Online Tax Return Filing
A Tax Return shows some details of your sales, purchase, tax paid on assets, and tax collected on sales. It’s mandatory to register for the Tax, As a seller or service provider if your business turns over above ₹ 40 lakhs (if you sell physical goods) or more than ₹ 20 lakhs (if you supply services).
Online Tax Return Filing - OVERVIEW
Each n’ Every individual/Company/LLP registered under the Act of Tax has to provide the details of purchases, sales, and the tax paid by filing form Tax returns with the administrative authorities, As per the Tax law.
One of your very priorities will be Tax return filing, As a business person/ firm. Therefore, knowing the ropes can help you make the process simple and smoother. You’re supposed to provide all the particulars related to your business activities, like the tax liability declarations, tax payments, and any other related information as per instructions provided by the government, While filing an Online Tax Return Filing.
The Online Tax Return Filing process must be done online on its portal. A facility must be offered for its return filing tasks manual process. This facility helps India’s business taxpayers prepare the return offline and then upload it on it through the facilitation center. There are also various Tax return filing elements you need to understand.
The Tax return principally involves:
- Output Tax on the sales.
- While making the purchases, input tax credits as per Tax paid.
- Total sales.
The purchase invoices and Tax-compliant sales are needed to file returns.
WHAT ARE THE taxes RETURNS?
Every person also has to make a Tax return filing who had applied for its registration. The Tax return is primarily a document needed as per the Indian tax authorities of law to be filed. The powers of tax will be used to calculate the tax liability.
WHO IS ELIGIBLE FOR Tax RETURNS?
The external tax depends on the value-added at each stage of a particular service or goods supply chain until it reaches the customer or consumer. With It, tax is imposed at various locations and to nullify the cascading effect. It is designed in a way that is meant refunding all parties that are involved in the various stages, except for the final consumer. This element employed to offset the tax liability is called an input tax credit.
Tax INPUT & CREDIT CONCILIATION
Business owners and dealers registered under Tax must file two monthly returns and one annual return. The characteristics of the business also dictate the Tax to be filed. Tax returns are of different types, and late filing of Tax returns will result in a late penalty of Rs.100 per day until the Tax returns are filed. Once the filing is done, Each tax liability must be punctually paid to the government.
AN INSIGHT INTO THE Tax FILING PROCESS IN INDIA
A business person who has received the registration, but has not crossed the exemption limit will conform with the step-by-step Tax billing process. The government has given an origin limit for goods and services, which will be based on the aggregated turnover of Rs.40Lakhs in case of services and Rs.20Lakhs in case of Goods, granted that where such person performs taxable supplies of goods or services or both from any of the special category States, he/she shall be responsible for being registered if their aggregate turnover in a financial year exceeds 10lakh rupees.
Special category states include:
- State of Jammu and Kashmir
- States of Himachal Pradesh, Uttarakhand, Sikkim, Arunachal Pradesh, Assam, Meghalaya.
A taxpayer crosses the exemption limit, he/she will start filing Tax returns online. Even in situations where no taxable supplies are made or received during an accurate period, a taxpayer must file the NIL return. So, there are none of the chances you can avoid Tax filing. You will not be eligible to file the next period’s return if you miss out on filing one period’s return.
Just clarify Tax in this way- Any business will have to file a monthly Tax return twice and an annual return once. This implies that you will have to file Tax returns 26 times a year as a total. The Tax portal issues 4 different forms of filing the Tax returns. They are:
- Return for supplies
- Return for purchases
- Monthly returns
- Annual returns
In the matter of small business taxpayers in India who have opted for a composition scheme, they only have to file Tax returns every quarter. The Tax return filing process can be done online also.
ADVANTAGES OF Tax RETURN FILING
The cascading effect Elimination
In the Indian tax system, the introduction of Tax has done away with certain other taxes like central excise duty, customs duty, service tax, and state-level value-added tax. So an individual Tax has reduced the cascading impact on tax.
Higher origin benefits
Before Tax was injected, Value-added tax or VAT was applicable for any business with an annual turnover of Rs.20 lakhs. Services that observed a turnover of fewer than Rs.10 lakhs have not to pay service taxes.
The earlier startups with an annual turnover of Rs. 5lakhs had to pay VAT which would be very tough for a business during the opening stages. But as the Tax has replaced VAT, businesses can set off the service tax on their sales.
E-commerce for a quick supply of goods
Startups build a solid appearance online, giving their services and products through their websites. There were various types of VAT under VAT(Value-Added Tax). E-commerce, the supply of goods online was never clear. For example, if you want to deliver goods to various states, you have to file the VAT declaration, and then you need to give registration details about vehicles that deliver goods. In many cases, goods end up being arrested by the authorities due to a lack of proper documents. Tax has now removed all such complicated procedures.
Rules-Regulations and accountability
The pre-Tax phase witnessed a disorderly organized tax filing system. At present, all taxes are paid online, and major troubles that were a part of tax filing have been eliminated in introducing Tax. This has occurred in industries becoming more culpable, and tax filing laws are properly organized than before.
ONLINE Tax RETURN FILING PROCEDURES
Total 3 steps are to be performed for every Indian business taxpayer in the Tax return filing work.
STEP 1: DOCUMENTS AND MONTHLY RETURNS INCLUDED IN THE ONLINE Tax RETURN FILING PROCEDURE
All listed taxpayers can follow the Online Tax Return Filing format and upload their annual return invoices on the Tax portal. To accomplish that, you will have to maintain all the invoice records electronically. We help you with the Tax portal’s filing method by setting up uncomplicated versions of excel templates. It will serve you in keeping the records with ease.
STEP 2: PREPARATION FOR ONLINE Tax RETURN FILING PROCESS
For your Tax returns, We collect all the information and documents needed. legaltoast will maintain the invoice records of registered taxpayers, and by month-end, you can file the Tax returns by using our exclusive team of experts with ease. Once you do the Online Tax Return Filing process online in the Tax portal, our expert affiliate will remind you about the filing date to not forget the due date and end up repaying tax penalties.
STEP 3: STEPS EXPECTED TO COMPLETE THE ONLINE Tax RETURN FILING PROCEDURE
- The first step is to give a review to Tax filing before submission. We, at legaltoast, allow you to do the same with your Online Tax Return Filing.
- The second step is your permission or approval.
- After your approval or permission, we will be filing your Tax return online.
- Our Tax specialists will file the Tax returns using a ‘Challan.’ And when the ARN number generated, we’ll share it with you.
- When the process is performed successfully, we’ll mail you an acknowledgment on your registered email id.
Tax RETURN FILING DATES YOU HAVE TO KEEP IN MIND
There are few dates every business taxpayer will have to keep in mind in the Tax return filing process. You can notice the due dates enlarged by the issue of notifications or orders. Here we’re with a complete list of Tax return filing dates you should never drop!
procedure TO FILE Tax RETURN ONLINE
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FAQs on Online Tax Return Filing.
Yes. Taxpayers can apply for Tax return online. You need to get your business registered in the official Tax Portal and upload the scanned copies of all the documents required.
No. In the North-East states of India, the Tax threshold limit comes to Rs.20 lakh for all types of businesses. Whereas, in states like Nagaland, Mizoram, Tripura, Arunachal Pradesh, Assam, Meghalaya, and Arunachal Pradesh, the origin limit is Rs.10 lakhs.
Under Tax, the composition scheme applies to all business types with a turnover of up to Rs.50 lakhs. These taxpayers will have to pay a fixed percentage of the business turnover.
Yes. Tax applies to all kinds of businesses. It connects to all the traders, manufacturers, and providers. It can also extend to writers, bloggers, and dealers.
It is not possible to revise the Tax returns. Can make changes to the details given in the next period's return form amendment section.
If you delay the filing of the return, you will have to pay Rs.100 per day as a late fee. The maximum late fee charge will be Rs.5000.
You cannot pay the taxes after registering the returns. Instead, it should be paid before filing the return. If it is not done so, the return will be deemed invalid.