Not every business begins operating well in their initial years. This may have several reasons, losses being one of them. At this stage, the business owners try to spend as less as possible and hence the question of fulfilling compliances is often unanswered. So, does one need to file an ITR and annual compliance if the company incurs no transactions?

Well, to be precise, yes. There is a simple logic behind the same. in order to prove to the ministry that you did not incur any transactions, it is important to file reports. This is why filing compliance is mandatory for all businesses.

The compliance can be divided into following three parts:

1. Accounts and Audit

Even though there has been no turnover or profits, the book of accounts must always be updated. It includes all the transactions incurred by the company in the particular financial year and consist of rents, salaries, preliminary expenses, preparation of balance sheets and providing the financial position of the company.

Likewise, auditing is mandatory for any company that is incorporated in India. Whether you have incurred any profits or losses, the appointment of auditory is compulsory by law. Pertaining to the same financial statements, ITR and annual compliances are formed.

2. Income Tax Return Filing

Filing an ITR is also important and a compulsory requirement and has nothing to do with taxability of your income. Just like auditing is applicable to all Indian companies, ITR is also a mandate. The last date to file an ITR is 30th September for every financial year and a delay in the same leads to a late fee that can go as high as INR 10,000.

3. Annual Compliance

For any Private Limited Company, an annual compliance follows after yearly audit and annual general meetings. It includes filling up of forms and the members are bound to adopt to financial statements which will be uploaded with MCA in a stipulated time.

in order to avoid hefty penalties and delays for your business, it is better to fulfil compliance in the said time period. Whether your company does zero business or ranges in millions, the list of compliance by government must be fulfilled. There are many CA firms in India who will be helpful to you whether you want audits, file compliance or need help you file the ITR.

If you are looking for a company to file annual compliance for your company , feel free to connect with www.manishanilgupta.com . the team will not just help you in compliance, but also guide you for ROC filling fee in India and NRI taxation in India.


Source:https://www.prlog.org/12776390-is-it-mandate-to-file-an-itr-if-you-dont-incur-any-sales.html