How to File Income Tax Return for Private Limited Company

Filing income tax returns is a crucial requirement to be followed by both companies and individuals. There are specific tax rates and periods stipulated in the income tax rules and regulations required by every individual and company.

The income tax return is the form required to be filed with the tax authorities to report the incomes, expenses, and other crucial tax information. In India, the individuals and companies meeting the specified requirements must file this return annually. Like every other company, the private limited companies registered in India must also 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 the other is of a foreign company. This article will understand the comprehensive aspects of income tax return filing private limited companies.

Income Tax Rate of a Company

Introductory 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- a 7% rate will be applicable on the total income computed.

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

Education Cess on Income-tax: After applying the surcharge, the education cess will increase the total tax liability. For companies, the education cess applicable is 2% of income tax and surcharge.

Finally, Secondary and Higher Education Cess will further increase the total income tax 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 a 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 incorporated from January to March are allowed to file their returns with MCA after 18 months in the initial year of their incorporation.

Documents Required for Company Tax Return Filing

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

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

Type of Tax Return to be Filed by Company

In India, all registered companies are empowered to file two income tax returns: ITR 6 and ITR 7. Pvt Ltd Company Registration 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 quickly and effectively.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.