The Ultimate Guide to Corporate Tax Filing for Private Limited Companies

Starting a Private Limited Company in India is an exciting step toward building a thriving business. But alongside growth and operations, there comes a crucial responsibility — corporate tax compliance.
Filing corporate income tax returns on time is not just mandatory; it can save your company from heavy penalties, maintain a clean legal record, and even boost investor confidence.

In this guide, we’ll walk you through everything you need to know about corporate tax filing for Private Limited Companies (PLCs) in India — from key forms to deadlines, deductions, and tips for smooth compliance.

What is Corporate Tax for Private Limited Companies?

Corporate tax is a direct tax imposed on the net income or profit of a company by the Government of India.
Every Private Limited Company, whether operational or dormant, must file an annual Income Tax Return (ITR) with the Income Tax Department, even if it made zero income during the year.

Applicable Tax Rates for Private Limited Companies (FY 2023-24)

Plus:

• Health & Education Cess of 4%
• Surcharge if income exceeds ₹1 crore or ₹10 crore

(Note: Many companies today opt for the lower 22% tax rate under Section 115BAA to avoid complicated deductions.)

Step-by-Step Process for Corporate Tax Filing

Step 1: Maintain Proper Books of Accounts

• Record all financial transactions (sales, purchases, expenses, payments, investments).
• Mandatory to maintain books under the Companies Act, 2013 and the Income Tax Act, 1961.
• Use accounting software or hire a CA to maintain audit-ready books.

Step 2: Conduct Annual Statutory Audit

• Every Private Limited Company must get its accounts audited by a Chartered Accountant.
• The Audit Report (Form 3CA/3CB and 3CD) must be submitted along with the ITR.

Step 3: Calculate Total Income and Tax Liability

• Income = Gross Revenue – Allowable Business Expenses – Deductions
• Apply the applicable tax rate to calculate corporate tax liability.

Key Deductible Expenses:

• Employee salaries and wages
• Rent and utility bills
• Business travel expenses
• Professional fees (legal, accounting, consulting)
• Depreciation on fixed assets
• Interest on business loans

Step 4: Pay Advance Tax

• Companies must pay advance tax if their total tax liability exceeds ₹10,000 in a financial year.
• Due dates for Advance Tax Installments:
  • 15th June – 15% of total tax
  • 15th September – 45% of total tax
  • 15th December – 75% of total tax
  • 15th March – 100% of total tax

(Failure to pay advance tax leads to interest penalties under Sections 234B and 234C.)

Step 5: File Income Tax Return (ITR-6)

• Most Private Limited Companies file their ITR using Form ITR-6.
• Companies claiming exemption under Section 11 (charitable trusts) use ITR-7.

How to File:

• File electronically at Income Tax e-Filing Portal
• Use Digital Signature Certificate (DSC) for authentication (mandatory for companies)
• Submit audited financial statements and tax audit report if applicable

Step 6: File Additional Statutory Returns

Besides ITR, a company also needs to file:

• MCA Annual Returns (AOC-4, MGT-7) to the Ministry of Corporate Affairs
• TDS Returns if tax deducted at source on salaries, contractors, rent, etc.
• GST Returns if registered under GST

Important Deadlines for Corporate Tax Filing (FY 2023-24)

(Deadlines are subject to change based on government notifications.)

Consequences of Missing the Corporate Tax Filing Deadline

• Late Filing Fee under Section 234F (up to ₹10,000)
• Interest and penalties on unpaid taxes
• Disallowance of certain expenses
• Loss of carry-forward benefits for business losses
• Increased scrutiny and legal complications

Tips for Smooth Corporate Tax Filing

✅ Maintain updated and accurate accounting records throughout the year
✅ Hire a professional CA for tax computation and filing
✅ Ensure timely payment of advance tax
✅ Conduct regular compliance reviews (GST, TDS, ROC filings)
✅ Plan tax-saving strategies during the financial year, not at the last moment
✅ Keep backups of all important financial documents for 7-8 years

How Expenect Can Help Private Limited Companies

At Expenect, we specialize in providing end-to-end corporate tax filing solutions for businesses.
Our services include:

• Bookkeeping and accounting setup
• Statutory audit assistance
• Advance tax calculation and reminders
• ITR preparation and e-filing
• TDS, GST, and MCA compliance
• Strategic tax planning to save costs

We ensure that your company stays 100% compliant, avoids penalties, and optimizes tax benefits — leaving you free to focus on growing your business!

Final Thoughts

Corporate tax filing might seem complex, but with proper planning, good records, and expert help, it becomes a manageable and smooth process.
Stay ahead of deadlines, leverage legitimate deductions, and file your returns accurately to build a credible, financially strong Private Limited Company.

If you need professional support to manage your tax filings, audits, and compliances, get in touch with Expenect today!