Business Taxation

Business Taxation

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Business Taxation

Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership and a corporate.

A corporate is an entity that has a separate and independent legal entity from its shareholders. Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act. While a domestic company is taxed on its universal income, a foreign company is only taxed on the income earned within India i.e. is being accrued or received in India.

For the purpose of calculation of taxes under Income tax act, the types of companies can be defined as under:

Domestic Company: Domestic company is one which is registered under the Companies Act of India and also includes the company registered in the foreign countries having control and management wholly situated in India. A domestic company includes private as well as public companies.

Foreign Company: Foreign company is one which is not registered under the companies act of India and has control & management located outside India.

Companies including foreign companies have to file their income tax return on or before 30 October every year. Even if the company came into existence during the same financial year, then too, it has to file the income tax return for that period on or before 31 October. For AY 2020-21, the due date has been extended due to the pandemic.

Income tax act requires companies to get their accounts audited and submit audit report to the IT department along with the Income tax return. This tax audit report is also required to be mandatorily submitted by eligible companies by 30 September.

Would you like a to have support from our professional team to help you with your tax determination and filing of your IT Returns. Get in touch with our expert for more details.

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