Form 10E Filing Procedure

What is Form 10E?

Form 10E is a form to be submitted on Income Tax e-filing portal to claim relief under Section 89 for any salary arrears or advance salary received during a financial year. It gives relief to the taxpayer arising due to the timing difference of the receipt of the income. Tax Rates keep on changing every financial year and therefore the income shall be taxed at the rate applicable when it was earned and not at the rate when it is received. The Form 10E filing procedure is to be carried out on the new e-Filing portal.

Who shall file Form 10E?

An individual has to submit Form 10E if he/she has received the following income during any previous financial year:

  • Arrears of Salary
  • Family Pension in arrears
  • Advance Salary
  • Gratuity
  • Compensation on termination of employment

Form 10E Filing Procedure on e-Filing Portal

Follow the procedure mentioned below to complete the Form 10E filing process

  1. Login to your account

    Login to your e-filing account using valid username and password

  2. File Income Tax Returns

    On your Dashboard, click e-File > Income tax forms > File Income Tax Forms

  3. Search Form 10E

    On the File Income Tax Forms page, select Form 10E. Alternatively, enter Form 10E in the search box to file the form

  4. Assessment Year

    Select the appropriate assessment year and click on continue

  5. Required Sections

    Click on lets get started and you will move to the next page. Select the applicable items regarding particulars of income and click on continue

  6. Preview details

    After entering all the details, click on the preview option

  7. e-Verify the Form

    On the next page, click on the proceed to e-verify option. After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgement Receipt Number. An email confirming successful submission of your form is sent to the email ID and mobile number registered with the e-Filing portal

Ask an Expert (Income Tax)
Need help to file Form 10E? Talk to an expert
[Rated 4.8 stars by customers like you]
Ask an Expert (Income Tax)
Need help to file Form 10E? Talk to an expert
[Rated 4.8 stars by customers like you]

Consequences of not filing Form 10E

  • Relief under Section 89 claimed in income tax return will be disallowed by the IT Department
  • Receive a notice from IT Department for such non-compliance

FAQs

When to file Form 10E?

Form 10E is required to be filed before filing ITR to claim the relief mentioned in the return.

What if Form 10E not filed?

In case of Form 10E is not filed, relief will be disallowed and you may receive a notice from the Income Tax Department for such non-compliance.

How do I get my 10e form online?

-Open the Income Tax Department Website and Log on using your PAN and Password
-From “E-File” select Income Tax Forms from the menu.
-Select “Form 10E”- Click on Form for Relief u/s 89 from the drop-down menu. Select your relevant Assessment Year and Submission mode.
-Under the Form 10E heading, you can view your details like Name, PAN, Address, etc. Select “Residential Status” from the drop-down menu.
-Select the relevant Annexure.
-Verify the Form. Click on “Review and Submit”.
-You can download the PDF copy. If need be, you can also edit to click on “Edit” to make changes to the form.

Where do I send my 10E income tax form?

Form 10E has to be filed online via the Income Tax Department website. However, Taxpayers who claimed relief in the previous FY but were not able to file the Form 10E receive a notice from the Income Tax Department for non-compliance.

Board Resolution: Change in Share Capital

“Authorized Capital”, is the maximum amount of share capital that a company can issue to its members/ shareholders. Generally, companies register with a small authorized capital and increase as per the requirements or conditions imposed by the lender/investors, customers. Company has to convene a Board Meeting and pass the resolution for change in share capital and also make necessary changes in MOA/AOA.

Here are the 2 most common reasons for change in Authorised Share Capital

  • To raise the funds to expand the Business.
  • To repay the Debts of the Company.

A company has to convene the board meeting for enabling the board to call for an extraordinary general meeting (if not passed at the Annual General Meeting) to get approval from the shareholders for increasing the authorized share capital.

Pass the resolutions for increasing the authorised share capital of the company.

Draft Board Resolution
Download Board Resolution for Increase in Authorised Share Capital
Download
Draft Board Resolution
Download Board Resolution for Increase in Authorised Share Capital
Download

Once the Board Resolution for an Increase in authorised share capital is passed, necessary alterations are also to be made in MOA / AOA.

Memorandum of Association and Articles of Association are the 2 public documents which have information about the Company and the Objectives of the Company. They should always be updated as and when any change is made in the Company affairs.

FAQs

How many days prior notice is required to be given for the Board Meeting?

Notice for the Board Meeting shall be given at least 7 days prior to the date of the Board Meeting.

Whether stamp duty is paid on an increase in share capital?

Yes, Stamp Duty is payable on the increase in Authorised capital and is applicable as per the Stamp Act/Rules of concerned State/Union Territory

.

Board Meeting: Alter MOA / AOA

Memorandum of Association and Articles of Association are the 2 most important documents of a Company prepared at the time of establishment. These 2 documents have different clauses with all the important & confidential information about the Company. There are various situations under which MOA / AOA needs to be altered. A company has to call EGM and pass a special resolution to alter MOA / AOA in accordance with Section 13 of the Companies Act 2013.

MOA contains the following clauses:

  • Name of the Company
  • Registered Address of the Company
  • Main objects of the Company
  • Authorised Share capital of the Company

Situations under which MOA / AOA needs to be altered:

  • Change in the name of the Company.
  • Change of registered office of the Company.
  • Change in Object Clause of the company.
  • Change in the authorized capital of the company.
  • Change in the liability of the members of the company.

Procedure for Alteration in MOA / AOA

Change in MOA has to be made in accordance with the provisions of Section 13 of the Companies Act, 2013.

  • Hold a board meeting to recommend the proposal for members’ consideration by passing a special resolution.
  • Give notice of an Extraordinary general meeting in which special resolution is to be passed. The notice shall specify the place, date, day and time of the meeting and contain a statement on the business to be transacted at the EGM.
  • Since alteration of the memorandum is a special business, therefore, an explanatory statement u/s 102 of the Companies Act’2013 shall be accompanied with the notice of the meeting in which special resolution is to be passed.
  • The company is required to file special resolution passed by shareholders for the alteration of memorandum of association with the Registrar of Companies. Form MGT-14 has to be filed on MCA portal for registration of special resolution within 30 days of passing of the resolution.
  • Alteration made under section 13 shall not have any effect until it has been registered.
Meeting Minutes
Download Sample Board Meeting Minutes for Alteration in MOA
Download
Meeting Minutes
Download Sample Board Meeting Minutes for Alteration in MOA
Download

FAQs

Is MOA a public document?

Memorandum of Association (MOA) is the supreme public document which contains all those information that are required for the company at the time of incorporation.

What is the difference between MOA and AOA?

Memorandum of Association‘ abbreviated as MOA, is the root document of the company, which contains all the basic details about the company. On the other hand, ‘Articles of Association‘ shortly known as AOA, is a document containing all the rules and regulations designed by the company.

3. Can we change the Main Objects of the Company without changing the name of the Company?

Yes, Main Objects of the Company can be changed without changing the name of the Company after complying with the provisions of Section 13 of the Companies Act, 2013.

Reprocess the ITR : e-Filing portal

Once you file an income tax return, the IT Department processes your return and sends an Intimation comparing the figures as reported in the ITR and as computed by the IT Department.

There are 2 possibilities in the Intimation :

  • Computation of Income & Tax as reported in ITR match with figures computed by the IT department.
  • There is a mismatch in the figures in ITR filed and figures computed by the IT department.

Types of Mismatch in Intimation

  • Mismatch in Tax credit.
  • Advance Tax mismatch.
  • Clerical error
  • Higher Demand of Tax than reported.
  • Less Refund of Tax than reported.

If the assessee does not agree to some clerical/arithmetical error in intimation issued, then assessee can opt for Reprocessing of his ITR form on Income Tax e-filing portal

Steps to Reprocess the ITR

Follow the below given steps to Reprocess ITR:

  1. Go to Income Tax E-filing Portal

    Login using valid credentials on Income Tax e-Filing portal

  2. Click on e-file on the Dashboard

    And select “Rectification” from the drop-down list.

  3. Select the Order/Intimation from the drop-down list you want Reprocess

    And click on “Continue”.

  4. Select “Only Reprocess the Return”

    From the drop-down list in Request Type.

  5. Click on “Submit” and your request will be submitted.

    On successful submission, a return will be sent to CPC for “Reprocessing”.

Need Help - Connect to an Expert
[Rated 4.8 stars by customers like you]
Need Help - Connect to an Expert
[Rated 4.8 stars by customers like you]

FAQs

When can Request for “Reprocessing the Return” can be submitted?

Rectification Request for Reprocessing ITR can be filed only for the returns which are already processed by the CPC, Bangalore.

Can rectification request be filed online?

Yes, rectification request must be filed online on e-filing portal mandatorily.

How many times a request can be submitted for any particular ITR?

Rectification Request can be submitted only once for any particular ITR.

What is Due Date for filing the Rectification Request?

The due date for filing rectification request is 31st March of the relevant assessment year of the period for which ITR is filed.

Board Meeting: Increase in Share Capital

“Authorized Capital”, is the maximum amount of share capital that a company can issue to its members/ shareholders. Here are the 2 most common reasons for Increase in Authorised Share Capital

  • To raise the funds to expand the Business.
  • To repay the Debts of the Company.

Generally, companies register with a small authorized capital and increase as per the requirements or conditions imposed by the lender/investors, customers.

Draft Meeting Minutes
Download Sample Board Meeting Minutes for Alteration in Authorised Capital
Download
Draft Meeting Minutes
Download Sample Board Meeting Minutes for Alteration in Authorised Capital
Download

Procedure for Increasing Authorised Share Capital

  • Convene the board meeting for enabling the board to call for an extraordinary general meeting (if not passed at the Annual General Meeting) to get approval from the shareholders for increasing the authorised share capital.
  • Call for an extraordinary general meeting of the shareholders of the company by sending a notice with clear agenda, explanatory statements and the resolutions to be passed to alter the Memorandum of Association and Articles of Association which are to be altered for the purpose of increasing the authorised share capital.
  • Pass the resolutions for increasing the authorised share capital of the company and corresponding alterations in Memorandum of association and Articles of Association by special resolution.
  • Authorise the board to file necessary forms and resolutions with ROC having jurisdiction.
  • File the Form SH-7 with Roc by paying the requisite fee.

FAQs

What is the minimum Authorised Share Capital for a Company?

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs.1 lakh.This meant that Rs.1 lakh worth of money had to be invested in the company by purchase of the company shares by the shareholders to start business.

Whether stamp duty is paid on increase in share capital?

Yes, Stamp Duty is payable on the increase in Authorised capital and is applicable as per the Stamp Act/Rules of concerned State/Union Territory.

What is the difference between authorized capital and paid up capital?

– Authorised capital: Authorised capital is the maximum capital that the company is allowed to raise through the sale of its shares.
– Paid-up capital: It is the part of called up capital which has been actually paid by shareholders and received by the company. It can never be more than Authorised capital.

Form SH-7 : Alteration in Authorised Capital

A company should file Form SH-7 with ROC paying the applicable fees within 30 days from the alteration in authorised capital. A company should file SH-7 on MCA Portal in the following circumstances:

  • Increase in Share Capital independently
  • Increase in the Share Capital due to order of Central Government
  • Company redeems any Preference Shares
  • Consolidation or Division
  • Increase in the number of Members

Documents for Form SH-7: Alteration in Authorised Capital

  • Notice of Extraordinary General Meeting (EGM)
  • A certified true copy of the Ordinary Resolution
  • Altered Memorandum of Association (MOA)
  • Altered Articles of Association (AOA)

Instructions to file Form SH-7

  1. Enter the CIN of Company.

    Enter a valid ‘Corporate Identity Number’ (CIN). Click Pre-fill to automatically populate the name, registered office address and email id of the company. If there is any change in the email ID, enter the new valid email ID.

  2. Select the purpose of filing the Form.

    Select the purpose of the form from the available options.

  3. Enter details of alteration in the Authorised Capital.

    Enter the details of Board Resolution passed and details of alteration in Capital.

  4. Stamp Duty.

    Enter details of stamp duty paid.

  5. Attach Documents.

    Attach all the required supporting documents.

  6. Director details and DSC.

    Enter the Director details and attach Digital Signature of Director signing the Form.

FAQs

What is purpose of the Form SH-7?

Whenever a company alters the following things:
1. Its share capital or number of members independently
2. Increases the share capital by conversion of debentures/loans
As an order of the Central Government, then a return has to be filed. The return has to be filed with the registrar within 30 days of such alteration. The return shall also be filed where the company redeems any redeemable preference shares.
Stamp duty can be paid electronically through the MCA portal. Following documents are required to do so:

-Notice of extraordinary general meeting
-A certified true copy of an ordinary resolution
-Altered Memorandum of association
-Altered Articles of association, if any.

What is the consequence of not filing the form SH-7?

According to section 117 (2), if the company fails to file the agreement under subsection (1) then it will attract a penalty. If the agreement is not filed before the expiry of the period specified under Section 403 with an additional fee, the company shall be punishable. The fine in such a case shall not be less than 500000 to 250000 rs. Every officer of the company who is in default, including liquidator of the company, shall be punishable with a fine of 100000 to 500000 rs.

IEC : Importer Exporter Code

Import Export Code (also known as IEC) is a 10 digit identification number. It is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. It is also known as Importer Exporter Code. IEC is mandatory for companies and businesses to obtain this code to start a business that deals with import and export in the Indian Territory. It is not possible to deal with export or import business without this code.

Import Export Code (IEC) Registration
Expert Assisted Import Export Code (IEC) Registration for Individuals, Businesses and Firms who wants to Import/ Export goods/ services.
[Rated 4.8 stars by customers like you]
Import Export Code (IEC) Registration
Expert Assisted Import Export Code (IEC) Registration for Individuals, Businesses and Firms who wants to Import/ Export goods/ services.
[Rated 4.8 stars by customers like you]

Application for Importer Exporter Code (IEC)

  1. Visit DGFT website

    Go to the “Services Tab” on DGFT website.

  2. Select IEC

    From the drop-down list under “Services”.

  3. Select “Online IEC Application”

    When you move your mouse pointer towards IEC.

  4. Enter your Pan Number

    And click on Search.

  5. Enter the relevant details

    And click on Submit.

  6. One Time Password(OTP) Verification process.

    Enter your Mobile number, Emil ID and the Captcha on the box below and click the “Generate OTP” button to receive an OTP on your mobile and email id.

  7. After receipt of the OTP, enter the same in each of the respective boxes provided separately, one for the “Mobile OTP” and another for the “Email OTP”

    And click on the “Submit” option.

  8. Update Entity details.

    The entity here is the business entity. The details include the Business name, address, Date of Birth (in case of proprietorship)/ Date of Incorporation/Date of formation (in case of partnership firm), Nature of Concern, preferred activity and bank details.
    After this fill in the applicant details like Name of Applicant, Designation, Applicant Address, Applicant mobile number, Applicant email address, PAN number, Date of Submission and Place of Submission.

  9. Add Branch Details.

    Branch details of the proprietorship/ company shall be filled. Once you fill all the relevant details click on “ADD”. If there is no Branch Office Keep the space empty.

  10. Fill up the Director/Partner details

    Fill all the required details of any of the Director/ Proprietor/ Partner/ Karta/ Managing Trustee. All the required information, for example, the PAN number, and mobile number should belong to the person whose details you are filling. Once all the relevant options are being filled please click on “ADD”.
    Pan number, residential proof, mobile number & email id of each and every partner/director of the company/firm is to be added.

  11. Attach the scanned copies of the following documents:

    – Address Proof
    – Bank Certificate/Cancelled Cheque

  12. Click on Fee Payment Tab

    Once you have uploaded the documents proceed for Payment

  13. On clicking the Fee Payment, below page will open up.

    Here enter amount Rs. 500/- as the Government IEC application fee and click on Submit.

  14. Thereafter complete the payment by choosing any one of the Credit/Debit Card, Net Banking, Wallets payment facility.

    After successfully completing the payment come back to the same Page. Choose “Verify Pay” and verify the payment which you have just made.

  15. Print & Preview Application

    You can now preview and print your application. You can print this application for your official purposes.

  16. Below the Form, a Checklist is being displayed.

    In the checklist, please make sure that all the conditions mentioned here have been complied with.

  17. Click on Submit

    This is the final step in the process of IEC Application Procedure. After which your IEC certificate will be generated.

Download Bank Certificate
Download Bank Certificate
Download
Download Bank Certificate
Download Bank Certificate
Download

FAQs

What are the documents required for the Application of IEC?

The following documents are required for IEC Application:
1. Address Proof
2. Bank Certificate / Pre-printed Cancelled Cheque

What is the fees for IEC Application?

The fees for fresh IEC application is Rs 500.

What is the time for generation of IEC Certificate?

It generally takes 1 working day after the application is submitted. IEC Certificate is emailed to the registered email ID mentioned in the application.

Form SH-4 : Share Transfer

The Form SH-4 indicates that the transferor wants to transfer the given securities to the transferee. Transfer of shares is the voluntary handing over of the rights and possibly, the duties of a member (as represented in a share of the company). These rights and duties are handed over from a shareholder who wishes to not be a member of the company any more to a person who wishes of becoming a member. Thus, shares in a company are transferable like any other movable property in the absence of any expressed restrictions under the articles of the company.

Additionally, it indicates that both the parties involved willingly accept the conditions of the transfer. There are various different individuals involved in the transfer. They are as follows:

  1. Subscribers to the memorandum
  2. Legal Representatives, in case of deceased
  3. Transferor
  4. Transferee
  5. Company (Listed/Unlisted)

Sample – Draft Form SH-4

The first step in the procedure for Share Transfer is to obtain the Transfer deed in the prescribed Form SH-4. Revenue Stamps amounting to 0.25% of the consideration of the transfer are to be affixed on the Form SH-4. The instrument of transfer may not be in the prescribed form (Form SH-4) in the following cases:-

  • Where a director or nominee transfers shares on behalf of another body corporate under section 187 of the Companies Act, 2013;
  • Where a director or nominee transfers shares on behalf of a corporation owned or controlled by the central or state Government;
  • For transferring debentures, a standard format can be used as the instrument of transfer.
Draft Form SH-4
Draft Form SH-4
Download
Draft Form SH-4
Draft Form SH-4
Download

FAQs

What is the ledger folio number in the share certificate?

The ledger folio number is allotted to each shareholder of the company, whereas the share certificate is issued after each allotment. For Example – If further shares are allotted to existing shareholders, the ledger folio will remain the same but the share certificate numbers will not be the same.

What is the stamp duty on share transfer?

The stamp duty applicable on share transfer is at 0.25% on the market value on the date of execution of the transfer deed or consideration value whichever is higher. One can contact the nearest “General Post Office” for Share Transfer Stamps or getting Transfer deeds stamped.

How do I change the name on a share certificate?

Prepare a letter addressing the Company or the RTA of the Company mentioning the reason for your name change and clear details of your new name. Furthermore, enclose the attested copy proofs of name change i.e Affidavit, PAN card, etc. Also, enclose the original share certificate along with the letter.

Meeting Minutes: Share Transfer

Transfer of shares means the voluntary handing over of the rights and possibly, the duties of a member (as represented in a share of the company) from a shareholder who wishes to not be a member in the company any more to a person who wishes of becoming a member. Thus, shares in a company are transferable like any other movable property in the absence of any expressed restrictions under the articles of the company.

A company is required to hold a Board Meeting for the transfer of Shares. Meeting has to record such minutes for the transfer of shares and also pass the necessary resolution for the same and keep it on record.

Persons involved in the transfer

  • Transferor
  • Transferee
  • Company
  • Legal Representative, in case of a deceased.
Meeting Minutes: Share Transfer
From here you can download Meeting Minutes for Share Transfer
Download
Meeting Minutes: Share Transfer
From here you can download Meeting Minutes for Share Transfer
Download

Sample Meeting Minutes : Share Transfer

Share transfer can between any 2 persons. Share transfer details must be recorded in the Board Meeting Minutes and it is also mandatory to pass the necessary resolution in the meeting and the keep it on record.

Sample: Meeting Minutes – Share Transfer

FAQs

What is the ledger folio number in the share certificate?

The ledger folio number is allotted to each shareholder of the company, whereas the share certificate is issued after each allotment. For Example – If further shares are allotted to existing shareholders, the ledger folio will remain the same but the share certificate numbers will not be the same.

What is the stamp duty on share transfer?

The stamp duty applicable on share transfer is at 0.25% on the market value on the date of execution of the transfer deed or consideration value whichever is higher. One can contact the nearest “General Post Office” for Share Transfer Stamps or getting Transfer deeds stamped.

How do I change the name on a share certificate?

Prepare a letter addressing the Company or the RTA of the Company mentioning the reason for your name change and clear details of your new name. Furthermore, enclose the attested copy proofs of name change i.e Affidavit, PAN card, etc. Also, enclose the original share certificate along with the letter.

Meeting Minutes: Share Split Procedure

A company issues share certificates to every shareholder of the Company. The split of Share Certificate means dividing one share certificate into various share certificates. Once Share split is done and new share certificates are issued, an old share certificate shall stand cancelled.

Sample Meeting Minutes : Share split

A company has to call for Board Meeting for Share Split procedure to be done. The Chairman informs the Board about the Split of Share of the specific shareholder. Details of share certificate which has to be split is discussed in the Board Meeting and a resolution has to be passed regarding the same and also taken on record.

Meeting Minutes: Share Split
Meeting Minutes-Share Split
Meeting Minutes-Share Split
Download
Meeting Minutes-Share Split
Meeting Minutes-Share Split
Download

FAQs

What is the split of share certificate?

The certificates include information such as the number of shares owned, the date when purchased and an identification number. When a stock splits, the company divides its existing shares into multiple shares in an attempt to boost the liquidity of the shares.

At what price do stocks split?

The company’s market capitalization, equal to shares outstanding multiplied by the price per share, isn’t affected by a stock split. If the number of shares increases, the share price will decrease by a proportional amount.