Proprietorship Tax Return Filing
Proprietorship firms are required to file income tax return like LLPs and Companies registered in India. Under Income Tax Act, all proprietors below the age of 60 years are required to file income tax return if total income exceeds Rs. 2.5 lakhs. In the case of proprietors over the age of 60 years but below 80 years, income tax filing is mandatory if total income exceeds Rs.3 lakhs. Proprietors over the age of 80 years and above are required to file income tax return if the total income exceeds Rs.5 lakhs.
Tax Audit for Proprietorship Firm
An audit would be required for a proprietorship firm if the total sales turnover is over Rs.5 crore (95% payments & receipts on banking) during the financial year. In the case of a professional, audit would be required if total gross receipts is more than Rs.50 lakhs during the financial year under assessment.
Due Date for Proprietorship Firm Tax Return
The income tax return of a proprietorship that doesn’t require audit is due on 31st July. In case the income tax return of a proprietorship needs to be audited as per Income Tax Act, then the return would be due on 30th September.
Income Tax Return for Proprietorship Firms
For the assessment Year 2020-21 only, which relates to income earned in Financial Year 2017-18, proprietorship firms would be required to file Form ITR-3 or Form ITR-4-Sugam.
Form ITR-3 can be filed by a proprietor or a Hindu Undivided Family who is carrying out a proprietary business or profession.
Form ITR-4-Sugam can be filed by a proprietor who would like to pay income tax under the presumptive taxation scheme.
Partnership Firm Tax Return Filing
Partnership firms in India can be divided into two categories namely, registered partnership or unregistered partnership.
Partnership Tax Rate
Partnership firms are liable to pay income tax at the rate of 30% of total income and education cess 4%.. In addition to the income tax and surcharge, a partnership firm must pay education cess and secondary higher education cess.
Partnership Firm Tax Return Filing
Partnership firms are required to file income tax return in form ITR 5
Partnership Firm Tax Return Due Date
The income tax return due date for most partnership firms is July 31 of the assessment year. Partnership firms required to get its accounts audited under the income tax Act must file the income tax return before the September 30th deadline.
Private Limited Company Annual Filing & Compliances
All companies registered in India like private limited company, one person company, limited company, and section 8 company must file MCA annual return and income tax return each year. Before filing annual return, the company must conduct an Annual General Meeting at the end of each financial year. For newly incorporated Companies, the Annual General Meeting should be held within 18 months from date of incorporation or 9 months from the date of closing of financial year, whichever is earlier. Subsequent Annual General Meetings should be held within 6 months from the end of that financial year.
In addition to MCA annual return, companies must also file income tax return irrespective of income, profit or loss. Hence, even dormant companies with no transactions are required to file income tax return each year. Private limited companies, limited companies and one person companies would be required to file Form ITR -6. The due date for filing income tax return for a company is on or before the 30th of September.
Private Limited Company Compliance Due Dates in 2020
The compliance requirement for private limited company has drastically changed over the years 2019 and 2020. The following is a summary of private limited compliance due dates in 2020.
Commencement of Business (Within 180 Days)
Companies registered in India after November 2019 and having a share capital are required to obtain commencement of business certificate must be obtained within 180 days of incorporation of the company.
All companies registered in India must appoint a statutory Auditor within 30 days of incorporation.
Due date for filling
- Private limited companies registered in India must file Income Tax Return on or before 30th September 2020 for the FY2019-20.
- Private limited companies registered in India must file MCA Form AOC-4 on or before 30th November 2020 for FY2019-20.
- Private limited companies registered in India must file MCA Form MGT-7 on or before 31st December 2020 for FY2019-20.
DIN eKYC or DIR-3 eKYC form must be filed for all the Directors of the company. In DIR-3 eKYC filing, the Director must provide and verify a unique personal mobile number and personal email address.
LLP Annual Filing
LLPs in India must file its Annual Return within 60 days from the end of close of financial year and Statement of Account & Solvency within 30 days from end of six months of close of financial year.
LLP Accounts Maintenance
All LLPs are required to maintain proper books of accounts since registration on cash
basis or accrual basis. Private Limited Companies are required to maintain book of accounts only in accrual basis;
The book of accounts must be maintained at the Registered Office of the LLP.
LLP Form 11
Annual return of a LLP is due within 60 days of close of financial year. LLPs must uniformly maintain a financial year that starts on April 1st and ends on March 31st, therefore the Annual return of a LLP is due on or before May 30th of each financial year.
LLP Form 8
Statement of Accounts and Solvency of a LLP is due within 30 days from the end of six months of close of financial year. Statement of Accounts and Solvency is a mandatory filing that is required for all LLPs in India. Statement of Accounts and Solvency contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP.
LLP Tax Audit
LLPs are required to have its accounts audited by a practicing Chartered Accountant if its annual turnover, in any financial year exceeds Rs.40 lakhs
Income Tax Return Filing
LLPs must file income tax return using Form ITR 5. The deadline for LLP tax filing in India
is July 31st if tax audit is not required. LLP whose turnover exceeded Rs. 40 Lakh or whose contribution exceeded Rs. 25 Lakh are required to get their accounts audited by a
practicing Chartered Accountant. The deadline for tax filing for LLP required to obtain audit is September 30th.