Filing taxes is not just a law but also an obligation if you run or own a business. Every financial year, regardless of how big or little your company is, you must file a company tax return. In India, this procedure is simple if you maintain good records and follow the correct procedures.
Here is a brief instruction to help you file the company tax return correctly.
Describe a Company Tax Return
A corporate tax return is documentation displaying your company’s income, expenses, deductions, and overall tax due. It is entered at the conclusion of every financial year with the Income Tax Department. This facilitates government tracking of your income and guarantees proper tax payment.
Who Needs to Submit?
- Public Limited Companies
- Public Limited Organisations
- One Person Enterprises (OPC)
- LLPs, handled differently for income tax purposes
- Even zero-income businesses are required to file company tax returns.
Notes You Require
Prepare them ahead of your start:
- Company PAN
- Statement of profitability and loss
- Balance Statement
- Audit Report (should one be applicable)
- Tax pay challenges
- TDS badges
- Specifics of directors and owners
- Previous year’s return (if one exists).
File Company Taxes Using the Income Tax Portal
Register your company on incometax.gov.in if not already done.
Get Ready for Financial Statements
Update your P&L, balance sheet, and cash flow statements, among other accounts.
Get Tax Audited (should it be necessary)
Section 44AB requires a tax audit should the turnover of your company reach ₹1 crore.
Decide on the Correct ITR Form
Most businesses register under ITR-6 (unless Section 11 exempt).
Complete the Details
Report income, expenses, deductions, and taxes paid during the year.
Send the Return Online
Upload your return under digital signatures. Filing takes place entirely online.
Maintain the Acknowledgement
Download and preserve the ITR-V (acknowledgement) for your records following successful filing.
Due Date for Filing
- October 31 for businesses needing an audit
- For businesses not requiring an audit: July 31
Ignoring the deadline could result in fines, interest on taxes owing, and even legal action.
Why Should Filing Be Important?
- Steer clear of interest and penalties
- Retain legal conformity
- Simple loan and funding access
- Needed for registrations and tenders
- Open financial record for those in investment
Typical Errors to Prevent
- Using the incorrect ITR form
- Missing audit documentation
- Ignoring the need to confirm the return
- Not disclosing all of your revenue sources
- Filing after the due date
Thoughts on Last Notes
You simply need to be organized if you want to file company tax returns in India; you are not a tax specialist. File on time, keep your documents neat, and, if necessary, consult a CA or tax adviser. A well-organized return enhances the reputation of your business and helps you to avoid tax season stress.