29 November 2013
Dear Sir, Plz explain the following queries: 1. Is there any perfect format with rate of Depreciation so that I can calculate Depreciation under companies Act,1956 2.In the F.Y-2011-2012, my company has suffered Loss I Have pass the entry: but the capital is showing in Assets side in Tally. Is there any other way so that I can show the Capital on Liabilities Side. 3. What is the process to increase Paid Up Capital. Plz explain step by step( Company is Pvt Ltd Company) 4.If I finalise the accounts of a Pvt Ltd Company, How can I understood how much Profit I can show so that I can Take refund from income tax? This is my query..,. Plz reply immediately
06 December 2013
Dear Sir, Plz explain the following queries: 1. Is there any perfect format with rate of Depreciation so that I can calculate Depreciation under companies Act,1956 2.In the F.Y-2011-2012, my company has suffered Loss I Have pass the entry: but the capital is showing in Assets side in Tally. Is there any other way so that I can show the Capital on Liabilities Side. 3. What is the process to increase Paid Up Capital. Plz explain step by step( Company is Pvt Ltd Company) 4.If I finalise the accounts of a Pvt Ltd Company, How can I understood how much Profit I can show so that I can Take refund from income tax? This is my query..,. Plz reply immediately
21 July 2024
Certainly! Let's address each of your queries step by step:
### 1. Depreciation Calculation Format under Companies Act, 1956
The calculation of depreciation under the Companies Act, 1956 (and also under subsequent Acts like Companies Act, 2013) typically involves following a structured format. Here’s a general outline:
- **Classification of Assets:** Categorize assets into different classes (e.g., Building, Plant & Machinery, Furniture & Fixtures, etc.). - **Rates of Depreciation:** Refer to Schedule XIV of the Companies Act, 1956 (if applicable) or Schedule II of the Companies Act, 2013 for rates of depreciation. These schedules provide specific rates based on the type of asset and its useful life. - **Calculation Method:** Decide whether to use Straight Line Method (SLM) or Written Down Value (WDV) method based on the nature of assets and applicable rules. - **Annual Calculation:** Calculate depreciation annually based on the applicable rate and method for each asset class.
For instance, if you have a Plant & Machinery asset with an estimated useful life and a specified rate, you would apply that rate to the cost of the asset to determine the annual depreciation expense.
### 2. Adjusting Capital Entry in Tally
In Tally, if your capital account is appearing on the Assets side and you want to reflect it correctly on the Liabilities side, you can follow these steps:
- **Create a Capital Account:** Ensure that you have a separate capital account under Liabilities. - **Transfer Opening Balances:** Go to the Balance Sheet and alter the balance under the capital account to reflect on the Liabilities side. - **Check Grouping:** Ensure the correct grouping of the capital account under Liabilities to maintain accurate financial reporting.
If the capital account continues to show on the Assets side, it might be due to the way it was initially set up in Tally. Correcting this involves adjusting the account settings and possibly reclassifying the account under Liabilities.
### 3. Increasing Paid-Up Capital in a Pvt Ltd Company
To increase the Paid-Up Capital of a Private Limited Company, you typically follow these steps:
- **Board Resolution:** Pass a Board Resolution approving the increase in capital and recommending it to shareholders. - **Shareholders' Approval:** Convene an Extraordinary General Meeting (EGM) to get shareholders' approval for the increase. - **Filing with ROC:** File necessary forms (like Form SH-7) with the Registrar of Companies (ROC) within 30 days of passing the resolution. - **Issue Shares:** Once approved, issue new shares to existing shareholders or new investors. - **Update Registers:** Update the Share Capital register and other statutory records as required.
### 4. Determining Profit for Income Tax Refund
To determine the profit for claiming income tax refund, follow these steps:
- **Finalize Accounts:** Prepare the financial statements (Profit & Loss Account and Balance Sheet) for the financial year. - **Calculate Taxable Income:** From the Profit & Loss Account, compute the taxable income by adjusting for allowable deductions, exemptions, and depreciation. - **File Income Tax Return:** Prepare and file the Income Tax Return (ITR) using the taxable income calculated. Ensure all relevant schedules and forms are included. - **Claim Refund:** If tax paid exceeds the tax liability calculated, you can claim a refund by providing necessary bank account details in the ITR form.
### Conclusion
These steps should help you navigate through your queries effectively. Ensure compliance with all statutory requirements and maintain accurate records to facilitate smooth operations and reporting. If you need further assistance or have more specific questions, feel free to ask!
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