ITR FOR COMPANY

ITR for Company

all companies, irrespective of profit or loss, are expected to file ITR returns. Companies that are dormant and have undertaken no business decisions in a year are still expected to file returns. The applicability of ITR forms varies depending on the taxpayer’s income sources, the amount of the income earned, and the category of the taxpayer, like individuals, HUF, companies, etc. In this article, we will examine which ITR a company should file.

Income Tax: - This tax is paid by the taxpayers other than companies registered under company Act 2013 in India on the income earned by them. They are taxed on the basis of slabs at different rates.

Corporate Tax: - This tax is paid by the corporate registered under company law in India on the net profit that it makes from business. It is taxed at a specific rate as prescribed by the income tax act subject to the changes in the rates every year by the IT department.

Which ITR should a company file?

An income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable to the income tax department. To date, the department has notified seven forms, i.e., ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7. Every taxpayer should file his ITR on or before the specified due date.

Form ITR-4 – This ITR can be used to File ITR for those firms other than LLPs, which have a total income of up to ₹50 lakhs, and that income is calculated under Sections 44AD, 44ADA, 44AE.

Form ITR-5 – This ITR can be used for filing ITR for LLPs and partnerships, not ITR 7.

File ITR-6 – Those companies not claiming exemption under Section 11 can use ITR-6 to file an Income tax return.

File ITR-7 – This can be used for those companies that are mandated to file returns from Sections 139(4A), 139(4B), 139(4C), and 139(4D) only..