Introduction

Business entities must file their ITR annually to comply with the tax laws of their respective countries. It helps the government assess and collect the appropriate amount of income tax from taxpayers and ensures proper accountability of financial activities. Filing an ITR by start-ups maintains transparency, fulfils tax obligations, and avoids penalties or legal issues related to tax evasion. It is typically filed through an online platform provided by the tax authorities, making the process more accessible and efficient for taxpayers. If you own a start-up and do not want any non- compliance to fall your way and obstruct business growth, this is what you need to know.

What is ITR?

ITR stands for "Income Tax Return." It is a form or document that individuals, businesses, or organisations submit to the government to report their income, expenses, and other financial details for a specific period, typically a financial year. Filing an ITR calculates the income tax liability owed to the government based on the reported financial information.

Steps for Start-Up to File an ITR

Filing an Income Tax Return (ITR) for a start-up involves several steps. Here's a step-by-step guide on how to complete ITR filing for a start-up: 

1. Determine the Appropriate Form: As a start-up, choose the relevant ITR form based on your business structure and income sources. The common forms for start-ups are ITR-3 (for businesses with income from professions or presumptive income) or ITR-6 (for companies that do not claim exemptions under Section 11). 

2. Gather Financial Documents: Collect all the necessary financial documents, including profit and loss statements, balance sheet, bank statements, salary details of employees (if applicable), and other supporting documents like invoices and receipts. 

3. Compute Taxable Income: Calculate your start-up's taxable income by deducting allowable business expenses, depreciation, and deductions under various sections of the Income Tax Act. 

4. TDS and Advance Tax: Ensure you have paid the necessary TDS (Tax Deduct4ed at Source) on salaries and other payments. Also, pay advance tax to avoid interest penalties if your tax liability exceeds Rs. 10,000 in a financial year. 

5. File Form 3CD: If your start-up is required to get a tax audit under Section 44AB of the Income Tax Act, the tax audit report in Form 3CD must be prepared and filed before the ITR filing. 

6. Register on the Income Tax e-filing portal: If you still need to, register on the official e-filing portal (https://www.incometaxindiaefiling.gov.in/) using your start-up's PAN (Permanent Account Number). 

7. Fill in the ITR Form: Log in to the e-filing portal and choose the appropriate ITR form. Fill in the required details accurately, including your start-up's income, deductions, tax liability, and other relevant information. 

8. Validate and Generate XML: Once you have filled in all the details, validate the form to check for errors. After successful validation, save and generate the XML file. 

9. Upload XML and Digital Signature (if applicable): Upload the XML file on the e-filing portal. If your start-up is required to get a tax audit or falls under specific specified categories, you may need to attach a digital signature to the ITR for authentication. 

10. Verify ITR: After uploading, verify your ITR using any available options, such as Aadhaar OTP, net banking, or sending a signed physical copy to the Centralised Processing Center (CPC) within 120 days of filing. 

11. Acknowledgment: The ITR-V (Income Tax Return Verification) form will be generated once the verification is complete. Download and save this form for your records. Don’t fall back if you think that this is too much work for you. There is a saviour for you. Visit Filing Buddy and they can fix all the taxation requirements for you.

Filing Buddy: Taxation Consultant for Start-Ups.

Filing Buddy can be a trusted partner in navigating the complex world of taxation for start-ups. Filing Buddy is a trusted taxation consultant specialising in start-ups. We simplify tax filing, offer expert tax planning, and ensure compliance, allowing businesses to focus on growth. Simplify the tax filing process and focus on the growth and success of your start-up.

Why Choose a Filing Buddy?

1. Start-Up Expertise: We specialise in serving start-ups and understand their unique challenges. Our team of experienced taxation consultants knows the ins and outs of start-up tax regulations, ensuring you receive tailored and accurate advice. 

2. Hassle-Free ITR Filing: Let us handle the tedious Income Tax Return (ITR) filing task. We gather your financial information, crunch the numbers, and fill out the necessary forms, giving you more time to concentrate on your core business operations. 

3. Maximising Deductions: Our experts know the tax deductions and credits available to start-ups. We work diligently to identify every eligible deduction, helping you optimise tax savings and improve your bottom line. 

4. Compliance Made Easy: Compliance with tax laws is crucial for your start-up's success. We keep track of deadlines, ensure all necessary documents are in order, and help you meet regulatory requirements without stress. 

5. Tax Planning Strategies: Filing Buddy continues beyond just tax filing. We offer strategic tax planning advice to minimise your tax burden in the long run. With careful planning, we help you achieve financial efficiency and growth. 

6. Personalised Support: Our team believes in building strong relationships with our clients. You'll have a dedicated consultant who understands your start-up's needs and is always ready to address your questions and concerns. 

7. Transparent Pricing: We offer competitive and transparent pricing, so there are no surprises. You can trust us to provide reliable services aligned with your start-up's budget.

Final Word

Start-ups should choose Filing Buddy for seamless tax compliance, expert guidance tailored to their needs, and maximum tax savings. With our specialised focus on start-ups, we simplify the tax filing process, offer personalised support, and help businesses stay compliant, allowing them to concentrate on achieving their growth goals. Choose Filing Buddy for hassle-free tax filing and expert tax planning tailored to start-ups' needs. Maximise deductions, ensure compliance, and focus on growth. Visit www.filingbuddy.global or email compliance@filingbuddy.in to thrive with our reliable taxation expertise.