BUSINESS AND PARTNERSHIP
Gains or profits from carrying on a business, trade, vocation, or profession are liable to tax.
Business includes :
- Sole Proprietorship/Self Employed
- Individual carrying on a business on his own
- Includes any business venture of two or more individuals combining ownership, authority, work force or skill in running a business where profits are shared. Partnership can exist between :
- Two companies
- Individual and Company
- Individual and trustee
Examples of Business :
- Sundry business
- Direct selling
- Agriculture and farming
- Clinics, Law Firms or other Professional practitioners
- Writers and Actors
- To register as a taxpayer (if eligible) – Register File
- To get a copy of Income Tax Return Form from the nearest LHNDM Branch (if the form does not reach on time)
- To complete Form B (Sole Proprietor) and Form P (Partnership)
- To prepare statement of accounts and other statements such as rental statements and commission statements.
- To engage qualified tax agent to prepare business accounts (if required)
- Refer to supporting documents such as life insurance receipts, donation receipts, receipt books, zakat receipts for deductions, reliefs and rebate
- Refer to Explanatory Notes as guide – Form B Explanatory Notes / Form P Explanatory Notes
- Additional Information on Partnership
- The Precedent Partner is responsible for filling up Form P and issuing Form CP30 to each and every partner- CP30 Form
- CP30 shows distribution of income (profit/loss) to each partner.
- Every partner has to report his share of partnership income in his Form B.
- Precedent Partner is also responsible for informing LHDNM officially if the partnership ceases/changes to a sole proprietorship/private limited company
- Husband and wife have to fill separate Income Tax Return Forms.
- To compute their tax payable.
- To check and SIGN duly completed Income Tax Return Form
- To submit the Income Tax Return Form by the due date.
- All supporting documents like business records, CP30 and receipts need not be submitted with Form P.
- Keep all business records, supporting documents for deductions, reliefs and rebate for a period of 7 years.
- Business records include profit and loss account, balance sheet, sales records, purchase records, stock receipts, bills and bank statements.
- The last date for submission of Form B and P is 30th June.
- Payment of tax due (if any) should be made on or before 30th June.
- To comply with the installment scheme (CP500) – link Installment Scheme CP500