Business Tax Return Filings Simplified with Vyapar Samadhan

Setting up and running a business comes with the responsibility of filing tax returns, a crucial aspect for any business's financial health. Business tax return filings, specifically tailored for companies, serve as comprehensive records of earnings and expenses.

Vyapar Samadhan offers a streamlined approach to Business Tax Return Filings, making the process stress-free. Whether your business is just starting or well-established, our expert team is here to assist you in meeting deadlines and complying with regulations.

What is a Business Tax Return?

A business tax return is an income tax filing specifically designed for businesses. It provides a detailed overview of a company's income, expenses, and relevant tax information, all presented in a designated form. This filing, including the reporting of Tax Deducted at Source (TDS), is an annual requirement.

This return serves as a financial statement, outlining earnings and documenting various financial components such as fixed assets, loans, debtors, and creditors within the business.

Income Tax Return Filing in India

Indian citizens are obligated to file income tax returns if their Gross Total Income (GTI) exceeds Rs. 7 lakhs under new tax regime of income tax. These returns must be submitted annually within the specified deadline, with various forms catering to different criteria for individuals and businesses.

Advantages of Filing Income Tax Returns for Businesses

• Refund Claims: Timely and accurate filing can lead to potential refunds, improving cash flow.
• Carry-forward of Losses: Losses incurred can be carried forward and adjusted against future profits, reducing tax liabilities.
• Loan Applications: Proper and up-to-date returns serve as evidence of financial stability, aiding in obtaining loans or credit.
• Evidence for Transactions: Filed returns provide solid proof of financial transactions, useful for legal or contractual purposes.
• Compliance with Law: Filing returns ensures compliance with tax regulations, avoiding penalties or legal issues.
• Transparency: Transparent financial records enhance credibility, fostering trust among stakeholders.
• Audit Preparedness: Filed returns provide a basis for accurate financial statements, preparing for potential tax audits.
• Business Growth: Accurate reporting through tax returns aids in informed business decisions, supporting growth 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 various tax benefits and deductions legally.

Who Should File a Business Tax Return?

Filing a tax return is mandatory for all eligible businesses operating within Indian tax regulations. The necessity is based on the structure of the business, including Sole Proprietorships, Partnership Firms, Limited Liability Partnerships (LLPs), and Companies (Private Limited, One Person Company).

Types of Business Tax Return Filing

Different categories for filing Business Tax Returns are determined by the types of business entities, each corresponding to specific business structures:

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

Key Points for Proprietorship Tax Return Filing

Requirements for Filing Proprietorship Tax Return:

• Mandatory for proprietors below 60 years if total income exceeds Rs. 2.5 lakhs.
• For those between 60 and 80 years, mandatory if total income exceeds Rs. 3 lakhs.
• Proprietors over 80 years must file if total income exceeds Rs. 5 lakhs.

Income Tax Rate for Proprietorship:

• Slab rates apply based on income.

Tax Audit for Proprietorship:

• Professionals with over Rs.50 lakhs income need tax audit.
• With effect from 1st April 2021, the threshold limit is Rs 10 crore in case cash receipts do not exceeds 5% of the gross receipts or turnover and if the taxpayers cash payments do not exceed of the aggregate payments.
• Business claims profit and gains lower than the prescribed limit under the presumptive taxation scheme and income exceeds the maximum amount not chargeable to income tax.

Due Date for Filing Proprietorship Tax Return:

• July 31st for non-audited cases.
• October 31st for audited cases.

ITR Form for Proprietorships:

• Form ITR-3 or Form ITR-4-Sugam.

Key Points for Partnership Firm Tax Return Filing

Requirements for Filing Partnership Firm Tax Return:

• Mandatory for all partnership firms annually.

Income Tax Rate for Partnership Firms:

• 30% of total income.

Tax Audit for Partnership Firm:

• Required if total sales turnover exceeds Rs. 1 crore or gross receipts exceed Rs. 50 lakhs in case of Profession.

Due Date for Filing Partnership Firm Tax Return:

• July 31 for most cases.
• October 31st for audited cases.

ITR Form for Partnership Firms:

• Form ITR 5.

Key Points for LLP Tax Return Filing

Requirements for Filing LLP Tax Return:

• Mandatory for all LLPs annually.

Income Tax Rate for LLPs:

• 30% of total income.

Tax Audit for LLP:

• Required if turnover exceeds Rs. 40 lakhs or contribution exceeds Rs. 25 lakhs.

Due Date for Filing LLP Tax Return:

• July 31 for most cases.
• October 31st for audited cases.

ITR Form for LLPs:

• Form ITR 5.

Key Points for Company Tax Return Filing

Requirements for Filing Company Tax Return:

• Mandatory for all registered companies annually.

Income Tax Rate for Company:

• 25% for turnover less than Rs. 400 crores; 30% for turnover exceeding Rs. 400 crores.

Tax Audit for Company:

• In case of turnover Rs. 1 Crore or More

Due Date for Filing Company Tax Return:

• October 31^st.

ITR Form for Companies:

• Form ITR 6.

How Vyapar Samadhan Can Assist with Business Tax Return Filings?

Navigating the complexities of business tax return filings is made effortless with Vyapar Samadhan. Our dedicated services provide comprehensive support, guiding you through the filing process. With a user-friendly platform and experienced professionals, we ensure accurate and timely submissions, keeping you informed about crucial deadlines.

Ready to simplify your business tax returns? Reach out to us today for seamless and stress-free filing.