How to file your Income-tax returns if you are a Businessman or a Professional

As a Businessman or Profession, if your income is more than the taxable value, you are mandated to file your income tax return as the tax is something you must pay to the government as revenue to execute various infrastructural schemes and development in welfare programs. Anyone having an income of more than rupees 2.5L must need to file their income tax returns to get their benefits even though they are retired or a pensioner.

How to file your income tax if you are an individual salaried person or a pensioner.

The tax we pay is been used as a receipt for the government. The money we paid through our taxes is used towards things like defense, transport, infrastructure, public health, and education. However, you might be astonished to know that the Indian government spends almost one quarter (i.e. 23.31%) of this money on the interest payment alone. In general, we may say that tax money is utilized to pay the country’s recurrent and non-recurring costs.

Salary payments to government employees, for example, are examples of recurring costs. Non-recurring costs are utilized to help the government establish long-term assets (for example transportation, roads, bridges, schools, colleges, industries, etc). Non-recurring costs (also known as a capital expense – CAPEX (in short)) are prioritized in the rising economy of this country.

WHICH ITR FORM NEEDS TO FILE YOUR INCOME TAX AS A BUSINESSMAN AND PROFESSIONAL?

If you are running a small business and have not maintained any proper books of account you need to file ITR 4 by inciting with exempted income by putting an approximate sale ledger value which includes online selling, tradings, retailing businesses, and, manufacturers, etc.

Professionals like doctors, engineers, lawyers, or anyone who earns their profit from their skills, or performing their activity after specialized training can file ITR 4 if their books of account are not well maintained this may also include freelancers.

Things required to open an account on the Income Tax portal

How to File your income tax return if you are a Businessman

For Professional

Easy tips to make your own Balance-sheet and Capital Account

How to Determine the codes of income tax which you are going to file

How to make your own computation sheet.

Does the entrepreneur need to pay taxes?

Anyone who is subject to income tax will be required to pay their taxes. Entrepreneurs are businessmen who develop new products or ideas and sell them in the open market. However, the Indian government provides few benefits for them. In the union budget 2016-17 the government announced a deduction of 100 percent tax exemptions for the first three years only to those companies that were registered under DIPP (Department of Industrial Policy and Promotion), which involves the commercialization of new innovations, development, and service provided by technologies

Do we need to pay taxes if my business runs on losses?

If your business runs on losses you must save your taxes by lowering your taxable income and can claim your losses on taxes incurred. However, you cannot claim your taxes on GSTs and Sales Tax which are indirect in nature.

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