Management consulting and Strategy consulting

What is the difference between management consulting and strategy consulting?

Management consulting: Sometimes businesses require outside advice and support if they are facing any problems or are in need of out of the box ideas. The professionals who provide this external advice are called management consultants. Management consulting is a generic view of consulting; It is the basket to other small consultancies like HR consultancy, Finance consultancy etc. Organisations not only benefit by gaining external advice by opting for management consulting, but they also gain access to the consultant’s specialised expertise.

Management Consulting

Strategic consulting: Strategic consulting is a practice wherein highly experienced consultants provide firms with advice on their goals and future direction so that they can propose beneficial tactics for efficient growth and increase the value of their business. Strategic consulting is a branch of management consulting, it emphasizes more on corporate strategy. These consultants use expertise, industry wisdom and analysis to help their clients discover strategies that will increase revenue and market share by refining their competitive advantage.

Strategy Consultants

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Management consulting and strategic consulting practices are interconnected, therefore they don’t have any huge differences, but some of them are:

  1. Strategic consulting is usually directed more towards The CEOs and The management, of the larger organisations and the public sectors whereas management consulting is done at the lower levels of the large organisation and at many levels of the small organisations.
  2. Strategy consultants have issue based specialists that concentrate on specific business issues whereas management consultants work on broad business issues.
  3. Management consulting is done in large, medium and small organisations unlike strategic consulting, that is mostly done only in large organisations.

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Important points About Saving Income Tax

Recommended methods of saving taxes under Sec 80C & 80D

  • Make an investment of Rs 1.5 Lakh under Sec 80C to decrease your taxable income
  • Subscribe for a Medical Insurance & claim a deduction.
  • Claim deduction up to Rs 50,000 for residential loan interest under Section 80EE

Investment options under Sec 80C

The most popular tax-saving options available to individuals in India are under Section 80C of the Income Tax Act. Section 80C includes several investments and expenses that can be used to claim deductions. The limit of Section 80C is ? 1.5 lakh in a financial year, which means that you can use this full amount to reduce your taxable income.

Tax Savinngs

Other Tax Saving options beyond Sec 80C

In addition to the deductions available under Section 80C, there are other deductions from Section 80 that can also be claimed to save on income tax. These deductions include health insurance premiums, tax benefits on mortgage loans.

  • Buy medical insurance and claim a deduction of up to Rs. 25,000 (Rs 50,000 for seniors) for the health insurance premium
  • Claim the deduction of up to Rs 50,000 in mortgage loan interest under Section 80EE
  • A mortgage loan would also help you reduce your taxable income, since the principal part of the mortgage loan can be claimed in accordance with Section 80C up to Rs 1.5 lakhs and the interest portion can be claimed as a deduction from income of the property

Know about tax-saving investments for the year

The best time to start planning your tax savings investments is at the beginning of the financial year. Most taxpayers delay until the last quarter of the year and end up making hasty decisions. Instead, if you plan at the beginning of the year, you can make investments that can also help you meet your long-term goals. Investments that save taxes must also be used to create wealth, not just to save taxes.

Use the following notes to plan your tax-saving :

  • Check the tax savings expenses that you are already doing and that you can claim. This includes expenses such as the insurance premium, children’s tuition fees, the contribution of EPF, the repayment of mortgage loans, etc.
  • Deduct this amount of ? 1.5 lakh to calculate how much to invest. It is not necessary to invest the total amount if the expenses cover it.
  • Choose investments to save taxes based on your goals and your profile. ELSS, PPF, NPS funds and fixed deposits are some of the popular options.

In this way, you can find out how much you need to invest to save taxes. It is better to start investing in the first quarter of the financial year so you can distribute the investments throughout the year. Doing this will not be a burden at the end of the year and will also allow you to make informed investment decisions.

What are forms AOC-4 and MGT-7?

What are forms AOC-4 and MGT-7? Are these important forms for a company?

These are forms to filled and submitted to Register of companies (ROC).

  • AOC-4 = it is all about balance sheet items and values
  • MGT-7 = it is all about BOD Meetings & capital hold by promoters & Members.

These forms are to mandatory to be filed by all companies with ROC which should be filled within the due date.

  • The due date for AOC-4 is within 30 days of AGM.
  • The due date for MGT -7 is within 60 days of AGM

If it is not filed within the due date

9 months imprisonment Or  50,000 to 5,00,000 penalty Or Both

Note: The above-mentioned penalties is applicable even you not filled annual return within 270 days of due. If you filed within 270 days there may be some late fee charges that’s it.

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