I) Proprietorship Tax Return Filing
Proprietorship firms are required to file income tax return like LLPs and Companies registered in India. Since proprietorship firms are considered to be one and same as the proprietor, the income tax return filing of the proprietorship firm is the same that of the proprietor.
*Tax Audit for Proprietorship Firm
An audit would be required for a proprietorship firm if the total sales turnover is over Rs.1 crore 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. Also, an audit would be required for any proprietorship firm under presumptive taxation scheme irrespective of turnover if the income claimed is lower than the deemed profits and gains under the scheme.
II) Partnership Firm Tax Return Filing
*Partnership firms are required to file income tax return in form ITR 5. Like all other income tax forms, ITR 5 is an attachment less form and there is no requirement for submitting any documents or statements along with a partnership firm tax return. However, the taxpayer must save all records pertaining to the business and produce the same before tax authorities when requested.
Audit Requirement for Partnership Firms
Partnership firms that conform to any of the conditions below would be required to get the accounts audited:
Carrying on business and total sales exceed Rs.1 crore in the previous year.
Carrying on a profession and gross receipts in profession exceed Rs.50 lakhs in any previous year.
In addition, there are other conditions applicable which could make an audit mandatory for a partnership firm.
If a partnership firm entered into international transactions or specified domestic transactions a report must be furnished in Form No. 3CEB under section 92E. For partnership firms required to furnish Form 3CEB, the deadline for filing tax return is 30th November.
III) 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 India, normally the financial year starts on April 1st and end on 31st March. So a Company’s annual return would be due on or before September 30th.
* 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.
IV) LLP Annual Filing,
LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. 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 practising Chartered Accountant. The deadline for tax filing for LLP required to obtain audit is September 30th.
Any person having a TAN registration and deducting TDS on payments like salary or rent or contractor payments are required to file TDS returns every quarter.
I) TDS Return
There are different TDS Forms have been set depending on the income of the deductee or the type of deductee who pays the TDS.
II) TDS PAYMENTS
Tax Deducted at Source must be paid into authorized bank, quoting the TAN and using Challan 281. TDS during the preceding month must be paid before the 7th day of the following month.
* Employees Provident Fund (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the Employees’ Provident Fund Organization (EPFO). PF registration is applicable for all establishments which employ 20 or more persons. PF registration can also be obtained voluntarily by establishments having less than 20 employees.
* ESI or Employee State Insurance is a self-financing social security scheme in India. ESI was originally applicable for factories that employed 10 or more persons. Subsequently, the coverage of the ESI scheme has been expanded. Currently, any factory or establishment employing ten or more persons drawing wages of up to Rs.21, 000 per month must obtain ESI registration.
III) What are the Documents required for ESI/PF Registration?
*MOA & AOA with Certificate of Incorporation/Partnership Deed as applicable.
*Copy of PAN
*List of minimum 20/10 Employees with their DOJ and Rate of Salary
*Copy of Factory/Shop & Comm. Est. Registration
*Copy of GST Registration Certificate
*Business Number Allotment Form (may be obtained from Pf Office)
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Maintaining Attendance record, Leave record, Salary wages registers etc.
Income tax notices are sent by the Income Tax Department for various reasons like not filing income tax return, defect in filing of tax return or other instances where the tax department requires additional information or documents. On receiving an income tax notice, there is no reason to be alarmed or frightened. However, the taxpayer must take steps to understand understand the nature of notice, the request or order in the notice and take steps to comply.
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