India's fastest registration turnaround time, with a guarantee that your Udyam registration will be uploaded to the government systems in less than seven days,*T&C*
Open and honest process beginning at just ₹1500-3000 + GST, contact our team for free consultation and exact pricing.
Running a business requires both setting up a company and comprehending the intricacies of submitting returns. An income tax return filing that is relevant to businesses is called a business tax filing. It acts as a thorough log of the company's revenue and outlays.
With Taxhint Advisors, filing an Indian business income tax return has never been easier. We provide LEDGERS small business tax filing software and are here to make it simple for businesses to file their tax returns. Our knowledgeable staff eases the procedure for you so that you don't break any laws or miss deadlines for completing business tax returns. We can assist you whether your company is small or well established.
Are you prepared to streamline your business taxes? Get in touch with us right now to learn how to file business tax returns more easily and without stress!
An income tax return for firms is referred to as a business tax return. A business's income, costs, and relevant tax information are all listed in detail in a business income tax return, which is formatted according to a specific format. For businesses, it involves filing income tax returns and the additional need of reporting Tax Deducted at Source (TDS). This procedure needs to be done once a year.
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. It is important to meet the income tax return filing last date for business.
If an Indian citizen's or company's Gross Total Income (GTI) surpasses Rs. 3 lakhs, they must file income tax returns (amounts below three lakhs are excluded). The annual deadline for filing business tax returns is when these ITR for business income must be submitted. There are several business income ITR forms available, each with unique conditions that apply to various firm and person categories. Before the deadline for filing business income tax returns, it is crucial to determine the proper arrangements and submit them to the Income Tax Department of India for processing. Make sure you follow the appropriate procedures for small business owners filing taxes.
Filing ITR for business income offers several advantages, some of which are outlined below:
All eligible businesses operating under Indian tax legislation are required to file a business income tax return. Depending on how the business is set up, submitting a business tax return may be necessary.
As with other business structures and their designations, the categories for filing business income tax returns are established by the kinds of business entities that are permitted to file them; make sure you adhere to the guidelines created for small business owners' tax filing.
Any person who earns money from their business is considered to be running a proprietorship. In India, proprietorships that operate must submit annual income tax returns. The process for filing an income tax return for a proprietorship is comparable to that of an individual because proprietorships and proprietors are treated equally.
If a proprietor's total income reaches Rs. 2.5 lakhs, they must file income tax reports, regardless of age. If a proprietor's total income exceeds Rs. 3 lakhs, they must file income taxes if they are above 60 but under 80 years old. If a proprietor's total income surpasses Rs. 5 lakhs, they must file income tax returns if they are 80 years of age or older.
The proprietorship income tax rate is equal to the individual income tax rate. Proprietorships pay income taxes at slab rates as opposed to flat rates for LLPs and companies. The income tax rate for proprietorships with an owner who is under 60 years old for the assessment year 2023–2024 is as follows.
Proprietorship Tax Rate AY 2023-24| FY 2022-23– Proprietor's age is less than 60 years
| Net Income Range | Rate of income-tax (%) |
|---|---|
| Up to Rs.2,50,000 | - |
| Rs.2,50,001 to Rs. 5,00,000 | 5 |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 |
| Above Rs. 10,00,000 | 30 |
Proprietorship Tax Rate AY 2023-24| FY 2022-23–The Proprietor's age is between 60 and 80 years
If a proprietor turns sixty during the preceding year and was under eighty on the last day of the preceding year, they are subject to the following tax rate:
| Net Income Range | Rate of income-tax (%) |
|---|---|
| Up to Rs. 3,00,000 | - |
| Rs. 3,00,001 to Rs. 5,00,000 | 5 |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 |
| Above Rs. 10,00,000 | 30 |
Proprietorship Tax Rate AY 2023-24| FY 2022-23–Proprietor's age is above 80 years
| Net Income Range | Rate of income-tax (%) |
|---|---|
| up to Rs. 5,00,000 | - |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 |
| Above Rs. 10,00,000 | 30 |
For the Assessment Year 2023–2024, the rate of surcharge for a proprietor is listed as follows:
| Range of Income | Surcharge Rate |
|---|---|
| Rs. 50 Lakhs to Rs. 1 Crore | 10% |
| Rs. 1 Crore to Rs. 2 Crores | 15% |
| Rs. 2 Crores to Rs. 5 Crores | 25% |
| Above Rs. 5 Crore | 37% |
For AY 2023–2024, the rate of surcharge in the event that the proprietor chooses an alternative tax system in accordance with section 115BAC will be 25% rather than 37%.
If a proprietorship company's total sales turnover for the fiscal year exceeds Rs. 1 crore, an audit would be necessary. If a professional's total gross receipts for the financial year under review exceed Rs. 50 lakhs, an audit would be necessary.
For a proprietorship that is exempt from audit, the income tax return is due on July 31. According to the Income Tax Act, the return is due on September 30 if an audit is required. The best course of action is to file by the deadline for company income tax returns.
Form ITR-3 or Form ITR-4-Sugam would need to be submitted by proprietorship businesses. A proprietor operating a private business or practicing a Hindu Undivided Family may file Form ITR-3. A proprietor who wishes to pay income tax under the presumptive taxation plan may complete Form ITR-4-Sugam.
Regardless of profit or loss, all partnership businesses are required to file an ITR for business income. The Income Tax Act treats partnership firms as distinct legal entities for taxation purposes. As a result, partnership firms pay income tax at a rate that is comparable to that of limited liability companies (LLPs) and Indian corporations.
It is a requirement for all partnership firms, profit or loss, to file income tax returns annually. Before the deadline for a partnership firm, a NIL income tax return must be filed if there was no business activity.
Income tax for partnership businesses is 30% of total income. When total income exceeds Rs. 1 crore, a partnership firm is required to pay an income tax surcharge at the rate of 12% on the amount of income tax. This is in addition to the income tax. A partnership firm has additional costs to pay in addition to income tax and taxes, such as health and education cess. The appropriate 4% surcharge and the income tax amount are subject to the Health and Education Cess.
Partnership firms are liable to minimum alternative tax, much as corporate income tax. There is an applicable minimum alternate tax of 18.5% on adjusted total income. Therefore, a partnership firm's profits are required to pay income tax at a rate of at least 18.5% (which is further raised by the income tax surcharge, education cess, and secondary and higher education cess).
Tax audits are necessary for partnership businesses with annual revenues of more over Rs. 1 crore. Likewise, tax audits are necessary for partnership firms engaged in a profession whose gross receipts for the preceding year exceeded Rs. 50 lakhs. Furthermore, a partnership business may be required to conduct an audit due to other relevant circumstances.
The deadline for filing income taxes for partnership firms is July 31 of the assessment year. Before the September 30 deadline for filing business tax returns, partnership firms mandated by the Income Tax Act to have their accounts audited must file the income tax return.
Form ITR 5 income tax returns must be filed by partnership entities. ITR 5 is an attachment-free form, just like all other income tax forms, and filing a partnership business tax return does not require the submission of any supporting documentation. Nonetheless, the taxpayer is required to preserve all company records and present them to tax authorities upon request.
No matter how much money they make or lose, all limited liability companies (LLPs) must file an income tax return. LLPs are taxed differently from their partners and are considered independent legal entities. For LLPs, the income tax rate is the same as it is for Indian corporations.
LLPs must file income tax returns annually, whether they make a profit or a loss. Before the deadline, a NIL income tax return must be filed if there was no company activity.
For LLPs registered in India, the appropriate income tax rate is 30% of the entire income. When the total income reaches Rs. 1 crore, there is an additional 12% surcharge on the income tax that must be paid. An LLP's income tax and surcharge are subject to a 4% health and education cess in addition to the income tax surcharge.
LLPs are likewise liable to minimum alternate tax, just like corporations are. For LLP, an alternate tax with a minimum rate of 18.5% of adjusted total income is applicable. Therefore, the income tax that LLP must pay (updated by the income tax surcharge, education cess, and secondary and higher education cess) cannot be less than 18.5 percent.
LLPs that have more than Rs. 40 lakh in revenue or more than Rs. 25 lakh in contributions must have an active chartered accountant audit their books. Furthermore, LLPs are required to file Form 3CEB if they engaged in certain Specified Domestic Transactions or made an international transaction with affiliated businesses. Chartered accountant certification is required for Form 3CEB. The deadline for LLP tax filing, for those obliged to file Business income ITR Form 3CEB, is November 30.
In India, the LLP tax filing deadline is July 31. The deadline for filing business tax returns is September 30 for LLPs that are obliged to undergo a tax audit.
Form ITR 5 is required for income tax returns filed by LLPs. One of the LLP's designated partners' digital signature must be used when filing Form ITR 5 online.
Every Indian company that is registered is obliged to submit an income tax return each year. The Income Tax Act divides filing corporate tax returns into two categories: domestic companies and overseas companies. Domestic firms are those that are registered with the Ministry of Corporate Affairs, such as Limited, Personal, and Private Limited firms.
Regardless of income, profit, or loss, all companies that are registered in India are required to file annual company tax returns. Thus, income tax returns must be filed annually even for organisations that are dormant and have not had any transactions.
For the Assessment Year 2024–2025, domestic enterprises with a total turnover of less than Rs. 400 crores in 2020–21 are subject to an income tax rate of 25% of total income. In 2020–21, enterprises having a turnover above Rs. 400 crores are subject to a 30% income tax rate. Companies also have to pay a Health and Education Cess at 7% income tax and surcharge, on top of the income tax.
If a company's tax due is less than 15% of book profit, it must pay a minimum alternate tax at the rate of 15% of book profit plus surcharge and education cess.
Regardless of turnover or profit/loss, a chartered accountant must audit a company's books every year.
Income tax returns must be filed by all Indian enterprises by September 30 at the latest. In their first year, companies that were incorporated between January and March are eligible to file MCA annual returns after 18 months. Nevertheless, the Income Tax Act does not grant this kind of exemption. As a result, income tax returns for businesses registered from January through March must be submitted by September 30 of the same year, at the latest.
Businesses operating for profit that are registered in India are required to file Form ITR 6. Therefore, Form ITR6 would need to be filed by private limited businesses, limited corporations, and one-person companies.
Taxhint Advisors makes navigating the complex world of corporate tax filing easy. For seamless fulfilment of your tax requirements, our committed services provide all-encompassing help. We offer a user-friendly interface on our platform that helps small business owners file their taxes and submit them by the deadline for filing business income tax returns. We guarantee accurate and timely filings because our skilled personnel are knowledgeable about the subtleties of tax laws. We provide easy tax return filing assistance to all kinds of businesses. Your accounting and ITR requirements can be met with our LEDGERS small business tax filing software.
Our experienced staff and user-friendly platform make the procedure less intimidating and guarantee that all deadlines and guidelines for filing business tax returns are met. We will help you choose the right company income ITR form, keep you informed about important dates, and lead you through a painstaking, error-free filing procedure. You can handle your business tax file with confidence and save time and complexity by working with Taxhint Advisors.