Tuesday, September 22, 2020
Home Reports Decriminalisation of non-filling of annual return and financial statement proposed

Decriminalisation of non-filling of annual return and financial statement proposed

Also Read

Archi Bhatia
Archi Bhatia is a content writer who is also a qualified lawyer.She is affiliated with QuickCompany which deals in Company Registration, Company Search, Trademark Registration in India, Trademark Search and Other Legal Activities.
 

Non-filling of Annual Return and the Financial statement is a criminal offence under companies act, 2013. The proposal to decriminalize the non-filing of annual return comes as a relief to all the directors of the companies.

The committee is likely to implement changes in section 92, 134 and section 137 of the companies act. Non-filling of the financial statement and annual return will be considered only a civil offence and the directors of the companies will be levied with only fines instead of prior practice which involved penalizing the directors and as well as imposing imprisonment along with it.

The recommendation committee has 10 members who will submit the report with Corporate Affair Minister Arun Jaitley. The committee is headed by Corporate Affair Secretary Injeti Srinivas.

This high-level committee consists of a top bureaucrat, well-known industrialist bankers and lawyers. The amendment to the act will come after due consideration, and the committee has come to a conclusion that simple violations like non-filing of financial statement and annual return should be considered civil offence and hence could be handled by Ministry of corporate affairs itself instead of implementing a new case with the criminal court.

Ease of Doing Business

  • Currently, non-filling of financial statement and annual return is considered to be a criminal offence where the offender is charged with a fine and also imprisoned as per companies act 2013
  • Corporate affairs minister Arun Jaitley is likely to hear from the committee about various offences under the companies act which can be decriminalized.

Penalties as per Current Framework

 

Non Filing of copy of both Annual Return and the Financial statement is a criminal offence, and hence it is essential for all the people involved in the corporate sector to understand the penalties which will be imposed upon them.

  • Non-filling of Annual Return

If the company officials or the company does not file  their annual return within the prescribed period the fine imposed is 50,000 which may extend to 5 lakh rupees, or the officials can be imprisoned for 6 months

  • Non-filing of Financial Statement

Non-filing of financial Statement amounts to imprisonment which may extend up to 3 years and fine which may extend up to 25 lakh.

  • If the Financial Statement is in Contravention of the provisions relating to the Financial statement
 

If the financial statement submitted is in any way found to be in contradiction with the provisions of the act the fine imposed will be 1000 every day until the fine reaches the limit of 10 lakh and the sentence for imprisonment may go up to 6 months.

In all the above cases the fine and imprisonment can be imposed together for the company officials.

If the corporate ministry implements this recommendation which will bring relief in the corporate sector as it will decriminalize the non-filling and it will then only be dealt with a civil offence.

  Support Us  

OpIndia is not rich like the mainstream media. Even a small contribution by you will help us keep running. Consider making a voluntary payment.

Trending now

Archi Bhatia
Archi Bhatia is a content writer who is also a qualified lawyer.She is affiliated with QuickCompany which deals in Company Registration, Company Search, Trademark Registration in India, Trademark Search and Other Legal Activities.

Latest News

Suppressing Maratha history in school textbooks

Secularism has never inspired anyone to do anything, except indulging in laziness. A nation without history is like a man without soul. We urgently need to recast our history books by focusing on a few critical points.

Open letter to Mr. Julio Ribeiro

From the time BJP, despite all out efforts by vested interests from both within and outside the country to deny its well deserved entitlement, won the mandate of the people in 2014 there have been unwarranted apprehensions and antagonism in people like you.

Hindu temples and associated museums

Hindu temples for generations before have been a beacon for development, cultural preservation and a socio-economic safety net for the Hindu society all the while being sacred places of worship. It is high time we reclaimed the temples and restored them to the status of such civilisational monuments.

Powerless and insignificant tech savvy fans!

If the laws, rules and regulations are same for the people of the industry and the rest of India, then who is responsible for carving out a different set of rules for the popular celebrities in the industry?

How to stop schools’ engagement in commercial activities

Delhi High Court and CBSE have ordered to stop commercial activities (selling uniforms, books etc) in schools but hardly any impact visible on ground.

The 3 land mark farm bills- Gift by Modi govt. to farmers

History will remember Prime Minister Modi for these Farm-reforms, as the former P.M PV Narasimha Rao is remembered by Indians for his Economic-reforms.

Recently Popular

Daredevil of Indian Army: Para SF Major Mohit Sharma’s who became Iftikaar Bhatt to kill terrorists

Such brave souls of Bharat Mata who knows every minute of their life may become the last minute.

5 Cases where True Indology exposed Audrey Truschke

Her claims have been busted, but she continues to peddle her agenda

पोषण अभियान: सही पोषण – देश रोशन

भारत सरकार द्वारा कुपोषण को दूर करने के लिए जीवनचक्र एप्रोच अपनाकर चरणबद्ध ढंग से पोषण अभियान चलाया जा रहा है, भारत...

Did Mahabharat inspire to solve Terrorism in Myanmar?

Most Indian Gods carry a flower (giving peace a chance), weapon (violence for good) & animal as vehicle (animal instinct of survival of the fittest)

सामाजिक भेदभाव: कारण और निवारण

भारत में व्याप्त सामाजिक असामानता केवल एक वर्ग विशेष के साथ जिसे कि दलित कहा जाता है के साथ ही व्यापक रूप से प्रभावी है परंतु आर्थिक असमानता को केवल दलितों में ही व्याप्त नहीं माना जा सकता।
Advertisements