Tax return and Form filing

Filing return is often seen as a complicated process by the majority of the people. We assist businesses and individuals in computing taxable income or turnover and filing process of return and form.

The information return serves as evidence for the compliance of the laws and must be produced to the authorities in case of any discrepancies. 

INCOME TAX RETURN ( ITR )

ITR is needed to submit to the Income Tax department. It contains information about  income, exemption and the taxes that have paid or need to pay in a financial year. The income could be from salary, profits from business and profession, house property, capital gains or other sources starting from 1st April to 31st March of the financial year.  The Income Tax department provides seven different types of form such as ITR-1 or SAHAJ, ITR-2, ITR-3, ITR-4 or SUGAM, ITR-5, ITR-6, and ITR-7. The taxpayer needs to fill the form as per the applicability before the due date, which depends upon the income of the taxpayer and category of taxpayer. 

Why should an Individual file ITR ?

• to receive a tax refund from the income tax department

• to apply for a loan or a visa.

• has more than one source of income (capital gains, house property, etc.)

• has earned an income from foreign assets during the financial year

• income is above the exemption limit in the financial year

• irrespective of profit or loss, if the taxpayer is a firm or proprietorship

ITR should be filed by individuals even if their income below the basic exemption limit but satisfies any of conditions as per Income Tax Act.

• Deposited more than Rs 1 crore in 'current' bank account during the previous year

• Deposited more than Rs 50 lakh in 'savings' bank account 

• Spent more than Rs 2 lakh on foreign travel

• Electricity expenditure is more than Rs 1 lakh 

• TDS or TCS is more than Rs 25,000 

• Business turnover is more than Rs 60 lakh 

• Professional income is more than Rs 10 lakh 

TAX DEDUCTED AT SOURCE AND TAX COLLECTED AT SOURCE

The tax is charged on the total income of a person on an annual basis. The quantum of tax is determined as per the statutory provisions and  is payable as:

a) Advance Tax 

b) Self Assessment Tax 

c) Tax Deducted at Source (TDS) 

d) Tax Collected at Source (TCS) 

The person ,on whom responsibility has been cast, should deduct the tds or tcs at the appropriate rates, from payments of specific nature which are being made to a specified recipient and  deposit the deducted sum to the credit of the Central Government. 

Every person responsible for deducting tax is required to file quarterly statements of TDS for the quarter ending on 30th June, 30th September, 31st December, and 31st March in each Financial Year. This statements are to be prepared in Forms  which are prescribed in Income Tax law  are to be delivered with prescribed income-tax authority.

GOODS AND SERVICES TAX RETURN ( GSTR )

GSTR has to be filed monthly or quarterly basis by all the business entities who are registered under the GST Act on or before the due date. GSTR is used by tax authorities to calculate net tax liability. The GSTR filing process has to be identified on the basis of type of taxpayer or type of registration obtained. GSTR contains all the details of sales, purchases,import, export, tax collected on sales (output tax), tax paid on purchases (input tax),  tax on reverse charge, etc

Registration :

The business whose turnover exceeds threshold limit must register as a normal tax payer under the goods and services tax act. But registration is mandatory for certain business under the goods and services tax act.

RETURN UNDER THE FACTORIES ACT

Every occupier of the factory has to file the annual returns with the Chief Inspector of Factories, providing information on the number of workers employed, details of working hour and leave, and any accidents or incidents that occurred during the year. 

FORMS UNDER THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT

The labour contract has to file annual return with the appropriate government department by providing information on the number of contract workers employed and their wages.The return is used to make sure that labour rules are being followed and to give government officials information for creating and enforcing policies.