Understanding Tax Returns: A Guide for Small Businesses in India

Introduction

Filing tax returns for your business is one of the very important things one can do; it ensures you are in compliance, saving you from all kinds of legal troubles. Small businesses in India have many confusions regarding types of tax returns, deadlines, and filing processes. In this blog, we will make it simple for the small business owner and present a one-stop guide.

1. What are Tax Returns?

• Definition of tax returns, their importance.

• Tax returns for reporting income, expense, and other income or expense data to the Income Tax Department.

• Late return filing penalty.

2. Tax Returns of Small Business

• Income Tax Return (ITR)

• Explanation of various ITR forms available to business (ITR-3, ITR-4, etc.)

• Goods and Services Tax (GST) Return

• All about how GST is applicable for small businesses and how to file GSTR-1, GSTR-3B, etc.

• Tax Deducted at Source (TDS) Return

• Submission of TDS returns - when and how to file it, consequences if filed late.

3. Step-by-Step Process of Filing Tax Returns in India

• Step 1: Collect Needed Documents

  Lists of documents required to be presented like financial statements, sales records, expense sheets, etc

• Step 2: Choose Right Tax Return Form

  How to identify which one needs to be filed based on what kind of business is undertaken by the firm

• Step 3: File Online and Get Registered

  Procedure for Using Government E-Filing Portal on Income Tax and GST.

• Step 4: Pay Taxes Due

  How to pay taxes Online

• Step 5: Verification and Submission

  Why Verify Income Tax Return After Filing.

4. Mistakes One Shouldn't While Filing Returns

• Forgetting the financial information

• Address proof

• Choosing of incorrect ITR form

• Filing the return late and consequential loss in terms of penalty

5. Advantage of Filing Returns on Time

• Avoid penalties and interest

• Eligibility for loan and credit services

• Financial profile strengthening