MSME loans are unsecured loans that are offered by banks and NBFCs only if the applicant meets the certain eligibility criteria. MSME loans are defined by Indian Government and RBI, as the loans for business enterprises need support in terms of finance, infrastructure and other areas.

New MSME Definition

The distinction between the manufacturing and services enterprises has been removed by making the investment amount and annual turnover similar for enterprises engaged in both the sectors.

Key Takeaways of New MSME Definition introduced in ‘Atmanirbhar Bharat Abhiyan‘ or Self-reliant India Scheme 2020 by Government of India.

• Collateral Free Loans to MSMEs
• MSME Loans worth of Rs. 3 lakh crore
• Moratorium period offered is 12 months
• Manufacturing and Service MSMEs shall be considered as same entities
• Repayment Tenure of 48 months
• 100% Credit Guarantee
• To benefit approx. 45 lakh units
• Interest Rate as low as 8.25%

1. Complete the upto date GST Compliance, GST Return Filings, Last 3 Years Income Tax Filing for your Business (At least upto March 2020)
   
2. Contact your Bank Manager or Relationship Manager in which you already are holding Account for your Business.
3. Ask for the Appointment for Application for Loan under MSME
4. Check on your Banks Website or Your Internet Banking Login Dashboard for the Loan Application.
   
5. Fill this Form for Application of Loan
   
6. Prepare complete set of documents as given above and visit your Bank for further processing along with Application form.

Digital Signature Certificate or DSC is required for Company Registration, LLP registration, GST registration, Import Export Code and Income Tax Filing. Digital signature is used to e-sign forms submitted to the Government by an applicant. DSC is issued in a USB token and can be used for limited purposes as mentioned above. In this article, we look at the process for completing DSC verification while obtaining the digital signature. Its a completely paper less process, therefore your mobile number must be linked with your Aadhar to apply the DSC.

Any person who is a Director of a Company or a Designated Partner of a LLP or a Professional like Chartered Accountant or Company Secretary must register DSC on MCA portal to file forms. If a DSC is not registered on the MCA portal, the person would not be able to file any forms. As a Director’s or Partner’s DSC is required for filing annual returns and various other forms, its important to register the DSC on MCA portal after incorporation. In this article, we look at the procedure to register DSC on MCA Portal in detail.

Digital Signature Certificate (DSC)

Digital Signature Certificate or DSC is an encrypted electronic signature of a person. Digital signatures are stored in encrypted USB drivers and can be accessed only with a password. Class 2 DSC is required for filing various types of returns with the Government like Annual Return, Income Tax Return, GST Return and completing other statutory filings. The main vendors for digital signature in India are Sify, E-Mudhra and N-Code.

Validity of Digital Signatures

Unlike PAN or Director Identification Number (DIN), DSCs are not valid for life. DSCs are usually valid for one or two years and at end of its validity must be renewed. Once a DSC is renewed, the process to register DSC on MCA portal must be repeated to register the new DSC.

Registration of DSC on MCA Portal

Any Director or Designated Parter or Professional intending to file a form on the MCA portal must first register the DSC. Registration of DSC on MCA Portal allows MCA to to know the identity of the person who is using a Digital Signature Certificate and prevent unauthorised use. The following steps can be followed to register DSC on MCA portal.

Step 1: Go to Ministry of Corporate Affairs official website to register DSC.

Step 2: Click on MCA Services and then select Associate DSC option from drop down menu.

Step 3: Select the Appropriate Role of the person for whom DSC is to be registered.

In case of Director/Designated Partner – Select Director to update DIN/DPIN details.

In case of Manager, Practicing Professional & Authorised Representative – PAN based details are required to register DSC.

Step 4: Enter the details requested in the next page. Details should be same as in DIN/PAN.

Step 5: In the next screen you will be asked to enter your e-mail id and select the digital signature certificate.

To select digital signature certificate, download & install MCA E-Signer. You can download the MCA E-Signer from the link provided in the same screen.You can download the MCA E-Signer from the link provided in the same screen.

Note: To install MCA E-Signer in to your system, the operating system should be Windows 10 & it should have JAVA 10 & above.

Step 6: Accept the declaration that you have provided the correct and complete information by checking the box. 

Step 7: Insert the DSC to be registered on MCA portal into the USB drive on your computer.

Step 8: You will now see the window which will prompt you to select the Digital Signature of the concerned person, enter DSC password and associate.

Step 9: Click on submit button. A congratulatory message will be displayed.

“Congratulations your DSC has been successfully associated with the MCA’

1. Extension of Form 16 issue date

On June 4, 2019, Central Board of Direct Taxes (CBDT) had issued a notification extending the deadline for the employers to issue Form 16 to employees from June 15 to July 10. It has been observed that several employees had still not received Form 16 even after the due date. With only a few days left, if Form 16 is received at a later date, the time to file ITR will understandably be less. “Salaried taxpayers now have a shorter window to file their tax returns due to the extension of the due date of providing Form 16 for employers. In the wake of this extension, the due date for tax filing may be extended so salaried taxpayers can plan to file their tax returns in time,”

2. Changes in Form 16

There are two parts of Form 16, in which Part A was standardised for all employers but the Part B was not standardised. The new rule asks the employer to ensure generation of accurate TDS certificate in Part B of Form No. 16 As per the new format, every employer is required to report the detailed break-up of salary, exempt allowances and deductions claimed and allowed to an employee.

3. Extension of Form 24Q issue date

The CBDT had also extended the due date of filing of Form 24Q for the financial year 2018-19 from May 31, 2019, to June 30, 2019. The Form 24Q is a quarterly statement of deduction of tax in respect of salary for the four quarters of the financial year and is to be filed by the employer. As per the new rules, the employers have to report correct data in Annexure II of Form 24Q.

4. Verification of pre-filled data

Once Form 16 is received, one needs to ensure if the employer has generated it from the TRACES, the official software of the income tax department. Also, it is important to ensure that the figures in Form 16 and Form 26AS are matching. Lastly, the I-T department has cautioned that the pre-filling of ITR is only for the taxpayer’s convenience. Therefore, as a taxpayer one needs to verify the pre-filled data carefully and add any other taxable income which is not pre-filled.

5. Long term capital gain (LTCG )

The long term capital gain (LTCG ) tax was re-introduced in the FY 2018-19 and assessee were finding it a tad difficult to enter the figures in the software while filing the ITR. “Reporting LTCG on ClearTax is fairly simple since we allow uploading of CAMS report or even an excel file. However, the reporting of LTCG on equity shares has been introduced for the first time, the portal’s reporting section has recently undergone some change too. Those who have not yet finished calculations and made tax payment arising due to gains may need more time,” informs Gupta.

Latest CBDT clarifications

The Income Tax Department has recently issued a clarification from the CBDT that has responded to reports in social media that taxpayers were facing difficulties in the filing of IT Returns in ITR-2 & ITR-3 due to large scale changes in the ITR form. It was made clear by CBDT that no changes have been made in any of the Income-tax Return (ITR) forms including ITR-2 and ITR-3 since the notification made on 1st April 2019 and further clarified that the software utility update is a dynamic process, done continuously based on feedback received from users, to ease filing and that the updating of utility doesn’t hamper filing of ITR as taxpayers are allowed to file using utility which is available at that point of time.

Further, on July 19, CBDT clarified that taxpayers have an option to either enter the Scrip wise details of long term capital gains or enter the self-calculated aggregate value of long term capital gains directly, without entering scriptwise details. Taxpayers may exercise either option based on their convenience.

Even though these 5 reasons for an extension exists as of now, the last date for ITR filing may not be extended if things fall in place. It’s always better to not wait for the last minute and file the ITR well in advance.