Quick Contact
Need Help?
Please Feel Free To Contact Us. We Will Get Back To You With 1-2 Business Days.
Email: support@taxguider.in
Tel.: (+91) 8695008695
Download
Business ITR Filing
Income tax return filing is a statutory requirement for small businesses and proprietorships, but beyond regulatory compliance, it serves several vital business functions.
- Legal Requirement: The most important thing in filing the ITR is that it is a legal duty. Any non-compliance results in penalties and legal problems, thus hampering the credibility and operational standing of the business.
- Financial Documentation: The annual filing of ITRs provides documented proof of income, which is of essence in validating financial performances of the business over time. This may always come in handy during times of loan or credit facility requirements, where many financial institutions require past tax returns as prerequisites in gauging creditworthiness.
- Tax Planning: Filing of ITR is a prerequisite to effective tax management by planning and using its various deductions, exemptions, and incentives under the law. Through this, small businesses can avail of these benefits, thereby decreasing the total tax payable.
- Government Tenders: Commonly, to be eligible for most government tenders, businesses need to present their tax return documents as an assurance of their financial and tax-compliant status.
- Carry Forward of Losses: Every business goes through its highs and lows. By filing returns, any business can carry forward losses to the succeeding year, which can be set off against future profits, resulting in substantial tax relief.
- Builds a Financial Track Record: Consistent filing of ITRs builds a strong, sound financial record of the business, thereby enhancing the reputation of the business in the market. This attracts investors, partners, and other stakeholders who hold an instrumental position for the growth of a business.
A Business Income Tax Return Form is a document that businesses use to report their income, expenses, and profits to the tax authorities. This form, often referred to as the business income tax return or simply “tax return,” is a crucial component of a business’s tax compliance. The business income tax return form typically requires information on revenue, operational costs, deductions, and credits, providing a comprehensive overview of the business’s financial health
Who needs to file a business income tax return?
- Sole Proprietorship: All sole proprietors must file an ITR if their total income exceeds Rs. 2.5 lakhs.
- Between 60 and 80 years old: Rs. 3 lakhs
Above 80 years old: Rs. 5 lakhs (ITR filing will be exempted if below Rs. 5 lakhs) - Partnership Firm: All partnership firms must file an ITR, regardless of profit or loss.
- Limited Liability Partnership (LLP): All LLPs must file an ITR, even if they report a loss.
- Companies: All Private Limited and one-person companies (OPCs) must file an ITR.
Documents required for filing ITR for business
- PAN Card: This is essential for identification purposes.
- Aadhaar Card: Aadhaar is mandatory for filing ITRs for most businesses.
- Profit and Loss (P&L) Statement: This document summarises your business’s income and expenses over the financial year.
- Balance Sheet: This shows your business’s financial position at the end of the financial year, including assets, liabilities, and capital.
- Bank Statements: You will need these to reconcile your income and expenses and ensure all transactions are accounted for.
- GST Registration Number (if applicable): If your business is registered under GST, you’ll need your GST number.
- Tax Deducted at Source (TDS) Certificates: If you have deducted TDS from payments made to others, you’ll need the TDS certificates.
- Loan Documents (for claiming interest rebates): If you’ve taken out business loans, you may need documents to claim interest rebates.
- Challans of Income Tax Payments: Keep copies of any challans showing advance tax or self-assessment tax payments made.
- Records of Fixed Assets: If you’ve added or sold fixed assets during the year, you’ll need records of these transactions.
EXPERT GUIDANCE
Our team of legal and accounting professionals helps you through every step of the Income Tax Return filing, Business registration and accounting process.
TRANSPARENT PRICING
Tax Guider Offers clear and affordable pricing with no hidden fees. Every fee is made clear at the beginning.