Income Tax return for Businesses owners
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Income Tax return for Businesses owners
Anyone earning an income above a certain amount is subject to income tax. The income could be under various headslike salary, rent or business or professional income. The tax subjected on these incomes is called the income tax.
A simple form is to be filed as a statement of income earned with the Income Tax Department. It is organized in such a way that calculating tax liability, scheduling tax payments, or requesting refunds for the overpayment of taxes has been made quite easy for the taxpayers. The taxpayers must first determine the type of Income Tax Return (ITR) Form they need to fill.
Process of ITR Filing for Business owners
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Document submission and verification
Once you submit the documents required, our experts will do the paperwork.
Filling Return
We will file the return with the Income Tax Department.
Completion of work
Once your work is done, we will send you the documents back.
Documents required for ITR Filing
- PAN Card
- Aadhar Card
- Bank Account Statement
- Details of Business
- Details of Investments
- Details of Insurance & Loans
- Trial Balance of Business
Types of ITR for Business Owners
- Form ITR-4 (Sugam) -- Required to be filed by the individuals/HUF/partnership firm who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3. The due date of this ITR is 30th September of every year.
- Form ITR-3 -- Required to be filed by the individuals/HUF that have income from proprietary business or are carrying on profession. The due date of this ITR is 30th September of every year.
Penalties for Late Filing/Default in Filing of ITR
- For ITR filed after December, the penalty will be Rs. 10,000.However to provide relaxation to small taxpayers; the IT department has stated a maximum penalty of only Rs. 1,000 will get levied subject to condition that your total income is less than Rs 5 lakh.
- If the taxpayer fails to furnish ITR within the due date, he will be liable to pay penalty same as delayed filing.
Packages
Basic
What's included
- Income Tax Return Filing
- Computation of Income
- Expert Consultancy
Basic
What's included
- Income Tax Return Filing
- Computation of Income
- Expert Consultancy
Basic
What's included
- Income Tax Return Filing
- Computation of Income
- Capital Gain Sheet
- Expert Consultancy
Frequently asked questions
Who is required to pay Income Tax?
Every person or entity is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates.
1. Individual – Salaried, Self-employed or Professional
2. Hindu Undivided Family (HUF)
3. Company
4. Firm
5. Association of Persons (AOP)
6. Local Authority
7. Artificial Juridical Person
8. Body of Individuals (BOI)
9. Political Party
10. Educational or medical institution
11. Trade Union, etc.
What is the due date of ITR for Business owners?
The due date for filing of all ITRs is 30th September for Business owners. After this deadline, tax returns would be as a “Belated Return” any time before 31st March.
How to File ITR?
The ITR can be filed both physically & electronically. For e-filing, download the government utility from the Income Tax portal (in excel format or java utility). Complete all the fields with the information required, pay the taxes due and generate the XML. You can upload this XML on the government portal by logging into your account. Once the XML has been uploaded, download the acknowledgment in ITR-V. This ITR-V can be verified, either by using EVC code or can be sent by courier to CPC Bangalore for further processing.
What is 26AS & why it is required?
26AS is a consolidated statement showing various taxes that are deducted from your income by your employer, bank, or your tenant. It shows how much tax has been received by the government by way of TDS deposited by the deductor (employer, bank), advance tax or any self-assessment tax that has been paid, etc.
It also contains the details of income tax refunds that you might have received. It also shows AIR (Annual Information Return) transaction details, which might have been filed by your bank in case you have entered into some specified transaction. You must match tax payments and TDS deducted with 26AS before filing your ITR to get a tax credit as the tax credit is given only on the items appearing in our 26AS.
Who is required to File ITR-3?
The ITR3 Form is to be used by an individual or HUF who have income from proprietary business or are carrying on profession. The persons having income from following sources are eligible:
- Carrying on a business or profession
- If you are an Individual Director in a company
- If you have had investments in unlisted equity shares at any time during the financial year
- Return may include income from House property, Salary/Pension and Income from other sources
- Income of a person as a partner in the firm
Who is required to File ITR-4 (Sugam)?
The ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also includes those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3.
Who cannot use Form ITR-4?
- If your total income exceeds Rs 50 lakh
- Having income from more than one house property
- If you have any brought forward loss or loss to be carried forward under any head of income
- Owning any foreign asset
- If you have signing authority in any account located outside India
- Having income from any source outside India
- If you are a Director in a company
- If you have had investments in unlisted equity shares at any time during the financial year
- Being a resident not ordinarily resident (RNOR) and non-resident
- Having foreign assets or foreign income
- If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.
What to do if a mistake has been made while filing return?
If any error is discovered after the return is filed then it can be revised u/s 139(5). Revised Return of Income Tax can be filed by an assessee any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
What is the penalty for late filing or default in filing of ITR?
For ITR filed after December, the penalty will be Rs. 10,000. However to provide relaxation to small taxpayers; the IT department has stated a maximum penalty of only Rs. 1,000 will get levied subject to condition that your total income is less than Rs 5 lakh. If the taxpayer fails to furnish ITR within the due date, he will be liable to pay penalty same as delayed filing.