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Technical Knowledge Base

Common statutory interpretations and procedural queries decoded for clarity and compliance.

How does the faceless assessment scheme work for Income Tax in India?

Faceless assessment is conducted online through the income tax portal, with notices, submissions, and hearings handled digitally. This reduces physical interface and helps streamline the assessment process.

What is the process for reclaiming blocked Input Tax Credit (ITC) under GST?

The first step is to reconcile purchase records with GSTR-2B and identify the reason for restriction or mismatch. Eligible cases can then be supported through vendor follow-up, documentation review, and reply preparation where required.

How can NRIs optimize their tax liabilities on property sales in India?

NRIs can review capital gains, TDS applicability, and available reinvestment options before the transaction is completed. Proper planning helps avoid excess deduction and supports smoother repatriation and compliance.

What should I do if I receive an Income Tax notice?

You should review the notice carefully, gather supporting records, and respond within the specified timeline. A timely and properly drafted response helps reduce the risk of escalation.

How can businesses handle GST mismatches in GSTR-2B?

Regular reconciliation of books with GSTR-2B helps identify missing invoices, vendor errors, and ineligible credits early. Prompt correction improves ITC accuracy and reduces future disputes.

What are the annual compliance requirements for a private limited company?

Annual compliance generally includes ROC filings, financial statements, annual returns, board-related records, and income tax filings. The exact requirements depend on the company’s size, structure, and activities.

Which ROC filings are mandatory for companies and LLPs?

Mandatory ROC filings usually include annual return forms, financial statements, and event-based filings for changes in directors, capital, or registered office. Timely filing helps avoid additional fees and compliance issues.

How do I incorporate a private limited company or LLP?

Incorporation usually involves name approval, document collection, registration filing, and PAN/TAN processing. The right structure depends on ownership, compliance needs, and growth plans.

What are the consequences of delayed ROC or MCA filings?

Delayed filings may result in additional fees, penalties, and practical difficulties in maintaining a clean compliance record. Persistent non-compliance can also affect future transactions and governance processes.

Can you help with ongoing corporate compliance management?

Yes, support can include compliance calendars, filing reviews, documentation, and routine secretarial coordination. This helps businesses stay organized and reduce deadline-related risk.

What does a virtual CFO do for a startup or growing business?

A virtual CFO supports financial planning, MIS reporting, budgeting, cash flow review, and strategic decision-making without the cost of a full-time CFO. It is often useful for startups that need structured finance support during growth.

When should a startup hire a CFO consultant?

A startup should consider CFO support when cash flow becomes harder to manage, investors require detailed reporting, or business decisions need stronger financial visibility. Early intervention often improves control and planning.

How can startups improve cash flow visibility and runway planning?

Startups should track monthly inflows, outflows, burn rate, and committed obligations through regular financial reporting. This gives founders better clarity on runway and future funding needs.

What financial reports should founders review every month?

Key monthly reports usually include profit and loss, cash flow, receivables, payables, and budget-versus-actual performance. These reports support quicker and more informed decisions.

Can you help prepare investor-ready financial models?

Yes, this generally includes financial projections, assumptions, revenue planning, and reporting formats that are easier for investors and lenders to evaluate. Clear models improve preparedness for discussions and due diligence.

Is my business required to undergo a statutory audit or tax audit?

Audit applicability depends on the legal structure, turnover, and relevant statutory thresholds. A review of your financial position and regulatory requirements can determine the right audit category.

What documents should be prepared before an audit begins?

Businesses should keep books of account, bank records, invoices, tax documents, agreements, and supporting schedules ready. Well-organized records help make the audit process more efficient.

What is the difference between statutory audit, internal audit, and tax audit?

A statutory audit is required under company law or other regulations, an internal audit reviews controls and processes, and a tax audit focuses on compliance under tax provisions. Each serves a different reporting purpose.

How long does an audit engagement usually take?

The timeline depends on business size, transaction volume, and document readiness. Smaller engagements may conclude quickly, while larger or more complex reviews take longer.

How can a company improve audit readiness?

Maintaining updated books, reconciling balances regularly, and preserving supporting records throughout the year can significantly improve audit readiness. This also helps reduce last-minute queries and adjustments.