How is Tax filing done in Private Limited Company?

A Private Limited Company irrespective of its size and nature is needed to get the bunch of accounts audited and file the IT Return (Income Tax) also the RoC(Registrar of Company) Compliances by each financial year.

Statutory Company Audit

The Indian Companies Act, 1956 states the true and fairness of the books of account done by a practicing Chartered Account. It is an Audit of books of accounts. It is must for the companies registered under the Companies Act, 1956 to get the annual account audited. There are no fixed dates to get the statutory audit done but the Companies Act,1956 states clearly about conducting an Annual General Meeting within 180 days from the end of the financial year where the audited accounts are presented. There are few consequences if the audit is not done, a penalty upto Rs. 5,000/- is charged on every director or officer of the company.

Tax Audit under The Income Tax Act, 1961

If the gross turn-over of the Company is equal or more than One crore then the Company is required to get Audit done as stated under the Income Tax Act, 1961. A Private Limited Company is needed to file a Tax audit report in the form 3 CA with the Income Tax Department before the given deadline. If the Company fails in submitting the Tax Audit then a penalty of 0.5% of the total turnover is subjected to a maximum limit of Rs. 1 Lac.

Income Tax Return Filing

According to the Income Tax Act, 1956 all the companies are required to file their Income Tax Return before 30th September. For a Private Limited Company, ITR-6 is the form that needs to be filed for the IT return. It is supposed to be digitally filled using the Digital Signature. The Digital signature is must as no IT Return will be filed if it is not attached to the form. This digital certificate is to be same as the authorized signature i.e. the DSC(Digital Signature Certificate) of the Managing Directors of the company. For non-filing of the Tax Returns a penalty of upto Rs. 5000/- is charged on the company.


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