ITR filing for businessperson is mandatory by which a business report its income and expenditure to the IT dept. Every business, no matter what the size is, must file income tax return every year. The income tax paid by Salaried person is different from the income tax paid by the businessman. If a business earns profits in the business, the company must provide tax on the profits earned. Tax depends on the type of business you are holding whether it is proprietorship, partnership firm, limited liability partnership or a private limited company. Any business which has turnover lower than Rs 2 crore can selected to be taxed assumedly by the Income Tax Department. However, all companies who are registered in India must file income tax returns each year, irrespective of their income, profit or loss, even those with no transactions.
The return filing must also consist of business assets and liabilities details. Fixed assets, debtors and business creditors, taken loans and loans which were given, all must be declared in the filing of business Income tax returns. The flat 30% tax rate is applicable for the domestic companies. In cases where income is more than 1 crore, then there is an additional surcharge of 12%.