MCA extended due dates for Company Annual Filings

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An important and positive news for incorporated companies. The news is that MCA Extended due dates for company annual filings. Earlier, Company’s annual filing is due on 30th October 2021 for the financial year 2020-21. Now, it’s a big relief to the companies this Diwali. Since the due date for filing ROC forms extended further with no additional late fees. This article describes the latest update as MCA Extended due dates for company annual filings.

What is Company Annual Filings and Why is it important?

The submission of the company’s Audited Annual Financial Accounts, Audit Report, Directors Report, and Annual Return is required every year with the Registrar of Companies is referred to as “Company Annual Filings.”

This information is made public so that lenders and other stakeholders engaging with the company may have a “true and fair picture” of the company’s financial position. Thus, every company that is registered under the Companies Act is required to file yearly returns with the Registrar of Companies [ROC].

Which companies are required to do Annual Filings?

Every year, all types of companies (private limited company, one person company, limited company, Public Limited Company, etc.) must file an annual return with the MCA, namely, AOC-4 and MGT-7. In addition, it is mandatory for Companies to do ITR Filing along with the income tax department.

What if someone doesn’t do Company Annual Filings?

Non-filing of an annual return is a violation of the Companies Act of 2013. Under the Companies Act, 2013, if a company has not submitted its Annual Return for three consecutive financial years, then the director of that company shall be disqualified and personally liable for the violation.

Furthermore, there are penalties charged in delay in filing of ROC forms, if companies fail to file Annual Returns on time. The rates of penalties imposed in case of failing to file annual returns on time are as follows.

Period of Delay Amount of Penalty
Upto 15 days (sections 93,139 and 157) 1X of normal fee
More than 15 days and upto 30 days (Sections 93, 139, and 157) and upto 30 days in remaining forms. 2X of normal fee
More than 30 days and upto 60 days 4X of normal fee
More than 60 days and upto 90 days 6X of normal fee
More than 90 days and upto 180 days 10X of normal fee
More than 180 days and upto 270 days 12X of normal fee
Delay beyond 270 days The second proviso to sub-section (1) of section 403 of the Act may be referred

Similarly, If a company has not submitted its Annual Return for the previous two financial years in a row, it is considered an “inactive company.” The company’s bank account might be frozen as a result of this categorization. In addition, the Registrar may issue a notice to the Business and begin the process of striking the company from the MCA records.

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MCA extended due dates for Company Annual Filings for 2020-21

Due to multiple pleas from various stakeholder groups for relief on the levy of extra charges for annual financial statement filings required for the fiscal year that ended on 31.03.2021, it’s been declared that no additional fee or penalty will be levied for the filing of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 Non-XBRL, and MGT-7/MGT-7A for the financial year ended on 31.03.2021 if filed before 31.12.2021. During this time, only standard fees will be charged for filling the aforementioned e-forms.

The notification from MCA also mentions this relief is only available upto 31.12.2021.

Professionals can now verify Income Tax Returns of Bankrupt Companies

If you want any other guidance relating to the company annual complianceplease feel free to talk to our business advisors at 8881-069-069.

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