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August 30, 2011

Maximum Tenor of Preference Shares

Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share.
a.    It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend.

b.    It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital. 

As per Section 80 [(5A) of The Companies Act 1956

Notwithstanding anything contained in this Act, no company limited by shares shall, after the commencement of the Companies (Amendment) Act, 1996, issue any preference share which is irredeemable or is redeemable after the expiry of a period of twenty years from the date of its issue.

Who all can sign on behalf of Comapny / Director Search

To see who all can sign on Behalf of company, just enter the company's name and see the results no log in required

To check further whether that director is involved in any other companies

Log into your MCA account>Under services Tab select Companies in which a person is/was a director 

It will take you to link

(But you can reach the aforesaid link directly, you have to log in first.)

Here manually punch up the DIN number obtained from First step (Do not try to copy paste) and click the microscope button to get the director's name in the next column.

After that click Search to see in which other companies the person is Director.

August 26, 2011

Law for NRI selling the Property in India

Can an NRI sell property in India?
Yes, an NRI can sell residential or commercial property in India. He can sell to:
- A person resident in India (the definition of resident in this case will be as per FEMA)
- An NRI
- A Person of Indian Origin (PIO)
However, an NRI can sell agricultural or plantation land or a farm house only to a person who is resident in India and a citizen.

In which account must the sales proceeds be credited?
There are two scenarios that may arise here:
1. Sale of property purchased as a resident Indian
The sale proceeds in such cases would have to be credited in the Non Resident Ordinary (NRO) Account.
2. Sale of property purchased as a non-resident Indian
If the property was purchased out of rupee resources, that is, income earned in rupees, or the home loan is repaid by a relative who is a resident of India, the amount must be credited in the NRO account.

In all other cases, there are limits to repatriation that are discussed in the next question.

What are the rules for repatriation of sale proceeds of property sold in India?
If the property was purchased while you were a resident of India, then the sale proceeds must be credited to the NRO account. You can repatriate up to USD 1 million per calendar year from your NRO Account (including all other capital transactions), provided you have paid all taxes due.

Now, if the property was purchased while you were a non-resident, you can repatriate the proceeds outside India provided that you fulfill certain conditions:

1. You should have purchased the property in accordance with the foreign exchange laws prevalent at the time you bought the property
2. The amount to be repatriated will follow these limits:
a. If you purchased by remitting foreign exchange to India through normal banking channels, then the repatriation cannot exceed the amount that you remitted.
b. If you purchased using funds in the Foreign Currency Non Resident (FCNR) Account, then the repatriation cannot exceed the amount paid through this account.
c. If you purchased using funds lying in your Non Resident External (NRE) Account, then the repatriation cannot exceed the foreign exchange equivalent, as on date of purchase, of the amount paid through NRE Account.
d. If you purchased a property by taking a home loan, then repatriation cannot exceed the amount of loan repayment that has been done using foreign inward remittances or debit to NRE/FCNR Accounts.
e. If you purchased the property using balance in your NRO account, then the sale proceeds must be credited to your NRO account and you can repatriate to the extent of USD 1 million (including all other capital account transactions).

In all these cases, the balance sale proceeds can be credited to the NRO account and you will be able to repatriate up to USD 1 million per calendar year (including all other capital account transactions).

Vikas Vasal, Executive Director of KPMG India explains, "This limit of USD 1 million is the limit upto which you can repatriate without any permission from RBI. If you have a genuine need to repatriate above this limit, you can make a specific application to RBI for increasing the repatriation limit."

In all cases, repatriation is restricted to sale of two residential properties.

What is the capital gains tax applicable on sale of properties in India?
Before we move on to this explanation, it is important to understand that for all income tax purposes, the definition of NRI would be the one prescribed in the Income Tax Act. For all repatriation purposes, the definition of NRI would be one under FEMA. While in most cases, a person who qualifies under one would qualify under the other, it is better to review both definitions.

If you sell the property after 3 years from the date of purchase, you will be liable for long term capital gains tax of 20 per cent. The gains are calculated as the difference between sale value and indexed cost of purchase. Indexed cost of purchase is nothing by the cost of purchase adjusted to inflation. You can find the index here .
As an NRI, you will be subject to a TDS of 20 per cent on the capital gains.

If you sell the property within 3 years of purchase, you will be liable for short term capital gains tax at your respective tax slab. Short term capital gain is calculated as the difference between the sale value and the cost of purchase (no indexation benefit is available). You will be subject to a TDS of 30 per cent irrespective of your tax slab.

Now, the question arises as to who will deduct the tax at source. If the property is sold to an individual, does the individual need to deduct tax at source and deposit the same with the Government? Will the individual then issue a TDS certificate to the NRI?

Sandeep Shanbhag, Director of Wonderland Investments explains, "Yes, the payer of the sale proceeds, even if he is an individual will be responsible for deducting tax at source and paying it to the Government. He must get a Tax Deduction Account number (TAN) and issue a TDS certificate for the same."

What if the individual does not go through this process and fails to deduct tax? "The onus of deducting tax is on the payer. So in case the individual does not deduct tax and the NRI too fails to declare the income and pay the tax, the income tax authorities can hold the payer responsible," Shanbhag says.

Can an NRI avail of any capital gain tax exemptions?
Section 54
According to section 54 of the Income Tax Act, if you sell a residential property (after 3 years from date of purchase) and reinvest the proceeds into another residential property (within 2 years from date of sale), your gains will be exempt to the extent of the cost of new property. Suppose your capital gains is Rs 30 lakh and the new property is for Rs 20 lakh, then Rs 5 lakh will be treated as long term capital gains.

The residential property that you sell may either be a self-occupied property or one that was given on rent. Further, the new property must be held for at least 3 years.

Now an important question that NRIs have: Can you invest the proceeds in a foreign property and still avail the benefit of section 54? Vikas Vasal, Executive Director of KPMG India says, "Section 54 does not specify that the property must necessarily in India. So yes, a beneficial view can be taken."

Section 54EC
According to section 54EC of the Income Tax Act, if you sell a long term asset, in this case, the residential property (after 3 years from date of purchase) and invest the amount of capital gains in bonds of NHAI and REC, within six months of date of sale, you will be exempt from paying capital gains tax. Your bonds will remain locked in for a period of 3 years.

Remove Hyperlink

To remove all hyperlinks in a document, press CTRL+A to select the entire document and then press CTRL+SHIFT+F9.

August 23, 2011

Address of Chandigarh VAT department

 Address of Chandigarh VAT department
Excise and Taxation Department, First Floor, Additional Town Hall Building, Additional Sub Divisional Building  Sector 17 C, Chandigarh
(Opposite United Bank of India Building)

August 18, 2011

Traceing e mail

There are basically two steps involved in the process of tracking an email 

A.) find the IP address in the email header section
B.) and then look up the location of the IP address
Finding the IP address of an email sender in GMail, Yahoo Mail, and Outlook

Hey ICA Let’s go ahead and take a look at how you would do this for Google, Yahoo and Outlook since those are the most popular email clients.

Google’s Gmail

1. Log into your account and open the email in question.
2. Click on the down arrow that’s to the right of the Reply link. Choose Show Original from the list.

Now here’s the technical part that I was telling you about earlier ! You need to look for the lines of text that start with “Received: from“. It might be easier to simply press Cntrl + F and perform a search for that phase. You’ll notice that there are several Received From’s in the message header. This is because the message header contains the IP addresses of all of servers involved in routing that email to you.

To find the first computer that originally sent the email, you’ll have to find the Received From that’s farthest DOWN. As you can see from the above image, the first one is from a computer called “aseem” with the IP address Then it was routed to my ISP’s server at and so on and so forth till it got to your email server.The computer aseem is personal home computer of the sender and  that’s his/her public IP address for house ! I’ll go through Yahoo and Outlook before talking about tracking the location of that IP address.

Read Below that How to locate IP after extracting ...

Yahoo Mail Beta

1. Log into your account and open the email (if you’re using Yahoo Mail Beta with the new preview interface, make sure you double-click on the email so that it opens in a new tab)
2. At the top right, you’ll see there is a drop-down option where Standard Header is selected by default.
3. Click on it and choose Full Header.

In your new Yahoo mail Click on "More options" and then click on "View Full Header"…..
Again, you’ll see the same information as before, just in a different window:

Microsoft Outlook

1. Open the email in Outlook by double-clicking on it
2. Go to View at the top menu (the menu options for the email, not the main Outlook window) and choose Options.

You’ll get a dialog box where you can set the message options and at the bottom you’ll see the Internet Headers box. For some silly reason, the box is very small and you have to scroll a lot, so it’s best to simply copy and paste the text into Notepad to view it more easily.

Now to know that How to Get IP Address of Email Sender, ....

Tracking the location of an IP address
Now that we have our originating IP address of, let’s find out where that is! You can do this by perform a location lookup on the IP address. My favorites are IP2Location or

Another one suggested by one of our reader (Stephany Huneidy) is 

Different websites can give different results for location of IP address so better to cross check on different sites.  

Based on my personal experience IP2Location or gave more accurate (For Location) and detailed result (Including the name of ISP name) than