Demand cut from ₹10,050 to ₹1,310
TaxSavvy for add director
Adding or removing a director? File DIR-12 in time.
We draft resolutions and file DIR-12 within 30 days of the change.
If you wait: Late DIR-12 costs 2x to 12x the normal fee (Companies Fees Amendment Rules 2022)
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Board resolution or meeting date. Consent to act, DIR-2
Discussion
Is this an additional director by the board, or appointed by members at a general meeting?. Does the person already have an active DIN with DIR-3 KYC done?
Forms
Check DIN status and DIR-3 KYC of the appointee on MCA master data. If no DIN: apply in DIR-3 with photo, ID, address proof and board resolution proposing appointment
Deliverables
DIR-12 SRN and challan. Updated MCA director list
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹30,700 leaking every month
Sample Books from your bank statement
13 bank lines, books balanced
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Director loans: Sec 185 restrictions and the penalties
- Facts
- Sec 185 prohibits a company from lending to its directors. This is the most commonly violated provision by early-stage startups. A founder who "borrows" from the company account for personal expenses has violated Sec 185, penalty: equal to the loan amount, imprisonment up to 6 months.
- Provisions and law
- Companies Act 2013, Sec 185, 186
- Analysis
- Common violations: Founder pays personal credit card bill from company account. Company pays founder's personal rent. Startup "gives advance" to founder for business expenses that never materialise. Exceptions under Sec 185: Loans to wholly-owned subsidiary companies. Employee loans if director is also an employee under a scheme applicable to all employees. OPC, no restriction.
- Conclusion
- Pay yourself a higher salary (approved by board) and use personal funds
- Raise expense reimbursement claims with proper bills and approval
- Use company credit card for company expenses only
- Director "advance for business purpose" must settle within 30 days with receipts
Founder Capital Injection: Compliance and Tax Treatment
- Facts
- The most common way businesses are initially funded, the founder puts in their own money. Looks simple, but the legal treatment differs dramatically based on business structure. Pvt Ltd: treated as share capital. Proprietorship: just your own funds. Partnership: partner's capital. Getting this wrong creates loan vs capital issues, interest deduction problems, and gift tax concerns.
- Provisions and law
- Sec 68; Companies Act 2013; LLP Act 2008; Director Loan
- Analysis
- Right structure by entity type: Proprietorship: Just deposit in business current account. No separate documentation needed, it's your money in your business. File ITR: capital introduced shows in balance sheet. Partnership: as per partnership deed capital clause. Entry in capital account. No separate documentation if within deed provisions. LLP: supplementary agreement if beyond agreed contribution + update capital account. Pvt Ltd: share allotment is the ONLY clean route. Alternatives (director loan) have compliance burden. Pvt Ltd share allotment, the correct process: (1) Board Resolution approving allotment of X shares at ₹Y per share to Director Z. (2) Form PAS-3 filed with ROC within 30 days. (3) Share certificates issued. (4) Share register updated. (5) Form MGT-14 if special resolution. This entire process takes 1-2 days with a CA and costs ₹2,000-5,000 in professional fees.
- Conclusion
- Identify structure: proprietorship / partnership / LLP / Pvt Ltd, each has different compliance
- Pvt Ltd: Board Resolution for share allotment → PAS-3 filing with ROC → Share certificates
- LLP: Check LLP agreement, if within agreed contribution, no separate filing. Else supplementary agreement.
- Proprietorship / Partnership: deposit in current account, update capital account in books
Show Cause Notice (SCN) in faceless: your last chance before addition
- Facts
- The SCN is issued before the AO makes an addition to your income. It says: "We propose to add ₹X to your income for the following reasons. Respond within Y days.".
- Provisions and law
- IT Act, Sec 144B (now 273) | Natural justice principles
- Analysis
- This is the most important document in a faceless assessment, and your best opportunity. A well-drafted SCN response can prevent the addition entirely. Once the final assessment order is passed, you can only challenge it in appeal (which is more expensive and time-consuming). A weak SCN response = addition confirmed = demand + appeal. A strong SCN response = addition dropped = case closed. Respond to every point in the SCN specifically. Don't leave any point unanswered. Quote legal provisions and cite Supreme Court/High Court judgments where available.
Which ITR Form to File
- Facts
- Selecting the correct ITR form is the most common source of defective return notices. Wrong form = return treated as invalid.
- Provisions and law
- Sec 263(1) (old 139(1)); Rule 164 (old Rule 12); Sec 263(7) (old 139(9)); CBDT Notif
- Analysis
- ITR-1 (Sahaj): Salary from one employer + FD interest + one house property. Income below ₹50L. Cannot have capital gains, business income, or foreign assets. ITR-2: Salary from multiple employers, capital gains (MF/shares/property), foreign income, more than one house property, director in company, unlisted shares. ITR-3: Business or profession income + any other income. Partnership firms also use ITR-3 equivalent. F&O traders must use ITR-3. ITR-4 (Sugam): Presumptive income under Sec 58, Income-tax Act 2025 (old Sec 44AD; business, ₹3Cr limit), Sec 58 (old Sec 44ADA; professionals, ₹75L limit), Sec 58 (old Sec 44AE; transport). Cannot have capital gains or foreign assets. ITR-5: Partnership firms, LLPs, AOPs, BOIs, not for individuals. ITR-6: Companies (not claiming 11/12 exemption). ITR-7: Trusts, political parties, research associations.
- Conclusion
- Identify ALL income sources for the year, salary, FD interest, MF redemptions, property sale, freelance
- Download AIS, check if any income shown that you did not know about
- Check if you are director in any company or hold unlisted shares (ITR-2 mandatory if yes)
- Check if F&O trading happened during year (ITR-3 mandatory)
Adding or removing a director? File DIR-12 in time.
A Chartered Accountant handles it. Fixed price, told before you pay.
Get it done on WhatsApp