Business Tax Filing

Ensure seamless business tax filing in India with expert assistance. We handle GST, ITR, and TDS filings, ensuring compliance with tax regulations. Avoid penalties and file your taxes accurately and on time. Whether you're a small business or a corporation, our services simplify the process. Stay tax-compliant effortlessly with our professional support!

1,64,739 Happy Customers

Expert Consultation

99.9% customers satisfaction guaranteed.
No Hidden charges

Business Tax Filing in India

Tax compliance is one of the most significant duties associated with operating a business in India. Laws like the Income Tax Act of 1961 and the GST Act of 2017 regulate taxes in India. According to Indian tax regulations, all businesses—whether they are partnerships, sole proprietorships, limited liability partnerships, private limited companies, or public limited companies—must file taxes. In India, all entities must file their business taxes.

Accurate tax reporting, adherence to the GST regulations, and other statutory laws guarantee compliance with the Central Goods and Services Tax (GST) Act of 2017 and the Income Tax Act of 1961. On-time tax filing helps to prevent needless fines, preserve openness, establish financial confidence, and guarantee efficient daily operations. Understanding the meaning and essentials of business taxation and utilizing professional help or digital tools can streamline the process.

What is a Business Tax Filing?

A business tax filing is a legal document that details your company's revenue, expenses, and tax obligations for a particular fiscal year and is filed with the Income Tax Department. It serves as the foundation for calculating your tax obligation following the application of any relevant exemptions, refunds, and deductions.

Benefits of Timely Tax Filing

Filing taxes on time has numerous benefits, such as:

Avoid Penalties: Timely filing of tax returns helps businesses avoid fines and penalties imposed by tax authorities for late or incorrect filings.
Boost Business Credibility: Compliance Regular tax compliance improves a business’s reputation, which makes it easy to attract investors, clients, and potential partners.
Help in Faster Loan Approval: Financial institutions assess tax filing returns when evaluating business loan applications. The proper and timely filing of tax returns improves the chances of securing loans and credit facilities from financial institutions.
Claim Tax Benefits & Refunds Easily: Businesses can avail deductions, exemptions, and input tax credits efficiently, which maximizes tax profitability.
Reduce Legal Risks: Proper and timely tax filing minimizes the risk of tax scrutiny, audits, or legal actions by authorities. It ensures smoother business operations without the risk of audits.

Types of Business Taxes in India

1. Income Tax on Businesses

Income tax is levied on business profits as per applicable tax rates. The tax structure differs for different business entities as follows:

a. Sole Proprietorship

A sole proprietorship is not considered a separate legal entity from its owner. The business income is taxed according to the proprietor's individual income tax slabs.

1. Income Tax Slabs (Old Regime):

Up to ₹2,50,000 – No tax
₹2,50,001 to ₹5,00,000 – 5% (Rebate under Section 87A available if income is up to ₹5 lakh)
₹5,00,001 to ₹10,00,000 – 20%
Above ₹10,00,000 – 30%

2. New Tax Regime (Optional):

₹0 - ₹3,00,000 – No tax
₹3,00,001 - ₹6,00,000 – 5%
₹6,00,001 - ₹9,00,000 – 10%
₹9,00,001 - ₹12,00,000 – 15%
₹12,00,001 - ₹15,00,000 – 20%
Above ₹15,00,000 – 30%

3. Senior citizens (60+ years) and super senior citizens (80+ years) get higher exemption limits in the old regime.

4. Presumptive Taxation (Section 44AD): Small businesses with turnover up to ₹2 crore can declare 8% of total revenue (6% for digital transactions) as taxable income, reducing compliance burdens.

5. ITR Filing: Sole proprietors must file ITR-3 or ITR-4 (for presumptive taxation).

6. Advance Tax: If tax liability exceeds ₹10,000, advance tax must be paid in installments.

7. Books of Accounts: Required if turnover exceeds ₹25 lakh or net profit exceeds ₹2.5 lakh in any financial year.

b. Partnership Firms and LLPs

Partnership firms and Limited Liability Partnerships (LLPs) in India are subject to specific income tax provisions. Here's a summary of the key taxation aspects for these entities

Tax Rate: For the Assessment Year (AY) 2025-26, both partnership firms and LLPs are taxed at a flat rate of 30% on their total income.
Surcharge: An additional surcharge is levied based on the taxable income: 12% of the income tax, applicable if the taxable income exceeds ₹1 crore.
Health & Education Cess: A 4% cess is applied to the total income tax plus a surcharge, irrespective of the income level.
Marginal Relief: Marginal relief is available to ensure that the additional amount of income tax payable, including surcharge, on the excess of income over ₹1 crore is limited to the amount by which the income exceeds ₹1 crore.
Presumptive Taxation Scheme: Partnership firms (excluding LLPs) engaged in specified professions with gross receipts not exceeding ₹50 lakh in a financial year can opt for the presumptive taxation scheme under Section 44ADA. Under this scheme, 50% of the total gross receipts are deemed as taxable income, simplifying the tax calculation process.
Filing Requirements: Partnership firms and LLPs are required to file their income tax returns using Form ITR-5.

c. Tax Rates for Domestic Private and Public Limited Companies

1. Standard Tax Rate: Domestic companies are taxed at a base rate of 30% on their net income.

2. Reduced Tax Rate: Companies with a turnover of up to ₹400 crore in the previous financial year are eligible for a reduced tax rate of 25%.

3. Optional Tax Regimes:

Section 115BA: Provides a 25% tax rate for certain manufacturing companies meeting specific conditions.
Section 115BAA: Offers a 22% tax rate for domestic companies that forego certain deductions and incentives.

4. Section 115BAB: Introduced a 15% tax rate for new manufacturing companies incorporated after October 1, 2019, and commencing operations before March 31, 2023.

5. Surcharge on Income Tax: A surcharge is an additional charge on the income tax amount, applicable as follows:

6. For Companies Under Standard or Reduced Tax Rates:

7% surcharge on taxable income exceeding ₹1 crore but up to ₹10 crore.
12% surcharge on taxable income exceeding ₹10 crore.

7. For Companies Opting under Sections 115BAA or 115BAB: A flat 10% surcharge, irrespective of income levels.

8. Health and Education Cess: An additional 4% is levied on the total income tax and applicable surcharge.

9. Marginal Relief: Marginal relief ensures that the increase in tax due to the surcharge does not exceed the amount by which the income exceeds the specified surcharge threshold.

10. Filing Requirements: Domestic companies are required to file their income tax returns using Form ITR-6.

d. Foreign Company (AY 2025‑26)

1. Royalty/Technical Services Income: If the income is received as royalty from the Government or an Indian concern—or as fees for rendering technical services under an agreement made after 31 March 1961 (for royalty) or after 29 February 1964 (for technical services) but before 1 April 1976, and the Central Government has approved such agreement—the applicable tax rate is 50%.

2. Any Other Income: For all other types of income, the tax rate is 40%.

3. Surcharge: An additional surcharge is levied on the tax computed at the above rates:

2% for taxable income above ₹1 crore up to ₹10 crore.
5% for taxable income above ₹10 crore.

4. Health and Education Cess: A cess of 4% is applicable on the total income tax plus any surcharge.

5. Minimum Alternate Tax (MAT): If a Foreign Company does not fall under Explanation 4 of section 115JB, and if its normal tax liability is less than 15% of its book profit, then the company is liable to pay MAT at 15% of the book profit (plus applicable surcharge and cess).

2. Goods and Services Tax (GST)

Eligibility for GST Registration

Businesses with an annual turnover exceeding:

Rs. 40 lakh for goods suppliers.
Rs. 20 lakh for service providers.
Rs. 10 lakh in special category states.

Types of GST Returns for Businesses

Businesses that have GST Registration have to file GST Returns. Different types of returns apply based on the nature of the business and its registration category:

1. GSTR-1 (Return for Outward Supplies): Report all sales and outward supplies, including details of taxable invoices, debit notes, and credit notes.

Monthly: For taxpayers not under the Quarterly Return Monthly Payment (QRMP) scheme, it is typically due by the 11^th of the following month.
Quarterly: Eligible taxpayers (for example, those under the QRMP scheme with turnover up to ₹5 crores) file quarterly (generally due by the 13th of the month following the quarter).

2. GSTR-3B (Monthly Summary Return): Provide a summary of both outward supplies and inward supplies, claim input tax credits (ITC), and determine the net tax liability.

Deadline: Generally filed by the 20^th to 22^nd of the following month.

3. GSTR-4 (Return for Composition Scheme Taxpayers): Filed annually by taxpayers registered under the Composition Scheme. It includes a summary of outward supplies, inward supplies, import of services, and supplies on which tax is payable on a reverse charge basis.

Deadline: Due by 30^th April of the following month of the financial year, subject to periodic extensions.

4. GSTR-5 (Return for Non-Resident Taxable Persons): Filed by non-resident entities or individuals conducting business in India, detailing their outward and inward supplies, credit or debit notes, and tax liability.

Deadline: As specified, it is based on registration validity and other conditions.

5. GSTR-5A: A mandatory summary return provided by the provider of Online Information and Database Access or Retrieval (OIDAR) services for supplies made to non-taxable persons from outside India.

6. GSTR-6 (Return for Input Service Distributors – ISD): This contains details of the input tax credit distributed by an ISD.

Deadline: Due on or before the 13th of the following month.

7. GSTR-7 (Return for Tax Deductors at Source – TDS): Filed by entities responsible for deducting tax at source, detailing TDS amounts, liability, and payments.

Deadline: Due by the 10th of the following month.

8. GSTR-8 (Return for E-Commerce Operators): Provides a statement of tax collected at source (TCS) on behalf of suppliers on e-commerce platforms.

Deadline: Usually due by the 10^th of the following month.

9. GSTR-9 (Annual Return): It is an annual return filed by regular taxpayers (except those under the Composition Scheme) that consolidates all transactions for the financial year.

Deadline: Due by December 31 of the following financial year.

10. GSTR-9C (Reconciliation Statement): This reconciliation statement, verified by a Chartered or Cost Accountant, is required for businesses with an annual turnover exceeding ₹5 crores.

Deadline: Due alongside the annual return (GSTR-9).

11. GSTR-10 (Final Return)

Purpose: Filed by taxpayers whose GST registration has been canceled or surrendered, detailing the final status of stocks held prior to cancellation.
Deadline: Within three months from the date of cancellation or the cancellation order.

12. GSTR-11 (Return for UIN Holders)

Purpose: Filed by holders of a Unique Identification Number (UIN) to claim refunds for goods or services purchased; primarily applicable to foreign diplomatic missions and embassies.
Deadline: Typically due by the 28th of the following month.

Penalties for Late or Non-Filing of Business Taxes in India

1. Income Tax Penalty

Late Filing: A penalty of ₹5,000 if the return is filed after the due date but before December 31 and ₹10,000 if it is filed later. If taxable income is below ₹5 lakh, the penalty is capped at ₹1,000.
Non-Filing: Interest under Section 234A at 1% per month on outstanding tax, plus potential prosecution for severe delays.

2. GST Penalty

Late Filing: A late fee of ₹50 per day (₹25 CGST + ₹25 SGST) up to ₹5,000. If the return has no tax liability, the penalty is ₹20 per day.
Non-Filing: Input Tax Credit (ITC) is blocked, and penalties can be 10% of the tax due or ₹10,000, whichever is higher. Severe cases may lead to additional interest or business restrictions.

Checklist for Business Tax Filing

✔ Obtain PAN, GST Registration, and TAN (if applicable).

✔ Maintain accurate accounting records.

✔ Compute tax liability and claim deductions.

✔ File GST, TDS, and Income Tax Returns before deadlines.

✔ Keep a record of financial statements and invoices. ✔ Pay advance tax if applicable.

✔ Ensure TDS deductions and deposits are done on time.

✔ Use professional tax filing software or consult experts.

Why Choose Kanakkupillai for Business Tax Filing?

Filing business tax returns, whether it is ITR or GST, can be a challenging task, but with Kanakkupillai, you don’t have to worry. We make the entire process smooth, accurate, and hassle-free so you can focus on running your business while we handle your tax compliance. We provide:

Tailored Tax Solutions Just for You - We understand that every business is unique, and so are its tax requirements. That’s why we don’t believe in one-size-fits-all solutions. Our experts take the time to understand your business needs and guide you through the filing process step by step, ensuring everything is done with ease.
Experienced Professionals - With years of experience in tax compliance, our team knows the ins and outs of GST and ITR filings. We stay updated with the latest tax laws, so you always get the right advice.
On-Time Filing, No Penalties - Missing tax deadlines can result in penalties and unnecessary stress. We ensure your tax returns are filed well before the due date.
Transparent Pricing, No Hidden Costs - At Kanakkupillai, we believe in transparency. Our pricing is clear and straightforward, and there are no hidden charges.

Frequently Asked Questions

What is a GST Return? +

A GST Return is a document filed electronically by a business registered under GST. It provides details of your sales (outward supplies), purchases (inward supplies), tax liabilities, and any input tax credits. Filing returns is mandatory to stay compliant and to claim the appropriate tax credits.

Who must file GST Returns? +

Every business that is registered under GST must file returns, regardless of whether you have any transactions in a given period. This includes regular taxpayers, small businesses, non-resident taxpayers, and even those under special schemes like the Composition Scheme or QRMP.

What types of GST Returns are there for businesses? +

There are several types of returns based on your business category and transaction volume: • GSTR-1: Details all outward supplies (sales), including invoices and credit/debit notes. • GSTR-3B: A monthly summary of both sales and purchases that shows your net tax liability. • GSTR-4: For businesses under the Composition Scheme; filed annually. • GSTR-5, GSTR-5A, GSTR-6, GSTR-7, and GSTR-8: Specialized returns for non-residents, Input Service Distributors, tax deductors, and e-commerce operators. • GSTR-9 & GSTR-9C: The annual returns; GSTR-9 summarizes all transactions for the year while GSTR-9C is a reconciliation statement (required if your turnover exceeds ₹5 crores). • GSTR-10: The final return filed when a business cancels or surrenders its GST registration. • GSTR-11: For UIN holders, such as foreign diplomatic missions.

What are the key filing deadlines? +

Filing deadlines can vary slightly by state, as: i. GSTR-1: Monthly returns are due by the 11th day of the following month (or quarterly returns by the 13th for eligible small businesses under the QRMP scheme). ii. GSTR-3B: Usually due by the 20th to 22nd day of the following month. iii. GSTR-4: Generally filed by 30th April of the following financial year. iv. Annual Returns (GSTR-9/GSTR-9C): Due by December 31 of the subsequent financial year. Other specialized returns like GSTR-7 and GSTR-8 usually have deadlines around the 10th of the following month.

What happens if I file my GST Returns late? +

Late filing attracts penalties. For instance, if you file a monthly return late, there could be a daily late fee (e.g., ₹50 per day – split between CGST and SGST – up to a maximum limit). In some cases, if returns are not filed, your input tax credit may be blocked, and further penalties can be imposed.

Do I need to file a GST Return if I have no sales or transactions in a month? +

Yes. Even if there are no transactions in a period, you must file a “Nil Return” to remain compliant with the GST rules.

What is the QRMP scheme, and who is eligible? +

The Quarterly Return with Monthly Payment (QRMP) scheme is designed for the small businesses with an annual turnover of up to ₹5 crores. Under this scheme, you file your returns quarterly while still making your tax payments monthly. This helps reduce the administrative burden on smaller businesses.