This document provides an overview of accounting, budgeting, taxation and compliance for businesses. It discusses preparing annual budgets and comparing them to actuals to aid in planning. It covers income tax slabs, deductions, capital gains and TDS rates. Profits are computed for different businesses. Compliance requirements like registration, returns and due dates are outlined for VAT, service tax and professional tax.

1. Prepared byPrepared by
Prashant Apraj ( B.Com, FCA )( B.Com, FCA )( B.Com, FCA )( B.Com, FCA )

2. Accounting
Budgeting
Income TaxIncome Tax
MVAT
Service Tax
Profession Tax

3. Identifies
Records
Accounting
is a
System that
CommunicatesRelevant
Reliable
Comparable
Information
that is
to help users make better
decisions.

4. Why Budget?

5. Long Term, Mid Term & Short Term Goals
Annual Budget – Quarter wise
Budgeted vs. ActualBudgeted vs. Actual
Incorporate Business Strategy
Helps in Commercial Negotiations and Deals

6. ParticularsParticularsParticularsParticulars YearlyYearlyYearlyYearly Q1Q1Q1Q1 Q2Q2Q2Q2 Q3Q3Q3Q3 Q4Q4Q4Q4
Sales / Service
Direct Cost
(Variable Exps)
Material
Wages & Salary
Direct ExpensesDirect Expenses
Total Direct Cost
Contribution /
Gross Margin
Indirect Cost
(Fixed Expenses)
Net Profit

7. ManufacturingManufacturingManufacturingManufacturing TradingTradingTradingTrading ServiceServiceServiceService Works contractWorks contractWorks contractWorks contract
Excise Vat / CST / PT Service Tax Service Tax
Customs Income Tax TDS VAT / CST / PT
VAT / CST /PT TDS Income Tax TDS
Income Tax Income Tax
TDS

8. Assessment year & Previous Year
Slab Rates Of Income Tax
Heads Of Income
Deductions under Section 80C
Tax Audit u/s 44AB
Income Tax accounts u/s/44AA

9. Meaning of Assessment Year (AY) & Previous
Year (PY):-
1. Assessment Year-It Means the Period of 12
months commencing on the first day of April everymonths commencing on the first day of April every
year
2. Previous Year-It is the Financial year Preceding
Assessment year.

11. Slab Rates Of Income Tax for A.Y.2016-17
(Fy 2015-2016)
For Individuals below 60 years of Age & HUF
Income tax slabsIncome tax slabsIncome tax slabsIncome tax slabs IncomeIncomeIncomeIncome Tax RatesTax RatesTax RatesTax Rates
Upto Rs.2,50,000 Nil
2,50,000 To Rs.5,00,000 10%
Rs.5,00,000 To Rs.10,00,000 20%
Rs.10,00,000 & Above 30%

12. Rates Of Income Tax for A.Y.2016-17
For Company/Partnership Firm/LLP:-
• Flat Rate @ 30% on the Total Income.
Surcharge @7% in case total Income exceeds Rs.1 crore in• Surcharge @7% in case total Income exceeds Rs.1 crore in
case of Domestic co.
• Education & secondary education cess @ 3% on tax.

15. Income From Salary
Income from Business/Profession
Income from House PropertyIncome from House Property
Capital Gains
Income from other sources

16. Business Deductions u/s 30 To 36.
Allowable Deductions :
1. Interest on Borrowed capital[Sec 36(1)(iii)]
2. Bad Debts[Sec36(1)(vii)]2. Bad Debts[Sec36(1)(vii)]
Any Expenditure not covered by sec 30 to 36 is deductible
u/s 37

17. Computation:-
ParticularsParticularsParticularsParticulars RentedRentedRentedRented
PropertyPropertyPropertyProperty
Self OccupiedSelf OccupiedSelf OccupiedSelf Occupied
PropertyPropertyPropertyProperty
Gross Annual Value Xxx Nil
Less: Muncipal Taxes Xxx Nil
Net Annual Value Xxx Nil
Less: Deduction u/s 24
• Standard Deduction (30% of
Net Annual Value)
• Interest on Borrowed capital
Xxx
Xxx
Nil
(2,00,000)
Income From House Property Xxx (2,00,000)

18. Refer Excel sheet

19. Arise on Sale of Capital Assets.
Type of CapitalType of CapitalType of CapitalType of Capital
GainGainGainGain
Short TermShort TermShort TermShort Term Long TermLong TermLong TermLong Term
Exception – Equity Shares or Units of UTI or Equity Mutual Fund
– Period of holding is 1 Year.
Short TermShort TermShort TermShort Term
Capital GainCapital GainCapital GainCapital Gain
Long TermLong TermLong TermLong Term
Capital GainCapital GainCapital GainCapital Gain
SaleSaleSaleSale withinwithinwithinwithin 3333
YearsYearsYearsYears
SaleSaleSaleSale AfterAfterAfterAfter 3333
YearsYearsYearsYears

20. Computation :-
ParticularsParticularsParticularsParticulars AmountAmountAmountAmount
Sale consideration
Less: Transfer Expenses
XX
XX
Net Consideration XX
Less:Cost of Acquisition(or
Indexed COA in case of LTCA)
Less:Cost of Improvement
XX
XX
Less: Exemptions XX
Capital Gains (Short / Long Term) XX

21. LTCG on Sale of Equity / Equity Mutual Fund is
exempt u/s 10(38)
STCG on Sale of Equity/Equity Mutual Fund is
taxable @ 15%.
Debt Mutual Fund – Period of Holding 3 Years

22. Refer Excel Sheet

23. Receipts without consideration [sec 56(2)(vii)]:- GIFTS
Money / Property below – 50,000 – Non Taxable
Money / Property exceeding – 50,000 – Taxable
Money / Property – Received from Relative – Non TaxableMoney / Property – Received from Relative – Non Taxable
Money / Property – Received on Marriage – Non Taxable
Money / Property – Recd by Will / Inheritance – Non Taxable

24. Nature of Payment:-
1. Life Insurance Premium
2. PPF, NSC, Mutual Fund, UTI
3. Tution Fees
4. Housing Loan Instalment (Principal)
5. FD for 5 years or more with scheduled bank/Post office
6. Subscription to notified bonds of NABARD
7. Deposit in Senior citizen Saving Scheme
8. Investment in Debenture & equity shares of public co.

25. Following Persons are Required to get their Accounts Audited
compulsorily by a chartered Accountant
Different TaxpayersDifferent TaxpayersDifferent TaxpayersDifferent Taxpayers When they are covered u/s 44ABWhen they are covered u/s 44ABWhen they are covered u/s 44ABWhen they are covered u/s 44AB
Person carrying on Business If Total sales , Turnover, Gross receipts for P.Y.Person carrying on Business If Total sales , Turnover, Gross receipts for P.Y.
exceeds Rs.1crore.
Peron carrying on Profession If Gross Receipts for P.Y. exceeds Rs.25 Lakhs
Person covered u/s 44 AD If he claims that Profits are lower than profits
computed under these sections.

26. TDS Rates chart
sectionsectionsectionsection Nature of PaymentNature of PaymentNature of PaymentNature of Payment Payment exceedingPayment exceedingPayment exceedingPayment exceeding
RsRsRsRs....
Rate of TDS(in %)Rate of TDS(in %)Rate of TDS(in %)Rate of TDS(in %)
194A Interest other than
'Interest on securities'
10,000 10
194C Payment to
Contractors/Sub
contractor
Rs. 30000.
Rs. 100,000 for
aggregate
• For I & HUF 1%
• Others 2%
Contd.
contractor aggregate
194I • Rent of Land,
Building /Furniture
• Plant & Machinery
180000 • 10
• 2
194J Professional Fees 30000 10

27. As per sec 285BA of the I.T. Act,1961,specified entities are required to furnish AIR
in respect of specified financial transactions registered by them during F.y.
Sr.Sr.Sr.Sr.
no.no.no.no.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction
1 A Banking company transaction of cash Deposits of >=Rs.10
Lakh in SB A/c of a person (Current A/c 50 Lakhs)
2 Any other company issuing credit card & raised bill of
>=Rs.10Lakh (Cash Payment – 1 Lakh)
3 A Trustee of a Mutual Fund receives Amount of >=Rs.2 Lakh
4 A Company or institution issuing bonds or debentures receives
amount of >=10 Lakh
5 A Company issuing shares through a public or rights issue
receives amount of >=Rs.10 Lakh
6 Registrar or Sub-Registrar receives amount of >=Rs.30 Lakh in
respect of purchase & sale of immovable property

28. Obtaining a Business Loan (OD / CC), Housing Loan,
Car Loan or any other Personal Loan
Obtaining Govt. Tenders, Registration on Panel
Obtaining visa for Immigration to outside India.Obtaining visa for Immigration to outside India.
Accidental claim in Third Party Insurance.
Buying a Insurance Policy with Higher Cover
To avoid Non-Compliance notice from Income Tax

29. Registration
Computation
Returns
Audit
Due Date of Payment

30. Registration-Turnover Limit (w.e.f.1-4-2005)
categorycategorycategorycategory Total T.O.Total T.O.Total T.O.Total T.O. ofofofof
sales orsales orsales orsales or
Purchase toPurchase toPurchase toPurchase to
exceedexceedexceedexceed
T.O. ofT.O. ofT.O. ofT.O. of salessalessalessales
or purchasesor purchasesor purchasesor purchases
of taxableof taxableof taxableof taxable
goods not lessgoods not lessgoods not lessgoods not less
thanthanthanthan
Other conditionsOther conditionsOther conditionsOther conditions
Importer Rs.1,00,000 Rs.10,000 No minimum
Amount is
PrescribedPrescribed
All other
dealers
Rs.10,00,000 Rs.10,000 NIL
Voluntary
Registration
NIL NIL Payment of
Rs.5000 as fees &
Rs.25,000 as
Deposit

31. Computation Of MVAT
ParticularsParticularsParticularsParticulars AmountAmountAmountAmount
VAT Collected on Sales
@ 12.5%
@ 8 %
@ 5 %
XX
XX
XX@ 5 %
Total Vat on Sales
Less :VAT Paid On Purchases
@12.5% / 5% / 8%
XX
XXX
XXX
MVAT Payable XXX

32. PeriodicityPeriodicityPeriodicityPeriodicity Due DateDue DateDue DateDue Date
Monthly 21st Day from the end of the month
Quarterly 21st Day from the end of the quarter

33. Total Turnover of Sales Or Purchase exceeds Rs.1crore.
Due Date for VAT AUDIT-15th January
Form Applicable-Form 704
Penalty for non filing of form 704 on due Date
0.1% of Turnover of Sales

34. Registration
Applicability:-Service Provider whose value of services exceeds Rs.9 Lakhs
Form:-ST-1
Time Limit:-Within 30 days from the date of commencement of Business.
Registration Certificate will be granted in form ST-2
Penalty for Late Registration:-Maximum Rs.10,000

35. Requirements:-
It should be an ‘Activity’
Should be carried out by one person for anotherShould be carried out by one person for another
Carried out for Consideration.
It includes Declared Services

36. Periodicity
Half yearHalf yearHalf yearHalf year Due DateDue DateDue DateDue Date
April-September. 25th October
October - March 25th April
Form:-ST-3
E-filing of Returns is mandatory to all Assesses.

37. Payment of Tax
AssesseeAssesseeAssesseeAssessee DueDueDueDue DateDateDateDate
i) Individual, Firm,
LLP
• 6th of the next month from
the end of the Qtr.
• 31st March. In case of Qtr
E-Payment of tax is mandatory.
• 31 March. In case of Qtr
ending March.
ii) Other than i)
above (Limited
Company –
PVT/Public/OPC)
• 6th of the next month from
the end of the month
• 31st March. For month of
March.

38. Failure to pay service tax on due date
DelayDelayDelayDelay InterestInterestInterestInterest
Upto 6 months 18%
Upto 1 year 18% for 1st 6 months &
24% for delay beyond 6 months
If Turnover does not exceed Rs.60 Lakh in any F. y. then Rate of
Interest shall be reduce by 3% p.a. i.e . 15%, 21% & 27%
24% for delay beyond 6 months
>1 Year 18% for 1st 6 months,
24% for next 6 months & 30% for delay
beyond 1 year

39. Late fee & Penalty for filing Late return
DelayDelayDelayDelay Late feeLate feeLate feeLate fee
Upto 15 days Rs.500
Beyond 15 days & upto 30 days Rs.1000
Delay beyond 30 days Rs.1000 + Rs.100 per
Maximum Penalty cannot exceed Rs.20,000
Delay beyond 30 days Rs.1000 + Rs.100 per
day of delay beyond
30 days, from 31st
day onwards

40. PTRC
Periodicity & Due Dates of Return & Payment
Tax LiabilityTax LiabilityTax LiabilityTax Liability PeriodicityPeriodicityPeriodicityPeriodicity Months of Salary toMonths of Salary toMonths of Salary toMonths of Salary to
be Coveredbe Coveredbe Coveredbe Covered
Due DateDue DateDue DateDue Date
< Rs.50000 Annual March of previous year 31st March< Rs.50000
in p. y.
Annual March of previous year
& April to February of
current year
31 March
>=Rs.50000 in P.y. Monthly Salary of previous month End of month for
which return is filed
In case of 1st year
of registration
Monthly Salary of previous month End of month for
which return is filed

41. Rates of Tax
Sr.noSr.noSr.noSr.no Class of PersonsClass of PersonsClass of PersonsClass of Persons Rate of TaxRate of TaxRate of TaxRate of Tax
1. Salary & wage earner whose salary
• <=Rs.7500 • Nil
• >7500 but <= Rs.10000
• > Rs.10000
• Rs.175 per month
• Rs.2500 p.a.
a) Rs.200 per month
except for feb.
b) Rs.300 for feb.
2. Proprietor/Partner/Director Rs.2500 P.a.

42. Current A/c of Business
At least 1/2 Business Proofs
All Returns to be filed on TimeAll Returns to be filed on Time
Credit Policy – For Payments
More Tax Compliance Business Unit

44. Thank You.

45. APRAJ & ASSOCIATES
Chartered Accountants
Shop No. 3, S-19, Shree Swaroop Niketan CHS.,
Hanuman Tekdi, Ashokvan, Borivali (East)
Mumbai – 400 066. Tel: 022-28969557,Mumbai – 400 066. Tel: 022-28969557,
Mobile 9820992331,
Email us at :- caprashant2009@gmail.com
Website:- www.aprajandassociates.com