Navigating the complexities of tax filing can be daunting for startups and small to medium-sized enterprises (SMEs) in India. However, with a clear and simplified process, you can ensure compliance and smoothly manage your tax obligations. In this article, we present a comprehensive flowchart that outlines the step-by-step procedure for tax filing, helping startups and SMEs understand the requirements and streamline their tax-related activities. From obtaining tax identification numbers to filing income tax returns and complying with GST regulations, this flowchart provides a holistic overview of the tax filing journey.
Simplified Tax Filing for Startups & SMEs in India: A Comprehensive Flowchart
Here’s the simplified step-by-step process of tax filing in India for startups and SMEs in simplified steps:
- Start with Register for Tax Identification Numbers (PAN, TAN, GST) Maintain Books of Accounts
- Prepare Financial Statements (Profit & Loss, Balance Sheet)
- Determine Applicable Taxation Regime (Income Tax, GST)
- If liable for Income Tax
- Compute Taxable Income Calculate Tax Liability
- Pay Advance Tax (if applicable)
- File Income Tax Return (ITR)
- Receive Income Tax Assessment
- If liable for GST
- Maintain Proper GST Records
- Calculate GST Liability
- Pay GST
- File GST Returns (GSTR-1, GSTR-3B, etc.)
- Undergo GST Audits (if applicable)
- Comply with Tax Deducted at Source (TDS) Provisions
- Deduct TDS from Payments (if applicable)
- Deposit TDS Amount with Government
- File TDS Returns (Form 24Q, Form 26Q, etc.)
However, here are some common pre-requisites for tax filing:
- Permanent Account Number (PAN)
- Tax Identification Numbers
- Financial Statements
- Bank Statements
- Receipts and Invoices
- Employee Information
- Investment Proofs
- Form 26AS
- Compliance Certificates
- Previous Year’s Tax Returns
