Essentials of an asset purchase agreement

Purchase or sale of assets is a vital part of a plethora of businesses and it is of paramount importance that both parties to such a transaction get fair terms and treatment. Therefore, it is essential that such terms are written down and agreed upon. This is where an asset purchase agreement comes into the picture.

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Inherent Powers of the HC made explicit in case of non-compoundable Offence

A recent judgment by the apex court of India in the case of Narinder Singh v. State of Punjab has been instrumental in removing the ambiguity in law. A law that gives the High Court (hereinafter referred as HC) inherent powers to quash proceedings on the basis of settlement between parties has emerged from this judgement. The judgment delivered appears to be progressive, as it has listed out the guidelines that should be followed by the HC while using its inherentpowers, thereby bringing about certainty in the law. This judgment is extraordinary for two reasons. Firstly, it explicitly enhances the power of the court to quash proceedings even if the offence falls in the non-compoundable category. Secondly, it enumerates a list of guidelines that explains how the three abstract conditions stated in section 482 of Criminal procedure Code could be met. The three conditions being: to give effect to any order under the Code, to prevent the abuse of the process of any court and to secure the ends of justice.

At the very outset, it is quintessential tounderstand the meaning of the terms ‘compoundable offences’ and ‘non compoundable offences’. ‘Compoundable offences’ are those kinds of offences, which do not require a court’s permission to quash the proceeding if compromise has been reached between the parties. However, ‘non-compoundable offences’ require the permission of the court to allow such a compromise between parties, whichinturn would lead to the acquittal of the accused. The very distinction is made on the ground that offences that are heinous and serious in nature are regarded as offences against the society at large and therefore acquittal in such cases has to be scrutinized before being granted. While the offences, which were not so heinous,are allowed sincethey are regarded as offences against an individual and if the aggrieved individual has agreed to compromise, it would be wise for the court to quash the proceedings.

The highlighting aspect of this case was that a non-compoundable offence was allowed to be quashed under the discretionary powers given to the HC (section 482 of Code of Criminal Procedure, 1973). We should take note that offences, which are considered to be compoundable, are given under section 320 of the Code and clause 9 of the same states that no offence shall be compounded except as provided by this section. In this case it was witnessed that the offence committed by the accused was outside the ambit of section 320. So, then the question arises, should the discretionary powers given to the HC be allowed to quash the proceeding of a non-compoundable offence under section 482? Does it not go against the letter of the law? Does this not infringe section 320 (9) of the Code?

To answer these questions it is essential to examine the guidelines laid down in this case. These guidelines enumerate principles that would direct the HC in using its discretionary powers. The very first guideline explains that there is a distinction between the powers of compounding of offences given to the court under section 320 and quashing the criminal proceedings by the HC in exercise of its inherent jurisdiction conferred upon it under section 482 of the Code. The distinction lies in its application. In case of the former, the court just checks if compounding in permissible under section 320, and if it is, the court is solely guided by the compromise between parties. However, in case of the latter, the court is guided by materials on record and not just the compromise being met, It checks whether the ends of justice would justify the exercise of power.Although the ultimate consequence of the two maybe the same. But the means to reach the end is different and therefore should be appreciated.

The second guiding principle reiterates the section itself giving out the two important objectives of such usage of power by the HC. First, being to secure the ends of justice and second to prevent the abuse of power of any court. The third guiding principles identifies when such powers should not used by the HC. Firstly, when the offence is not private in nature and has serious impact on society and secondly, when the offence involves serious and heinous offence. And lastly, even when offences are alleged to have been committed under special status it should not be quashed by the HC merely on the basis that compromise has been attained between parties.

While listing out the areas under which the HC should refrain from usingits discretionary powers, the forth-guiding principle expounds the core idea of this section. It states that the HC also has to check whether the possibility of conviction is remote or bleak and if the criminal proceeding is allowed to continue great oppression and extreme injustice would be caused to the accused. If the HC feels in consideration of the facts and circumstances of the case, that such would be the case then it should quash the proceeding. So, it can be inferred from this principle that even if the offence is considered to be serious, the court may quash the proceedings if it is of the opinion that grave injustice would be caused by its continuance.. This principle gives of the taste of inherent powers. The power that court would decide according to its own discretion to avoid injustice. In my opinion, this principle super powers all the other principle asit makes it explicit that the discretion lies on the HC. And at the periphery it has coated it with conditions, which the court has to fulfill if a decision has to emerge.

The sixth guiding principle takes note of a very vital factor in such cases. The essentiality of time has been enumerated. It has elaborately explained at what stage such discretion should be used by the HC. There are foursituations given out: – firstly, when settlement is arrived immediately after the alleged commission of the offence and the matter is still under investigation. In such a case, the HC will be liberal in accepting the settlement and quashing the proceeding. The next situation is when the charges are framed, but evidence is still at the infancy stage, the HC should show considerable benevolence only after the prima facie assessment of material circumstances. Thirdly, when prosecution evidence is almost complete, and after the conclusion of the evidence, the matter is at the argument stage, the HC should refrain from exercising such powers. Lastly, when the conviction is already recorded at the trail court and the matter is at the appellate stage before the HC, mere compromise would not be a ground to accept.

These guiding principles try to give certainty to the law relating to the usage of inherent powers. It exhibits a core where the real essence of this section is upheld- the factor of it being discretionary in nature, which is seen in guiding principle no. 4. This core has layers of principles at the outer end. These principles are the guiding factors elaborately explained above. So, if the HC has to use its discretionary powers it has to fulfill the conditions of the layers at the outer end. Therefore, in my opinion this judgment is one-step forward and making law more reasonable to understand.

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[1](2014) 6 SCC 466 [1]Prevention of Corruption Act or Offence committed by public servants while working in that capacity

By Dipti Srivastava

Law of Evidence in India

Evidence is the material on the basis of which the Court can decide the case. Such evidence must be produced before the Court so that it can establish or disprove the point of contention between the parties. The Law of evidence is a very crucial piece of legislation which helps and guides the court in arriving at a conclusion with regard to the existence or non-existence of facts. The rules of evidence are necessary to bring out the truth in every case and the Court should stick to such rules. Basically, the rules of evidence are required to draw a line between relevant and irrelevant facts. There will be great uncertainty with regard to relevant matters, if the court started depending upon the discretion of the Judge in such matters in every case.

In contrast to the substantive laws, which deal with rights and liabilities, law of evidence is a procedural law which provides rules with regard to introduction of evidence to support the case and covers the fundamental principles of proof of facts, its type, quality and quantum etc in a legal proceeding. The Law of evidence is said to be the law of the forum or the lex fori.

The concept of burden of proof is also essential in the law of evidence. The concept is differently applied in civil and criminal cases. Burden of proof broadly means that whoever wants the Court to give a judgement as to any right or liability which is dependent on certain facts must prove existence of such facts. When a person is bound to prove certain existence of facts, it is said that “the burden of proof lies on that person”.

For deciding a civil case, preponderance of probability is sufficient. Preponderance of probability means existence of a greater weight of evidence which is valuable to determine the offence and sufficient enough to incline a fair and impartial mind to one side of the issue. The Judge generally takes into consideration that evidence which is persuasive and outweighs the other side. On the other hand in a criminal case, the burden of proof is on the prosecution which should be proven beyond reasonable doubt. The highest standard of proof which must be met in a trial court is that of beyond reasonable doubt. This means that the judge has no doubt of the defendant’s guilt.

Section 3 of The Indian Evidence Act, 1872 defines oral evidence and documentary evidence. The Act says that all those documents which are presented in the court for inspection are documentary evidence.

 Section 60 of the Act provides for the recording of oral evidence. The most fundamental principle of oral evidence is that it must be direct. All facts except the contents of documents or electronic records may be proved by oral evidence.

Evidence can also be classified into primary and secondary evidence. Primary evidence means that the document itself is produced for inspection. It is the best form of evidence. The evidence which is produced in the absence of primary evidence is known as secondary evidence. Secondary evidence is not admissible unless the primary evidence is proved to be lost or destroyed. Existence of facts needs to be proved by primary or secondary evidence, if there is no such evidence then the document cannot be said to be proved.

Primary evidence speaks for itself and it does not need corroboration. In case of secondary evidence, supplementary evidence needs to be provided so as to strengthen and confirm existence of facts. The Supreme Court has given a vivid description of corroborative evidence in the case of Rameshwar v/s State of Rajasthan (AIR 1952 SC 54). Corroborative evidence refers to an additional evidence from an independent source  which connects the accused with the crime and confirms/substantiates the complainant’s testimony. The corroboration need not be direct evidence.

Direct evidence of a fact means which can be perceived by the senses and it is always primary in nature. It is the strongest form of evidence. On the other hand, hearsay evidence is no evidence.

Hearsay evidence is that evidence which is based on information given by a third person. Hearsay evidence is inadmissible in Court because information given by a third person cannot be trusted upon. In the case of Saktar Singh v/s State of Haryana (AIR 2004 SC 2570), The Supreme Court held that hearsay evidence means the statement of a witness not based on his personal knowledge but on what he heard from others and such evidence is not admissible.

However, there are few exceptionional circumstances under which hearsay evidence is admissible. Statement of a person may be proved by a witness if the fact stated by such person surrounds the relevant facts. This is called doctrine of res-gestae (section 6). An admission of liability or a confession of guilt which is outside the Court can be proved by the testimony of the person to whom such confession was made. Statement in public documents, such as official books and registers, Acts of Parliament are not needed to be proved by the draftsman of such document. Evidence given by a witness in proceeding can be used in a subsequent proceeding between the same parties, provided that, the witness has died or is unavailable for some other reason. Hearsay evidence is also admissible in case of dying declaration. Statement of a dead person becomes relevant when it relates to his cause of death. Expert evidence of a third person is required when the Court has to form an opinion about some foreign law, science, art, and identification of handwriting or hand impression. An expert must have special training and experience on the subject matter upon which his opinion is asked for.

Evidence needs to be proved before the court admits such documents. Once the evidence is admitted, it cannot be further challenged. The general notion is that, any dispute regarding the admissibility of any document should be made by the opposite party at the trial level only. In contrast, there are various landmark judgments where admissibility of evidence has been challenged at an appellate level. In the case of R.V.E Venkatachala Gounder v/s Arulmigu Viswesaraswami and V.P. Temple and Anr(2003 8 SCC 752), the admissibility of document was challenged at the appellate level. As per the case, the objection as to admissibility of evidence can be classified in two ways – (i) an objection that, the document which is to be proved was inadmissible; and (ii) an objection to the insufficient mode of proof of that document. In the first case, even if a document has been marked as ‘an exhibit’, an objection as to its admissibility can be raised even at a later stage or even in appeal or revision. In the second case, when the objection is regarding mode of proof of the document, it should be raised before the evidence is admitted. Once a document is admitted, objection to its mode of proof can’t be raised at a subsequent stage. It is fair play rule.

The Indian evidence Act, 1872 is dynamic in nature and has evolved with time.  Two of the recent developments in the Act came with the Information Technology Act, 2000 and Criminal Law (Amendment) Act, 2013.

 The Information Technology Act, 2000 broadened the definition of “evidence” by substituting the words “all documents produced for the inspection of the Court“, with “all document including electronic records produced for the inspection of the Court“. After section 65, sections 65A & 65B were inserted. Section 65A has special provisions as to evidence relating to electronic records such as telephone conversation, CCTV footage, computer output etc. and section 65B deals with the admissibility of such electronic records. The Information Technology Act basically enhanced the Evidence Act by elaborating the scope of evidence (electronic records, digital signature etc.)

The most recent development in Evidence Act was in 2013 after the infamous Delhi rape case. Section 53A was inserted which says that evidence of character of the victim or any person with prior sexual experience is not relevant on the issue of consent or the quality of consent . Quality of consent means likelihood or probability of the victim to give consent. It is a scale of character where a woman is judged based on her sexual experience. If the woman is a virgin then it is very unlikely of her to give consent and as it is often generalized, women with prior sexual experience with different partners are more likely to give consent to any subsequent sexual act. Section 114A when the sexual intercourse of the victim is proved and the question is whether the victim consented or not, if she states in her statement that she did not consent, the court shall presume that she did not consent.  The Amendment to section 146 made it clear that it is not permissible to introduce evidence or put questions in the cross examination of the victim as to her immoral character or her prior sexual experience for proving consent or quality of consent.

The procedural laws are as important as the substantive laws. Sometimes simple procedures are neglected which cause problem in the later stages of the trial or also in the appellate stage. Small loopholes can change the entire scenario of the case. In conclusion, procedural law is required for carving the path for proper functioning of the substantive laws. The law of evidence establishes a working structure for the courts from the grass root level.  In some cases it is just a set of technical hurdles to buy time for the parties and delay justice but these laws are framed for the sole purpose of filtering out the truth and serving justice to the people of the country.

By Srija Choudhury

OVERVIEW OF MEDIA AND ENTERTAINMENT LAW STATUTES IN INDIA

The Media and Entertainment Industry (M&E) in India has grown in importance during the last few years. It is estimated to generate more than USD 35 million in revenue. In the M&E industry, suppliers and consumers are increasingly leveraging the internet, resulting in new technical advances.

M&E has a significant risk of being abused because it is such a broad field. Several laws have been adopted to ensure effective regulation, each with its unique set of objectives. The Cinematograph Act of 1952, the Cable Television Network Regulation Act of 1995, and the Information Technology Act of 2000 all control content in mediums of display such as cinemas, television, and the internet.

For the protection of intellectual properties such as trademarks and copyrights, legislation such as the Copyright Act of 1957 and the Trademarks Act of 1999 were adopted. The penalty for offences committed in this industry, such as defamation, hurting religious sensibilities, and so on, is governed by the Indian Penal Code, 1860.

In the M&E industry, the principal source of concern is the right to free speech and censorship. Freedom of speech and expression through sources such as electronic media and written writings is a core right under Article 19 of the Indian Constitution. Article 19 ensures freedom of expression as a fundamental component of everyone’s right to self-development.

The court concluded in Brij Bhushan & others vs. State of Delhi that censorship will clearly impair freedom of speech and expression.

Various censorship authorities, such as the CBFC and the I&B Ministry, are placing constraints on creative freedom of speech and expression by regulating films. Udta Punjab, Lipstick beneath My Bhurkha, and other restricted films are examples. Because democracy is the most important element today, and a functioning democracy necessitates freedom of expression.

Copyright infringement and trademark protection are the second area of concern in the M&E sector. The Copyright Act of 1957 protects and registers literary, dramatic, musical, sound recording, and creative works. The main purpose of the act is to avoid the misuse of copyright monopolies and to achieve a fair balance between individual rights and the public interest. Names, titles, words, letters, visual artwork, product shapes, terminologies, and color combinations are all protected by the Trademarks Act of 1999. In the event of trademark infringement, this statute provides for remedies.

Piracy is the third source of concern. Online piracy is defined as the theft of a licensed owner’s property from the internet, resulting in damage and loss. Every year, piracy costs the film industry $2.8 billion in revenue, according to the M&E Industry. The advent of digital downloads and the availability of low-cost rental choices have contributed to the downfall of the movie theatre sector. Filming in theatres and the distribution of films in other countries a day before they are released in the United States are the main sources of piracy. Before they are released in theatres, some films are made available online.

Producers and filmmakers must obtain John Doe orders from the court to combat film piracy. The court concluded in Shreya Singhal v/s Union of India[4] that online content should only be removed if an adjudicatory body obtains an order ordering intermediary to do so. The Supreme Court ruling shields the intermediaries from accountability when the parties concerned fail to comply with the order to remove illegal content.

Sections 54 to 62 of the Copyrights Act of 1957 deal with the civil remedies that are available in civil courts for copyright protection. The regulations for criminal punishment when someone intentionally infringes on a work’s copyright, other rights granted by the act, or knowingly aids and abets the infringement are covered in sections 63 to 70.

Anyone found guilty faces a penalty of up to 3 years in prison, but no less than 6 months, a fine of not less than 50,000 rupees but not more than 2 lakhs, the search and seizure of infringing things, and the transfer of infringed goods to the owner. The number of criminal prosecutions filed for offending religious sensitivities, defamation, and selling obscene goods has risen. Most complaints are submitted with the purpose of gaining publicity and media attention. The inconvenience created by such incidents is a significant barrier in the industry.

The M&E sector is a constantly evolving industry controlled by a plethora of rules. The right to free expression and censorship, trademark infringement, and piracy are driving forces in ensuring the protection of rights and establishing fair market standards. In these sectors, legislation lays the path for the industry’s expansion.

By: – Pragati Sengar

PURPOSE OF PATENT LAWS

Patent is a set of exclusive rights granted to the inventor’s owner or beneficiary. The Patents Act of 1970 and the Patents Rules of 1972 control them. These rights include the ability to use, sell, and design, among other things.

Patent laws and Innovation

Innovation refers to advancements in a product, process, or service as a result of an innovation or business model. These inventions are novel approaches to challenges. Patent law is used to prevent innovations from being abused, which is critical for the advancement of technology.

The stages of the technology life cycle are as follows: innovation, research, development, and dissemination (RD&D), market development, and commercial diffusion. At each stage of the life cycle, different processes occur, allowing different possibilities to use tools that foster innovation.

Importance of patent laws

  1. A focused patent strategy can help a company save money while also increasing its value: – A patent permits the owner to legally restrict the use of patented technology, and these rights can also be sold if the owner’s use is not restricted. This aids in covering development costs and obtaining a return on investment in the patented technology’s development. This aids in the formation of venture capital funds and may lead to technological advancement.
  2. Patents boost the overall value of a company: – The company’s intellectual assets, such as patents, are used to determine its value. Today, capital assets account for only 15% of the value of Fortune 500 businesses, while intellectual assets account for 85% of the value.
  3. Identifying and realizing the full potential of a person: – Patents assist companies in determining the full potential of their assets, allowing them to design plans for utilizing and protecting their intellectual property. A key component of this strategy is the creation of a patent programme that identifies, evaluates, and incorporates new technologies into patent applications.
  4. A patent protects your invention: – It safeguards your invention, which is defined as any product, design, or technique that meets certain criteria for practicality, originality, utility, and suitability. A patent protects your invention from unlawful usage or intrusion. Because once a patent is granted, no one else can profit from your invention.
  5. Encourage new ideas: – As previously said, how innovation and patent laws are linked, and how patent law promotes inventions, this acts as a benefit to the other, causing more innovations to be created in order to achieve a healthy completion.

Purpose of Patent Laws

On this planet, man is the only creator with a creative and original intellect. The ability of man’s imagination and ingenuity has resulted in the creation of new objects. The patent system’s main goal is to promote creativity and innovation by allowing inventors a monopoly on their creations for a set period. Its goals are to reward the creator as well as to defend the public’s welfare. The patent system also ensures that public and private interests are balanced. The product will be available to the general public, and the creators will get royalties and exclusive rights for a limited time.

When patent protection fosters development and discovery, society benefits in the long run. When the period of protection for such creations and inventions expires, they are released into the public domain and become public property.

There would be huge theft of ideas, intellectual property, information, skills, and even attempts if patents did not exist. Instead of being progressive, this theft would render society regressive. As a result, the patent law’s goal is to prevent intellectual property theft while also encouraging a progressive and innovative human mindset in addition to financial rewards.

Conclusion 

It is widely regarded that intellectual property, particularly patents, is one of the most essential notions that humanity has ever devised. A patent is an intellectual property right granted to an innovator that protects a product, a process, or both in the field of science and technology. The patent system’s primary goal is to promote invention and creativity, without which human civilization would be well on its way to extinction. Patents have been protected by numerous international accords and state laws, making them one of humanity’s most essential concepts.

By: – Pragati Sengar

Essential Factors of Cross-Border Mergers and Acquisitions

Cross-border mergers and acquisitions have become a trend in the current business environment. Cross border mergers and acquisitions involve the amalgamation of the assets and workings of firms operating in two different countries. Acquisitions refer to acquiring all or few stocks or assets of a firm which results in the operational control of one firm in part or as a whole by another firm. Through these mergers and acquisitions business entities are able to spread their operations in other countries and expand their business. The success of these mergers and acquisitions in the cross border context depends on some factors. These include: 

  1. Proper management
  2. Cultural integration 
  3. Business policies
  4. Taxation
  5. General business conditions in the country

PROPER MANAGEMENT

Management is the most crucial aspect of any corporation or business, and if it is disregarded, the repercussions are severe. Proper management entails an individual employing methods in preparing and then implementing things correctly. In basic terms, it refers to the application of strategy across all aspects of a business. Every hard task is made easier and smoother by proper management.

Proper administration of cross-border mergers and acquisitions is complicated, but it is feasible if it manages and figures out some of the essential areas. The major areas that must be identified are market analysis, human resource considerations, and product integration and development. Market analysis is an important part that deals with giving key information to organisations to assist them in making business strategies. Cross-border mergers and acquisitions will rely heavily on human resources if long-term success is to be achieved. When it comes to proper management in cross-border mergers and acquisitions, another area of concern is product creation and integration. 

CULTURAL INTEGRATION

When a person from one culture absorbs traditions from another without diminishing or disregarding their own, this is referred to as cultural integration. Cultural integration is crucial because it maintains a society’s unity and stability. Cultural integration also contributes to the stability of society by allowing people to share similar attitudes and ideals in a social structure.

BUSINESS POLICIES

Due to the differing business regulations followed in a separate nation, it is likely that the purpose of a company may be hampered in cross-border mergers and acquisitions since they are familiar with their country’s business guidelines or policies. It does, in fact, take some time to adjust to the new business policies in the new nation. However, this is unlikely to be a long-term problem because the company will change and adapt to policy requirements sooner or later.

TAXATION

Taxation is, without a doubt, one of the most important and hardest components of running a company. And when it comes to cross-border mergers and acquisitions, the situation becomes more complicated due to varied taxation laws in foreign and home nations. There are several distinctions to be made, with the most challenging difficulty being uneven tax rates payable between enterprises operating in the overseas market and those operating in the domestic market.

GENERAL BUSINESS CONDITIONS OF THE COUNTRY

A business’s success will be determined by a variety of variables in the nation in which it is located. Security in the market is one of the most crucial issues to consider while doing company. Because there are large sums of money spent in cross-border mergers and acquisitions, security is the primary issue here. Security not only comprises safeguarding the business, but also the availability of secure and appropriate insurance policies, providing a safe environment in which to conduct business without hindrance, requiring commitments from the authority of that country that will lend it support whenever necessary, and so on. If these assets are lacking, it might be disastrous for the acquiring business in cross-border mergers and acquisitions, since security is the most important factor to consider before entering into a transaction.

Immigration Law in India Is there a need for reform

Migrating from one place to another has been there in the world from the beginning of humankind. People used to move from one place to another for food, work, education, etc. In the modern world, immigration means people going from one country to another country where they are not residing, nor do they have citizenship. Immigration does not cover people who are tourists, or who are going to another country for a short period. It refers to people who are moving to another country for employment. We can take the example of Indians who move to the Middle East to work in the Oil Industries in countries like Saudi Arabia. Even students who go abroad for higher studies are also Immigrants. Major reasons for immigration can be educated society, more salary, more job opportunities, family etc. People who are victims of war or poverty or any other disaster also move to other countries due to problems in their origin country. I am not talking about Refugees because they go to other countries without visa. 

To govern the immigration in a country, immigration laws play a vital role. It concerns the citizens of the origin country and the foreign citizens who want to have the citizenship of the country they moved to. International Organisations also regulates the Immigration laws when there is a calamity in one country, and the citizens move to another. For example, for the 2nd world war, the International Organization for Migration was formed to help the displaced people during the war. 

Regarding India, the immigration provisions are there in Articles 5-11 of the Indian Constitution, where 5 to 9 mentions the status of Indian Citizens, whereas Articles 10 and 11 talk about providing citizenship to foreign citizens. In the Constitution of India, specific points are given that explains who shall be the citizen of India. Those are-

  1. Any person who was born in India
  2. One of the parents of the person was born in India
  3. Any person who has been living in India for 5 years or more. 

Article 6 of the Constitution gives citizenship rights to people who migrated from Pakistan to India. 

Specific other laws which are related to immigration are-

  1. The Immigrants (Deportation from Assam) Act of 1950- This Act is being created to deport certain immigrants from the state of Assam. This Act comes under the union list, and Central Government is being empowered to remove any citizen who is a citizen of India but it affects the interests of the People of India. 
  2. Carriers’ Liability(Immigration Act of 2000)- This law is made to tackle passengers who came to India without any correct documents through carriers. This Act includes a fine of 1 lakh Rs on carriers who violate the Passport Act’s provisions by bringing any person without any legal documents. 

Bureau of Immigration is the authority which is given the powers to regulate the immigrations in India. The offices are there in 5 major cities including New Delhi, Chennai, Kolkata, Bombay as well as Amritsar. Officers who are in Immigration Bureau are called Foreigners Regional Registration Officers. They are in-charge of all the registration as well as verification works. In other cities and states where offices of Immigration Bureau are not there, one can consult the nearest Deputy Superintendent of Police office for Immigration facilities. 

The Immigration Bureau gives certain kinds of Visas to Foreigners. These include Student Visa, which is given to students who want to study in India, Employment Visa which is given to people who came to India to work. For Medical Purposes, Medical Visa is also provided for those who will be treated in the hospitals in India. Countries like Nepal and Bhutan are visa-free which means that a person need not require a visa to travel to-and-fro from these countries to India. 

Reforms in Immigration law has not been done much in the last 75 years. Governments are needed to amend the Immigration Act from time to time with the situation prevailing. A major reform which is addition of a new visa named “Refugee Visa” is needed. India’s Neighbouring countries are not stable at this moment be it Pakistan or Myanmar due to the Religious Persecution of citizens of their countries. Apart from that, faster visa approval and complete digitalisation of the immigration facilities are needed. Some things have been done, but much is needed with the progressing society. 

By Siddhant Dutta

Penalties charged for filing a late ITR

The penalty for a late income tax return, ITR, is charged under section 234F of the Income Tax Act. According to the section, filing a return post deadline would make the defaulter liable to a maximum penalty of Rs. 5000/. The penalty has been reduced from the financial year 2021. Earlier it was Rs. 10000/. Further, as the time for rectification of errors, while filing has been reduced from two years to one year from the end of the financial year, it is prudent to file returns as early as possible. Late filing can also deprive you of the opportunity of carrying forward one’s losses if any to the next years to set off against one’s future income. There will also be a delay in receiving a refund from the Government if one is entitled to the same when income tax returns are not filed within the due date. Interest at the rate of 1% is also levied for every month or part of it on the tax amount unpaid as specified under section 234A. It is important to understand that returns cannot be filed until the tax has been paid. If you do not submit your ITR, the income tax officer can commence procedures for prosecution for a duration of 3 months to 2 years, as well as a fine. If you owe more tax, the time may be extended to ten years. Furthermore, in the instance of under-reporting of income, the income tax inspector may levy a penalty of up to 50% of the tax owed. Let us also look into the benefits of timely filing of income tax returns. It makes loan approval and claiming tax refunds easier. These returns also act as income and address proofs. It also makes visa processing simpler. Thus, in order to avail of the benefits and avoid these consequences, income tax returns should be filed in a timely manner. 

How to file an income tax return online for salaried employees?

For salaried employees in India, timely filing of income tax returns is a critical financial task. It includes the following steps:

  1. Navigate to the Income Tax Department’s e-filing portal.
  2. To access the portal, enter your user ID (PAN), password, and a Captcha code. 
  3. Select ‘Income Tax Return’ from the drop-down menu under the e-file section and the applicable assessment year. At this stage, you must pick and download the proper income tax return (ITR) form.
  4. If you are not filing a revised return, choose the ‘Original’ filing type.
  5. Select the ‘Prepare and Submit Online’ submission mode and click ‘Continue.’
  6. Fill out the appropriate ITR form with all of the essential information about your income, investments, exemptions and deductions. You must include information on tax payments made through TDS, TCS, and advance tax. To avoid data loss due to technological failures, click on the ‘Save The Draft’ option on a regular basis.
  7. Calculate and pay the tax due. Then, include the challan information in your tax return (If you have no tax due, you should skip this step).
  8. Confirm the information you supplied in the form. Then click ‘Submit.’ This is how you file an ITR for a salaried employee online.

At this moment, a notice appears on your computer screen, indicating that your e-filing was successful. Following that, an acknowledgement form known as ITR-V is created. You must now validate your response using any of the methods mentioned.

It is also important to understand why salaried employees need to file income tax returns. These include that capital gains and losses are accounted for, tax refunds can be claimed, applications for loans are made easier, and it also makes applying for a visa easier. Thus, salaried employees should file income tax returns. 

Evaluating the Duty of a Business Entity in Association with Commercial Law

The business entity presumption is an accounting rule that establishes a legal distinction between the transactions of a business and the transactions of the proprietor. It also suggests the various divisions within an organization at times. Each division has to keep account of its exchanges and is responsible for the same. A sole proprietor should keep his personal transactions apart from his commercial transactions. This strategy helps with businesses that run multiple tasks.

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