If you're a shareholder in a company, you'll need to know about the annual returns procedure. This guide will help you understand the process and requirements for filing annual returns. In addition, we will provide information on what you need to do to file your annual return, including how to prepare your return and what to expect during the filing process.
You might be wondering how you can get annual returns on the stock market, and the answer lies in your investing strategy. If you want to make a yearly return on any investment, you must invest at least annually to take advantage of the ever-changing stock market.
Before you begin thinking about how to get annual returns on your investments, it’s essential to understand what they are and how they work to make sure that your money goes into good hands and produces the best results possible. So here are a few things you need to know about getting annual returns on your stock market investments.
An Overview Of Annual Returns
As the end of the fiscal year approaches, preparing for your company’s annual return is essential. It is a form that needs to be filed with HM Revenue & Customs (HMRC), and it provides information on how much income you’ve made in a fiscal year and how much corporation tax you owe. You can submit different types of returns, depending on how much turnover you have within a year or whether your business is VAT-registered or not.
Annual returns on Form MGT-7 must be filed within 60 days of the Annual General Meeting (AGM). Form MGT 8 must be certified by a company secretary in practise for annual returns of listed companies and firms with a paid-up share capital of Rs 10 crores or more.
How To File Your Taxes?
You must file a federal tax return if you are an LLC or S-Corp. The IRS provides instructions on how to do this through their website. The MCA also has resources available if you are unsure how much your company made or how much money was withheld from your paycheck. Remember that the information needed for annual returns differs from that required for individual tax returns.
Annual E-Filing Guidelines
Annual returns are filed electronically through the IRS’s website. Every tax return is assigned a six-digit filing identification number, called an EIN, by the IRS when submitted. Once you have filed your annual returns and received your EIN, you can easily file as often as you want.
Furthermore, many programs offer free online filing services, such as Free File Fillable Forms or Free File Software, for individuals who do not qualify for them. Other filing ways could be more affordable, such as being billed in installments or purchasing software from private companies.
Submitting this form is simple. First, one must visit the IRS site and click on File e-file. All these options provide an easy way to fill out one’s annual returns without worrying about postage fees or missing any necessary forms.
ROC E-filing Process on MCA
- Visit the MCA website and click on File ROC E-filing through MCA in the left column.
- Select the ROC e-filing process for companies registered with MCA on the next page.
- Check your status as you progress through each procedure step. If a particular measure does not apply to you, skip it. For example, suppose you are filing an annual return prepared by a professional accountant or auditor. In that case, there is no need to fill out Part 2, which is about accounting records and accounts.
- You may also be required to upload an email confirmation letter from a professional accountant or auditor or make payment before proceeding further.
- The maximum fee allowed by MCA is RM5,000 (or equivalent) per company per year. A higher price will only be applicable when the company has more than 500 employees.
- You must make all filings within six months from the end of the company’s financial year. Companies failing to submit their annual returns within six months will have their license suspended pending receipt of documents and payment of fees.
- It takes two days to complete the company registration process after signing up.
- The time taken for completing paperwork ranges from four hours to one day, depending on whether you are doing it yourself or hiring someone else to do it for you.
- Remember that any form submitted electronically is accepted automatically by MCA, whereas papers submitted manually require checking before processing.
Steps Involved in the Filing of Annual Return
The process of filing an annual return involves several steps, as outlined below:
Maintenance of Book of Accounts:
Every pvt ltd company is required to maintain a Book of Accounts, not only for compliance with the law but also to keep track of financial inflows and outflows. As per the Companies Act, 2013, all companies must maintain the Book of Accounts in a specified format. It should include details of the company’s monetary transactions, assets and liabilities, sales and purchases, and other financial or business transactions.
Preparation of Company’s Financial Statements:
The financial statements of a company are prepared based on the Book of Accounts. These statements provide information about the company’s financial position, performance, and changes in financial position. They typically include the balance sheet, profit and loss account, and other statements or explanatory notes.
Conducting Audit of Financial Statements:
Within one month of company registration, the first Auditor needs to be appointed. This can be an individual qualified Chartered Accountant or a Chartered Accountant entity. The Auditor is responsible for auditing the company’s financial statements and submitting a report to the members. The report should state whether the accounts provide an accurate and fair representation of the company’s affairs.
Commencing Annual General Meeting:
An Annual General Meeting (AGM) is held every year, bringing together the shareholders of the company. As per the Companies Act, 2013, all companies except One Person Companies are required to hold an AGM each year. The AGM should be held within 15 months from the commencement of the preceding AGM. For newly incorporated companies, the first AGM must be held within 18 months from the date of incorporation, similar to the compliance requirements when you register a company.
Annual Return Filing:
Following the AGM, the company needs to file the annual return with the Registrar of Companies (ROC). The audited financial statements should be submitted to the Ministry of Corporate Affairs (MCA) in the prescribed format. The financial statements should be filed within 30 days, and the annual return within 60 days after the conclusion of the AGM.
Documents Required for Annual Filing
When filing an annual return, every company is required to include the following documents:
- Balance-Sheet documents
- Profit & Loss Account documents
- Annual Return documents
- Cost Audit Report documents, if applicable
Private companies incorporated under the Companies Act 2013 or Companies Act 1956 need specific forms to file annual returns with the Registrar of Companies (ROC) seamlessly. These forms include:
- Form 23AC: Used to file the Balance Sheet and applicable for all types of companies.
- Form 23ACA: Required to file the Profit & Loss Account.
- Form 23AC-XBRL: Used to file the Balance Sheet in XBRL format.
- Form 23ACA-XBRL: Applicable for a selected class of companies and necessary for filing the Profit & Loss Account.
- Form 20B: Required for filing the Annual Return by companies with share capital.
- Form 66: Needed to file the Compliance Certificate for companies with paid-up capital ranging from ₹ 10 lakh to ₹ 5 crore.
- Form 21A: Used for filing the Annual Return by companies without any share capital.
- Form AOC-4: Required for filing financial statements and other relevant documents for certain categories of companies.
- Form AOC4-CFS: Used for filing a statement containing key features of the consolidated financial statement of a group.
- Form AOC4-XBRL: Needed to file financial statements and other documents in XBRL format.
- Form MGT-7: Necessary for filing Annual Returns by all companies.
Due Date for Filing the Company’s Annual Return
The annual return of a company should be filed within sixty days from the date of its annual general meeting. For the first year of operation, the company must hold its annual general meeting within nine months from the closure of its accounts. In the second year and subsequent years, the annual general meeting should be conducted within six months from the end of the company’s fiscal year.
Mistakes That Could Cost You at Tax Time
You may not be aware of it, but several tax mistakes could cost you at tax time. Here are some of the most common mistakes people make and what you can do about them. Incorrectly reporting income- Self-employed people need to register their income correctly on a timely basis or risk a fine.
Failing to claim all deductions for which you’re eligible- Most taxpayers use an online system called Where’s My Refund to check if they’re suitable for any conclusions and, if they qualify, what percentage will likely be returned in a refund.
Conclusion
When filing taxes, you might wonder where you can get help with your taxes. If you need help with your taxes, a professional tax preparer is the best place to get that help. With online tax preparation software, you can file your taxes on your own and bring peace of mind. But if you’re looking for personalized attention to any questions or concerns about your taxes and still want them filed quickly, you should consider Vakilsearch.
Vakilsearch is a leading legal service provider in India. They provide services for Annual Returns, Company Law, Criminal Law, and more. Their team of experts is well-versed in all the latest developments of law, and they are always on top of the latest legislations that come into effect. In addition, they are the only company in India offering 24/7 live chat and phone support. Vakilsearch also has an online chat option for those who prefer it.
They have a team of over 1,000 lawyers and can offer expert advice on any legal matter you may have. It means you can get your annual return done at a fraction of the cost it would take to do it yourself or with another company. The professional team at Vakilsearch will take care of all the paperwork for you and ensure everything is done. So, there are no issues with your tax return come tax season. Do check our website today!
