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Business Tax Filing

According to the Income Tax Department of Indian, any Non Payment of annual business income taxes by the due date attracts penalties under the Income Tax Law.

Digital Filings can help you in…:

 Understanding the Taxation requirements

 Drafting required financial statements, including Income and Expenditure

 Computing Taxable amount

 Filing the annual return

From INR 2,899/- all inclusive fees; 12 Months* [email protected] 259/-

Understanding Business Tax Filings

Indian businesses need to file their annual Business Tax Returns on regular basis in order to conveniently conduct their operations. The tax return for a business depends on the books of accounts and income and expenditure statements, Balance Sheet, Profit, and Loss Account and details regarding assets and liabilities of a company. While, a business may also be advised to file Tax Deducted at Source (TDS) return and pay advance tax to stay compliant under the Income Tax Act.

A business entity is obliged to file business tax return irrespective of its business structure. The procedure to be followed depends on several factors, such as industry, investment, incurred profit or losses, among others. On exceeding annual turnover of over INR 1 Crore, the business is instructed to get a tax audit and in this case, the due date for filing business tax returns is September 30th. Whereas, organizations without the obligation of any tax audit are bound to complete their respective taxation formalities by July 31st.

Business Tax Returns based on Various Business Structures

Sole Proprietorship

Partnership Firm

LLP Firm

Domestic Company

Sole Proprietorship

Proprietorship is an entity that is owned and managed by the same person. This form of business structure is the most prevalent among micro and small sized businesses operating aross the nation. A proprietor must know following points before filing Business Tax Return.

  • Income and Age Criteria
  • Proprietor’s Age

    Taxable Annual Income

    Less Than 60 Years

    More Than INR 2.5 Lacs

    Between 60 Year to 80 Years

    More Than INR 3 Lacs

    Above 80 Years

    More Than INR 5 Lacs

  • Income Tax Rates and Annual Income Slabs
  • Income Slab based Income Tax Rates are charged where proprietors with higher income are supposed to bear higher Income Tax Rates.

    Income Tax Rate

    Taxable Annual Income Slabs

    No Income Tax

    Equal To or Less Than INR 2.5 Lacs

    10%

    Ranging Between INR 2.5 Lacs and INR 5 Lacs

    20%

    Ranging Between INR 5 Lacs and INR 10 Lacs

    30%

    More Than INR 10 Lacs

    • Income Slabs based Tax Audit Requirement and Due Date

    Taxable Annual Income Slabs

    Proprietorship Type Tax Audit Requirement

    Due Date

    More Than INR 1 Crore

    Business Yes September 30th

     Receipts Up To INR 50 Lacs

    Professionals (Lawyer / Doctors / Engineers) No

    July 31st

    Receipts More Than INR 50 Lacs Professionals (Lawyer / Doctors / Engineers) Yes

    July 31st

  • Business Tax Return Forms
  • Business Type

    Form

    Sole Proprietors OR Hindu Undivided Family (HUF)

    ITR-3

    Sole Proprietors opting for Presumptive Taxation Scheme

    ITR-4 Sugam

Partnership Firms

Partnership business model includes two or more than two individuals agreed to carry out business activities, as per the agreed upon objectives prescribed in Partnership Deed.

  • Income Tax Mandate
Firm’s Operations

Business Tax Return Requirement

Active Firm

Taxable irrespective of Profits or Losses incurred

Inactive Firm

NIL tax return is to be filed on or before the due date

  • Various Tax Rates

Tax Rate Type

Tax Rate

Income Tax Rate on Annual Income

30%

Income Tax Surcharge

12% on annual income exceeding INR 1 Crore

Education Cess

2% on Income Tax and Surcharge Amount

Secondary and Higher Education Cess

1% on Income Tax and Surcharge Amount

Minimum Alternate Tax

Operational Partnership Firms are obliged to Pay 18.5%* of Minimum Alternate Tax on their adjusted annual incomes.

*This rate does not Education Cess as well as Secondary and Higher Education Cess

  • Income Slabs based Tax Audit Requirement and Due Date

Taxable Annual Income Slabs

Partnership Firm Type Tax Audit Requirement* Due Date

More Than INR 1 Crore

Business Firms Yes

September 30th

 Up To INR 50 Lacs Receipts

Professional Firms (Law / Hospitals / Engineering) No July 31st
More Than INR 50 Lacs Receipts Professional Firms (Law / Hospitals / Engineering) Yes

July 31st

*There are certain terms and conditions that may also obligate a Partnership or Professional Firm to go through an audit.

  • Business Tax Return Forms

Business Type

Form

Partnership Firm

ITR-5*

*No documents or financial statements are required to be attached along with the form, however, partners are advised to save all the relevant information and details in case an inspection is required by the concerned taxation authorities.

Limited Liability Partnership (LLP) Firms

An LLP Firm is a recently introduced business model which entitles partners with limited liability benefits, enabling a partner not to be held responsible for other partner’s wrong- doing.

  • Income Tax Mandate

Firm’s Operations

Business Tax Return Requirement

Active Firm

Taxable irrespective of Profits or Losses incurred

Inactive Firm

NIL tax return is to be filed on or before the due date

  • Various Tax Rates

Tax Rate Type

Tax Rate

Income Tax Rate on Annual Income

30%

Income Tax Surcharge

12% on annual income exceeding INR 1 Crore

Education Cess

2% on Income Tax and Surcharge Amount

Secondary and Higher Education Cess

1% on Income Tax and Surcharge Amount

Minimum Alternate Tax

Operational LLP Firms are obliged to Pay 18.5%* of Minimum Alternate Tax on their adjusted annual incomes.

*This rate does not Education Cess as well as Secondary and Higher Education Cess

  • Income Slabs based Tax Audit Requirement and Due Date
Taxable Annual Income Slabs LLP Firm Type Tax Audit Requirement * Due Date

More Than INR 40 Lacs

Business Firms Yes

September 30th

 Up To INR 25 Lacs Contributions

Professional Firms (Law / Hospitals / Engineering) No

July 31st

More Than INR 25 Lacs Contributions

Professional Firms (Law / Hospitals / Engineering) Yes

July 31st

Also, LLPs carrying out international transactions and / or entered in to certain specific domestic transactions are required to file Form 3CEB. LLPs need to get their respective Form 3CEB certified by a practicing Chartered Accountant (CA).

The business tax filing due date for the LLPs with 3CEB Certification will be November 30th.

  • Business Tax Return Forms

Business Type

Form

LLP Firm

ITR-5 *

* In case LLP opted for online submission for their business tax returns then Digital Signature Certificate (DSC) of the designated partner is required for such e-filings

Domestic Company

A Company is regulated under the Companies Act of 2013 by Ministry of Corporate Affairs (MCA).  Company form of business is most adopted framework worldwide.

  • Income Tax Mandate
Company’s Operations Business Tax Return Requirement
Active Company Taxable irrespective of Profits or Losses incurred
Inactive Company NIL tax return is to be filed on or before the due date
  • Various Tax Rates

Tax Rate Type

Tax Rate

Companies with Annual Income of Less Than INR 50 Crores Tax Rate on Annual Income

25%
Companies with Annual Income of More Than INR 50 Crores Tax Rate on Annual Income

30%

Income Tax Surcharge

7% on annual income exceeding INR 1 Crore and 12% on annual income exceeding INR 10 Crores
Education Cess

2% on Income Tax and Surcharge Amount

Secondary and Higher Education Cess

1% on Income Tax and Surcharge Amount

Minimum Alternate Tax

Operational Companies are obliged to Pay 18.5%* of Minimum Alternate Tax on their adjusted annual incomes.

*This rate does not Education Cess as well as Secondary and Higher Education Cess

  • Tax Audit Requirement and Due Date

Tax Audit Requirement

Due Date
Companies are obliged to get their account books and financial statements audited every year

September 30th

  • Business Tax Return Forms

Business Type

Form

Company (Both Private Limited Companies and Public Limited Companies)

ITR-6 *

We are Glad to Help!

Indian Businesses are liable to comply with all the applicable taxation regulations, including filing annual tax returns on their respective business incomes.
Taxation Experts @ Digital Filings can seamlessly assist businesses filing their obligatory annual business tax returns, enabling business owners to focus on their business critical matters.

Pocket-Friendly Options

How we Do It…

According to the pertinent Income Tax Act for Annual Business Return Tax Filing, an entity is bound to pay taxes on its annual Income following the prescribed procedure and keeping in mind the tax filing due dates. Partners @ Digital Filings can efficiently assist businesses in completing all taxation formalities within 5 to 7 business days.

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These Facts and Figures are Important

Before filing the annual tax returns, an expert @ Digital Filings will coordinate with the business owners to assess and understand the required information regarding the entity’s financial performance in order to compute the precise taxable amount. On basis of the collected information, the Balance Sheet and Profit and Loss account of the business entity will be prepared and further shared with its finance department for verification purposes.

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Penning on an Appropriate Forms

The relevant Income Tax Return (ITR) Forms to be filled depend on the very structure of the business. For instance, Domestic Company set-ups like, Private Limited, Public Limited, and One Person Companies are instructed to fill Form ITR-6, whereas Partnership and LLP firms are advised to submit Form ITR-5 to file their annual ITRs. Team @ Digital Filings will flawlessly comprehend your business structure and take the process further, accordingly.

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Submitting Successfully

After gathering all the relevant information and documents as well as furnishing the financial statements and correctly computing the taxable amount, Partners @ Digital Filings will duly file the tax returns with the concerned taxation authority. Business will be notified on successful submission of the taxable returns.

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team-3“I never thought it would be so easy to get my proprietorship firm registered. Thank you team Digital Filings. I will refer your proficient services to my friends too.”

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Mission Statement

Every Partner at Digital Filings is Focused...
...to Provide a Comprehensive Legal Assistance Mechanism...
...Diligently Customized for Emerging Entrepreneurs!

We at a Glance...

Digital Filings is a leading business and legal services provider in India, assisting entrepreneurs in effectively and economically setting-up and managing their venture. Digital Filings consistently ensures that your venture is always compliant, so you can efficiently focus on making your business ascend.

Our strong network of proficient partners thoroughly understands the business specific regulatory/legal requirements and is focused to assist business owners at every stage of their venture.

Our panel of competent professionals, including Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Financial Gurus, and Business Experts are just a call away to gladly serve you.

 

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Knowledge Arena

Be our guest to browse the Knowledge Arena by Digital Filings and widen your knowledge-base. 

Digital Filings always strive to enhance the understanding of our patrons on the Nation's consistently modifying compliance environment. Our well-informed team of partners has diligently compiled numerous articles, guides, videos, and much more that you can browse anytime at your ease.

Easy Registration

Experts at Digital Filings can proficiently help in registering your sole proprietorship firm, either by getting you a GST / VAT Number, Service / Professional Tax Registration, a Shops & Establishments Act Registration, a Micro, Small & Medium Enterprises (MSME) Registration, or an Import-Export Code.

Supportive Team

The team of well-informed professionals at Digital Filings is just a phone call away to address every concern / query about the registration of your sole proprietorship venture. We will, however, put our best to make sure that all your questions are well-answered even before they strike in your mind.

Expert Support

Experts at Digital Filings precisely understand all of your requirements and strive to ensure that all the desired documents are in place so that you can effectively align yourself with every legal / administrative interaction. We will also provide you complete clarity on the process to set genuine expectations.