Business Tax Return Filing

Every year, all companies doing business in India are required to file an income tax return. To remain in compliance with the Income Tax Act, a firm may be required to file a TDS return, pay advance tax, and file an income tax return. The largest tax services platform in India, IndiaFilings, offers a variety of services like incorporation, filing GST returns, submitting income taxes, and more. IndiaFilings can assist with filing your company's income tax return and making sure it abides by the Income Tax Act and Rules. It typically takes 3 to 5 working days to prepare an income tax return for your company. Make a consultation appointment with an IndiaFilings Advisor to receive a free consultation on filing business tax returns.

Proprietorship

Every year, an income tax return must be filed by anyone with company or professional income above Rs. 2.5 lakhs. For professionals and business owners, IndiaFilings offers income tax filing starting at Rs. 2899.

Partnership

Whether registered or unregistered, partnership firms must file an annual income tax return using form ITR 5. Partnership businesses are subject to a 30% income tax. For partnership firms, IndiaFilings offers income tax filing starting at Rs. 5899.

LLP

Limited Liability Partnership businesses with Indian registrations must submit an MCA Annual Return and an Income Tax Return on Form ITR-5 each year. Starting at Rs. 7899, IndiaFilings provides comprehensive compliance management for LLPs.

Companies

All types of companies registered in India are required to file Income Tax Return in Form ITR-6 each year and MCA Annual Return. IndiaFilings offers comprehensive compliance management for companies starting from Rs.7899

Proprietorship Tax Return Filing

Any person who earns money from a business is considered to be a proprietor of a business. In India, proprietorships are required to file an income tax return each year. The process for submitting a proprietorship's income tax return is similar to that of filing an individual tax return because proprietorships are thought of as being one and the same as the proprietor.

Requirement for Filing Proprietorship Tax Return

If their combined revenue exceeds Rs. 2.5 lakhs, all business owners under 60 must file an income tax return. Income tax filing is required for business owners who are above 60 but under 80 if their total income exceeds Rs. 3 lakh. Owners who are 80 years of age or above must file an income tax return if their total income is more than Rs. 5 lakh.

Income Tax Rate for Proprietorship

The proprietorship income tax rate is the same as the individual income tax rate. Proprietorships are subject to slab rates of taxation as opposed to the flat rates that apply to LLPs and corporations. The income tax rate that applies to sole proprietorships for the assessment year 2019–20 if the owner is under 60 is as follows.

Tax Audit for Proprietorship

If a proprietorship firm's annual total sales revenue exceeds Rs. 1 crore, an audit will be necessary. If total gross receipts for a professional during the financial year under assessment exceed Rs. 50 lakhs, an audit would be necessary.

Due Date for Filing Proprietorship Tax Return

The proprietorship's income tax return is due on July 31 if an audit is not necessary. The 30th of September is the deadline for proprietorship income tax returns if the Income Tax Act requires an audit.

Tax Return for Proprietorships

Owner-operated businesses are required to file Form ITR-3 or Form ITR-4-Sugam for the assessment year 2017–18, which solely refers to revenue produced in Financial Year 2016–17. Hindu Undivided Families or proprietors who are engaged in a proprietary business or profession may file Form ITR-3. In order to pay income tax under the presumptive taxation plan, a proprietor must complete Form ITR-4-Sugam.

Partnership Firm Tax Return Filing

Regardless of the amount of income or loss, all partnership firms must file an income tax return. According to the Income Tax Act, partnership firms are taxed as a separate legal entity. As a result, the income tax rate that applies to partnership firms is comparable to that of LLPs and Indian companies.

Requirement for Filing Partnership Firm Tax Return

Regardless of profit or loss, all partnership firms are required to file an income tax return each year. A NIL income tax return must be submitted before the deadline for a partnership firm if there was no economic activity.

Income Tax Rate for Partnership Firms

30% of the total income is the income tax rate that applies to partnership firms. When total income surpasses Rs. 1 crore, a partnership firm is also required to pay an additional 12% income tax surcharge on the amount of income tax. A partnership firm must pay the Health & Education Cess in addition to the income tax and surcharge. A 4% health and education cess is levied on the sum of income tax and any applicable surcharge.

Minimum Alternate Tax for Partnership Firms

The minimal alternate tax that applies to partnership firms is similar to the income tax that applies to a company. There is a minimum alternate tax of 18.5% on adjusted gross income. Due to the income tax surcharge, education cess, and secondary and higher education cess, the income tax payable by a partnership firm with profits cannot be less than 18.5%.

Tax Audit for Partnership Firm

A tax audit is necessary for partnership firms that conduct business and have annual revenues of more over Rs. 1 crore. Similar to this, partnership firms that carry on a profession and have gross receipts over Rs. 50 lakhs the previous year are needed to get a tax audit. A partnership firm may also be required to conduct an audit if additional circumstances apply.

Due Date for Filing Partnership Firm Tax Return

For the majority of partnership businesses, the income tax return deadline is July 31 of the assessment year. The income tax return must be filed by September 30th for partnership firms that must have their accounts audited in accordance with the Income Tax Act.

Tax Return for Partnership Firms

Form ITR 5 is the income tax return that partnership firms must submit. ITR 5 is an attachment-free form, like all other income tax forms, therefore there is no need to provide any supporting paperwork with a partnership business tax return. The taxpayer must, nonetheless, keep track of all business-related paperwork and present them to the tax authorities upon request.

LLP Tax Return Filing

Regardless of the amount of income or loss, all LLPs must file an income tax return. LLPs are treated as independent legal entities from their partners for tax purposes. Similar to Indian corporations incorporated there, LLPs are subject to the same income tax rate.

Requirement for Filing LLP Tax Return

LLPs must file an income tax return each year, regardless of profit or loss. NIL income tax returns must be submitted by the deadline if there was no commercial activity.

Income Tax Rate for LLPs

For LLPs with Indian registrations, a flat 30% of the entire income is the income tax rate that is applicable. When the total income reaches Rs. 1 crore, a surcharge of an additional 12% is added to the income tax that is due. A 4% Health & Education Cess is also applied on the income tax and surcharge of an LLP in addition to the income tax surcharge.

Minimum Alternate Tax for LLP

LLP must pay minimal alternate tax, just like a firm must pay income tax. For LLP, a minimum alternative tax of 18.5% of total adjusted income is applicable. Therefore, the amount of income tax that LLP must pay (after adding the income tax surcharge, the education cess, and the secondary and higher education cess) cannot be less than 18.5%.

Tax Audit for LLP

LLPs must have their accounts audited by a licensed Chartered Accountant if their revenue exceeds Rs. 40 lakh or their contribution is greater than Rs. 25 lakh. Additionally, Form 3CEB must be filed by LLPs that engaged in certain Specified Domestic Transactions or international transactions with linked businesses. Chartered Accountant certification is required for Form 3CEB. The 30th of November is the deadline for LLPs that must submit Form 3CEB.

Due Date for Filing LLP Tax Return

The 31st of July is the LLP tax filing deadline in India. The deadline for LLPs to file their income tax returns is September 30th if they must obtain a tax audit.

Tax Return for Partnership Firms

LLPs must file income tax return using Form ITR 5. Form ITR 5 must be filed online using the digital signature of one of the designated partner of the LLP.

Company Tax Return Filing

The filing of income tax returns is a yearly requirement for all Indian-registered businesses. The filing of corporate tax returns falls into one of two categories under the Income Tax Act: domestic companies or overseas companies. Domestic companies are entities like Private Limited Companies, One Person Companies, and Limited Companies that have been registered with the Ministry of Corporate Affairs.

Requirement for Filing Company Tax Return

No matter their annual income, profit, or loss, all Indian-registered businesses must submit income tax returns. As a result, even inactive businesses that have no transactions must file an income tax return each year.

Income Tax Rate for Company

Domestic businesses with a total revenue of less than Rs. 250 crores in the assessment year 2016–17 are subject to an income tax rate of 25% of their total revenue for 2019–20. Companies with a 2016–17 annual revenue of more than Rs. 250 crores are subject to a 30% income tax rate. Companies must also pay a surcharge and a 4% Health & Education Cess on top of their income tax obligations.

Minimum Alternate Tax for Company

If the company's tax burden is less than 18.5% of book profit, then all companies are obligated to pay the minimal alternate tax at the rate of 18.5% of book profit plus surcharge and education cess.

Tax Audit for Company

The accounts of a company must be audited each year by a Chartered Accountant, irrespective of turnover or profit/loss.

Due Date for Filing Company Tax Return

The deadline for filing income tax returns for all Indian-registered businesses is September 30. Companies that were incorporated between January and March are eligible to file their MCA annual return after the first 18 months. The Income Tax Act, however, forbids the use of a similar exemption. Due to this, even businesses that were registered from January to March are required to file their income tax returns by September 30th of the same year.

Tax Return for Company

Form ITR 6 must be submitted by Indian-registered businesses that are engaged in profitable operations. Therefore, Form ITR6 would need to be filed by Private Limited Companies, Limited Companies, and One Person Companies.