A private limited company is a type of business structure that is held privately and registered with the ministry of corporate affairs. This type of company can have up to 200 shareholders, but its shares cannot be sold to the general public.
Many small to medium-sized businesses choose to be private limited companies because this structure offers flexibility in management and protects the owners from losing personal money if the business has financial problems.
In India, private limited companies are required to submit several forms every year related to income tax, company laws, and Goods and Services Tax (GST).
In this article, we will explain the key forms that a private limited company must file annually with the relevant authorities regarding income tax, GST, and company laws in India.
Income Tax forms to be filed by a private limited company in India
A private limited company must submit several forms to the income tax department to follow the rules set by the government.
These forms help the company report its earnings, expenses, and taxes accurately.
Here are the most important forms that a private limited company needs to file with the tax authorities:
ITR-6 – Annual income tax return form
The ITR-6 is a specific form that private limited companies in India, as well as other types of companies, must use to file their annual income tax return. Here’s a detailed explanation of what ITR-6 is and what it requires:
The ITR-6 form is used by companies to report their financial information to the income tax department. This includes details about their income, taxes that have been deducted, taxes that have been paid, allowable deductions, and how the tax amount has been calculated.
Private Limited Companies must file their ITR-6 by October 31 of the relevant assessment year, which is the year following the financial year in which the income was earned.
If a private limited company misses this deadline, it can still file its return but must do so by December 31 of the same year. However, there will be a late fee for filing after the original deadline.
If a private limited company is required to have its accounts audited for tax purposes (according to section 44AB), it must also submit a tax audit report along with its ITR-6. This report provides an overview of the company’s financial statements and confirms that they have been reviewed by a qualified auditor.
When filling out the ITR-6, the company must provide detailed financial information, including the company’s assets, liabilities, and equity at the end of the financial year, income and expenses during the financial year, showing how much profit or loss the company made.
ITR-6 form also requires additional information as mandated by law, such as tax deductions and adjustments.
Tax Audit Report (Form 3CA-3CD)
A tax audit is an examination of a company’s financial records, and it is required under Section 44AB of the Income Tax Act, 1961. In India, private limited companies must undergo a tax audit if their total sales, turnover, or gross receipts exceed ₹1 crore during the financial year. For companies that provide professional services, this threshold is lower at ₹50 lakh.
Private limited companies must hire a chartered accountant (CA) who is in practice to perform the tax audit. The CA will review the company’s financial statements and accounts to ensure they are accurate and comply with tax laws.
After completing the audit, the CA will prepare two important forms:
Form 3CA: This form is a declaration from the auditor stating that they have audited the company’s accounts. It confirms that the audit has been conducted according to the required standards.
Form 3CD: This is a detailed report that includes various disclosures and information required by the Income Tax Act. It covers specific financial details, such as income, expenses, and tax deductions.
The tax audit report, which includes both Form 3CA and Form 3CD, must be submitted to the income tax department by September 30 of the relevant assessment year. The assessment year is the year after the financial year in which the income was earned.
The tax audit report must be filed before the company submits its income tax return using ITR-6. This means that the audit needs to be completed and the forms submitted to the tax authorities ahead of the ITR-6 filing deadline.
Companies must carefully manage this process and ensure all required forms are submitted on time to avoid any penalties.
Form 15CA/15CB for Foreign Remittance
When a private limited company in India makes a payment to someone outside the country (a non-resident), it may need to file Form 15CA and Form 15CB. These forms are important for ensuring that the company meets tax requirements when sending money abroad.
Form 15CA is a declaration made by the company (the remitter) that explains the nature of the payment being made to the non-resident. This form provides details about the payment and states whether it is subject to tax in India. Specifically, it must be filed when the payment requires a Tax Deduction at Source (TDS). This means that the company has to deduct a certain amount of tax before making the payment.
Form 15CB is a certificate issued by a Chartered Accountant (CA). It certifies how much tax needs to be deducted from the payment to the non-resident. The CA confirms that the company has calculated the correct tax amount and that the tax obligations are met. This form serves as proof that the company is complying with tax laws.
Filing Form 15CA and Form 15CB is essential for companies making payments to non-residents. If these forms are not submitted when required, the company could face penalties or legal issues. It also helps ensure that the correct amount of tax is paid to the government before the money is sent overseas.
Companies should file Form 15CA and obtain Form 15CB before making the payment to the non-resident. This ensures that all tax requirements are fulfilled beforehand.
Tax Deducted at Source (TDS) Returns (Form 24Q, 26Q, etc.)
In India, private limited companies need to follow the rules for Tax Deducted at Source (TDS) as outlined in the Income Tax Act. Here’s a simple explanation of how TDS works and what forms are involved.
TDS is a way for the government to collect taxes from payments made by companies. When a company makes certain payments, it must deduct a portion of that payment as tax before giving the rest to the person or business receiving the payment. This deducted tax is then paid to the government.
The company must deduct TDS on various types of payments if they exceed specific limits set by tax laws. Some common payments that require TDS deductions include salaries to employees, Rent for property, Professional fees for services, Commission payments and Payments to contractors for their services.
After deducting TDS, the company must deposit the collected tax with the government within 7 days from the end of the month in which the deduction was made. For example, if TDS was deducted in January, it must be paid by the 7th of February.
The company is also required to file TDS returns every quarter. The forms used for this are:
- Form 24Q: This form is used for TDS deductions on salary payments.
- Form 26Q: This form is used for TDS deductions on non-salary payments (like rent, professional fees, etc.).
These forms must be filed by the due date set by the government to ensure compliance.
After filing the TDS returns, the company must issue certificates to the people or businesses from whom TDS was deducted. These certificates are:
- Form 16: This is issued to employees for salary TDS.
- Form 16A: This is issued for non-salary TDS deductions.
These certificates serve as proof that TDS has been deducted and deposited with the government.
GST returns to be filed by a private limited company
In India, private limited companies must follow the rules of the Goods and Services Tax (GST). This includes filing various GST returns based on their business activities.
Private limited companies in India need to file several GST returns, including GSTR-1 for sales, GSTR-3B for summary information, GSTR-9 for the annual return, and GSTR-9C for reconciliation.
Meeting the deadlines for these forms is essential to ensure compliance with GST regulations and avoid penalties.
Here’s a detailed look at the most important GST forms that a private limited company needs to file.
GSTR-1: Return for the outward supplies (sales)
GSTR-1 is a return that details the sales (outward supplies) made by the company during a specific period.
Companies can file GSTR-1 either monthly or quarterly, depending on their business size and preferences.
For monthly filers, GSTR-1 must be submitted by the 11th of the month following the reporting month. For quarterly filers, it must be submitted by the 13th of the month following the quarter.
GSTR-3B: Summary Return
GSTR-3B is a summary return that provides an overview of the company’s sales, input tax credit (tax paid on purchases), and the net GST liability (the tax owed to the government).
GSTR-3B must be filed by a private limited company in India on a monthly basis.
GSTR-3B is due by the 20th of the month following the reporting month. For example, the GSTR-3B for September must be filed by October 20.
GSTR-9: Annual return
GSTR-9 is the annual return for GST. It summarizes all the sales and purchases made by the company during the financial year.
Companies with an aggregate turnover exceeding ₹2 crores must file this return.
GSTR-9 must be filed by December 31 of the year following the financial year. For example, for the financial year 2022-23, it should be filed by December 31, 2023.
GSTR-9C: Reconciliation Statement
GSTR-9C is a reconciliation statement that must be filed along with GSTR-9. It compares the figures in GSTR-9 with the company’s financial statements to ensure everything matches.
This form is mandatory for companies with an aggregate turnover exceeding ₹5 crores in the financial year.
GSTR-9C must also be filed by December 31 of the year following the financial year, just like GSTR-9. For example, for the financial year 2022-23, it should be filed by December 31, 2023.
Returns and Forms to be filed by a private limited company under Companies Act, 2013
Under the Companies Act, 2013, a private limited company in India must file several important forms and returns. These filings are essential to ensure the company operates legally and complies with regulations.
Here’s a detailed overview of the key filings
Form MGT-7/7A: Annual Return
Form MGT-7/7A is the Annual Return for a private limited company.
The return must be filed within 60 days from the date of the Annual General Meeting (AGM).
The AGM must be held within six months after the end of the financial year. For example, if a company’s financial year ends on March 31, it should hold its AGM by September 30, and then file the Annual Return by November 29.
The return includes information about the company’s directors, shareholders, and other important details as of the AGM date.
Form AOC-4: Financial Statements with Audit Report
Form AOC-4 is used to file the financial statements of the company. Form AOC-4 must be submitted within 30 days from the date of the AGM.
AOC-4 form includes key financial documents like the balance sheet, profit and loss account, cash flow statement (if applicable), and the audit report.
For a company holding its AGM by September 30, the filing deadline for Form AOC-4 would be October 30.
Form DIR-3 KYC: To update Director KYC
DIR-3 KYC is mandatory for all company directors to update their KYC (Know Your Customer) details with the Ministry of Corporate Affairs (MCA).
Every director with a Director Identification Number (DIN) must file this form each financial year.
Form DIR-3 KYC must be submitted by September 30 of each financial year.
If this form is not filed, the director’s DIN may be deactivated, preventing them from acting as a director in any company. Additionally, if any director hasn’t filed this form, the company cannot file its annual return or financial statements.
There is a penalty of ₹5,000 for late submissions.
Form ADT-1: Appointment of Auditor
ADT-1 form is used to notify the appointment of an auditor for the company.
If a company changes its auditor or if an auditor resigns, Form ADT-1 must be filed.
ADT-1 form should be submitted within 30 days of the auditor’s appointment or change. If an auditor resigns, the form should be filed within 30 days of their resignation date.
Failure to file Form ADT-1 on time can lead to penalties for the company and its officers.
Form MGT-14: For filing Special Resolution
Form MGT-14 must be filed by a private limited company within 30 days from the date of passing the resolution to register certain resolutions passed by the company.
Filing these forms and returns on time is crucial to avoid penalties. It is highly recommended that companies consult with professionals who have in-depth knowledge of legal requirements to ensure compliance with the Companies Act, as well as Income Tax and Goods and Services Tax (GST) laws.
Complying with the Companies Act, Income Tax laws, and GST is essential for the lawful and efficient operation of a private limited company in India. It protects the company’s interests and supports its growth and sustainability.
Regular consultation with legal and financial professionals is advisable to navigate these requirements effectively.
