How to file Income Tax Return for Private Limited Company

  • July 14, 2018
  • Registrationwala

Filing income tax returns is a crucial requirement to be followed by both companies and individuals. There are specific tax rate and time period stipulated in the income tax rules and regulations that are 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 incomes, expenses and other tax crucial information.  In India, the individuals and companies meeting the specified requirements are required to file this return on annual basis. Just like every other company the private limited companies registered in India are also required to submit timely income tax returns. 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 aspects of income tax return filing private limited companies.


Income Tax Rate of a Company

Basic Rate- For the domestic companies in India the following tax rates are applicable-

If gross turnover is up to 250 crore in the previous year- 25%

If gross turnover is exceeding 250 crores in the previous year- 30%

Surcharge- The income tax figure computed after taking into consideration the above rates and providing any rebates allowed shall be increased by the applicable amount of surcharge.

If the income exceeds INR 1 crore- 7% rate will be applicable on the total income computed.

If the income exceeds INR 10 crore- 12% rate will be applicable on the total income computed.

Education Cess on Income-tax- After applying the surcharge the total tax liability will be further increased by the education cess.  For companies, the education cess applicable is at the rate of 2% of income-tax and surcharge.

Finally, the total amount of income tax will be further increased by Secondary and Higher Education Cess on income-tax”. Secondary and Higher Education Cess on income-tax is applicable at the rate of 1% of income-tax and surcharge.

Minimum Alternate Tax

It is the concept according to which all the companies whose tax liability is less than 18.5% of book profit are required to pay the minimum alternate tax at the rate of 18.5% of book profit in addition to surcharge and education cess.

Time Limit for Filing Return

The last date for filing income tax returns by every private limited company registered in India is 30 September. However, the companies that are incorporated during the months of January to march are allowed to file their returns with MCA after 18 months in the initial year of their incorporation.

For more information Click Annual Compliances for Private Limited Company


Documents Required for Company Tax Return Filing

For filing the return filing forms like ITR 6 or ITR 7 it is mandatory to attach the digital signature certificate with it.  Thus, every director must possess a valid DSC certificate. However, there is no requirement to file any kind of documents like the identity proof, address proof, TDS certificates, bank statement etc with return filing forms.  

However, for filing the return, you are required to open a bank account for which obtaining PAN card is mandatory.  Thus, it is mandatory for the promoter to apply for PAN card of the company.


Type of Tax Return to be Filed by Company

In India all the companies registered are empowered to file two types of income tax returns one is ITR 6 and the other is ITR 7. Private limited companies registered in India are required to file ITR 6 and Nidhi companies are required to file ITR 7.

You can directly file your income tax returns on the official website of Income-tax or you can seek the guidance of Registrationwala.  We can help you in handling all your compliance requirements easily and effectively.

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