Income tax return filing for business can be classified into three categories, non-tax audit, tax audit under section 44AB filing, and presumptive taxation income tax return filing. Filing of business income tax returns should be done considering the benefits available under the income tax act. Considerably Tax savings is possible for a small business whose turnover is less than Rs.2 crores if opted for presumptive taxation under section 44AD. Apart from tax savings, various provisions regarding advance tax, TDS, and disallowance of expenses has to be taken care of with respect to the income tax act.
How to file an income tax business return?
Income tax return filing for individuals is filed in Form ITR-3 other than presumptive taxation or ITR 4 for presumptive taxation. Income tax return is prepared in online utility or offline utility after arriving at turnover, expenses, deductions allowed etc. In case of presumptive taxation filing in ITR 4, the process of verification of bank statements and other basic records is sufficient for the determination of profits to be declared and turnover. In the case of filing in ITR4- it needs preparation of the profit and loss account balance sheet, depreciation statements as per the income tax act before preparation of the income tax return.
What are the details required for business income tax return filing?
- Income tax login details
- Bank statement for the financial year
- Previous year financial statements (P&L, Balance Sheet along with schedules, Depreciation statement)
- Details of other income such as bank interest, capital gains, income from house property, etc.
- Details of Chapter VI-A deductions such as life insurance, school fees, housing loan, etc.
- Filled up checklist.