Simplified Tax Filing for Startups & SMEs in India: A Comprehensive Flowchart

Simplified Tax Filing for Startups & SMEs in India: A Comprehensive Flowchart


Navigating the complexities of tax filing can be daunting for startups and small to medium-sized enterprises (SMEs) in India. However, with a clear and simplified process, you can ensure compliance and smoothly manage your tax obligations. In this article, we present a comprehensive flowchart that outlines the step-by-step procedure for tax filing, helping startups and SMEs understand the requirements and streamline their tax-related activities. From obtaining tax identification numbers to filing income tax returns and complying with GST regulations, this flowchart provides a holistic overview of the tax filing journey.


Here’s the simplified step-by-step process of tax filing in India for startups and SMEs in simplified steps:


  • Start with Register for Tax Identification Numbers (PAN, TAN, GST) Maintain Books of Accounts
  • Prepare Financial Statements (Profit & Loss, Balance Sheet)
  • Determine Applicable Taxation Regime (Income Tax, GST)
  • If liable for Income Tax
  • Compute Taxable Income Calculate Tax Liability
  • Pay Advance Tax (if applicable)
  • File Income Tax Return (ITR)
  • Receive Income Tax Assessment
  • If liable for GST
  • Maintain Proper GST Records
  • Calculate GST Liability
  • Pay GST
  • File GST Returns (GSTR-1, GSTR-3B, etc.)
  • Undergo GST Audits (if applicable)
  • Comply with Tax Deducted at Source (TDS) Provisions
  • Deduct TDS from Payments (if applicable)
  • Deposit TDS Amount with Government
  • File TDS Returns (Form 24Q, Form 26Q, etc.)


In conclusion, by following the outlined steps, startups, and SMEs can gain clarity on the tax filing process in India. Adhering to proper record-keeping, financial statement preparation, and timely compliance with tax regulations are crucial for maintaining a strong financial foundation. Remember, tax filing should not be seen as a burdensome task but as an opportunity to ensure transparency, gain tax benefits, and contribute to the growth and success of your business. Consulting with a tax professional is always recommended for personalized guidance and accurate compliance. Stay proactive, stay informed, and embrace the journey of tax filing as an integral part of your entrepreneurial endeavor.


When it comes to tax filing in India, there are several prerequisite documents and information that you need to gather beforehand. However, These are the basic documents and requirements may vary based on the nature of your business, its structure, and the applicable tax laws.


However, here are some common pre-requisites for tax filing:


  • Permanent Account Number (PAN)
  • Tax Identification Numbers
  • Financial Statements
  • Bank Statements
  • Receipts and Invoices
  • Employee Information
  • Investment Proofs
  • Form 26AS
  • Compliance Certificates
  • Previous Year’s Tax Returns

If you feel like making it easy & are you ready to streamline your tax filing process and ensure compliance for your startup or SME? Consult with our experienced team at Diligen to receive expert guidance and support in navigating the complexities of tax filing in India. Contact us today at [Your Contact Information] and let us help you achieve financial peace of mind.

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