Missed Income Tax Return (ITR) Filing Deadline? What To Do

August 5 turned into the ultimate date to document profits tax go back (ITR) for FY2016-17 without paying any penalty. If you have got missed the cutoff date, still you could report your earnings tax go back. But when you have any unpaid tax liabilities, then you have to pay penal interest on that. You ought to pay penal interest on unpaid tax liabilities at the charge of 1 in line with a cent in step with the month. If the income tax branch increases any additional tax demand than what you have got already paid as TDS, then additionally you have to pay a penal hobby on that. Travel Knowledge

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Income Tax


However, you could now not be able to avail a few tax advantages like wearing ahead of capital losses over next assessment years. Income tax rules in India permit loss underneath the head ‘capital profits’ to be a spark off against any profit underneath ‘capital profits’ head within the following assessment years.

Prepare Income Statement

The Income Statement is likewise frequently referred to as a Profit and Loss Statement, and, much less typically, a Statement of Operations, an Earnings Statement, or an Operating Statement, depending upon the enterprise or geographic vicinity that you function in. For our functions, they’re all one and the equal.

Online tax filing

“a employer’s economic assertion that shows how the revenue (money received from the sale of services and products earlier than costs are taken out, additionally called the “pinnacle line”) is transformed into the net earnings (the end result of all sales and expenses had been accounted for, additionally called the “bottom line”). It presentations the revenues identified for a particular period, and the cost and fees charged against those sales, consisting of write-offs (e.G., is depreciation and amortization of diverse assets) and taxes. is”

Clear as mud? Here is some other way to look at it. If you don’t forget from our lesson at the balance sheet and on retained profits, the balance sheet represents, at one given second in time, a business enterprise’s property (the whole lot it owns that has cost) much less its liabilities (the whole lot it owes or in an effort to value it cash in the destiny) to get at its equity (the internet fee of the enterprise). What the profits statement does, collectively with the announcement of owner’s fairness, is to inform the story of the alternate in a stability sheet over a period of time.

Let’s boil this down to the simplest degree, and forget about every body out there who is screaming out exceptions that simply don’t observe to most of you as marketers and owners of small companies. Your Net Income (the lowest line of your earnings statement) need to be equal to the growth (or minus the decrease) for your belongings over the yr minus the boom (or plus the lower) for your liabilities plus any coins paid out to the owner.

Now consider this, elevated belongings make you feel glad, proper? After all, they represent objects which have value to the enterprise and that must, in the future, bring you cash. Increased liabilities have to make you a little uneasy. Your liabilities are cash that you will have to pay out in the future so that you can make you unhappy. I hate paying cash, however I sure love getting it! Maybe it really is why my spouse calls me a reasonably-priced sonofabitch. Now, your distributions are cash which you have already taken out; and in order that they gave you happiness at some point in the beyond. So truely, internet profit are your usual growth in future happiness, much less the increase in destiny disappointment and plus the quantity you’ve got already taken out in past happiness!

income Taxes

The income announcement is the single most critical critical signal of the health of your enterprise. If profitareright, then greater assets may be positioned to apply for the business and extra cash may be dispensed to the proprietors. The turn side is that once income is poor, which means that you have a loss, then you’ll have much less money to take from your commercial enterprise as distributions and you’ll need to support your operations by way of either selling off property or by way of growing liabilities.



If you’ve got accounting software, like QuickBooks, then you may get a simple presentation as part of the package. In honestly all corporations, the income statement starts with sales and ends with costs. If your agency is both manufacturing or retail associated, then the simple presentation is Sales – Cost of Sales (additionally referred to as Cost of Goods Sold) = Gross Income – Sales Expense, Operating Expense, and all other costs + earnings not from ordinary operations (which includes the gains at the sales of assets except inventory or interest profits) – expenses not from regular operations (including taxes, despite the fact that I would keep in mind taxes quite ordinary) = Net Income.

Oh my God! I’ve simply absolutely grew to become geeky-accountant brilliant-nerd on you men! Look, displays vary wildly from enterprise to industry and from one set of accounting standards to the next. If you want to give the statements to others then you may probable come to be getting an accountant to position them collectively, anyway. So simply positioned them collectively inside the way that makes experience for you and enables you find the statistics that you want.

What is Revenue

Now that we know what the internet earnings should be, let’s take a peek under the hood to look a number of the gory details. The simple earnings declaration is split among items that have made you cash or will make you cash inside the destiny, profits or sales, and objects that have price you cash or will cost you money, expenses. As you may imagine, we need to maintain close tabs on the ones warm, fuzzy revenues in order that we can nurture them and make them develop and thrive. Therefore, we group the sales together and lump them on the top of the page. Your revenues can in addition be divided via essential products or divisions to offer the readers of the income assertion with extra data. Finally, a few gadgets are usually segregated from the general revenue objects because of their unusual nature, including unrealized advantage or loss on assets, realized profits or losses on property, interest income, and other objects.

What is an Expense

Expenses are the Devil, prying money from your wallet both now or within the destiny. Every enterprise has to address the Devil as a way to operate, but we need to keep music of those offers so that we realize how plenty of our soul we still have left! As you may consider, we further segregate fees into sub-categories. Cost of Goods Sold (also referred to as Cost of Sales) is the cash you spend to purchase or make the product which you promote. General and Administrative Expenses are greater peripheral objects that pop up inside the route of walking a commercial enterprise. Your accounting software program, wages paid to the janitor or the secretary, Internet provider for the workplace, essentially something that cannot be directly attributed to the acquisition or manufacture of your product.

How To Prepare Your First Income Statement

If you’re the use of QuickBooks or every other accounting program then it is reputedly easy to position the earnings assertion collectively. The trouble with maximum of those programs is that they can’t tell you when you placed garbage in them. So you will need take a look at your income assertion via following the steps beneath.

Turbotax 2013

At the end of the year I move down my stability sheet line via line and make sure each quantity makes feel to me. In fact, that is step one of an auditor if you get your statements audited. I like searching at as a minimum two periods aspect by side, for the reason that inconsistencies are extra obvious that way. Make any modifications that you need and circulate on to Step Two.

I’ve already written about this in detail in any other article, but essentially your retained income are the bridge among your stability sheets for the present day and prior intervals. Any alternate should be reflected in retained profits, that’s in go back the product of your earnings plus any contributions in capital and less any distributions of capital. So if you may get the proper variety for any capital which you took out (other than wages, with a purpose to move onto the earnings assertion and for which you may pay payroll taxes) or positioned into the enterprise then you could isolate the trade in retained income due to internet earnings. Can you parent those out? Good, then any closing alternate in internet property must be due to net income. Now you’ve got your internet earnings and, in case you are using an accounting software, you must test your wide variety for internet earnings with the quantity which you simply calculated. If they don’t fit, nicely, you’re screwed and I can’t assist you anymore. No, simply kidding, you may need to adjust your income on the earnings statement to match.


Now plug the number that range into the lowest line of your profits announcement and start filling within the information. When you’ve got the whole thing in however it does not general up then simply plug the difference, if it’s miles minor enough, into a few sort of Miscellaneous Expense or Miscellaneous Income account. Don’t worry your accountant does that all the time!