To levy and collect income tax from companies on their income earned during the financial year.
To ensure timely payment of taxes by companies and to prevent tax evasion.
Applicability:
All companies registered in India are liable to pay income tax on their income earned during the financial year.
The tax liability of a company depends on its income and the applicable tax rates.
Timeline:
The financial year for income tax purposes is from 1st April to 31st March of the next year.
The due date for filing income tax returns for non-audit companies is 31st July of the assessment year.
The due date for filing income tax returns for audit companies is 30th September of the assessment year.
Exemption:
Companies engaged in certain activities, such as charitable or religious purposes, may also be eligible for tax exemptions.
Penalty:
Failure to file income tax returns on time can result in a penalty of Rs. 5,000.
Failure to pay taxes on time can result in interest being levied on the outstanding tax amount at a rate of 1% per month until the tax is paid in full.
Due date:
The due date for payment of advance tax for companies is 15th June, 15th September, 15th December and 15th March of the financial year.
The due date for filing of income tax returns for non-audit companies is 31st July of the assessment year.
The due date for filing of income tax returns for audit companies is 30th September of the assessment year.
Forms:
Companies are required to file their income tax returns in Form ITR-6.
Companies are also required to file their tax audit report in Form 3CD, along with their income tax return.
Reporting authority:
The income tax returns for companies are to be filed with the Income Tax Department.
The tax audit report is to be prepared by a chartered accountant and submitted to the Income Tax Department along with the income tax return.
Other details:
Companies are required to maintain proper books of accounts and financial statements in accordance with the provisions of the Companies Act, 2013 and the Income Tax Act, 1961.
Companies may also be subject to scrutiny by the Income Tax Department to ensure compliance with tax laws.
