If you are running a business, then you must file business tax returns. This is a process through which a business must report income and expenses to the IT Department. Businesses, be it big or small, must file business tax returns.
What is business tax return? The business tax return is a statement which shows income earned and expenses of a business. If your business is making profits, then you must pay tax on these profits. The business must file TDS or pay advance tax. Business tax returns must have details on assets and liabilities of the business.
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Filing of Income Tax Returns depends on the business structure.
You can file Business Tax Returns depending on the type of business. Your business could be a proprietorship, partnership firm, limited liability partnership or a private limited company.
Maintain book of accounts if:
For certain businesses you would require the external tax audit.
Presumptive Taxation Scheme (Section 44AD): The Presumptive taxation scheme is applicable to individuals, HUFs and partnership firms engaged in business. Businesses with total turnover of less than Rs 2 Crores and professionals with gross receipts < Rs 50 Lakhs in a Financial Year can use the presumptive taxation scheme under Section 44AD.
With presumptive taxation scheme, you can calculate tax on estimated profit.
You lose presumptive tax benefits under Section 44AD if you do not continue for at least 5 years.
See Also: How To E-File ITR Form -1 In 2 Minutes?
You must be 80 years or more to file ITR offline.
The IT Department will give an acknowledgement when submitting physical paper return.
See Also: Steps to File Income Tax Returns
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