Filing tax returns is a colossal task, especially for those who have their own business and they need to manage their business as well as filing their tax returns. Though, irrespective of how monotonous you get for filing your business tax returns. It is very important to file your business tax returns because it endures much of the benefit that can be beneficiary for your business.
It takes lot of hard work to file your business tax but if you have efficient working team it can be done perfectly within time.
Benefits of ITR Filing for Indian Businesses:
1. Carryforward loss
It becomes necessary to file your tax returns if you have loss emerging under the Profit and earnings of your business and professions. It becomes important if you want to carry forward your loss to next year and then trigger the amount in the expected income and carry forwarding this loss to the next year you need to file your IT returns before due date.
2. Applying for loan
If you want to establish or grow any business whether it is big or small; Upbringing satisfactory capital is extremely crucial feature. and, it also requires financial assistance. If you are in the tough financial situations, business loan will reduce them and create new window of opportunity for you. The main goal of acquiring loan is to raise your business and actions. On the other hand, banks are offering loan require your latest income tax returns along with the calculation of income as well as you need to submit many of your documents. That’s why business tax return is extremely important if you wish to apply for a loan from the bank.
3. Rescues from Penalty and court proceedings
Dodging of tax is a crime and you may tackle several penalties if you missed to file your IT returns. Also, there are late tax filing penalties which may charge on you if you are not filing your returns on time. So, filing income tax for your business is very important, if you don’t want to get penalized for late filing tax returns.
4. Get Government Tenders
In a certain way your business profile value depends on your yearly income tax returns. If you are a contractor, then sometimes you will get a very good opportunity of obtaining a project. Many of the contractors has insufficient knowledge moreover the advantage of filing their tax returns on time or they have not filed the income tax returns all the way. As a contractor, not only filing your returns on time is important but also the return should be very accurate and need to be audited only if needed.
occasionally what happens is, for the tender sanction investigation committee might check up to 6 to 8 years of your IT return to judge if you are able to do and then develop the tender in the favour of the nominee that fits the best. Hence, it is very important to file your taxes within time.
5. Claim Depreciation
If you have assets in your business name, the income tax department permits you to Claim Depreciation. The depreciation is allowed only to you (the owner of the assets) and this asset must be utilized for business and professions intentions only to claim the depreciation. Moreover, if you have considered profit on the circumstantial basis under Section 44AD or 44AE, these types of profit are taken into consideration after all the expenditures and depreciation that is permitted under section 32. Hence, you can take advantage of depreciation to claim reductions while e-filing IT returns.
Tachotax is a tax expert and has highly qualified and dedicated team in company to manage your tax filing successfully .