Filing the company tax return in India involves several steps and adherence to specific guidelines set by the Income Tax Department.
Below is a comprehensive procedure for filing the company tax return in India:
1. Obtain Financial Statements:
Gather all the necessary financial statements and documents, including Profit and Loss Account, Balance Sheet, and other supporting schedules.
2. Tax Computation:
Calculate the company's income and tax liability for the relevant financial year based on the applicable tax rates and deductions.
3. Tax Audit (if applicable):
Determine whether the company is required to undergo a tax audit under Section 44AB of the Income Tax Act. If the turnover exceeds the specified threshold limit, a tax audit by a qualified Chartered Accountant is mandatory.
4. Choose the Relevant Income Tax Return Form:
Select the appropriate Income Tax Return (ITR) form for filing the company's tax return. Most companies use Form ITR-6 for this purpose.
5. Download and Fill the Form:
Download the selected ITR form from the Income Tax Department's e-filing portal (https://www.incometaxindiaefiling.gov.in). Fill in the required details, including income, expenses, taxes paid, and other relevant information.
6. Calculate Tax Liability:
Compute the total tax liability, taking into account tax deducted at source (TDS) and advance tax payments made during the financial year.
7. Validate the Form:
Validate the filled ITR form to check for any errors or discrepancies.
8. Pay Tax Due (if applicable):
If there is any tax payable after considering TDS and advance tax, pay the balance amount using the available online payment options.
9. Generate XML File:
Save the validated ITR form as an XML file on your computer.
10. E-filing:
Log in to the Income Tax Department's e-filing portal using the company's credentials. Under the "e-File" tab, select "Upload Return" and choose the relevant assessment year and ITR form. Upload the saved XML file.
11. Verify the Return:
After successful upload, verify the return using one of the available methods - Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
12. Acknowledgment and Verification:
Upon successful verification, the system will generate an acknowledgment form (ITR-V) containing an acknowledgment number. Download and keep a copy of the ITR-V for record purposes.
13. Send ITR-V (if applicable):
If the return is not verified using DSC, the taxpayer must sign the ITR-V acknowledgment and send it by post to the Centralized Processing Centre (CPC) in Bengaluru within 120 days from the date of e-filing.
By following this step-by-step procedure and ensuring accurate compliance with tax laws, companies can successfully file their income tax return in India. Seeking assistance from a professional tax consultant or a Chartered Accountant can help ensure accurate and smooth tax return filing.
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