Business Tax Filing Services in India | Expert Filing for Firms

Effortless Filing

Business Income Tax Return (ITR) Filing Online

Setting up a business and understanding the complexities of filing returns is essential to running a business. A business tax filing is an income tax return filing applicable to companies. It serves as a comprehensive record of the business’s earnings and expenses.

Get expert guidance for seamless income tax return filing. Our step-by-step assistance ensures accuracy and hassle-free submission, helping you meet deadlines without errors.

ITR Filing Assistance

Ensure accurate tax calculations and full compliance with tax regulations. We keep you updated on the latest tax laws, minimizing the risk of penalties and ensuring smooth filing.

Tax Compliance Solutions

Optimize your deductions and maximize tax savings efficiently. With strategic planning, you can reduce your tax liabilities while increasing refunds, making the most of available exemptions.

Smart Tax Planning

Tax Reporting

What is a business tax return?

A business tax return refers to an income tax return for businesses. It is a comprehensive report outlining a business’s income, expenses, and tax details in a designated form. It includes income tax returns and reporting Tax Deducted at Source (TDS).

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.

Income Tax Return Filing in India

Both Indian citizens and businesses must file income tax returns if their Gross Total Income (GTI) exceeds ₹3 lakhs, with amounts below this threshold being exempt. ITR for business income must be submitted annually before the specified deadline.

Different business ITR forms are available, each designed to meet specific criteria for various individuals and business entities. Selecting the appropriate form and filing it correctly with the Income Tax Department of India is crucial to ensure compliance.

Refund Claims

Timely and accurate tax filing can lead to refunds, improving cash flow and stability.

Carry-forward of Losses

Carried-forward losses offset future profits, reducing taxes.

Loan Applications

Up-to-date tax returns enhance credibility and approval.

Evidence for Transactions

A filed ITR verifies transactions for legal purposes.

Compliance with Law

Filing taxes ensures compliance and avoids penalties.

Transparency

Transparent tax returns strengthen credibility and build trust.

Audit Preparedness

A filed ITR ensures accurate statements and audit readiness.

Business Growth

Accurate tax returns support decisions, driving growth.

Profit Growth

Business Income

The tax filing process for business income depends on the legal structure under which the business operates. Different legal entities, such as sole proprietorships, partnerships, LLCs, and corporations, are subject to varying tax rates and regulations. Sole proprietors report business income on their personal tax returns, while corporations are taxed separately from their owners. Partnerships and LLCs may have pass-through taxation, where income is reported on individual tax returns. Understanding these distinctions is essential for proper tax planning and compliance.

Without Tax Audit

Rs. 3599 / Return

Residential status

Consultation

Analysis of Securities Income

Tax planning advisory

Income tax return filing

End to End support

Person running only one business and stays below the tax audit limit mentioned in the income tax law

With Tax Audit

Rs. 6999 / Return

Residential status

Consultation

Analysis of Securities Income

Tax planning advisory

Income tax return filing

Tax Audit

End-to-end support

Person running more than one business in India and liable for the tax audit limit mentioned in the income tax law

Tax Reporting

Proprietorship Tax Return Filing

Requirement for Filing Proprietorship Tax Return
Proprietors below 60 must file ITR if income exceeds ₹2.5 lakhs. Those between 60-80 years if above ₹3 lakhs, and above 80 if above ₹5 lakhs.

Income Tax Rate for Proprietorship
Proprietorships are taxed at the same slab rates as individuals, unlike LLPs or companies, which have flat tax rates. Below are the applicable income tax rates for proprietors under 60 years for Assessment Year 2023-24.

Proprietorship Tax Rate AY 2024-25| FY 2023-24

For Assessment Year (AY) 2024-25 and Financial Year (FY) 2023-24, proprietorships in India follow the same income tax slab rates as individual taxpayers under the normal tax regime. Unlike LLPs or companies that have a fixed tax rate, proprietorships are taxed based on progressive slab rates, which vary according to the proprietor’s total income and age category.

Under the normal tax regime, proprietors can avail of various deductions and exemptions under the Income Tax Act, 1961, such as deductions under Section 80C, 80D, and other eligible sections. The tax liability is determined based on these slabs, making it essential for proprietors to calculate their taxable income carefully and claim applicable benefits to reduce their tax burden.

Proprietors also have the option to choose between the old tax regime (normal tax regime) and the new tax regime while filing their income tax returns. The choice should be made based on available exemptions, deductions, and overall tax savings.

Rates of surcharge

Rs. 50 Lakhs to Rs. 1 Crore

Rs. 1 Crore to Rs. 2 Crores

Rs. 2 Crores to Rs. 5 Crores

Above Rs. 5 Crore

main principles

Rates of surcharge – For Assessment Year 2023-24 under alternate tax regime

The rate of surcharge in case of the Proprietor opting for an alternate tax regime as per section 115BAC will be 25% instead of 37% for AY 2023-24

Tax Audit for Proprietorship

A proprietorship firm must undergo an audit if its total sales turnover exceeds ₹1 crore in a financial year. For professionals, an audit is required if gross receipts surpass ₹50 lakhs during the assessment year.

Due Date for Filing Proprietorship Tax Return

For proprietorships not requiring an audit, the ITR filing deadline is July 31. If an audit is required under the Income Tax Act, the due date is September 30. It is crucial to file before the business tax return deadline to avoid penalties.

ITR Form for Proprietorships Return Filings

Proprietorship firms must file Form ITR-3 or Form ITR-4 (Sugam). ITR-3 applies to proprietors or Hindu Undivided Families (HUFs) engaged in business or profession, while ITR-4 (Sugam) is for proprietors opting for the presumptive taxation scheme.

Partnership Firm Tax Return Filing

All partnership firms must file an ITR for business income, regardless of profit or loss. As a separate legal entity under the Income Tax Act, partnership firms are taxed at rates similar to LLPs and companies in India.

Partnership Tax Return Requirement

All partnership firms must file an income tax return annually, even in the absence of income or business activity. If no transactions occurred, a NIL ITR must be filed before the due date for partnership firms.

Income Tax Rate for Partnership Firms

Partnership firms are taxed at 30% of total income. If income exceeds ₹1 crore, a 12% surcharge applies on the tax amount. Additionally, a 4% Health & Education Cess is levied on the total tax and surcharge.

Minimum Alternate Tax for Firms.

Like companies, partnership firms are subject to Minimum Alternate Tax (MAT) at 18.5% of adjusted total income. The total tax payable cannot be less than 18.5%, plus any applicable surcharge and cess.

Tax Audit for Partnership Firm

Partnership firms must undergo a tax audit if their total sales exceed ₹1 crore in a financial year. For firms in professional services, a tax audit is required if gross receipts surpass ₹50 lakhs. Other specific conditions may also mandate an audit.

Due Date for Partnership Filing.

For most partnership firms, the ITR filing deadline is July 31 of the assessment year. However, firms requiring a tax audit under the Income Tax Act must file their business tax return by September 30 to ensure compliance and accuracy.

Business ITR for Partnership Filing.

Partnership firms must file their income tax return using Form ITR-5. This is an attachment-free form, meaning no documents need to be submitted with the return. However, firms must maintain records and provide them if requested by tax authorities.

Requirement for Filing LLP Tax Return

All LLPs are required to file income tax returns each year, irrespective of income or loss. If there was no business activity, then a NIL income tax return must be filed before the due date.

Income Tax Rate for LLPs

The income tax rate for LLPs in India is 30% of the total income. Additionally, a 12% surcharge applies when total income exceeds ₹1 crore. A 4% Health and Education Cess is also levied on the total income tax and surcharge.

Tax Audit for LLP

LLPs with a turnover over Rs. 40 lakh or a contribution above Rs. 25 lakh need a Chartered Accountant audit. Those involved in international or specified domestic transactions must file Form 3CEB. The tax filing deadline for such LLPs is November 30.

Minimum Alternate Tax for LLP

Similar to companies, LLPs are subject to Minimum Alternate Tax (MAT) at 18.5% of adjusted total income. Therefore, the income tax payable by an LLP cannot be less than 18.5%, plus any applicable surcharge and cess.

Due Date for Filing LLP Tax Return

The tax filing deadline for LLPs in India is July 31. However, LLPs that require a tax audit must submit their business tax return by September 30. Timely filing ensures compliance and avoids penalties.

Company Tax Return Filing in India

All companies in India must file income tax returns annually, categorized as either domestic or foreign companies. Domestic companies include Private Limited, Personal, and Limited Companies registered with the Ministry of Corporate Affairs.

Requirement for Filing Company Tax Return

All companies registered in India must file business tax returns annually, regardless of income, profit, or loss. Even dormant companies with no financial transactions are required to submit income tax returns every year.

Income Tax Rate for Company

For Assessment Year 2024-25, domestic companies with a total turnover of less than Rs. 400 crores in 2020-21 are taxed at 25% of total income. Companies with a turnover exceeding Rs. 400 crores in 2020-21 are subject to a 30% tax rate. Additionally, a surcharge and Health & Education Cess at 7% on income tax and surcharge apply.

Minimum Alternate Tax for Company

All companies must pay a Minimum Alternate Tax (MAT) at 15% of book profit, plus applicable surcharge and education cess, if their tax liability falls below this threshold.

Due Date for Filing Company Tax Return

All companies in India must file income tax returns by September 30. Companies incorporated between January and March can file MCA annual returns after 18 months in the first year, but this exemption does not apply under the Income Tax Act. Therefore, even companies registered from January to March must file their income tax returns by September 30 of the same year.

Business Income ITR Form For Company Tax Filings

Companies registered in India and engaged in profit-making activities must file Form ITR-6. This applies to private limited companies, limited companies, and one-person companies.

Our Comprehensive Services

Key Points to Consider for BusinessTax Filing

All businesses must calculate their total income, regardless of profit or loss. If the total income exceeds the basic taxable limit before deductions, filing an income tax return becomes mandatory.

Total Income Assessment

Gross Total Income above Rs. 2.5 lakhs exceeds the basic taxable threshold. For business tax return filing, income before deductions exceeding Rs. 3 lakhs is taken into account.

Gross Total Income Criteria

LLPs, companies, and firms are taxed at a 30% rate and must file tax returns regardless of financial performance or business activities.

Uniform Taxation for LLPs

Business Tax Filing FAQ's

When must a company tax return be filed?

The company /business subject to audit can file their returns by October 31 of the assessment year. If a taxpayer has an international or specified domestic transaction that is required to furnish a report in Form No. 3CEB, the due date is November 30.
For more details on the due date to file a company tax return, refer to our article.

What happens if a company does not file ITR?

If a company fails to file its ITR for business income, it may face the following consequences:

Penalty: The company may be levied with a penalty for non-filing of ITR; as per section 234F of the IT Act, a fine of Rs.10,000 will be charged for failing to file tax returns,
Interest: In addition to the penalty, the company may also be charged with interest on the outstanding tax amount. Moreover, a delay in ITR filing can result in interest being charged under Section 234A of the Income Tax Act 1961
Prosecution: In severe cases, the company may be prosecuted for non-compliance, leading to the imprisonment of up to 7 years and/or fines.
Disqualification of Directors: The Company’s directors may be disqualified from being appointed directors of any company for up to 5 years.
Loss of Eligibility for Government Contracts: The Company may be disqualified from bidding for government contracts or availing government facilities if it has not filed its ITR.

What are the different types of Business Tax Filing?

The different types of business tax filing are named based on business entities that are entitled to file these returns, i.e. different structure of businesses and their names accordingly.

Sole proprietorship tax return filing
Partnership firm tax return filing
Limited Liability Partnership tax return filing
Company tax return filing

Can ITR be filed for the previous year?

Yes, you can file belated ITRs, anytime up to one year from the end of the relevant assessment year. You can submit tax returns up to three years late.

For AY 2022-2023 Returns & Forms Applicable applicable to Individual who has business Income?

ITR-3 - Applicable for Individual & HUF
ITR-4 (SUGAM) – Applicable for Individual, HUF & Firm (Other than LLP)
Form 16A & Form 26AS
Form 3CB-CD & Form 3CEB
Form 15G& Form 15

Who should pay advance tax?

If the total tax liability is Rs.10000 or more in a Financial Year, then the (taxpayer) businessman has to pay advance tax in 4 installments:

15 June
15 September
15 December
15 Marc

How Income Tax Is Calculated On Business Income?

Normal provision and presumptive taxation are two distinct methods for computing taxable business income. Under the normal provision, taxable income is determined by subtracting the cost of goods sold and expenses from total sales.

What are the criteria for opting for the Presumptive Taxation Scheme?

Small businesses or firms without maintained books of accounts can choose Presumptive Taxation. This option applies to businesses with turnover or receipts up to ₹2 Crore. Under this scheme, at least 8% of turnover must be declared as income, or 6% if payments are made through banking channels or electronic modes.

With presumptive taxation, the taxable income is a fixed percentage of the total sales. What Are the Tax Rate For Businesses?

If you own a business and are below 60 years, your income tax in India is based on the following slabs: