Capital Gains Tax Planning India: Shares, Property, ESOP — Section 45, 54, 112A, 111A Quick Answer Capital gains tax in India is governed by Section 45 of the Income Tax Act, 1961, with the Finance (No. 2) Act, 2024 (Budget 2024) bringing the most significant overhaul in a decade — LTCG on listed shares now […]
Category Archives: Company Law Compliance
Company Law
DTAA & International Taxation: India Treaty Network, Section 90 & 91, MLI Impact Quick Answer India’s Double Taxation Avoidance Agreements (DTAAs) under Section 90 of the Income Tax Act, 1961 form a treaty network spanning over 95 countries, providing reduced withholding tax rates, Permanent Establishment (PE) protection, and dispute resolution mechanisms for cross-border transactions. The […]
Vendor Fraud Detection: Benford’s Law & Shell Company Analysis Quick Answer Vendor fraud — fictitious suppliers, overbilling, duplicate payments, and shell company schemes — is the most financially damaging category of procurement fraud in Indian businesses. At Virtual Auditor, we deploy Benford’s Law analysis, duplicate invoice detection algorithms, vendor master data screening, and MCA/GST background […]
Share Transfer in Private Company: Procedure, Valuation & FEMA Rules Featured Answer: Share transfer in a private limited company is governed by Section 56 of the Companies Act, 2013 and executed through Form SH-4 (Share Transfer Deed). Unlike public companies, private companies have a restriction on transfer of shares built into their Articles of Association […]
EPF & ESI Registration: Applicability, Process & Employer Compliance (2026) Quick Answer EPF (Employees’ Provident Fund) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, is mandatory for every establishment employing 20 or more persons. ESI (Employees’ State Insurance) under the Employees’ State Insurance Act, 1948, is mandatory for factories with 10 or more […]
Increase Authorised Capital: EGM Resolution & ROC Filing Under Section 61 Featured Answer: A company increases its authorised share capital under Section 61(1)(a) of the Companies Act, 2013 by passing an ordinary resolution at a general meeting (EGM or AGM), provided the Articles of Association authorise such an increase. The altered Memorandum of Association is […]
GST Registration: Complete 2026 Process, Documents & Timeline 📌 Quick Answer: How to Register for GST in 2026 GST registration is mandatory for businesses whose aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category States) under CGST Section 22. The application is filed in Form GST REG-01 on the GST Portal, followed by Aadhaar […]
Quick Answer: Setting up a foreign subsidiary in India involves dual compliance — incorporation under the Companies Act, 2013 via MCA’s SPICe+ portal, and FDI compliance under FEMA NDI Rules, 2019 for receiving foreign investment. In sectors permitting 100% FDI under the automatic route (IT, manufacturing, consulting, e-commerce marketplace), no prior government approval is needed. […]
Quick Answer: A FEMA valuation certificate is a mandatory document under the FEMA (Non-Debt Instruments) Rules, 2019 that establishes the fair value of shares or other capital instruments being issued or transferred between residents and non-residents. It must be issued by a SEBI-registered Category I Merchant Banker, a Chartered Accountant, or an IBBI-registered valuer. At […]
Whistleblower Investigation: Vigil Mechanism & SEBI Compliance Quick Answer Every listed company and prescribed class of companies must establish a vigil mechanism under Companies Act, 2013, Section 177(9). When a whistleblower complaint is received, the Audit Committee must ensure independent investigation — preferably by an external forensic firm — with anti-victimisation safeguards per Section 177(10). […]