It's that time of the year again - the financial year end of 2020-2021 has approached and it's time to prepare all the financial year end compliances for the private limited company. This blog aims to guide you through the compliances a private limited company will need to get ready for the end of the financial year.
In this season of annual compliance for a private limited company, there are various compliances related to ROC, Income tax and Various Audits. Entrepreneurs who are already running their business or startups in India now they must prepare for the Annual compliances for their Private Limited Company in India for the Financial Year 2020-21.
List of Financial Year End Compliances for Pvt Ltd Company
- Financial Year End Audit requirements
The number of audits required for a company depends on the revenue, type of business structure and also the type of transactions. Below are few audits that are required by Private limited company.
- Statutory Audit:
- Tax Audit:
- Transfer Pricing Audit:
- GST Audit:
Conducting a statutory audit is mandatory for all the private limited companies. Statutory Audit is required to determine whether a firm is providing a fair representation of its financial situation by disclosing bank balances, financial transactions, and other financial information.
The due date for conducting and filing a statutory audit under income tax act for financial year 2020-21 is 31st October 2021.
Tax Audit is required to be done if the annual turnover of a private limited company is more than 10 Crores subject to the condition that the cash receipts (of sales) don’t exceeds 5% of the total turnover in which case tax audit is required even if the turnover exceeds 1 crore.
The Due Date for filing a Tax Audit under income tax act for the financial year 2020-2021 is 31st October 2021.
Companies and subsidiaries which come under the regulation of transfer pricing needs to conduct Transfer Pricing Audit. The Transfer Pricing Audit needs to be done before the company files the income tax return for the same period.
The Due Date for filing a Transfer Pricing Audit under income tax act for the financial year 2020-2021 is 31st November 2021.
Companies whose turnover exceeds INR 2 crore needs to get their GST Returns, Records, and other documents audited by a GST Professional.
The Due Date for filing a GST Audit under income tax act for the financial year 2020-2021 is 31st December 2021.
Every private company is required to produce yearly accounts and returns from its shareholders, directors, etc. to the Registrar of Companies (ROC).
All the ROC compliances listed below are mandatory, irrespective of turnover of the company.
- DPT 3 Filing:
- FLA Reporting:
- Conducting a Board Meeting:
- Conducting an AGM:
- AOC 4 Filing:
- MGT-7 Filing:
This is needs to be filed by those companies having any amount of loan or advances (not considered as deposits) amount from banks or financial institutes.
The due date for filing DPT 3 is for the financial year 2020-21 is 31st August 2021.
If a company has received foreign investment or has invested in foreign countries in the previous financial year or any of the previous financial year, they will have to file for Foreign Liabilities and Assets (FLA) reporting.
The due date for filing FLA Reporting for the FY 2020-21 is 15th July 2021.
Every year, every director is required to submit reports detailing his or her directorships in other firms. This must be done in writing, and a formal Directors report should be prepared. And a notice needs to be issued to the shareholders for conducting the AGM.
The due date for conducting the board meeting is for the FY 2020-21 is 9th September 2021.
An Annual General Meeting needs to be conducted of the shareholders. it needs to be held within a one-year period. It should, however, be held six months before the end of the financial year.
The AGM should not take place on a general holiday. It should take place during working hours.
The due date for conducting AGM for the FY 2020-21 is 30th September 2021.
Form AOC-4 needs to be filed for the financial statements of each financial year. These forms need to be filed with the respective registrar of companies (ROC).
The due date for Filing AOC 4 for the FY 2020-21 is 30th October 2021. (Within 30 days from the date of AGM)
It is mandatory for every private company to disclose the details of its annual returns within a period of 60 days. And the days will be counted from the last annual meeting held. The annual returns will be calculated from 1st April to 31st March.
The due date for Filing MGT-7 for the FY 2020-21 is 30th November 2021. (Within 60 days from the date of AGM)
- Preparation of financials:
- ITR Filing:
Companies who have not followed the monthly accounting process they need to prepare the financials of their company, such as profit and loss account, Balance sheet, etc.
The due date for preparation of financials for the FY 2020-21 is 14th June 2021. (These financials are required in the board meeting)
In the case of income tax, several prescribed methods should be implemented, the first of which is tax calculation and advance payment of such estimated tax. Second, income tax returns must be filed. Finally, the tax audit must be filed.
The ITR filing due dates varies depending upon the number of audits that a company is required to complete. Below are the due dates for the same.
- Due date for ITR filing if no audit is applicable, is 30th November 2021.
- Due date for ITR filing if Tax Audit is applicable, is 30th November 2021.
- Due date for ITR Filing if Transfer Pricing audit is applicable, is 31st December 2021.
Financial Year End Compliance Calendar 2021
We hope you enjoyed our blog about the financial year end compliances for a private limited company. If you have any questions or concerns about your own company, please contact us anytime at email@example.com. Thank you for reading, we are always excited when one of our blogs is able to provide useful information on a topic like this!