Filing a company tax return for real estate companies in India involves complying with the provisions of the Income Tax Act, 1961. Here is a general overview of the process:

  1.       Taxpayer Identification: Obtain a Permanent Account Number (PAN) for the real estate company. This is a unique identification number issued by the Income Tax Department.

  2.       Maintain Books of Accounts: Real estate companies need to maintain proper books of accounts, including records of income, expenses, assets, liabilities, and other financial transactions.

  3.       Choose the Correct Tax Structure: Real estate companies can be structured as either a partnership firm, limited liability partnership (LLP), or a private limited company. The tax obligations may vary based on the chosen structure.

  4.       Determine Taxable Income: Calculate the taxable income of the real estate company. In general, real estate companies can claim deductions for expenses incurred for the purpose of generating rental income or profits from the sale of properties. However, specific provisions and restrictions may apply.

  5.       Pay Advance Tax: If the estimated tax liability for the financial year exceeds INR 10,000, the real estate company needs to pay advance tax in installments during the year. Failure to pay advance tax may attract interest and penalties.

  6.       File Income Tax Return: The income tax return for real estate companies in India is filed using Form ITR-6. This form is applicable for companies other than those claiming exemption under section 11 (charitable or religious purposes). Ensure accurate reporting of income, expenses, and other required details in the tax return.

  7.       Audit Requirements: Real estate companies meeting specific turnover and profit thresholds may require a tax audit. A tax audit is conducted by a Chartered Accountant, who issues an audit report. The audit report needs to be filed along with the tax return.

  8.       Tax Payments and Deadlines: Real estate companies need to pay any tax liability as per the Income Tax Act before filing the tax return. The due date for filing the tax return is typically July 31st of the assessment year (e.g., for the financial year 2022-2023, the due date would be July 31, 2023). However, deadlines are subject to change, so it's advisable to check with the Income Tax Department for the current year's due dates.

It's important to note that tax compliance requirements can be complex and may vary based on the specific circumstances of the real estate company. Consulting with a qualified chartered accountant or tax professional is recommended to ensure accurate compliance with the tax laws and regulations applicable to your real estate business in India.

Other Real estate income tax compliances

  Ø  Taxation of Rental Income: If you earn rental income from properties, it is treated as income from house property and is subject to tax. You need to calculate the annual value of the property and deduct permissible deductions (such as property taxes, standard deduction, and interest on home loans) to arrive at the taxable rental income.

  Ø  TDS on Rental Income: If you are paying rent to a resident individual or Hindu Undivided Family (HUF) above a specified threshold, you are required to deduct tax at source (TDS) at the prescribed rates. The TDS should be deposited with the government and the TDS certificates should be issued to the payee.

  Ø  Capital Gains Tax: If you sell a property, you may be liable to pay capital gains tax on the profit earned. The tax treatment depends on whether the property is held as a short-term asset (held for up to two years) or a long-term asset (held for more than two years). Different tax rates and exemptions apply accordingly.

c  Ø  Tax Deductions on Home Loans: If you have taken a home loan for acquiring or constructing a property, you may be eligible for deductions on the principal repayment (under Section 80C) and the interest paid on the loan (under Section 24). These deductions are subject to certain conditions and limits.

  Ø  Tax Audit: Real estate companies meeting specific turnover and profit thresholds are required to undergo a tax audit. A tax audit is conducted by a Chartered Accountant, who examines the books of accounts, financial statements, and compliance with tax laws. The tax audit report needs to be filed along with the income tax return.

  Ø  Goods and Services Tax (GST): In addition to income tax, real estate transactions may attract GST. The GST implications vary depending on factors such as the type of property (residential or commercial), nature of the transaction (sale, lease, etc.), and the applicable rates. Compliance with GST laws, including registration, filing of returns, and payment of GST, is necessary.