ITR Filing – Profits and Gains from Business or Profession.(With accounting combo)

Description

Documents Required:

1. Profit and Loss Statement
   • What it is: A detailed statement showing the income and expenses from business or professional activities for the financial year. This includes revenues, costs, operational expenses, and net profit.
   • Purpose: Provides a summary of income earned and expenses incurred, essential for calculating taxable income from business or profession.
2. Balance Sheet
   • What it is: A financial statement detailing the assets, liabilities, and equity of your business or professional practice at the end of the financial year.
   • Purpose: Offers a snapshot of the financial position of your business, required for tax filing and to substantiate income and investment claims.
3. Bank Statements for Business Accounts
   • What it is: Statements from bank accounts used for business or professional purposes, showing all transactions relevant to your business activities.
   • Purpose: Provides evidence of income deposits and expenses, helping to verify income and expenditures related to business activities.
4. GST Returns (if applicable)
   • What it is: Monthly, quarterly, or annual GST filings showing the goods and services tax collected and paid during the financial year.
   • Purpose: Necessary for businesses registered under GST to confirm tax compliance and align reported income with GST filings.
5. Invoices and Receipts
   • What it is: Records of invoices issued to clients/customers and receipts of expenses incurred for professional or business activities.
   • Purpose: Supports income and expense claims, ensuring accurate reporting of revenue and deductible expenses for tax calculations.
6. Professional Tax Receipt (if applicable)
   • What it is: Proof of professional tax paid if applicable in your state for practicing professionals (like doctors, lawyers, consultants).
   • Purpose: Confirms compliance with professional tax requirements, relevant for accurate income reporting.
7. Any Licenses or Registrations Related to the Profession
   • What it is: Copies of licenses, registrations, or certifications required to operate your business or practice, such as professional certifications, trade licenses, or business registrations.
   • Purpose: Verifies the legitimacy of business or professional activities and may be required for audit or compliance purposes.