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By:

Sayli Gadakh

11 November 2025 at 8:23:14 pm

The Small Business Compliance Challenge

Technology can handle repetitive work, while professionals can provide judgement and guidance. Bharath owns a small trading business. Over the last few years, his business has grown, and he now has regular customers, employees and several suppliers. He spends most of his day taking orders, speaking to customers, managing payments and solving daily business problems that come up as part of running the business. One month, while preparing for his GST return, Bharath realised that some purchase...

The Small Business Compliance Challenge

Technology can handle repetitive work, while professionals can provide judgement and guidance. Bharath owns a small trading business. Over the last few years, his business has grown, and he now has regular customers, employees and several suppliers. He spends most of his day taking orders, speaking to customers, managing payments and solving daily business problems that come up as part of running the business. One month, while preparing for his GST return, Bharath realised that some purchase invoices were missing, a few bank transactions had not been recorded and some expenses were still written in a notebook. His accountant needed the information urgently to complete the necessary work on time. Bharath was not trying to avoid compliance. He simply did not have enough time to manage everything alongside his other business responsibilities. This is the reality for many small business owners. For a small business, compliance can sometimes feel like another full-time job. GST returns, TDS, income-tax requirements, invoices, accounting records, payroll and other regulatory requirements need to be completed within specific timelines. Large companies usually have dedicated finance and compliance teams, but small businesses often depend on the owner, one accountant or an external professional to manage these responsibilities. The Compliance Challenge The first reason is lack of time. A business owner is usually busy with sales, customers, employees, suppliers and cash flow. Compliance often becomes a priority only when the deadline is close and the required information has to be gathered quickly. The second reason is changing rules. Tax and regulatory requirements can change from time to time. A small business owner may find it difficult to keep track of every change while managing the business and its day-to-day operations. Another common problem is poor record keeping. Invoices may be received on WhatsApp, bills may be kept in files, expenses may be recorded in Excel and bank transactions may be checked separately. When information is spread across different places, mistakes become easier, and finding missing information can take additional time. Cost is also a concern. Not every small business can afford a full-time finance team. Therefore, the business may depend on a small accounting team or an external Chartered Accountant for its accounting and compliance needs. Role of Technology ]Technology can make compliance much simpler and more organised. Cloud-based accounting software can help businesses record transactions regularly. Digital invoicing can reduce manual work and make it easier to maintain sales records. Bank integration can help match transactions with accounting records and identify missing entries. Simple digital reminders can also alert business owners about important GST, TDS and tax deadlines. Documents such as invoices, receipts and bills can be stored digitally instead of searching through physical files when information is needed. Artificial intelligence can provide additional support. AI-based tools can help organise transactions, identify unusual entries and highlight missing information. However, AI should be treated as a support system and not as a replacement for professional advice or professional judgement. This is where a Chartered Accountant continues to play an important role. A CA can review the information, identify possible risks, explain the applicable rules and ensure that technology is being used correctly as part of the overall compliance process. Making Compliance a Strength Compliance should not be viewed only as a burden or a legal formality. Proper records can help a business understand its actual sales, expenses, profits and cash flow and give the owner a clearer picture of the business. For Bharath, the solution is not simply to work harder. It is to create a better system for managing these responsibilities regularly. Technology can handle repetitive work, while professionals can provide judgement and guidance. For small businesses, the message is simple: start maintaining records regularly, use technology wherever possible and take professional advice when required to keep the process organised and manageable. Good compliance does not only prevent penalties. It can also give business owners better financial control and more confidence to grow their businesses over time. In today's digital economy, compliance should not be something a business owner fears every month. It should become a simple, organised part of running the business. (The writer is a Chartered Accountant based in Thane. Views personal.)

Caste-based Census Sparks Nationwide Debate

Oct 2, 2024
3 min read

Updated: Oct 22, 2024

Caste-based Census

Caste-based identities continue to dominate rural India, directly or indirectly shaping electoral outcomes. Many major elections are influenced by specific caste groups. After the Bihar government released the first phase of its caste-based socio-economic survey, the caste census became a hot topic. The results, backed by evidence, showed improvements in the living standards and social status of marginalised communities, both in cities and villages. With parties like the JDU and NCP backing a caste census, there is growing momentum for the government to conduct one. However, every story has two sides—joy and sorrow. Even Mahatma Gandhi, the Father of the Nation, raised concerns about the caste census.

Rahul Gandhi accused the BJP of being “anti-Bahujan.” The clear meaning is that his father and forefather refused to execute a caste-based census, which might have far-reaching effects and even permanently fracture India’s social fabric. This may be negative for caste-based beneficiaries. The last caste census in India was conducted in 1931 by the British government. Those times were different from the present scenario. The data was made public and became the basis for the Mandal Commission Reports and reservation policies for Other Backward Classes. Rashtriya Swayamsevak Sangh (RSS) has clarified that the caste-based population count data will not be used for core politics. But the agenda for politics is always twisted and expanded.

The Central Government also joined the legal debate by filing an affidavit with the Supreme Court, leaving the matter unresolved. India’s partition, rooted in the divide-and-rule strategy, is frequently cited as a cautionary tale. Including caste in official census data could further deepen social divides. This issue has become a political pressure point, with various states pushing the Centre for action. Although the Constitution uses the term “class” instead of “caste,” the Supreme Court has consistently ruled that caste is a relevant, and at times, sole or dominant criterion for defining a backward class.

After the release of caste-based census data in Bihar, discussions around conducting similar censuses have gained momentum in states like Rajasthan, Chhattisgarh, and Jharkhand. Karnataka, which has already conducted its own caste census, may release its data soon as well.

Notably, all these states are governed by anti-BJP parties. Congress leader Rahul Gandhi also announced that Congress-ruled states have committed to carrying out caste censuses. Meanwhile, the BJP has remained silent on the matter, creating a significant roadblock.

Caste-based censuses focus on proportional representation in areas like jobs and education, with the argument that this will aid in targeted planning for the disadvantaged. However, the situation remains unclear, much like a foggy winter morning. The BJP’s stance on caste-based censuses and reservations seems different, as they fear the caste-based calculations could fragment their traditional Hindu voter base—an underlying concern for the party.

Professor Sanjay Kumar from The Centre for the Study of Developing Societies, says, “Let alone the BJP; no party can openly oppose it; it is not free from danger. BJP gets a large number of votes from the OBC community, their population across the country would be around 52%. Another downside is that the caste-based censuses could disrupt the balance of socio-economic zones. Data theft is a common issue in government systems, and people may feel disconnected from their actual rights.

The moot question is that if the financial status of an ST/SC/OBC or Dalit citizen moves up by a few notches, will his social status change automatically? The lifestyle of any class will only change when the income of a particular class is changed. The actual source of income is employment. The reality is that only metro cities have enough place and space for workers. Aside from the GIDC and IT sectors, less than 30% of industries have their own designated vacancy periods. After a decade, the Jamnagar and Rajkot Corporations have opened their doors to newcomers alongside experienced staff. However, age and caste bias often operate behind the scenes. It’s important to recognise that poverty is also widespread among many upper-caste individuals, and their needs cannot be overlooked. In the overall interests of the nation, terms like SC/ST/OBC, Dalits, etc. must be deleted from the nation’s vocabulary. Every citizen should have only one classification, that of being an ‘Indian’, in the spirit of the constitution.

Last year, when the Bihar government decided to conduct a caste survey in the state, the BJP was also Nitish Kumar’s partner in the state government, and it supported it. Political expert and former professor of Tata Institute of Social Science, Pushpendra Kumar, says, “It is not that the BJP does not talk about caste. It tries to reveal the caste of the Prime Minister as well. For caste politics, the BJP also tried hard to raise the issue of Pasmanda Muslims.”

(The writer is a management professional based in Ahmedabad. Views personal.)

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