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
  • Partnership
  • 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 :
  • Individuals
  • Two companies
  • Individual and Company
  • Individual and trustee

Examples of Business :

  • Sundry business
  • Direct selling
  • Agriculture and farming
  • Stalls
  • Clinics, Law Firms or other Professional practitioners
  • Writers and Actors
  • Remisiers  


  • 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