Business Tax Filing
Effortlessly establish your OPC with Speed Filings. Seamless registration process, expert guidance. Unlock the potential of your One Person Company. Start your journey today!
Seamless Business Tax Returns with SpeedFilings
Setting up and operating a business involves navigating the complexities of filing returns, and understanding the nuances of business tax return filings is crucial for any enterprise. At Speed Filings, located in Shyamnagar, West Bengal, India, we recognize the significance of this process and are here to streamline it for you. Our dedicated team at SpeedFilings specializes in making business tax return filings in India more accessible and stress-free, ensuring that you meet all deadlines and comply with regulations, regardless of whether your business is in its initial stages or already well-established.
Simplifying Business Tax Return Filings with SpeedFilings
Are you ready to simplify your business taxes? Partner with Speed Filings today and experience a smoother and stress-free approach to Business Tax Return Filings. Our expert team is committed to providing you with comprehensive assistance throughout the entire process.
What is a Business Tax Return?
A business tax return is essentially an income tax return specifically designed for businesses. This detailed report outlines a business’s income, expenses, and relevant tax details, all presented in a designated form. This process includes the submission of annual income tax returns for businesses, with an additional requirement of reporting Tax Deducted at Source (TDS).
In addition to showcasing earnings, the return acts as a comprehensive financial statement, documenting essential components such as fixed assets, loans obtained, loans extended, debtors, and creditors within the business.
Income Tax Return Filing in India
In India, both citizens and companies are mandated to file income tax returns if their Gross Total Income (GTI) exceeds Rs. 3 lakhs (amounts below three lakhs are exempted). Timely filing is crucial, with various income tax return forms tailored to different criteria applicable to individuals and businesses.
Filing income tax returns offers several advantages for businesses, including potential refunds, carry-forward of losses, enhanced credibility for loan applications, solid evidence for transactions, legal compliance, transparency, audit preparedness, and facilitating business growth.
Who Should File a Business Tax Return?
Filing a tax return is mandatory for all eligible businesses operating within the Indian tax regulations. This requirement applies to sole proprietorships, partnership firms, limited liability partnerships (LLPs), and various types of companies, including private limited companies and one-person companies.
Types of Business Tax Return Filing
Business tax return filings are categorized based on the types of business entities, each corresponding to specific business structures and their designations. These categories include:
- Partnership Firm Tax Return Filing
- Proprietorship Tax Return Filing
- Limited Liability Partnership Tax Return Filing
- Company Tax Return Filing
Proprietorship Tax Return Filing
For individuals operating a proprietorship firm, income tax return filing is mandatory. Proprietorships must file returns annually, with the requirement varying based on the proprietor’s age. The income tax rate for proprietorships follows slab rates, and our expert team can guide you through the process with precision.
Are you below 60 years and operating a proprietorship? File your income tax returns if the total income exceeds Rs. 2.5 lakhs. For those aged 60 to 80 years, filing is mandatory if total income exceeds Rs. 3 lakhs, while those above 80 years must file if the total income exceeds Rs. 5 lakhs.
Income Tax Rate for Proprietorship AY 2024-25| FY 2023-24 under Normal Tax Regime
Proprietorship Tax Rate AY 2023-24| FY 2022-23– Proprietor’s age is less than 60 years.
Partner with Speed Filings, and let us handle your business tax return filings with expertise, ensuring compliance, transparency, and optimal tax benefits for your business growth.
Proprietorship Tax Rates for AY 2024-25 | FY 2023-24 under the Normal Tax Regime
Explore the applicable Proprietorship Tax Rates for the Assessment Year 2024-25 and the corresponding Financial Year 2023-24. These rates are relevant when the proprietor’s age is below 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 for AY 2023-24 | FY 2022-23 – Proprietor’s Age Between 60 and 80 Years
For a proprietor whose age falls between 60 and 80 years during the previous year, the subsequent tax rate is applicable. This rate is relevant if the proprietor turned 60 at any point during the previous year but is younger than 80 on the last day of that year.
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 for AY 2023-24 | FY 2022-23 – Proprietor’s Age Above 80 Years
This tax rate is applicable to proprietors whose age surpasses 80 years during the Assessment Year 2023-24 and the corresponding Financial Year 2022-23.
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
Surcharge Rates
For a proprietor, the surcharge rates applicable for the Assessment Year 2023-24 are presented in the following table:
Net Income Range
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%
Rs. 2 Crores to Rs. 5 Crores
37%
Surcharge Rates for Assessment Year 2023-24 under Alternate Tax Regime
In the alternate tax regime under section 115BAC for the Assessment Year 2023-24, the surcharge rate for a Proprietor is set at 25%, a reduced rate compared to the standard 37% for AY 2023-24.
Tax Audit for Proprietorship
For proprietorship firms, a mandatory audit is required if the total sales turnover exceeds Rs. 1 crore during the financial year. In the case of professionals, an audit becomes necessary if the total gross receipts surpass Rs. 50 lakhs in the assessed financial year.
Due Date for Filing Proprietorship Tax Return
Proprietorship tax returns not requiring an audit are due by July 31. If the return needs auditing as per the Income Tax Act, the deadline extends to September 30.
ITR Form for Proprietorships Return Filings
Proprietorship firms should file either Form ITR-3 or Form ITR-4-Sugam. Form ITR-3 is suitable for a proprietor or a Hindu Undivided Family conducting a proprietary business or profession, while Form ITR-4-Sugam is ideal for a proprietor opting for the presumptive taxation scheme.
Partnership Firm Tax Return Filing
All partnership firms, regardless of income or loss, are obligated to file income tax returns. Partnership firms, taxed as separate legal entities, share the same income tax rate as LLPs and companies registered in India.
Requirement for Filing Partnership Firm Tax Return
Partnership firms must file income tax returns annually, irrespective of income or loss. Even if there was no business activity, a NIL income tax return must be filed before the specified deadline.
Income Tax Rate for Partnership Firms
Partnership firms are subject to a 30% income tax rate on total income. In addition to income tax, a surcharge of 12% is levied when total income exceeds Rs. 1 crore. Health and education cess also applies at 4%.
Minimum Alternate Tax for Partnership Firms
Like companies, partnership firms are subject to Minimum Alternate Tax (MAT), set at 18.5% of adjusted total income.
Tax Audit for Partnership Firm
Partnership firms with total sales exceeding Rs. 1 crore or those engaged in a profession with gross receipts exceeding Rs. 50 lakhs are required to undergo tax audits.
Due Date for Filing Partnership Firm Tax Return
Most partnership firms must file income tax returns by July 31. For those requiring a tax audit, the deadline extends to September 30.
ITR Form For Partnership Firm Return Filing
Partnership firms must file income tax returns using Form ITR 5.
LLP Tax Return Filing
All LLPs must file income tax returns, regardless of income or loss. LLPs are considered separate legal entities and are taxed similarly to companies registered in India.
Requirement for Filing LLP Tax Return
LLPs must file income tax returns yearly, irrespective of income or loss. A NIL income tax return is required if there was no business activity.
Income Tax Rate for LLPs
The income tax rate for LLPs is 30% of the total income. A surcharge of 12% is applicable when total income exceeds Rs. 1 crore, along with a 4% Health and education cess.
Minimum Alternate Tax for LLP
Similar to companies, LLPs are subject to Minimum Alternate Tax (MAT) at 18.5% of adjusted total income.
Tax Audit for LLP
LLPs with turnover exceeding Rs. 40 lakh or contribution exceeding Rs. 25 lakh are required to undergo audits. Additionally, LLPs engaged in specified transactions must file Form 3CEB by November 30.
Due Date for Filing LLP Tax Return
The deadline for LLP tax filing in India is July 31. LLPs requiring a tax audit must file by September 30.
ITR Form for LLP Return Filing
LLPs must file income tax returns using Form ITR 5.
Company Tax Return Filing
All companies registered in India must file income tax returns yearly. Companies are categorized as domestic or foreign, with domestic companies including private limited, personal, or limited companies.
Requirement for Filing Company Tax Return
All registered companies in India must file income tax returns annually, even dormant companies with no transactions.
Income Tax Rate for Company
For Assessment Year 2024-25, domestic companies with a turnover below Rs. 400 crores are subject to a 25% income tax rate; those above Rs. 400 crores face a 30% rate. Surcharge and Health and Education Cess at 7% also apply.
Minimum Alternate Tax for Company
Companies must pay a Minimum Alternate Tax (MAT) of 15% of book profit plus surcharge and education cess if their tax liability is less than 15% of book profit.
Tax Audit for Company
All company accounts must undergo annual audits by a Chartered Accountant, irrespective of turnover or profit/loss.
Due Date for Filing Company Tax Return
All registered companies must file income tax returns by September 30. Companies incorporated between January – March must adhere to this deadline, irrespective of the exemption granted under the MCA annual returns.
ITR Form For Company Tax Filings
Companies operating for profit, including private limited, limited, and one-person companies, must file Form ITR 6.
Key Points to Consider When Filing a Business Tax Return
Total Income Assessment: Businesses must compute total income regardless of profit or loss, filing an income tax return if it surpasses the basic taxable threshold.
Gross Total Income Criteria: Gross Total Income exceeding Rs. 2.5 lakhs signifies surpassing the basic taxable threshold. For businesses, income before deductions exceeding Rs. 3 lakhs is considered.
Uniform Taxation for LLPs, Companies, and Firms: LLPs, companies, and firms face a 30% tax rate, requiring them to file tax returns regardless of financial outcomes or undertaken operations.
How SpeedFilings Can Assist with Business Tax Return Filings
Navigating the intricate world of business tax return filings is made effortless with SpeedFilings. Our dedicated services offer comprehensive support to ensure your tax obligations are met seamlessly. Our platform provides a user-friendly interface that guides you through the step-by-step filing process. Our experienced professionals are well-versed in the nuances of tax regulations, ensuring accurate and timely submissions. We’re here to aid businesses of all types in effortlessly filing their tax returns.
With our user-friendly platform and seasoned team, the process becomes less daunting, ensuring deadlines and rules are followed. We will keep you well-informed about crucial deadlines, assist in selecting the appropriate ITR form, and guide you through a meticulous, error-free filing process. With SpeedFilings, you can confidently handle your business tax returns, saving time and minimizing the complexities involved.