Filing income tax returns is a crucial requirement which is followed by both the companies. There are specific tax rates and time period which is specified in income tax rules and regulations that is required to be followed by every individual and company.
Income tax return is the form required to be filed with the tax authorities in order to report the income, expenses, and other tax crucial information. In India, the individual and companies meeting, the specified requirement are required to file this return on annual basis. Just like any other company private limited company is also required to file their income tax returns timely.
According to the income tax act, the tax return filing of the companies can be categorized into two parts one is of a domestic company and other is of a foreign company. With this article we will understand the comprehensive aspect of income tax return filing private limited companies.
Income Tax Rate of a Company:
Basic rate: for domestic companies in India following tax rates are being followed:
If gross turnover is up to 250 crore in the previous year – 25%
If gross turnover is exceeding 250 crore in the previous year – 30%
Surcharge: If income tax exceeds INR 1 crore – 7% rate will be applicable on the total income computed.
If income exceeds INR 10 crore – 12% rate will be applicable on the total income computed.
Minimum Alternate Tax:
it is a concept according to which all the companies whose tax liability is less than 18.5% of book of profit are required to pay the minimum alternate tax at the rate of 18.5% of book of profit in addition to surcharge and education cess.
Time limit for filing return:
The last date for filing income tax return by every private limited company registered in India is 30 th September.
Types of tax return to be filed by company:
There are two types of income tax return which is to be filed by every company, one is ITR 6 and ITR 7. Private limited companies are required to file ITR and Nidhi companies are required to file ITR 7.
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