Business Tax Filing

About Business Tax Filing

Setting up a business and understanding the complexities of filing returns is essential to running a business. A business tax return is an income tax return filing applicable to companies. It serves as a comprehensive record of the business’s earnings and expenses.

Business Tax Return Filings in India just got more straightforward with Comfile. We are here to help businesses easily file their tax returns. Our expert team makes the process less stressful, so you don’t miss deadlines or break any rules. It doesn’t matter if your business is starting or already big – we are here to help.

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What is a business tax return?

A business tax return refers to an income tax return for businesses. A business tax return is a comprehensive report that outlines a business’s income, expenses, and pertinent tax details, all presented in a designated form. It entails the submission of income tax returns for businesses, with the added requirement of reporting Tax Deducted at Source (TDS). This process must be carried out annually.

This return serves as a financial statement detailing earnings. It outlays and is a documentation of additional financial components like fixed assets, loans obtained, loans extended, debtors, and creditors within the business.

 

Both Indian citizens and companies are required to file income tax returns if their Gross Total Income (GTI) exceeds Rs. 3 lakhs (amounts below three lakhs are exempted). These income tax returns must be submitted annually within the specified deadline. Various income tax return forms are available, tailored to different criteria applicable to multiple groups of individuals and businesses. It is essential to identify the appropriate arrangements and submit them to the Income Tax Department of India for processing.

Filing income tax returns offers several advantages for businesses, some of which are outlined below:

  • Refund Claims: Accurate and timely filing can lead to potential refunds, which can be beneficial for improving cash flow within the business.
  • Carry-forward of Losses: Losses incurred in one financial year can be carried forward and adjusted against future profits, reducing tax liabilities.
  • Loan Applications: Having proper and up-to-date income tax returns can serve as evidence of financial stability, increasing the chances of obtaining loans or credit from financial institutions.
  • Evidence for Transactions: Filed tax returns can provide solid proof of the business’s financial transactions and activities, which can be helpful for legal or contractual purposes.
  • Compliance with Law: Filing tax returns ensures compliance with tax regulations, helping businesses avoid penalties or legal issues.
  • Transparency: Transparent financial records through tax returns can enhance the business’s credibility, fostering trust among customers, partners, and stakeholders.
  • Audit Preparedness: Filed returns provide a basis for accurate financial statements, preparing the business for potential tax audits.
  • Business Growth: Accurate financial reporting through tax returns can assist in making informed business decisions, aiding in growth and expansion strategies.
  • Avoiding Notices: Timely and accurate filing reduces the likelihood of receiving notices or queries from tax authorities.
  • Availing Tax Benefits: Filing returns on time enables businesses to avail themselves of various tax benefits and deductions legally, optimizing their tax liabilities.

Filing a tax return is mandatory for all eligible businesses operating within the framework of Indian tax regulations. The need to file a business tax return is contingent upon the structure of the business:

  • Sole Proprietorship
  • Partnership Firm
  • Limited Liability Partnership (LLP)
  • Companies – Private Limited Company, One Person Company

The different categories for filing Business Tax Returns are determined based on the types of business entities allowed to submit them. These categories correspond to other business structures and their respective designations.

  • Partnership Firm Tax Return Filing
  • Proprietorship Tax Return Filing
  • Limited Liability Partnership Tax Return Filing
  • Company Tax Return Filing

 

 

 

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Rs. 2499/-

Consultants & FreeLancers

  • Professional Fee as Income
  • TDS Refund support
  • Professionals such as doctors, coaching teachers, architects etc.
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Rs. 3499/-

Small Service Providers

  • Services with Gross turnover less than 30 Lakhs
  • No accounting is covered, if required can be provided on additional fee
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Rs. 6999/-

Small Traders

  • Small trading activities
  • Covers cases of flipkart or amazon sellers
  • The annual turnover is less than 1 Crore
  • Benefit of presumptive tax
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Note: No accounting covered, if required can be provided on additional fee.

                       Important Information On Income Tax Return (ITR)

 
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First Pay Tax Then File Return

Filing of income tax return is a self assessment method wherein the taxpayer needs to make a computation of taxable income earned during the previous year and the income tax payable thereon. Before filing the return, the due tax must be paid. The tax can be paid online or through challan 280 by depositing in bank with cheque or cash.

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Late Return Filing

If the taxpayer has missed the due date of filing the Income tax return, the same can still be submitted as “belated income tax return” within the last date of the assessment year. However, the losses or accumulated depreciation cannot be carried forward, and in case there is any error the belated return cannot be revised.

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Penalty For Not Filing The ITR

Filing of ITR is a mandatory requirement under section 139 of the Income Tax Act,1961 and non-filing of the same attracts a penalty Up-to Rs. 5,000/-. This penalty is over and above the interest or other consequences on nonpayment of tax. However, if a genuine reason is shown to the satisfaction of the ITO, it may be waived off or reduced.

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