Compliance guides
Law · MCA
When does internal audit apply?
Section 138 and rule 13 require an internal auditor for every listed company, and for unlisted and private companies that cross the capital, turnover, borrowing or deposit tests.
Law · MCA
Who is a related party under section 2(76)?
Section 2(76) lists who is a related party: directors, key managerial personnel, relatives, firms, companies, and holding, subsidiary, associate and investing companies. Rule 3 adds the holding company's officers.
Law · Tax
What is the ₹2 lakh cash receipt limit?
Section 186 of the Income-tax Act, 2025 bars a cash receipt of ₹2 lakh or more in a day, a transaction, or one event. Section 451 sets a penalty equal to the sum. Older receipts were section 269ST.
Law · MCA
When is a cost audit compulsory?
Section 148 and rule 4 set cost audit at ₹50 crore and ₹25 crore for regulated sectors, and ₹100 crore and ₹35 crore for other covered sectors. Cost records start at ₹35 crore.
Law · MCA
Which companies must follow Ind AS?
Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 puts listed companies and unlisted companies at ₹250 crore net worth on Ind AS. Once it applies, it stays.
Law · Tax
What replaced the Income-tax Rules, 1962?
G.S.R. 198(E) replaced the Income-tax Rules, 1962 from 1 April 2026. A credit or payment on or before 31 March 2026 still follows the old rules. Rule 218 keeps the old deposit dates.
Law · MCA
Who is a relative under the Companies Act?
Section 2(77) of the Companies Act, 2013 counts HUF members, a spouse, and the eight relations in rule 4. A father-in-law, cousin or step-daughter is not on that list.
Law · MCA
When can the Board pass a circular resolution?
Section 175 passes a board resolution by circulation only if every director gets the draft at the India address on the register and a majority of those entitled to vote approve it. Section 179(3) and rule 8 stay with a meeting.
Law · MCA
What is a subsidiary under section 2(87)?
Section 2(87) of the Companies Act, 2013 makes a company a subsidiary if the holding company controls its Board or more than half its voting power. The 2017 layers rules generally stop the chain at two.
Law · MCA
What duties does section 166 impose?
Section 166 of the Companies Act, 2013 requires a director to follow the articles, avoid a conflict, and pay back any undue gain. A contravention is a fine of ₹1,00,000 to ₹5,00,000.