Step 8 E:- Income Tax Return filing for Business and Professional

income tax

After Completing your accounting and preparing Final Accounts the next important compliance is to file Income Tax Return. Whether TDS has been deducted or not, the fact remains that each Assessee having taxable income has an obligation to file income tax returns for the relevant financial year.

To whom Filing of Return is mandatory?

In case of a proprietorship or Individual Professional, Tax filing is mandatory if Net profit is more than taxable income (Which is as per the latest Finance Budget for a year).

In case of Partnership/LLP/Company and other firms filing of return is mandatory, even if there is no profit or loss or there is no transaction done. Hence return filing is mandatory if PAN number is taken by these type of assessee.

Benefits of Tax Filing: – Although the filing of return is a time-consuming task and most of seeing it as the necessary evil, but it has some benefit, Just like

  • Compliance:-Filing of tax returns ensures that the individual is compliant with the tax laws.
  • Carry forward of Loss: – By filing return with the due date, you are eligible to carry forward losses if any and eligible to set off from future profits.
  • IT return is pre-requirements for obtaining most of the loans: – If a loan is required to be obtained from a financial institution, the tax returns would be required to prove the ability of the person to repay the loan.
  • Claiming Refund:-Excess taxes paid by an individual either by way of tax deduction or advance/self-assessment tax can be refunded only by filing tax returns.

Due Dates for ITR is as follows:

A due date will fall in the assessment year of the respective income of financial year
Types of Assessee Due Date
Assessees like Salaried Income, the person having Income from House property, Interest Income, Business Income where accounts are not required to be audited 31st July
For Corporate Assessee 30th September
For those Non-Corporate assessees (Like Partnership Firm, Proprietorship Firm) whose accounts are required to be audited under Income Tax Act, 1961 30th September

File Error free IT Return and get complete support with AKT Associates, s dedicated “AKT TAX TEAM”

Filing an error-free return, the advisor should have a deep understanding of the income tax Act and should be well versed with its implications.

Here in AKT Associates, Our Dedicated team of experts ensures that IT return is duly checked by at least 2 times before uploading to ensure it is free from any material mistake. Our responsibility doesn’t cease on just filing the IT Return but we also ensure the follow up for any notices are taken care and if required, an appeal is filed and managed (Chargeable separately)