Frequently Asked Questions
Quick answers to the most common queries we receive on income tax filing, GST applicability, and choosing the right business structure. Whether you are an individual taxpayer, a first-time founder, or an established business owner, the topics below cover the foundations you need to act with confidence.
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ITR Filing
GST Required?
Proprietorship
Partnership Firm
LLP
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Questions & Answers
What is ITR filing?
Income Tax Return (ITR) filing is the formal process of reporting annual income, deductions, and tax liability to the Income Tax Department of India.
Who needs to file ITR?
Any individual whose gross total income exceeds the basic exemption limit, plus specific cases such as foreign asset holders, those claiming refunds, or persons with high-value transactions.
What is the due date?
For most individuals, the due date is 31 July of the assessment year. For taxpayers requiring audit, it is 31 October.
What happens if not filed on time?
Late filing attracts a fee under section 234F (up to ₹5,000), interest on unpaid tax under section 234A, and loss of certain carry-forward benefits.
Can I revise my return?
Yes. A return can be revised any number of times before 31 December of the assessment year, provided the original was filed within the due date.
When is GST registration required?
Registration is mandatory once turnover crosses the prescribed threshold, or earlier in specified cases such as inter-state supply, e-commerce sales, or reverse-charge liability.
What is the threshold limit?
For goods, the threshold is generally ₹40 lakh (₹20 lakh in special-category states). For services, it is ₹20 lakh (₹10 lakh in special-category states).
Is GST applicable to service providers?
Yes, once aggregate turnover from services exceeds the threshold, registration and compliance under GST become mandatory.
What is a proprietorship?
A proprietorship is a single-owner business with no separate legal identity from the owner. It is the simplest structure to start, with minimal compliance and direct taxation in the proprietor's individual return.
What is a partnership firm?
A partnership firm is a business owned by two or more partners under a written deed. It is governed by the Indian Partnership Act, 1932, and partners share profits, losses, and unlimited liability.
What is an LLP?
A Limited Liability Partnership (LLP) is a hybrid structure that combines the flexibility of a partnership with the limited liability protection of a company. Partners are liable only to the extent of their agreed contribution.
What is a company?
A company is a separate legal entity registered under the Companies Act, 2013. Shareholders' liability is limited to their shareholding, and the entity can own assets, sue, and be sued in its own name.
Is statutory audit mandatory?
Yes. Every company, regardless of turnover, must appoint a statutory auditor and have its accounts audited each financial year.
What compliances are required?
A company must conduct board meetings, hold an Annual General Meeting (AGM), maintain statutory registers, file ROC returns, and meet Income Tax and GST obligations applicable to its operations.
What are the annual ROC filings?
The two principal annual filings are AOC-4 (financial statements) and MGT-7 / MGT-7A (annual return). DIN KYC and director disclosures are also recurring requirements.