Free Business Financial & Compliance Health Check

Step 1 of 7 • Corporate Structure

What is your business legal entity structure?

Statutory requirements, audit limits, and ROC disclosures vary significantly by registration type.

Private Limited Company / OPC

Governed by Companies Act 2013 with mandatory annual statutory audit and ROC filing (AOC-4 & MGT-7).

Limited Liability Partnership (LLP)

Form 8 and Form 11 annual filings with statutory audit applicable if turnover exceeds ₹40 Lakhs.

Partnership Firm

Registered or unregistered firm with tax flat at 30% and partner remuneration limits u/s 40(b).

Sole Proprietorship / Professional Freelancer

Taxed at individual slab rates with presumptive taxation eligibility under 44AD / 44ADA.

Step 2 of 7 • Scale & Scope

What is your estimated annual turnover / gross receipts?

Determines applicability of Tax Audit under Section 44AB, GST E-Invoicing, and MSME 43B(h) compliance.

Under ₹40 Lakhs (Micro Enterprise)

Basic GST threshold exemption (for goods) and simple presumptive filing options.

₹40 Lakhs to ₹1.5 Crores

Mandatory GST registration, monthly GSTR-3B filings, and quarterly advance tax tracking.

₹1.5 Crores to ₹5 Crores

Section 44AB Tax Audit review, GSTR-9 annual return, and strict vendor reconciliation requirements.

Above ₹5 Crores (Mid to Large Corporate)

Mandatory E-invoicing, GSTR-9C reconciliation certification, and multi-tier internal audit controls.

Step 3 of 7 • Indirect Tax

How do you manage monthly GST Returns & ITC Reconciliation?

Rule 36(4) strictly prohibits claiming Input Tax Credit (ITC) that is not reflected in GSTR-2B.

100% Matched & Reconciled before GSTR-3B filing

All supplier invoices matched against GSTR-2B monthly; ineligible ITC reversed promptly.

ITC claimed based on books, reconciled later at year-end

Common practice that carries high risk of DRC-01B notice and 18% mandatory interest on mismatch.

Irregular filings or ongoing delay penalties

Critical exposure: GST registration cancellation risk and blocked E-way bill generation.

Step 4 of 7 • Direct Tax Withholding

Are you deducting and depositing TDS on vendor/contractor payouts?

Section 194C, 194J, 194I and 194Q compliance prevents 30% expenditure disallowance under Section 40(a)(ia).

Fully Compliant • Deducted at source & deposited by 7th

Quarterly 24Q (Salary) & 26Q (Non-salary) returns filed with zero late fees.

Partially deducted or deposited with occasional delays

Attracts 1.5% per month interest under Section 201(1A) and potential 30% expense disallowance.

TDS is rarely deducted or handled only by external vendors

High exposure to assessing officer scrutiny and demand notices.

Step 5 of 7 • Financial Hygiene

How frequently are your books of accounts & bank reconciliations updated?

Real-time financials provide accurate MIS for working capital and prevent cash ledger discrepancies.

Real-Time / Weekly updating with monthly BRS

Debtors, creditors, and bank statements fully reconciled every month.

Quarterly updates to prepare GST or advance tax

Moderate lag; reconciliations done primarily when compliance deadlines approach.

Annual update just before ITR or audit deadline

High audit risk, lack of visibility on business profits, and rush during filing season.

Step 6 of 7 • Direct Tax Optimization

Do you compute and pay Advance Tax in quarterly installments?

Mandatory if tax liability exceeds ₹10,000 (15% June, 45% Sep, 75% Dec, 100% March).

Yes, computed accurately and paid on all 4 due dates

Zero penal interest liability under Sections 234B and 234C.

Paid mostly in March or when final profits are known

Causes unavoidable 1% monthly interest accumulation under Section 234C on delayed quarters.

No advance tax paid; settled at time of return filing

High compounding interest liability under Sections 234A, 234B, and 234C.

Step 7 of 7 • Corporate Governance

Are your annual ROC, MCA, and Tax Audit compliances completely up to date?

MCA imposes steep daily penalties of ₹100/day for delayed AOC-4 and MGT-7 filings.

Fully compliant without any pending MCA or IT notices

Annual General Meeting (AGM) held and financial statements filed within statutory due dates.

Filed with occasional delays or small additional fees

Clean standing, but process needs streamlining to eliminate unnecessary late fees.

Facing active scrutiny notices, demand letters, or pending filings

Immediate legal and CA representation required to prevent director disqualification or penalties.