The document provides information on the annual compliance requirements for different business entities in India such as proprietorship, partnership firm, limited liability partnership, private limited company, and tax audit. It discusses the key documents required, due dates for filing returns, benefits and responsibilities for each entity. It also summarizes the purpose, process and applicability of internal and statutory audits that certain businesses are required to undertake under Indian laws.

2. Proprietorship Partnership Firm Limited Liability
Partnership
Private Limited
Company
Tax Audit Internal Audit Statutory Audit
Annual Compliances

3. Proprietorship Proprietorship Annual Compliance mainly includes
filing of Income Tax Return within due date
ITR Filing Annually Comply with Other
Regulations
In addition to the basic compliance, proprietorship
also be required to comply with TDS regulations,
GST regulations
Like other entities which are registered under
the Ministry of Corporate Affairs, the sole
proprietorship are not required to file any annual
report or financial statements with the MCA.
Main Compliances

4. Invoices of Purchases and Sales during the year
Bank Statements from 1 April to 31 March for all
bank accounts in the name of business
Credit Card Statements if Expenses are incurred by
Proprietor on behalf of Business.
Copy of GST returns filed (If Any)
Copy of TDS Challans Deposited, TDS Returns filed (If Any)
Documents Required
Invoices of expenses incurred during the year

5. Due Dates
GST Returns – 20th of the following month
A Proprietor whose business is registered under
the GST Act required to file GST Return on
monthly basis
Income Tax Return – 31st July
If the Proprietor income cross the basic limit of
exempted income tax limit (Rs.2,50,000) then it
is mandatory for him to file the Income tax return

6. Under the Income Tax Act, the Partnership firm is treated as
an Entity is separate from the Partners of the firm.
Partnership Firm Annual Compliance for Partnership Firm is a legal requirement
of income tax to file annual income tax return irrespective of
profit or loss.
Why??
As we have to intimate the department about our income and
expenditure and to make our firm free from non-compliances.
If we fail to file Income Tax Return and GST Return as
per due date then penalty is imposed by the
department.

7. Purchases and Sales Invoice, Expenses Invoice
Bank Statement from 1st April to 31st March of the relevant
Financial Year for all bank accounts in the name of the Firm
Copy of TDS Challans Deposited, TDS Returns
Filed, Copy of GST Returns Filed (If Any)
Documents Required
Income Tax Return
ITR - 5
ITR - 4 if Firm is applicable to Presumptive Taxation

8. 20th of Next Month: GSTR – 3B, if they
Registered under GST Act.
30th September: If Tax Audit is applicable.
31st July: Normal Income Tax Return

9. Limited liability partnerships (LLPs) has less number
of compliances to fulfill in contrast to private limited
companies.
LLPs need only file information related to the statement
of accounts and Annual Returns on an Annual Basis
Every LLP intimate the department about their income and
expenditure and other details of the company annually to the
Income Tax department and Registrar of Companies.
Limited Liability Partnership

10. Documents Required
Invoices & Statement Returns GST Returns
Invoices of Purchases and
Sales, Expenses Invoice.
Books of Accounts and
Financial Statements.
Copy of TDS Challans Deposited
and TDS Returns filed.
GST Returns, if LLP Registered
under GST Act

11. Audit
LLP’s whose turnover is more than
INR 60 lakh or whose contribution
has exceeded INR 25 Lakh have to
get the books of account audited
Tax Audit by Practicing Chartered
Accountants.
Penalty
In Case of Failure, Penalty will be
imposed for LLP Rs.100 per day
per form and will applicable from
after the due date till the date
actual return will file. It may
exceed upto Rs.5 lakhs.
Filing
File Income Tax Return with
Income Tax Department
and also File Annual
Accounts with ROC

12. Income Tax
Department
Applicable for LLP’s not
required to get Tax Audit.
30th October
Form 8 (Annual Accounts)
Details about Profit made
and other Financial Data
30th September
Applicable for LLP’s
required to get Tax Audit
Registrar of
Companies
Form 11 (Annual Return)
Summary of Management
Affairs of LLP (Number of
Partners along with their
Names)
31st July 30th May
Form ITR - 5
Due Dates

13. Under a private limited company, there is a limited
liability protection and have various benefits such as
raise fund from Venture capitalist, continuous existence.
It is required for every private limited company to conduct
its Annual General Meeting each financial year and file
an annual return with the Ministry of Corporate Affair to
maintain compliance.
As every company have to intimate the department about
the income and expenditure and information regarding
shareholders, meetings etc., and to make company free
from non compliances.
Private Limited Company

14. Annual Compliances consist of the following:
Register of Member Details.
Current details and details of the
change in the shareholding structure
of the Company.
Detail about the changes in Directorship.
Debt details.
Information about the Management
of the Company.
Audited Balance Sheet of the Company.
Audited Profit & Loss Account.
Registered Office Details.
Shares and Debentures details.
Details of transfers of securities/ Share
in a financial year.
In case of a newly
incorporated company,
the Annual General
Meeting must be held
within 18 months from
the date of incorporation
or within 9 months from
the date of closing of the
first financial year,
whichever is earlier.

15. Profit & Loss A/c, Balance Sheet of
Company and other Financial Statements.
Director’s Report and Auditor’s Report
List of Shareholders and Directors and
other required documents (if any)
Documents Required

16. Separate Legal Entity
A company is a separate legal
entity and a juristic person under
the Act. Therefore a company can
own property in its own name and
also incur debts.
Perpetual Succession
A company, being a separate
legal person, is unaffected by the
death of any member but
continues to be in existence
irrespective of the changes in
membership.
Share Transfer Ability
Shares of a company limited
by shares are easily
transferable by a shareholder
to any other person.
Benefits

17. Income Tax Department – 30th September
Within 60 days from the date of Annual
General Meeting to Registrar of Companies.
Within 30 days from the date of Annual
General Meeting to Registrar of Companies.
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Due Dates
ITR Form - 6
Form AOC-4
Form MGT-7

18. Consequences/Penalty
In case company fails to file its annual return to ROC, it is
punishable with a fine which shall not be less than Rs.50,000
but which may extend to Rs.5 lakhs
Who is Required to Sign?
Annual filing E-forms are required to be signed
digitally by the Director of a company and
Chartered Accountant/Company Secretary.
Important Points

19. Tax audit is the verification of the books of accounts of
an assesse to validate the income tax computation
and compliance with the laws of Income Tax.
Tax Audit is an examination or review of accounts of
any business or profession carried out by taxpayers
from an Income Tax
Auditing of books of accounts must be carried out by a
Practicing Chartered Accountant.
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Tax Audit

20. Objectives
Ensure proper maintenance
and correctness of books of
accounts and certification of
the same by a tax auditor
Reporting observations
/discrepancies noted by tax
auditor after a methodical
examination of the books of
account.
To report prescribed information
such as tax depreciation,
compliance of various provisions
of income tax law etc.

21. Business
In case of a business, tax audit would be required if the total
sales turnover or gross receipts in the business exceeds Rs.1
crore in any previous year. Even in case of Loss.
Profession
In case of a profession or professional, tax audit would be
required if gross receipts in the profession exceeds Rs.50 lakhs
in any of the previous year.
Required to get Tax Audit

22. Books of Accounts to
be maintained
Journal, Ledgers
Carbon copies of bills (serially numbered)
exceeding Rs.25 issued by the person
Original bills/receipts issued to him in respect
of expenditure (Payment Voucher)
A cash book (i.e., a record of all cash receipts and
payments) day-to-day transactions.

23. Form No. 3CB
Is furnished when a person carrying on business or
profession is not required to get his accounts
audited under any other law.
Form No. 3CA
Is furnished when a person carrying on business
or profession is already mandated to get his
accounts audited under any other law.
Tax Audit Report Constitutes
Note: In case of either of the aforementioned audit reports, tax auditor must furnish the prescribed
particulars in Form No. 3CD, which forms part of audit report.

24. Internal Audit
They ensure compliance with laws and
regulations and accurate and timely
financial reporting and data collection
Internal audits evaluate a company’s internal
controls including its corporate governance and
accounting processes.

25. Management Tool
An internal audit can help
provide an independent and
objective opinion about the
operations of a business.
Improves Accountability
Having a strong internal audit
mechanism with surprise check
will help improve accountability
of the employees.
Early Warning
Internal audits provide early
warning to the Management
on deficiencies or loopholes
in the business.

26. Know what and when to audit
Pre-planning the scheduled audit
Conducting the Audit
Report the findings
Record the findings
Objectives of Internal
Audit Create an audit schedule

27. Applicability of Internal Audit
Turnover of Rs.200 Crores or more during
the preceding financial year
Outstanding loans or borrowings from
banks or public financial institutions
Rs.100 Crores or more at any point of
time during the preceding financial year
Every private company having–
Turnover of Rs.200 Crores or more
during the preceding financial year
Every Listed Company
Every unlisted public company having -
Paid up share capital of Rs.50 Crores or
more during the preceding financial year
Outstanding loans or borrowings from banks
or public financial institutions Rs.100 Crores
or more at any point of time during the
preceding financial year
The time duration for
completing an internal
audit would depend on
the audit objectives and
scope.
Process
Outstanding deposits of Rs.25 Crores or
more at any point of time during the
preceding financial year

28. STATUTORY AUDIT
Statutory Audit is a type of audit which is
mandated by a Statute or Law to ensure true
and fair view of the book of accounts of a
Business is presented to the Regulators and
the Public.
Statutory audits must be completed by
Practicing Chartered Accountants who are
independent of the Business.

29. For LLP
It is applicable if turnover in any financial year
exceeds Rs.60 Lakhs or its contribution exceeds
Rs.25 Lakhs.
For Private Company/ Public Company
Mandatory irrespective of Turnover, Profits etc. If
the company is incurring loss even then
statutory audit is required.
Applicability

30. Profit & Loss A/c
Balance Sheet
Opening Balance Verification
Checklist
Vouching, Bank Reconciliation Statement

31. Prepare Audit Scope
Prior to starting the
statutory audit, the
auditor obtains an
understanding of the
business and scope.
Conduct Audit
Verify the information
presented on the financial
statements, obtain samples
and verify data used to
prepare the Books.
Record Findings
Record the findings
and co-ordinate with
top management.
Report Findings
Report the findings in
the Audit Report and
get approval from the
top management.

32. T h a n k Y o u
For Watching