Finance along with marketing, sales, and human resource management formulate the 4 primary pillars of a business. This is the primary reason why business firms should look to avail the services of accounting and tax experts so that they can manage their finances effectively and ensure all taxes are paid.
Have you recently started a business but the taxation confuses you? Well, here is what to know about a tax return for a business. While setting up a business, it is important to consider the taxes you will need to file every year. The due dates, your income, penalties, and audits need to be taken into consideration.
Here are 3 things you should know about filing taxes for a business:
1. Tax filing due dates:
For taxpayers who are liable for an audit, the dates are 31st August at the end of the financial year. Businesses and individuals who require an audit need to file their returns before 30th September at the end of the financial year.
2. Sole proprietorship:
If you are the sole proprietor of your firm, then both your business and personal income (for example, salary, property income, interests, etc.) should be stated on the same return.
3. Taxation rate for businesses:
The taxation rate for companies, and firms, LLPs is 30%. These returns need to be filed irrespective of whether the business is operating, gaining profit, or incurring losses.
Conclusion
It is necessary to file your income tax returns on time each year to avoid legal issues and penalties. These were the 3 basic things that you must know about tax filing for businesses. However, it is best to consult professionals. Appointing chartered accountants to help you in filing your taxes can be a great solution for this. Be sure to collaborate with accounting experts to learn more about this topic. These experts will guide you through every step and make the process of tax registration and payment much more convenient and easier.
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