Individuals and a company being a taxpayer are not taxed at the same rate. Direct Taxes are divided as:
Income Tax: This tax is paid by the taxpayers other than companies registered under company Act 2013 in India on the income earned by them. They are taxed on the basis of slabs at different rates.
Corporate Tax: This tax is paid by the corporate registered under company law in India on the net profit that it makes from business. It is taxed at a specific rate as prescribed by the income tax act subject to the changes in the rates every year by the IT department.
Further the companies are also required to get the statutory audit conducted by the auditor appointed by the company each year before the due date.
Legal Window will provide you all the necessary services and legal advice related Income Tax Return filling for Companies and also guide for other compliances. You may get in touch with our team on 072407-51000 or email firstname.lastname@example.org for filing your income tax return.
Advantage of ITR Filing for Company
ITR-6: Companies other than companies claiming exemption under section 11 Income from property held for charitable or religious purposes require to file ITR-6. This return has to be filed electronically only.
Procedure For Filing ITR
1. Complete the Questionnaire
We will provide a questionnaire which is required to be filled by you in which we will sought the basic details and documents pertaining to the Filing of ITR of the companies
2. Review of the documents
All the documents provided to us and the questionnaire will help us to process further for preparation of books of accounts of the company
3. Filing of Income Tax Return
We will file further send you the provisional statements for your verification and will file your income tax return before the due date and protect you from any penalty after its duly signed by you.
We will further inform you after filling your Income Tax Return and also provide you the return form and computation.
Books of Accounts
To file the company ITR it is mandatory to maintain the necessary books of accounts as prescribed under the Income Tax Act U/s 44AA.
Specified books of accounts to be maintained for companies
As per Rule 6F(2) the following books of accounts and documents are required to be maintained:
- cash book,
- Journal, if the accounts are maintained as per mercantile system of accounting,
- carbon copies of bills, serially numbered and carbon copies or counterfoils of receipts issued in respect of sums exceeding Rs 25,
- original bills for expenses exceeding Rs. 50 and payment vouchers for petty expenses. However in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred, then vouchers are not necessary in respect of expenses upto Rs 50.
Due dates for filling Income Tax return
For Taxpayer eligible to get Tax audit: Due date for filling Income tax Return for Taxpayer having turnover more than 1crore or who do not opt for presumptive taxation for F.Y 2019-20 i.e. A.Y. 2020-21 is 30 September 2020
Tax payer can file belated Return up to 31 march of Assessment year
Penalty of non filling Income Tax Return
Where a person require to file Income Tax Return u/s 139(1) fails to file the return within prescribed limit u/s 139(1) shall pay with prescribed late fee in case
Return file up to 31 December of A.Y is 5000
Return file after 31 December of A.Y is 10000
*However if total income of person does not exceed 5lakh than late fee shall not exceed 1000
Tax Rate Applicable
|Where it opted for Section 115BA||25%|
|Where it opted for Section 115BAA||22%|
|Where it opted for Section 115BAB||15%|
|Any other domestic company||30% how ever for the assessment year 2019-20 a domestic company would be taxable at 25% rate if turnover or gross receipt of business does not exceed Rs. 250 crore in the previous F.Y.|
- 7% of Tax when net income exceeds Rs 1crore but not exceeding 10 crore rupees
- 12% of Tax when net income exceeds 10crore
- 10% in case company opted under section 115BAA and 115BAB
Health and Education Cess
- 4% of Income Tax + Surcharge
FAQ's on ITR Filing for Companies
There are always many benefits of filing income tax returns. It helps at the time of applying for loan, travelling abroad, buying a high value insurance cover and claiming refund.
A corporate tax is a levy placed on a firm's profit by the government. The money collected from corporate taxes is used for a nation's source of income. A firm's operating earnings are calculated by deducting expenses including the cost of goods sold (COGS) and depreciation from revenues.
Yes corporate do require filling return even if they do not earn any income during the financial year.
Corporate income tax expense is an expense but non-deductible expense. Profit for accounting purposes might be different from the profit for taxation purposes.
If the company is a foreign company , branch office of a foreign company , non resident company in that case authorized person holding valid power of attorney duly notarized and apostille can sign for ITR-6 with his DSC.
Yes, if you are filing ITR 6 then you have to enter the details of Profit and loss A/C and Balance sheet in the Format provided in the Income Tax Utility Forms. Normal persons having salary or other sources Income does not have Balance sheet so they are not required to provide the Details of the same.
Legal window helps you in best possible manner for filling the return you are eligible for. And also advise to the best tax measure through which you can reduce your tax. And file your Return before the due date.
When the government levies a tax on a corporation, the corporation is more like a tax collector than a taxpayer. The burden of the tax ultimately falls on people, the owners, customers, or workers of the corporation. Workers and the customers bear much of the burden of the corporate income tax.
In normal cases the managing director of the company is the signing authority to sign the form electronically. If managing director is not available then any other director of the company authorised can sign the ITR- 6 using his DSC.