ITR/Income tax return filing

ITR/Income tax return filing

ITR of company or Business:

On or before 30th September of the financial year, all companies registered under the companies Law are required to file their income tax returns on the net profit that it makes from businesses. Domestic and Foreign company are two categories of companies under Income tax Act.

ITR Process:

  1. Before processing the tax audit ensure following checklist is checked ( Annexure 1 : Checklist).
  2. Tax audit of the company
  3. Total income tax payable computation shared with the client post completion of audit of books
  4. In case of no dispute filing of returns and payment of differential income tax.
  5. Sharing audited and signed balance sheet with the client for their records.

Annexure 1: Checklist:

  1. Permanent Account Number of the company
  2. Details of Director Identification Number (DIN) and directors share portion in the companies.
  3. Financial statements i.e. Profit and loss accounts and Balance Sheet.
  4. Advance Tax paid receipts.

Annexure 2: Income tax slabs:

Domestic companies are to be taxed at the rate of 30%. However, tax rate will be 25% if turnover of gross receipt of the company does not exceed Rs 250 crores.

Plus: Surcharge 7% of tax where total income exceeds Rs 1 crore.

      12% of tax where total income exceeds Rs 10 Crore.

Health & Education cess: 4% of tax plus surcharge.

The following rates are applicable to foreign companies for AY 2019-20 based on their turnover:





Nature of Income

Tax Rate

Royalty received or fees for technical services from government or any Indian concern under an agreement made before April 1, 1976 and  approved by central government


Any other income




Minimum Alternate Tax ( MAT):

Alternatively, all the companies including foreign companies are required to pay minimum alternate tax at the rate of 18.5% on book profits if the tax calculated as per above rates are less than 18.5% of book profits.

Dividend Distribution tax ( DDT):

Companies are required to pay tax on the dividend distributed to the shareholders in a particular year. This dividend is exempted in the hands of shareholders up to an amount of Rs 10 lakhs but the companies have to pay tax @ 20.56%.