Business Tax Filing
Business Tax Filing Easily and Fast with VenueTax | Kolhapur
Business Tax Filing
Every business, whether small or large, has to pay income tax and file income tax returns. Tax compliance for businesses is very complex for individuals unlike salaried taxpayers and pensioners. Generally, large businesses have the necessary resources to manage their tax-related matters, but small businesses do not have resources nor have time to deal with their taxes. Therefore, we have a presumptive income plan or projected taxation plan, a simple taxation system that imposes a low compliance burden on small business taxpayers. In VenueTax, we will tell you how you can enter your taxes as a small business unit.
Business Tax Filing and You
Business tax is Basically Income Tax Return is the form in when assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.
The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.
Business Tax Filing Services
VenueTax will assist you to file Income Tax Return. as a Small business houses with a turnover up to prescribe limit can opt for the presumptive scheme and avail several benefits. However, to make use of any tax benefit, they need to pay their taxes and file their tax return timely and accurately. Small businesses under the presumptive income scheme need to file a simplified return called ITR-4 (Sugam). They also do not require to pay Advance Tax 4 times in a year, instead, they can pay the whole amount in one go by 31st March of the relevant financial year.No books of account and P&L Statement are compulsorily required to be maintained for by the businesses for tax purposes under this scheme. Also, they are relieved from the requirement of getting the books audited.
Small business houses with a turnover up to Rs 2 crores can opt for the presumptive scheme and avail several benefits. However, to make use of any tax benefit, they need to pay their taxes and file their tax return timely and accurately. Small businesses under the presumptive income scheme need to file a simplified return called ITR-4 (Sugam). They also do not require to pay Advance Tax 4 times in a year, instead, they can pay the whole amount in one go by 31st March of the relevant financial year. No books of account and P&L Statement are compulsorily required to be maintained for by the businesses for tax purposes under this scheme. Also, they are relieved from the requirement of getting the books audited.
A business tax return is basically an income tax return. The return is a statement of income and expenditure of the business. Also, any tax to be paid on the profits made by you is declared in this return. The return also contains details of the assets and liabilities held by the business. Items like fixed assets, debtors and creditors of business, loans taken and loans were given are declared here.
- If you are a sole proprietor your business income and your other personal income like salary, income from house property and interest income have to be stated on the same return.
- If your total income before deductions is above the basic taxable limit you need to compulsorily file your income tax return irrespective of profit or loss in your business.
- The basic taxable limit is Rs. 2.5 lakh. So, if your income before deductions is above Rs 2.5 lakh you need to file your business tax return.
- For companies, firms and Limited Liability Partnership (LLP) a business tax return has to be filed irrespective of profit or loss. Even if there are no operations undertaken, a return has to be filed.
- Companies, firms, and LLPs are taxed at a rate of 30%.
Every taxpayer whose turnover is above Rs. 1 Crore in case of businesses and Rs. 50 Lakh in case of professionals is required to get a tax audit done. The taxpayer has to appoint a Chartered Accountant to audit their accounts.
Also, a tax audit is required if there has been a loss of your business and you want to carry forward the loss. A tax audit is necessary even when the profits declared by you is less than 8% (6% on Digital transactions) of the turnover in case of business and 50% of receipts in case of professionals.
Individuals, HUF, and Firms running businesses or providing services can offer their income to tax on a presumptive basis. Turnover up to which presumptive taxation is allowed for businesses is Rs. 2 Crore and for professionals is Rs. 50 Lakh. Minimum of 8% of the turnover has to be offered as income under presumptive basis for businesses. For professionals, 50% of professional receipts have to be declared on the business tax return.
For the Individuals not liable to tax audit, the last date for the filing of the return is 31st July after the end of the financial year (Belated return can be filed up-to 31st March subject to penalty) For individuals liable to tax audit and all other assesses like company, LLP or partnership firm, the due date is 30th September after the end of the financial year. For the FY 2017-18, this due date has been extended from 30 September 2018 to 31 October 2018. The penalty for non-filing of returns- Any loss incurred during the year cannot be carried forward if the return is filed after the due date of filing income tax return. Also a fine of Rs. 5000 under the section 271F can be levied on the assessee.