A Guide To Business Tax Returns

Do you want to file business tax returns and don’t know how to go about it? Click on this guide by USTAXFiling to get more details about the business tax return filing.

What is a business tax return?

A business tax return means an income tax return. The income tax return is nothing but a statement of income and expenditure of the business. Any tax paid on the profit made by an individual is declared on the business tax return. It includes information of the assets as well as liabilities a particular business holds. Items such as creditors and debtors of business, any loan taken and given or fixed assets are declared in the business tax return.

Who has to file a business tax return?

To file an income tax return depends on the kind of business structure you have. For example:

  • If you are a sole proprietor of your business income and other personal income such as income from your house property, salary or interest income have to be stated on the same return
  • If your total income before deductions is more than the basic taxable limit then you must mandatorily file your income tax return regardless of your profit or loss in your business
  • The basic taxable limit is Rs.2.5 Lakh. Hence, if your income before deductions is above Rs.2.5 Lakh then you are required to file a business tax return.
  • Firms, companies as well as LLPs are taxed at the 30% rate.
  • For firms, LLP means Limited Liability Partnership and companies a business tax return should be filed compulsorily. Even if there are no operations still the income tax return must be filed.

Income Tax Audit

Every taxpayer whose turnover is Rs.1 Crore for businesses and Rs.50 Lakh for Professionals must do a tax audit. The taxpayer should appoint a Chartered Accountant to audit their accounts in such cases.

A tax audit should be done if there is a loss in your business as well as you want to carry forward the loss. A tax audit is compulsory even when the profits declared are less than 8% or 6 % on digital transactions of the turnover of business or 50% of receipts for Professionals.

Presumptive Taxation

HUF, Individuals and firm running businesses or offering services can provide their income to tax on a presumptive basis. The turnover up to presumptive taxation is allowed is Rs. 2 Crore for a business as well as professionals is Rs.50 Lakh.

At least 8% of the turnover should be offered as income under presumptive taxation for businesses. 50% of professional receipts should be declared on the business tax return for Professionals.

What documents are required for business tax filing?

  • Sales book
  • All applicable books of account
  • Balance sheet
  • Purchase book
  • Profit and loss statement
  • Form 16A/ TDS certificate

What are the due dates for filing of returns 2019-2020?

The last date for the income tax return filing is 20 November 2020 at the end of the financial year.

Why choose USTAXFiling.in?

USTAXFiling.in automatically selects the accurate ITR form that applies to you. We at USTAXFiling.in forms-ITR1, ITR-2,ITR-3,ITR-4,ITR-5,ITR-6, as well as ITR-7.We at USTAXFiling.in ensure to offer our clients all the vital information properly. Our online Business tax return filing service is the best with complete accountability and ethical practices. We make sure to file your income tax returns on time so that our customers don’t hassle for last-minute troubles like a high penalty.

 You don’t have to worry at all once you connect with us at USTAXfiling. You can sit at the comfort of your home and all your income tax return filing is done by our tax experts on time. Our USTAXFiling tax experts are ready to help you all time. Our USTAXFiling experts are available to clear your queries. So, what you are waiting for file your business tax returns online with USTAXFiling now!

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