In essence, a business tax return is an income tax return. The return is a statement of the business's revenue and expenses. Additionally, any tax that must be paid on the earnings that you produced is disclosed in this return. Information on the business's assets and liabilities is also included in the return. Here are declared items such as fixed assets, business debtors and creditors, loans taken, and loans given.
Who has to file a business tax return?
The type of business structure largely determines the filing of a return. For instance:
If you are a sole owner, you must include both your business income and additional personal income, such as salary, rental property income, and interest income, on the same return.
Regardless of whether your business made a profit or a loss, you must compulsorily file your income tax return if your total income before deductions exceeds the basic taxable limit.
The baseline threshold for taxation is Rs. 2.5 lakh. For this reason, you must file your business tax return if your income before deductions is greater than Rs 2.5 lakh.
A business tax return must be filed by corporations, firms, and limited liability partnerships (LLP) regardless of profit or loss. A return must be filed even if no transactions are performed.
Companies, companies, and LLPs must pay 30% in taxes.
Every taxpayer is expected to undergo a tax audit if their annual revenue exceeds Rs. 1 crore for enterprises and Rs. 50 lakh for professionals. A chartered accountant must be chosen by the taxpayer to audit their financial records.
Additionally, if your business has suffered a loss and you want to carry the loss forward, a tax audit is necessary. Even if your claimed profits represent less than 8% (6% for digital transactions) of your business's overall revenue or 50% of your professional clients' receipts, a tax audit is still required.
Individuals, HUFs, and companies that operate enterprises or perform services may ostensibly remit their revenue to the IRS. Presumptive taxes is permitted on corporate income up to Rs 2 Crore and on professional income up to Rs 50 Lakh.
Under the presumed basis for businesses, an income offering of no less than 8% of the turnover is required. Professionals are required to declare 50% of their professional receipts on the business tax return. For best info Click on, Business Income Tax Return Filing