Income Tax Return- Company
Every year, businesses in India must declare their Filing an Income Tax Return (ITR) is a legal obligation for all companies operating in India, irrespective of whether they have earned income or incurred losses during the financial year. The Income Tax Act, 1961, mandates every company—domestic or foreign—to file an annual return disclosing its financial performance, income, and tax liabilities. This process ensures transparency and accountability while enabling the government to assess and collect appropriate taxes for nation-building.r income to the Income Tax Department through Business Income Tax Return (ITR) filing.
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Table of Content
- Income Tax Return- Company
- Applicability of Company Income Tax Return (ITR)
- Types of Company Income Tax Return
Income Tax Return- Company
This document provides a comprehensive overview of the Income Tax Return filing process for companies, covering eligibility, applicable forms, deadlines, tax rates, audit requirements, and consequences of non-compliance. Understanding these elements is crucial for companies to maintain regulatory compliance and avoid penalties under the Income Tax Act
Applicability of Company Income Tax Return (ITR)
Under the Income Tax Act, every company is required to file an Income Tax Return (ITR) annually, regardless of whether it has generated income, incurred losses, or remained inactive during the financial year. The following types of companies are required to file ITR:
- Private Limited Companies
- Public Limited Companies
- One Person Companies (OPC)
- Section 8 Companies (Non-Profit Organizations)
- Companies incorporated outside India but earning income from Indian sources
- Companies with a branch office, liaison office, or any business connection in India
Mandatory Filing Even in Case of:
- No income or NIL return
- Business loss
- Newly incorporated company with no operations
- Dormant or inactive status
Types of Company Income Tax Return:
- Losses: Filing is mandatory to carry forward business losses to future years.
- Tax Deducted at Source (TDS): If any TDS has been deducted on your income, filing a return helps claim refunds.
FAQs for Income Tax Return for NRI
- Most companies use ITR-6
- Section 8 companies or those claiming exemption under Section 11 use ITR-7
• 31st July 2025: For non-audited businesses.
• 31st October 2025: For audited businesses and companies.
• 30th November 2025: For businesses requiring Form 3CEB (transfer pricing).
• Late filing fees up to ₹10,000
• Interest on tax due
• Losses may not be carried forward
• Risk of penalties or prosecution for non-compliance
• Domestic company (turnover ≤ ₹400 Cr): 25%
• Other domestic companies: 30%
• Under Section 115BAA (optional): 22% (concessional rate)
• Foreign companies: 40%
(Plus surcharge and cess)
Form 3CEB is a Transfer Pricing Report required for companies that have:
• International transactions with associated enterprises
• Specified domestic transactions
This form must be certified by a Chartered Accountant and filed before the ITR due date.
