Anti-Money Laundering: PMLA Compliance, Reporting & Defence Quick Answer: The Prevention of Money Laundering Act, 2002 (PMLA) is India’s principal anti-money laundering legislation, empowering the Enforcement Directorate (ED) to investigate, attach, and confiscate proceeds of crime linked to scheduled offences. PMLA compliance requires reporting entities — including banks, financial institutions, intermediaries, and designated non-financial businesses […]
Category Archives: Business Model
Business Model
Cyber Fraud Investigation: IT Act 2000, Digital Evidence & Section 65B Quick Answer: Cyber fraud investigation in India is governed primarily by the Information Technology Act, 2000 (IT Act), as amended in 2008, along with the Indian Penal Code (now Bharatiya Nyaya Sanhita) and the Prevention of Money Laundering Act, 2002. The IT Act provides […]
Fraud Risk Assessment Framework: COSO, ACFE & Indian Regulatory Context Quick Answer A fraud risk assessment framework is the structured methodology organisations use to identify, evaluate, and mitigate fraud exposure. The globally accepted standard combines the COSO Internal Control — Integrated Framework with the ACFE fraud triangle methodology (pressure, opportunity, rationalisation). In the Indian context, […]
Share Valuation for Income Tax: Section 56(2)(x) & Gift Tax 📌 Quick Answer: How Are Shares Taxed Under Section 56(2)(x)? When any person receives shares for nil or inadequate consideration, and the aggregate fair market value (FMV) exceeds Rs 50,000, the entire difference between FMV and consideration paid is taxed as “Income from Other Sources” […]
Related Party Fraud: Detection Techniques & Companies Act Compliance Quick Answer Related party fraud is one of the most prevalent and damaging forms of corporate fraud in India, where promoter-driven corporate structures create extensive related party networks. Detection requires forensic analysis going beyond statutory compliance — mapping the complete related party universe, testing arm’s length […]
Revenue Recognition Fraud: Ind AS 115 Red Flags & Detection Quick Answer Revenue recognition fraud is the most common form of financial statement fraud globally, and SA 240 creates a rebuttable presumption that revenue recognition is a fraud risk in every audit. Under Ind AS 115, revenue must be recognised only when performance obligations are […]
Board Meetings & AGM: Quorum, Notice, Minutes & Virtual Meetings — Complete Compliance Guide Featured Answer: Board meetings and Annual General Meetings (AGMs) are the two most fundamental governance mechanisms under the Companies Act, 2013. Every company must hold a minimum of 4 board meetings per calendar year (Section 173) with a maximum gap of […]
Company Name Change: Procedure, RNC-1, INC-24 & Timeline 📌 Quick Answer: A company registered under the Companies Act, 2013 can change its name by passing a special resolution under Section 13(1)(a), obtaining name availability through Form RNC-1 (or the SPICe+ RUN service) on the MCA portal, and filing Form INC-24 with the Registrar of Companies. […]
Section 80-IAC: 3-Year Tax Holiday for DPIIT-Recognised Startups Quick Answer Section 80-IAC of the Income Tax Act, 1961 provides a 100% deduction of profits for 3 consecutive assessment years out of the first 10 years from incorporation, to eligible startups recognised by DPIIT and certified by the Inter-Ministerial Board of Certification. The startup must be […]
Advance Tax: Due Dates, Computation & Interest for Non-Payment Quick Answer: Advance tax is the income tax paid in instalments during the financial year itself, rather than as a lump sum at the year-end. Under Sections 208 to 211 of the Income Tax Act, 1961, any person whose estimated tax liability for the year is […]