Business Return Filing
If you are a sole proprietor your business income and your other personal income like salary, income from house property and interest income have to be stated on the same return. If your total income before deductions is above the basic taxable limit you need to compulsorily file your income tax return irrespective of profit or loss in your business.
The basic taxable limit is Rs. 2.5 lakhs. So, if your income before deductions is above Rs 2.5 lakhs you need to file your business tax return.
For companies, firms and Limited Liability Partnership (LLP) a business tax return has to be filed irrespective of profit or loss. Even if there are no operations undertaken, a return has to be filed.
Companies, firms, and LLPs are taxed at a rate of 30%. Every taxpayer whose turnover is above Rs. 1 Crore in case of businesses and Rs. 50 Lakhs in case of professionals is required to get a tax audit done. The taxpayer has to appoint a Chartered Accountant to audit their accounts. Individuals, HUF, and Firms running businesses or providing services can offer their income to tax on a presumptive basis.
Turnover up to which presumptive taxation is allowed for businesses is Rs. 2 Crore and for professionals is Rs. 50 Lakhs. Minimum of 8% of the turnover has to be offered as income under presumptive basis for businesses. For the Individuals not liable to tax audit, the last date for the filing of the return is 31st July after the end of the financial year. For individuals liable to tax audit and all other assesses like company, LLP or partnership firm, the due date is 30th September after the end of the financial year.