September 30! 5 must things one should know before filing a business tax return

The clock has started ticking. Today being the deadline to file business tax returns, companies and freelancers are going through last minute hurdles to file the same.

“During the last two days, our traffic increases four times the usual,” said Archit Gupta, founder, ClearTax, a leading Income Tax Returns e-filing website that connects the consumer with a network of CAs and provides round the year tax planning.

With no extension in September 30 filing deadline, here is a list of all the things one should keep in mind for a hassle-free foolproof process.

1. The September 30 tax filing due date applies to a company. And also to a taxpayer or partner in a firm, where the taxpayer’s or the firm’s books of accounts must be audited. In all these cases, an audit report under section 44AB must be prepared by September 30 along with the return.

2. Your return may be ready for submission. At this eleventh hour, do make sure you haven’t missed claiming any business expense in your return. Depreciation of the car you use for business or the insurance cost of the laptop, domain registration expenses, can all be claimed in your tax return. You can claim each expense directly related to your business.

3. Freelancers are not sure if they are eligible to claim deductions.

“They can claim certain expenses under section 80 like any other salary-earning person. Like, if they are putting away money in insurance policies or health insurance, they can claim those expenses,” said Preeti Khurana, Chief Editor, ClearTax.

4. Are you maintaining your books? If you are a business or a small company, it may not be a part of your activity to keep good accounting records.

“Even though they are not required at the time of filing the tax returns but you should keep the record in case you need it at a later stage for some clarifications. The Assistant Officer at the tax department may require for verification,” said Preeti.

5. It is important that even if you have not made any profits, you file a return; even if your company has made a loss.

“You are allowed to carry forward your losses if you claim it on time. Hence, prepare your balance sheets accordingly,” she said.

There are some mistakes and misconceptions too.

“Sometimes while you are at work and download videos and music from a playstore, you claim that expense, which you should not. Also, your expenses should not be in cash beyond a certain level,” she said.

(Image credits: Indiatimes)