for setting up GST Council Note: 1. The same is notified on 12 September 2016 Note: 2. Remaining provision is notified on 16 September 2016 1.3. Compensation to state for loss of revenue by The Central Government for a period of 5 Years on recommendation of Council. 1.4. Formation of Joint forum by State and Central Govt. i.e. The GST Council. Note: 1. Provision comes into effect from 12 September 2020. Note: 2. Council is constituted on 15 September 2020. 1.5. Finance Minister is the chairman of the council and other ministers of States are members. 1.6. Council makes recommendation to the State Govt. on different issues. 1.7. Declared Goods o...