Filing a tax return is crucial for every business, as it provides details of its financial activities to the tax authorities. Whether it’s a private limited company or any other type of business, understanding how to complete and submit these returns is essential. This article outlines the steps involved in filing a company tax return, including gathering fiscal information, computing tax liability, and submitting the return electronically.
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What is Company Tax Return?
A company tax return is a document filed by a company with the tax authority, furnishing details of its income, expenses, profits, losses, and tax arrears for a specific fiscal year. It’s an essential compliance demand for all types of companies, including private limited companies, public limited companies, and others.
The tax return allows the tax authority to assess the company’s tax liability and ensure compliance with applicable tax laws. All taxpayers need to keep in mind the deadline for filing income tax returns. For companies or businesses undergoing audit, the deadline is October 31 of the assessment year.
If a taxpayer is involved in international or specified domestic transactions requiring a report in Form No. 3CEB, the due date is November 30. Taxpayers who miss the deadline may face interest and penalties under sections 234A and 234F.
What are the documents required for Company Tax Return?
When filing a company tax return, taxpayers don’t need to attach any documents directly to the return form itself. However, it’s essential to keep documents like investment proofs and Tax Deducted at Source (TDS) certificates safe, as they may be required during assessments or inquiries by tax authorities.
If a taxpayer falls under specific sections of the Income Tax Act, they must electronically provide audit reports by the due date of filing the return. These sections include;
- Section 10(23C) (v),
- Section 10(23C) (vi) and Section 10(23C) (via),
- Section 10A, Section 10AA and Section 12A(1)(b),
- Section 44AB, Section 44DA, Section 50B,
- Section 80-IA, Section 80-IB, Section 80-IC, Section 80-ID, Section 80JJAA,
- Section 80LA, Section 92E, Section 115JB, or Section 115VW.
How to file a Company Tax Return?
To file a Company Tax Return, follow these steps;
- Obtain the necessary forms:
- Companies generally need to file Form ITR-6 for income tax returns.
- Gather fiscal information:
- Collect all fiscal documents, including profit and loss statements, balance sheets, and any other applicable documents detailing the company’s income and expenses.
- Prepare the tax return:
- Fill out the tax return form directly, furnishing all needed information, including details of income, deductions, tax payments, etc.
- Compute tax liability:
- Calculate the company’s tax liability grounded on the information handed and applicable tax rates.
- Pay any outstanding taxes:
- If there’s any tax outstanding after counting for TDS or advance tax, ensure it is paid before filing the return.
- File the return:
- Submit the completed tax return electronically through the Income Tax Department’s e-filing portal.
How to file Income Tax Returns for Private Limited Company?
Private limited companies follow the same process as other types of companies to file their income tax returns. They need to fill out Form ITR-6 and give accurate fiscal information for the applicable assessment year.
How to file a Nil Company Tax Return?
If a company has no taxable income or tax liability for a particular fiscal year, it can file a tax return. The process involves filling out the applicable tax return form (generally Form ITR- 6), declaring nil income and tax liability, and submitting it electronically through the Income Tax Department’s portal.
How to complete a Company Tax Return?
To complete a company tax return, ensure you have all the necessary fiscal documents and information available. Fill out the tax return form directly, furnishing details of income, expenses, deductions, tax payments, etc.
Double-check all entries for accuracy and completeness before submitting the return electronically.
Does a Dormant Company need to file a Tax Return?
Generally, indeed dormant companies are needed to file a tax return if they’re registered with the tax authority. Still, if the company has not conducted any business or generated any income during the fiscal year, it may qualify for exemption from filing income tax returns. It’s essential to check the specific tax regulations applicable to dormant companies in your jurisdiction.
Who can subscribe Income Tax Return of the company?
The income tax return of a company must be made by;
- The managing director, in the case of a managing director being appointed.
- Any director of the company, if there’s no managing director.
- A partner, if it’s a partnership firm.
- For trust, a trustee. The person subscribing to the return must be authorized by the company’s board of directors or governing body.
How to upload a Company Income Tax Return?
To upload a company income tax return, follow these steps
- Log to the Income Tax Department’s official e-filing portal using the company’s PAN (Permanent Account Number) and password.
- Navigate to the “e-File” section and select “Income Tax Return”.
- Choose the applicable assessment year and Form ITR-6 for filing the return.
- Fill out the needed details in the online form directly.
- Validate the return to check for any errors or discrepancies.
- Once validated, induce the XML file of the completed return.
- Upload the XML file by opting the applicable option and follow the prompts to complete the form process.
- After successful upload, E-Verify the return using any of the available methods similar to Aadhaar OTP, net banking, or digital signature, to complete the filing process.
- Upon successful e-verification, the acknowledgment form (ITR-V) will be generated. Download and save it for your records.
Conclusion
In conclusion, filing a company tax return is a necessary obligation for businesses to fulfill. By following the outlined steps and ensuring accuracy in the provided information, companies can effectively meet their tax compliance requirements. Whether it’s a dormant company or an active one, understanding the process of filing tax returns is vital for maintaining financial transparency and compliance with tax laws.
Consult 24efiling seeking expert assistance for a smooth and hassle-free filing experience.
FAQs
1. What is a Company Tax Return?
A company tax return is a document submitted to the tax authorities detailing a company’s fiscal activities, including income, expenses, profits, losses, and tax liabilities for a specific fiscal year.
2. Who is needed to file a company tax return?
All types of companies, including private limited companies, public limited companies, and others, are needed to file a tax return with the tax authorities, regardless of whether they’ve taxable income or not.
3. What are the consequences of not filing a company tax return?
Failure to file a company tax return within the stipulated deadline may result in penalties and fines imposed by the tax authorities. Also, it may lead to legal consequences and affect the company’s compliance record.
4. How can a company file its tax return?
A company can file its tax return electronically through the Income Tax Department’s e-filing portal. It needs to fill out the applicable tax return form, give accurate fiscal information, compute its tax liability, and submit the return online.
5. What documents and information are needed to complete a company tax return?
To complete a company tax return, necessary documents include profit and loss statements, balance sheets, details of income, expenses, deductions, tax payments, and any other applicable fiscal information for the specific assessment year.
6. Is there any provision for filing a tax return for a company?
Yes, if a company has no taxable income or tax liability for a particular fiscal year, it can file a tax return. The company needs to fill out the applicable tax return form, declare income and tax liability, and submit it electronically through the Income Tax Department’s portal.
