Step-by-Step Guide
7 Steps
How to File Income Tax Return for Companies and LLPs in India
Complete guide on how to file income tax returns for Private Limited Companies (ITR-6) and LLPs (ITR-5) in India in 2026. Covers due dates, tax audit requirements, documents needed, and step by step e-filing process.
Quick Overview
Estimated Cost
₹10000
Time Required
5 to 7 Days
Total Steps
7 Steps
What You'll Need
Documents Required
- Audited financial statements including balance sheet, profit and loss account, and notes to accounts
- Tax Audit Report in Form 3CA/3CB and Form 3CD signed by a Chartered Accountant
- Company PAN card and TAN details
- Bank statements for all company bank accounts for the financial year
- Details of all TDS deducted and deposited (Form 26AS and AIS reconciliation)
- GST returns filed during the year (GSTR-3B summaries for turnover reconciliation)
- Details of advance tax payments made during the year (BSR codes and challan details)
- Board resolution authorizing the filing of income tax return
- Transfer pricing documentation if the company has international transactions
- Details of brought forward losses from previous years (if any)
Tools & Prerequisites
- Active account on the Income Tax e-filing portal (incometax.gov.in)
- Class 3 Digital Signature Certificate (DSC) of the authorized signatory (mandatory for companies)
- Accounting software such as Tally, Zoho Books, or QuickBooks for preparing financial statements
- Chartered Accountant (CA) for conducting statutory audit and tax audit
- Internet banking or net banking facility for paying any balance tax due before filing
Filing income tax returns is one of the most critical annual compliance obligations for every company and LLP registered in India. Whether your business earned profits, incurred losses, or had zero transactions during the year, you are legally required to file an ITR with the Income Tax Department. Missing the deadline or filing incorrectly can result in penalties, interest charges, loss of the right to carry forward losses, and even prosecution in extreme cases.
This guide walks you through the complete process of filing income tax returns for Private Limited Companies (using ITR-6) and LLPs (using ITR-5) in India for the Assessment Year 2026-27. It covers everything from choosing the right form and preparing financial statements to completing the tax audit, computing taxable income, e-filing on the Income Tax portal, and handling post-filing processes.
Who Must File Income Tax Return in India
Under Section 139(1) of the Income Tax Act 1961, every company incorporated in India must file an annual income tax return regardless of whether it has earned any income during the financial year. This includes active companies, dormant companies, and companies under strike-off proceedings.
The filing requirement extends to the following entity types.
- Private Limited Companies registered under the Companies Act 2013
- Public Limited Companies and their subsidiaries
- One Person Companies (OPC)
- Section 8 Companies (Non-profit companies)
- Limited Liability Partnerships (LLPs) registered under the LLP Act 2008
- Partnership Firms registered or unregistered
- Foreign companies earning income in India
A common misconception is that companies with no business activity do not need to file ITR. This is incorrect. Every company and LLP must file an income tax return every year. Failure to file attracts penalties, and if returns are not filed for three consecutive years, the directors risk disqualification under Section 164(2) of the Companies Act 2013. If your company is inactive, consider filing as a dormant company or explore company closure options.
Choosing the Correct ITR Form
Selecting the right ITR form is the first step. Filing the wrong form results in the return being treated as defective.
| Entity Type | ITR Form | Notes |
|---|---|---|
| Private Limited Company | ITR-6 | All Pvt Ltd companies except those claiming Section 11 exemption |
| Public Limited Company | ITR-6 | Same form for all companies under Companies Act |
| One Person Company (OPC) | ITR-6 | OPC is a type of company under Companies Act 2013 |
| Section 8 Company (Non-profit) | ITR-6 or ITR-7 | ITR-7 only if claiming exemption under Section 11 |
| Limited Liability Partnership (LLP) | ITR-5 | LLPs are taxed as firms under the Income Tax Act |
| Partnership Firm | ITR-5 | Both registered and unregistered partnership firms |
Important Due Dates for Company and LLP ITR Filing
Missing the due date has serious financial and legal consequences. Here are the key deadlines for the Assessment Year 2026-27 (Financial Year 2025-26).
| Category | Due Date | Applicable To |
|---|---|---|
| Companies requiring tax audit (Section 44AB) | October 31, 2026 | Companies with turnover above 1 crore rupees |
| Companies requiring transfer pricing audit | November 30, 2026 | Companies with international transactions |
| LLPs requiring tax audit | October 31, 2026 | LLPs with turnover above 1 crore rupees |
| LLPs not requiring tax audit | July 31, 2026 | LLPs with turnover below audit threshold |
| Tax Audit Report filing deadline | September 30, 2026 | All entities requiring audit under Section 44AB |
| Belated or Revised Return | December 31, 2026 | Last date for late or corrected filing |
Do not forget quarterly advance tax payments: June 15 (15 percent), September 15 (45 percent cumulative), December 15 (75 percent cumulative), and March 15 (100 percent). Underpayment of advance tax attracts interest under Sections 234B and 234C at 1 percent per month. Plan your cash flow accordingly.
Step 1: Complete the Statutory Audit
For Private Limited Companies, statutory audit by an independent Chartered Accountant is mandatory under the Companies Act 2013 regardless of turnover. The auditor examines the financial statements and issues an audit report confirming whether the financial statements present a true and fair view of the company's financial position.
For LLPs, statutory audit is mandatory only if the annual turnover exceeds 40 lakh rupees or the total contribution of partners exceeds 25 lakh rupees. LLPs below these thresholds are exempt from statutory audit.
Appointing a Statutory Auditor
- A statutory auditor must be appointed within 30 days of incorporation for new companies
- The auditor serves for a term of 5 years (individual) or 10 years (audit firm) as per the Companies Act
- The auditor appointment must be filed with the RoC in Form ADT-1 within 15 days
- The auditor must be a practicing Chartered Accountant who is not disqualified under Section 141
If this is your company's first financial year, the auditor will need additional time to set up the opening balances and verify the initial capital contributions. Start the audit process at least 2 months before the filing deadline to avoid last-minute rushes. Make sure your annual return filing with the RoC is also on track.
Step 2: Complete the Tax Audit (If Applicable)
In addition to the statutory audit, a tax audit under Section 44AB of the Income Tax Act may be required. The tax audit focuses on verifying tax-related details and ensuring compliance with the provisions of the Income Tax Act.
When is Tax Audit Mandatory
- Total sales, turnover, or gross receipts exceed 1 crore rupees in the financial year
- This threshold increases to 10 crore rupees if aggregate of digital receipts and digital payments constitute at least 95 percent of total receipts and payments
- The business or profession is carried on under the presumptive taxation scheme (Section 44AD, 44ADA, 44AE) and the income declared is lower than the prescribed limit
Tax Audit Forms
| Form | Applicability |
|---|---|
| Form 3CA | For entities already required to get accounts audited under any other law (like Companies Act) |
| Form 3CB | For entities not audited under any other law (typically partnership firms and some LLPs) |
| Form 3CD | Detailed statement of tax particulars (filed along with either 3CA or 3CB) |
The tax audit report must be filed on the Income Tax portal by the CA before September 30 (one month before the ITR due date). After the CA uploads the report, the company's authorized signatory must log in and accept it.
Step 3: Prepare the Income Computation Statement
The income computation statement bridges the gap between book profit (as per financial statements) and taxable income (as per Income Tax Act provisions). Here is a simplified structure of the computation.
Computation Framework
- Start with Net Profit as per the audited Profit and Loss Account
- Add back disallowed expenses: Expenses that are not deductible under the Income Tax Act, such as penalties, personal expenses, provisions, and expenses in excess of prescribed limits
- Deduct exempt income: Income that is not taxable, such as agricultural income, long term capital gains exempt under Section 10(38), and dividend income up to certain limits (if applicable)
- Apply Income Tax depreciation: Replace book depreciation with tax depreciation calculated at rates prescribed under the Income Tax Act (these are often different from accounting depreciation)
- Set off current year losses against income from other heads as per the set-off rules
- Set off brought forward losses from previous years (subject to eligibility and time limits)
- Claim deductions under Chapter VI-A (available only under the old tax regime)
- Compute total taxable income and apply the applicable tax rate
- Calculate MAT/AMT and compare with regular tax liability
- Deduct TDS credits, advance tax, and self-assessment tax to arrive at the final tax payable or refund due
Before finalizing the computation, calculate tax under both the old and new regime to determine which is more beneficial. Under the new regime (Section 115BAA), companies pay 22 percent but forgo most deductions and exemptions. Under the old regime, companies pay 25 percent or 30 percent but can claim depreciation, Chapter VI-A deductions, and set off brought forward losses. For companies under Section 115BAA, the choice is irrevocable, so evaluate carefully. For new companies, Section 115BAB offers a 15 percent rate for manufacturing activities.
Step 4: Reconcile Form 26AS and Annual Information Statement
Before filing the ITR, it is essential to reconcile the company's books of accounts with the information available on the Income Tax portal.
What to Check in Form 26AS
- TDS deducted by customers and clients: Verify that all TDS deducted on payments made to the company is correctly reflected
- TDS deducted by the company: Ensure that TDS deposited on payments to vendors, contractors, and employees matches the TDS returns filed
- Advance tax and self-assessment tax: Confirm all tax payments are correctly recorded with proper challans
- High-value transactions: Verify that reported transactions match the company's books
Annual Information Statement (AIS) Reconciliation
The AIS provides an even more comprehensive picture than Form 26AS. Check the following in AIS.
- Interest income from bank deposits and other sources
- Dividend income received during the year
- Sale and purchase of securities and mutual fund units
- GST turnover reported by the GST portal
- Foreign remittances reported under Form 15CA/15CB
Any mismatch between your ITR and Form 26AS or AIS can trigger an automated mismatch notice from the CPC. Common mismatches include TDS not claimed by the deductor, advance tax reflecting under wrong PAN, interest income not reported, and GST turnover differences. Resolve all mismatches before filing. If data in AIS is incorrect, use the AIS feedback mechanism on the portal to flag errors.
Step 5: Pay Any Balance Tax Due
If the tax computation shows a balance of tax due after deducting TDS credits and advance tax payments, you must pay self-assessment tax before filing the return.
How to Pay Self-Assessment Tax
- Log into the Income Tax e-filing portal at incometax.gov.in
- Go to e-Pay Tax and select Challan ITNS 280
- Select Assessment Year and choose payment type as Self Assessment Tax (Code 300)
- Enter the tax amount including surcharge and health and education cess
- Pay through net banking, debit card, credit card, or UPI
- Save the challan receipt with BSR code, challan serial number, and payment date
Enter these challan details in Schedule IT of the ITR form. Without these details, the payment will not be credited to your tax liability in the return.
Step 6: File the ITR on the Income Tax Portal
With all preparation complete, you are ready to file the ITR electronically on the Income Tax portal.
Step by Step Filing Process
- Log into incometax.gov.in using your company PAN and password
- Navigate to e-File and select Income Tax Return
- Select the correct Assessment Year (AY 2026-27 for FY 2025-26)
- Choose ITR-6 (for companies) or ITR-5 (for LLPs)
- Select the filing mode: Online (fill on the portal) or Offline (download the utility, fill offline, and upload XML)
- Fill all mandatory schedules using data from your audited financial statements, tax computation, and supporting documents
- Complete the tax computation section and verify the calculated tax matches your records
- Enter TDS details in Schedule TDS and advance tax details in Schedule IT
- Validate the form using the built-in validation tool to catch errors before submission
- Upload the XML file (if using offline mode) and sign using DSC
- Submit and download the ITR-V acknowledgment
Companies must sign the ITR using a Digital Signature Certificate (DSC). The DSC must be registered on the Income Tax portal before filing. Ensure the DSC is in the name of the authorized signatory (director) and is not expired. If you need to obtain or renew a DSC, read our guide on how to get a Digital Signature Certificate.
Step 7: Post-Filing Compliance
Filing the ITR is not the end of the process. There are several post-filing activities you need to be aware of.
Processing Under Section 143(1)
The Centralized Processing Centre (CPC) in Bengaluru processes all filed returns. Processing typically takes 6 to 12 months and results in an intimation under Section 143(1) that can show one of three outcomes.
- No demand, no refund: The return is accepted as filed with no adjustments
- Refund due: If excess tax was paid, the refund is credited to the bank account with interest
- Demand raised: If the CPC finds discrepancies, additional tax with interest is demanded
Responding to Demands and Notices
If a demand is raised, you have several options: pay the demand if it is legitimate, file a rectification request under Section 154 if there is an apparent error, file a response explaining the discrepancy with supporting documents, or file an appeal if you disagree with the assessment. All responses must be filed through the Income Tax portal.
Scrutiny Assessment Under Section 143(3)
In some cases, the return may be selected for detailed scrutiny by an Assessing Officer. If selected, you will receive a notice under Section 143(2) requiring you to appear before the officer with your books of accounts and supporting documents. Scrutiny assessments are typically completed within 18 months from the end of the assessment year. Maintain proper records and documentation to handle scrutiny efficiently.
Corporate Tax Rates in India (2026)
Understanding the applicable tax rates is fundamental to accurate tax computation.
| Category | Tax Rate | Effective Rate (with Surcharge and Cess) |
|---|---|---|
| Companies under Section 115BAA (New Regime) | 22% | Approximately 25.17% |
| New Manufacturing Companies (Section 115BAB) | 15% | Approximately 17.16% |
| Companies with turnover up to 400 crore (Old Regime) | 25% | Approximately 26% to 29.12% |
| Other Companies (Old Regime) | 30% | Approximately 31.2% to 34.94% |
| LLPs and Partnership Firms | 30% | Approximately 31.2% to 34.94% |
For companies opting for Section 115BAA or 115BAB, the surcharge is fixed at 10 percent. For other companies, surcharge is 7 percent for income above 1 crore and up to 10 crore, and 12 percent for income above 10 crore. Health and Education Cess of 4 percent is applicable to all categories on the total of tax plus surcharge.
Common Mistakes to Avoid When Filing Company ITR
Even experienced professionals can make errors that trigger demands and scrutiny. Here are the most common mistakes to watch out for.
- Not reconciling Form 26AS and AIS: TDS credit mismatches are the single biggest source of demand notices. Always reconcile before filing
- Filing after the due date: Late filing means you lose the right to carry forward business losses and capital losses. Plan your audit timeline to complete filing on time
- Incorrect depreciation computation: Using book depreciation rates instead of Income Tax Act rates is a common error that changes the taxable income significantly
- Not paying advance tax: Failure to pay advance tax on time attracts interest under Sections 234B and 234C even if the final ITR is filed on time
- Forgetting Section 43B add-backs: Statutory dues like PF, ESI, and taxes that are accrued but not paid by the filing due date must be added back to income
- Not reporting all bank accounts: Every bank account held by the company during the year must be disclosed in the ITR, including closed accounts
- Mismatch with GST turnover: The Income Tax Department cross-checks ITR turnover with GST returns. Ensure both are consistent
- Not accepting the tax audit report: The CA uploads the tax audit report, but the company must log in and accept it. Many companies forget this step
Related Compliance and Filing Requirements
Income tax filing is part of a broader compliance framework that companies and LLPs must follow. Here are related services and guides.
- File your Private Limited annual return (MGT-7 and AOC-4) with the RoC
- If you are an LLP, file your LLP annual return (Form 8 and Form 11)
- Complete GST return filing for all months before starting the ITR process
- File quarterly TDS returns to ensure TDS credits are reflected in Form 26AS
- Ensure DIR-3 KYC is filed for all directors before September 30
- If your company has employees, ensure PF and ESI compliance is up to date
- For startups, claim the DPIIT recognition to avail Section 80-IAC tax exemption
Conclusion
Filing income tax returns for companies and LLPs in India requires careful preparation, accurate computation, and timely execution. The process involves finalizing audited financial statements, completing the tax audit if applicable, computing taxable income under the chosen tax regime, reconciling TDS credits and advance tax payments, and e-filing the return on the Income Tax portal with a valid DSC.
The key to hassle-free ITR filing is starting early. Begin the audit process at least 2 to 3 months before the due date, reconcile Form 26AS and AIS well in advance, and pay any self-assessment tax before filing. Late filing not only attracts penalties and interest but also results in the loss of the right to carry forward valuable business losses.
If you need professional assistance with income tax return preparation and filing for your company or LLP, our team of experienced Chartered Accountants at IncorpX can handle the entire process from audit to e-filing, ensuring full compliance and maximum tax efficiency.
Frequently Asked Questions
Which ITR form should a Private Limited Company use?
A Private Limited Company must file its income tax return using Form ITR-6. This form is applicable to all companies registered under the Companies Act 2013, including Private Limited Companies, Public Limited Companies, One Person Companies, Section 8 Companies, and Nidhi Companies. The only exception is companies that claim exemption under Section 11 (income from property held for charitable or religious purposes), which must use ITR-7 instead.
Which ITR form is used for LLP income tax return?
A Limited Liability Partnership (LLP) must file its income tax return using Form ITR-5. This form is also applicable to Partnership Firms, Association of Persons (AOPs), Body of Individuals (BOIs), and Artificial Juridical Persons. LLPs are taxed as firms under the Income Tax Act and pay a flat tax rate of 30 percent on their taxable income plus applicable surcharge and cess.
What is the due date for filing company ITR in India?
The due date for filing income tax return for companies and LLPs in India depends on whether a tax audit is applicable. If a tax audit is required under Section 44AB, the due date is October 31 of the assessment year. If no tax audit is required, the due date is July 31 of the assessment year. For companies that have international transactions requiring transfer pricing audit, the due date is November 30 of the assessment year. Late filing attracts a penalty of up to 5,000 rupees under Section 234F plus interest under Sections 234A, 234B, and 234C.
Is tax audit mandatory for all companies?
Statutory audit is mandatory for all companies under the Companies Act 2013 regardless of turnover. However, tax audit under Section 44AB of the Income Tax Act is mandatory only when the total sales, turnover, or gross receipts exceed 1 crore rupees in the financial year. This threshold increases to 10 crore rupees if the aggregate of digital receipts and digital payments constitute at least 95 percent of total receipts and payments respectively. Tax audit requires a practicing Chartered Accountant to issue a report in Form 3CA/3CB and Form 3CD.
What is the corporate tax rate for companies in India in 2026?
The corporate tax rate depends on the tax regime chosen. Under Section 115BAA (new regime without exemptions), the rate is 22 percent plus 10 percent surcharge and 4 percent cess, making the effective rate approximately 25.17 percent. Under Section 115BAB for new manufacturing companies incorporated after October 1, 2019, the rate is 15 percent plus surcharge and cess (effective rate approximately 17.16 percent). Under the old regime, companies with turnover up to 400 crore rupees pay 25 percent, and others pay 30 percent, but can claim deductions and exemptions.
What is the tax rate for LLPs in India?
LLPs are taxed at a flat rate of 30 percent on their total taxable income under the old regime, plus applicable surcharge and 4 percent health and education cess. If the total income exceeds 1 crore rupees, a surcharge of 12 percent is applicable. The effective tax rate for LLPs with income above 1 crore rupees comes to approximately 34.94 percent. Unlike companies, LLPs do not have the option to choose the lower tax rate under Section 115BAA. However, LLPs can claim all eligible deductions and exemptions.
Is DSC mandatory for filing company ITR?
Yes, a Digital Signature Certificate (DSC) is mandatory for filing income tax returns of companies. The ITR must be digitally signed by the authorized signatory using a valid Class 2 or Class 3 DSC registered on the Income Tax portal. The DSC must be in the name of the director or authorized person who is signing the return. For LLPs, ITR can be filed using either DSC or Electronic Verification Code (EVC). If you do not have a DSC, you can obtain one in 1 to 2 days from authorized Certifying Authorities. Learn more about getting a DSC.
What documents are needed for filing company income tax return?
The key documents required for filing a company ITR include: Audited financial statements (balance sheet, profit and loss account, cash flow statement, and notes), Tax Audit Report in Form 3CA/3CB and 3CD (if applicable), Form 26AS and Annual Information Statement for TDS credit verification, Advance tax payment challans with BSR codes, GST return summaries for turnover reconciliation, Company PAN and TAN details, Bank statements for all company accounts, and Board resolution authorizing the filing. If the company has international transactions, transfer pricing documentation is also required.
What is Form 26AS and why is it important for company ITR?
Form 26AS is an annual consolidated tax statement that shows all taxes deposited against the company's PAN. It includes TDS deducted by clients and customers on payments made to the company, TDS deducted by the company on payments made to others, advance tax and self-assessment tax paid, high-value transactions reported by banks and other institutions, and refunds processed. Before filing the ITR, you must reconcile Form 26AS with the company's books to ensure all tax credits are correctly claimed. Any mismatch can lead to demand notices from the Income Tax Department.
What is the penalty for late filing of company ITR?
Late filing of company ITR attracts the following penalties: A late filing fee of 5,000 rupees under Section 234F (reduced to 1,000 rupees if total income does not exceed 5 lakh rupees). Interest under Section 234A at 1 percent per month on the tax due from the original due date until the date of filing. Interest under Section 234B at 1 percent per month if advance tax was not paid or was underpaid. Loss of the ability to carry forward certain losses (business losses and capital losses cannot be carried forward if the return is filed after the due date, though unabsorbed depreciation can still be carried forward). In severe cases, prosecution proceedings can be initiated under Section 276CC.
Can a company file a revised income tax return?
Yes, a company can file a revised return under Section 139(5) if an error or omission is discovered in the original return. The revised return can be filed before the end of the relevant assessment year or before the completion of assessment, whichever is earlier. For example, for the financial year 2025-26, the revised return can be filed until December 31, 2026. There is no limit on the number of times a return can be revised. The revised return completely replaces the original return and the assessment is based on the latest revised return filed.
What is MAT and how does it apply to companies?
Minimum Alternate Tax (MAT) under Section 115JB applies to companies whose tax liability under normal provisions is less than 15 percent of their book profit. If a company's normal tax liability is below the MAT threshold, the company must pay MAT at 15 percent of book profit plus applicable surcharge and cess. The excess of MAT paid over the normal tax liability is available as MAT credit that can be carried forward and set off against regular tax liability in subsequent years for up to 15 consecutive assessment years. Companies that have opted for the new tax regime under Section 115BAA or 115BAB are exempt from MAT.
What is AMT and how does it apply to LLPs?
Alternate Minimum Tax (AMT) under Section 115JC applies to LLPs and partnership firms that claim deductions under Sections 80H to 80RRB (Chapter VI-A deductions other than Section 80P) and whose tax liability falls below 18.5 percent of their adjusted total income. If AMT is applicable, the LLP must pay tax at 18.5 percent of adjusted total income plus surcharge and cess. Similar to MAT for companies, the excess AMT paid over regular tax is available as AMT credit that can be carried forward and set off in subsequent years for up to 15 years.
How do I choose between the old and new tax regime for my company?
The new tax regime under Section 115BAA offers a lower rate of 22 percent but requires the company to forgo most deductions and exemptions including MAT credit, brought forward losses (except depreciation), deductions under Chapter VI-A, and certain other exemptions. The old regime charges 25 percent or 30 percent but allows all eligible deductions. Choose the new regime if your company does not have significant deductions, exemptions, or brought forward losses. Choose the old regime if your company claims substantial depreciation, has significant Chapter VI-A deductions, or has large brought forward losses to set off. Once the new regime is opted for under Section 115BAA, it cannot be withdrawn in subsequent years.
What are advance tax instalments and when are they due?
Companies and LLPs with an estimated tax liability exceeding 10,000 rupees in a financial year must pay advance tax in quarterly instalments. The schedule is: June 15 (at least 15 percent of estimated tax), September 15 (at least 45 percent cumulative), December 15 (at least 75 percent cumulative), and March 15 (100 percent of estimated tax). Failure to pay advance tax on time attracts interest under Section 234B (for non-payment or underpayment) and Section 234C (for deferment of individual instalments) at 1 percent per month.
What is transfer pricing and when does it apply?
Transfer pricing regulations under Sections 92 to 92F of the Income Tax Act apply to companies that have international transactions with associated enterprises (related foreign entities). If your company buys from, sells to, provides services to, or receives services from a related foreign company, the prices must be at arm's length (comparable to what unrelated parties would charge). Companies with international transactions must maintain transfer pricing documentation, obtain a transfer pricing audit report in Form 3CEB from a Chartered Accountant, and file their ITR by the extended due date of November 30.
Can a company carry forward business losses?
Yes, a company can carry forward business losses to set off against future business income for up to 8 consecutive assessment years. However, the return for the year in which the loss was incurred must be filed before the due date under Section 139(1). If the return is filed late, the business loss cannot be carried forward (except unabsorbed depreciation, which can be carried forward indefinitely regardless of the filing deadline). For companies, there is also a condition under Section 79 that the loss can only be carried forward if the shareholders holding at least 51 percent of the voting power on the last day of the loss year continue to hold shares on the last day of the year in which the loss is set off.
What are the key schedules in ITR-6 for companies?
ITR-6 contains multiple schedules that must be carefully filled. The key schedules include: Schedule HP (income from house property), Schedule BP (income from business or profession with detailed computation), Schedule CG (capital gains), Schedule OS (income from other sources), Schedule CYLA/BFLA (current year loss adjustment and brought forward loss adjustment), Schedule VIA (deductions under Chapter VI-A), Schedule MAT (MAT computation under Section 115JB), Schedule SI (income taxable at special rates), Schedule TDS (TDS credit details), Schedule IT (advance tax and self-assessment tax), Schedule BS (balance sheet details), and Schedule AL (assets and liabilities).
How do I file the tax audit report online?
The tax audit report must be filed by the Chartered Accountant on the Income Tax e-filing portal. The CA logs into the portal with their own credentials, selects the option to upload audit report, enters the company PAN for which the audit is being filed, selects Form 3CA or 3CB along with Form 3CD, fills in or uploads the audit details, and signs the report using their DSC. Once signed, the report is sent to the company for acceptance. The authorized signatory of the company must log into the portal and accept the tax audit report before proceeding to file the ITR. The audit report must be filed before the ITR due date.
What is the Annual Information Statement (AIS)?
The Annual Information Statement (AIS) is an expanded version of Form 26AS available on the Income Tax portal. It provides a comprehensive view of all financial transactions related to the company's PAN, including TDS/TCS details, dividends received, interest income, share transactions, purchase and sale of property, foreign remittances, GST turnover, and other high-value transactions reported by banks, mutual funds, registrars, and other entities. Companies should download and reconcile the AIS with their books before filing the ITR. If any information in the AIS is incorrect, you can submit feedback to correct it through the portal.
Does a dormant company need to file income tax return?
Yes, a dormant company must file income tax return every year even if it has zero income or has not conducted any business transactions. Under Section 139(1) of the Income Tax Act, every company incorporated in India is required to file an annual income tax return regardless of its income or activity status. Failure to file the return will attract late filing fees and penalties. The directors of the dormant company may also face disqualification under Section 164(2) of the Companies Act if the company fails to file returns for three consecutive years.
What is the process for claiming a refund in company ITR?
If the company has paid excess tax through TDS, advance tax, or self-assessment tax, it can claim a refund by correctly filling the tax computation section in the ITR. The excess tax amount is automatically computed when the total taxes paid exceed the final tax liability. Ensure the company's bank account details (account number and IFSC code) are correctly entered in the ITR for direct refund credit. After the return is processed under Section 143(1), the CPC will issue the refund directly to the bank account along with interest under Section 244A at 6 percent per annum (calculated from the date of return filing or tax payment, whichever is later).
Can a company file ITR without conducting an audit?
No, a Private Limited Company cannot file ITR without a statutory audit because audit is mandatory for all companies under Section 143 of the Companies Act 2013, regardless of turnover. The financial statements attached to the ITR must be audited. Additionally, if the company's turnover exceeds 1 crore rupees (or 10 crore rupees for primarily digital transactions), a tax audit under Section 44AB is also required. For LLPs, statutory audit is required only if turnover exceeds 40 lakh rupees or partner contribution exceeds 25 lakh rupees. An LLP below these thresholds can file ITR without audit.
What is the difference between statutory audit and tax audit?
Statutory audit is conducted under the Companies Act 2013 (for companies) or LLP Act 2008 (for LLPs above threshold). It examines whether the financial statements give a true and fair view of the company's financial position and comply with accounting standards. Tax audit is conducted under Section 44AB of the Income Tax Act. It examines the books of accounts from a tax compliance perspective, verifies claimed deductions, reports specified tax-related particulars in Form 3CD, and flags areas of potential non-compliance. A company may need both audits, and they can be conducted by the same or different Chartered Accountants.
How do I pay self-assessment tax before filing ITR?
If there is a balance of tax due after accounting for TDS credits and advance tax payments, you must pay self-assessment tax before filing the ITR. Log into the Income Tax portal, go to the e-Pay Tax section, select Challan No. ITNS 280, choose the correct assessment year and type of payment (self-assessment tax code 300), enter the tax amount including surcharge and cess, and pay using net banking, debit card, or UPI. After payment, note the BSR code, challan serial number, and date of payment as these details must be entered in the ITR form. Payment should be made before the filing date to avoid additional interest under Section 234A.
What happens if a company does not file ITR?
If a company fails to file its income tax return, it faces multiple consequences: Late filing fee of 5,000 rupees under Section 234F. Interest under Sections 234A, 234B, and 234C on any unpaid taxes. Loss of the right to carry forward business losses and capital losses. The Income Tax Department can issue a notice under Section 142(1) demanding the return or make a best judgment assessment under Section 144 estimating the income and raising a demand. In extreme cases, prosecution under Section 276CC can result in rigorous imprisonment of 3 months to 7 years along with a fine. Directors may also face disqualification under the Companies Act.
What deductions can a company claim under the old tax regime?
Under the old tax regime, companies can claim: Depreciation on fixed assets (plant, machinery, buildings, vehicles, intangible assets) at prescribed rates under Section 32. Deductions under Chapter VI-A including Section 80G (donations to approved funds), Section 80JJAA (new employee deductions), and Section 80-IAC (startup tax exemption). Business expenditure deductions under Section 37 for all expenses wholly and exclusively incurred for business purposes. Set off and carry forward of losses from previous years. MAT credit from earlier years. Companies under Section 115BAA or 115BAB cannot claim most of these deductions.
How is income from other sources treated in company ITR?
Income from other sources for a company includes interest income from bank deposits and loans given, dividend income from investments in other companies (taxable from AY 2021-22 onwards), rental income from property not used for business, royalty or license income, and any other income not falling under business, capital gains, or house property. This income is reported in Schedule OS of ITR-6 or ITR-5. Interest income must be reported on accrual basis. Dividend income is taxable at the applicable slab rate. Some categories of income may attract TDS, and the related TDS credit must be claimed in Schedule TDS.
What is Section 43B and how does it affect company ITR?
Section 43B specifies certain expenses that are allowable as deductions only on actual payment basis, regardless of the accounting method followed by the company. These include: taxes, duties, and cesses payable to the government, employer's contribution to provident fund, ESI, or other employee welfare funds, interest on loans from scheduled banks and financial institutions, leave encashment payable to employees, and payments to Indian Railways for use of railway assets. If these expenses are accrued but not paid by the due date for filing the return (October 31), they must be added back to taxable income and can only be deducted in the year of actual payment.
Can a company opt out of the new tax regime?
Once a company opts for the new tax regime under Section 115BAA (22 percent rate), the option is irrevocable and cannot be withdrawn in any subsequent assessment year. This is a permanent choice. Similarly, the option under Section 115BAB (15 percent for manufacturing companies) is also irrevocable. Therefore, companies should carefully evaluate their future tax position, expected deductions, MAT credit availability, and long-term financial projections before opting for the new regime. Once opted, there is no going back to the old regime where deductions and exemptions are available.
What is the process for responding to a Section 143(1) intimation?
After processing the ITR, the CPC sends an intimation under Section 143(1) which may show that the return is accepted as filed (no demand, no refund), a demand is raised (company owes additional tax), or a refund is due. If a demand is raised due to a mismatch, the company must log into the Income Tax portal, view the intimation details, and compare them with the filed return. If the demand is correct, pay the outstanding amount with interest. If the demand is incorrect, file a rectification request under Section 154 explaining the error with supporting documents. The response must be filed within 30 days of receiving the intimation.
What are the GST reconciliation requirements for company ITR?
The Income Tax Department cross-checks the turnover declared in ITR with the turnover reported in GST returns (GSTR-3B and GSTR-1). Any significant mismatch triggers scrutiny. Before filing the ITR, reconcile the following: total sales in books versus total taxable value plus exempt supplies in GST returns, purchases in books versus inward supplies in GSTR-2B, export turnover in ITR versus export details in GST returns, and advance received versus advance adjustment in GST. Common reasons for mismatch include timing differences, rate differences, SEZ supplies, reverse charge transactions, and credit notes. Document all reconciliation items clearly.
How does depreciation work for company income tax purposes?
Depreciation for income tax purposes is calculated on the Written Down Value (WDV) method at rates prescribed under Section 32 of the Income Tax Act, which are often different from book depreciation rates. Key rates include: buildings at 10 percent (factory buildings) or 5 percent (residential), plant and machinery at 15 percent (general), computers and software at 40 percent, motor vehicles at 15 percent, and intangible assets (patents, copyrights, trademarks) at 25 percent. An additional depreciation of 20 percent is available on new plant and machinery for manufacturing companies. Assets used for less than 180 days in the year receive depreciation at half the normal rate.
What is the belated return and what are the consequences?
A belated return under Section 139(4) is an income tax return filed after the due date but before the end of the assessment year. For AY 2026-27, the belated return can be filed until December 31, 2026. While a belated return allows the company to still file its ITR, it comes with significant consequences: late filing fee of 5,000 rupees, interest under Section 234A on unpaid taxes, inability to carry forward business losses and capital losses (unabsorbed depreciation can still be carried forward), inability to choose certain options that require timely filing, and increased chances of scrutiny.
How do I link DSC with the Income Tax portal?
To link your DSC with the Income Tax e-filing portal: log into the portal using your company PAN, go to Profile Settings and then Register DSC. Download the EMSigner utility provided by the portal and install it on your computer. Insert the DSC USB token, run the EMSigner, select the correct certificate, and click Register. The portal will verify the DSC and link it to the company PAN. Once linked, you can use the DSC to sign and submit ITR, tax audit reports, and other documents. Make sure the DSC is in the name of the authorized signatory (usually a director) and is not expired.
What is the Vivad se Vishwas scheme for companies?
The Vivad se Vishwas scheme is a direct tax dispute resolution scheme launched by the government to reduce pending income tax litigation. Under this scheme, companies with pending tax disputes (appeals, references, or writ petitions) can settle by paying the disputed tax amount and get a complete waiver of interest, penalty, and prosecution. The scheme offers reduced settlement amounts if payment is made before a specified deadline. Companies with ongoing disputes from previous assessment years should evaluate whether settling under this scheme is more cost-effective than continuing litigation. The scheme is available only during specified windows announced by the government.
What are the reporting requirements for foreign assets and income?
Companies and LLPs that are resident in India must disclose all foreign assets and income in Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income) of the ITR. This includes foreign bank accounts, foreign equity and debt investments, immovable property held abroad, capital assets outside India, signing authority in foreign accounts, trusts outside India, and any other foreign asset. Failure to disclose foreign assets attractspenalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, including tax at 30 percent, penalty of 90 percent of tax, and potential prosecution with imprisonment up to 10 years.
How is dividend income taxed for companies?
Since April 1, 2020, Dividend Distribution Tax (DDT) has been abolished and dividend income is now taxable in the hands of the recipient at the applicable tax rate. For a company receiving dividends from another company, the dividend is included in total income and taxed at the company's applicable rate (22 percent under Section 115BAA or 25/30 percent under the old regime). TDS at 10 percent is deducted under Section 194 if dividend exceeds 5,000 rupees in a financial year. Inter-corporate dividends do not get any special exemption. Companies should account for dividend income on the record date basis and claim TDS credit in Schedule TDS of the ITR.
What are the consequences of understating income in company ITR?
If the Income Tax Department discovers that a company has understated its income or over-reported losses, it can levy a penalty of 50 percent of the tax on under-reported income under Section 270A. If the under-reporting is a result of misreporting (such as misrepresenting facts, recording fictitious entries, or suppressing investments), the penalty increases to 200 percent of tax. Additionally, the department can initiate reassessment proceedings under Section 147/148 for up to 10 years from the end of the assessment year. In cases involving deliberate tax evasion, criminal prosecution can be initiated with imprisonment up to 7 years.
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