In India all incorporated entities need to get their books audited by an Indian chartered accountant and need to file annual returns with the Registrar of Companies. Audit is also compulsory under the Income Tax Act if your sales exceed Rs 4 million. Companies having foreign investment would also need to file periodical returns with the Reserve Bank.
In the following sections, you get the run down on the process of filing taxes in India—it’s not really as complex as it seems to be at first. You also get a peek at the auditing process—what it’s about in general, and the documents required.
Here are the basics of what you need to know for tax filing:
|✓||India’s fiscal year (April 1 through March 31) is the accounting year for all companies.|
|✓||Taxes on income in one fiscal year are usually paid in the next fiscal year (apart from TDS and advance tax—the income tax that’s computed and paid in advance as three installments for the year), which is known as the “assessment” year.|
|✓||Companies must file a final return by October 31st of the assessment year. This return states income, expenses, taxes paid, and taxes due for the preceding tax year.|
|✓||Returns for non-corporate taxpayers who need to have their accounts audited are due on October 31st.|
|✓||All others assessed for income tax must submit returns by July 31st.|
India’s tax filing deadlines are mandatory, but the authorities extend them in some years to encourage compliance. These extensions ...