Assessment of Non-Individual and Filling of ITR’S

Chapter-3
Assessment of companies
Meaning:
A company is a legal entity formed by a group of individuals to engage in and operate a
business enterprise.
A company is required to file its returns of income under section 139(1) of the income tax
act of 1961 within a prescribed time. The due date for filing the return of income by a
company is 30th November of the A.Y.
Types of companies
 Indian company: A company formed and registered under Companies Act, 2013 is
known as an Indian company.
 Domestic company: if a company is an Indian company, it will be always considered
as domestic company.
 Foreign company: it means a company which is not a domestic company
 Industrial company: a company which is engaged in the business of generation or
distribution or manufacturing of goods.
 Banking Company: a company to which the banking company regulation act 1949 is
applicable and includes any bank or banking institution referred to in sec 51 of the
act.
 Investment Company: it is company in which whole business is holding securities of
other companies purely for investment purpose.

Business sec 2(13)

The term business means any trade, commerce, manufacture or any
adventure are in concern with nature of trade, commerce or manufacture.
Profession sec 2(36)
It refers to any occupation where intellectual skills and technical
expertise in a specific field is required for earning a livelihood.
Eg. Doctor, Teacher, Auditor, Lawyer.
Vocation
It is an activity upon which a person spend the major portion of his or
her time and out of which he or she makes his or her living.
Eg. Music, Dancing, Writing books etc.,
Computation of Taxable income from business
Particulars Amount amount
Net profit/ net loss as per p&L A/c XXX
ADD: Inadmissible expenses debited to p&l A/c XX
Business or professional income not credited to p&lA/c XX
Over valuation of opening stock XX
Undervaluation of closing stock XX XXX
XXX
Less: admissible expenses not debited to p&l A/c XX
Tax free incomes credited to p&l A/c XX
Non-business income credited XX
Undervaluation of opening stock XX
Overvaluation of closing stock XX XXX
Taxable income from business XXX

Computation of Total income

Particulars Amount
Income from house property XX
Income from business or profession XX
Income from capital gains XX
Income from other sources XX
Gross total income XXX
Less: deduction u/s 80G to 80LA XX
Total income XXX