Income tax return a.y. 2017-2018

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MANAN M VYAS (Querist)
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27 September 2017 Hello,

My company incorporated (Private limited) on 30th March 2017 and its bank account opened on 15th April 2017. All pre Incorporation expenses are paid after 15th April 2017.

There are no transaction as on 31st March 2017.

Do i need to file income tax return for the F.y. 2016-17 i.e. A.y. 2017-18 or i can file the IT Return of A.y. 2018-19 as my first return.

Thank you

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 September 2017 Yes return has to be filed for FY 2016-17.

MANAN M VYAS

MANAN M VYAS (Querist)
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27 September 2017 IS STATUTORY AUDIT REQUIRED AS PER COMPANIES ACT OR SHOULD WE FILE NIL RETURN (NON AUDIT CASE)?

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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31 July 2024 Given your scenario, where your company was incorporated on 30th March 2017, and its bank account was opened on 15th April 2017, here's how to approach the Income Tax Return filing and statutory audit requirements:

### 1. **Income Tax Return Filing:**

#### **For the Assessment Year 2017-18 (Financial Year 2016-17):**
- **Incorporation Date:** Your company was incorporated on 30th March 2017.
- **Bank Account Opening:** The bank account was opened on 15th April 2017.
- **Transactions:** There were no transactions as of 31st March 2017, and all pre-incorporation expenses were paid after 15th April 2017.

**Filing Requirement:**
- **Income Tax Return:** Since your company was incorporated on 30th March 2017 and had no transactions or income before 31st March 2017, you are not required to file an Income Tax Return for the Financial Year 2016-17 (Assessment Year 2017-18). The requirement to file a return for AY 2017-18 would arise only if there were any transactions or income during that period, which, in this case, there were not.

#### **For the Assessment Year 2018-19 (Financial Year 2017-18):**
- **First Return:** You will need to file your first Income Tax Return for the Assessment Year 2018-19. This will cover the Financial Year 2017-18, which includes the period after your incorporation on 30th March 2017.
- **Transactions and Expenses:** You should include all transactions, including any income, expenses, and pre-incorporation expenses (if they are valid and allowable) from the date of incorporation onwards.

### 2. **Statutory Audit Requirement:**

#### **Under the Companies Act, 2013:**
- **Audit Requirement:** As per the Companies Act, every company is required to have its accounts audited by a Chartered Accountant. Even if there are no transactions, the statutory audit requirement generally applies from the date of incorporation. Therefore, even if your company had no transactions in the Financial Year 2017-18, you would still need to comply with the statutory audit requirements.

- **Nil Audit:** You need to file an audit report along with the financial statements, even if they are nil or show no transactions. The auditor will provide an audit report stating that there were no transactions if applicable.

### **Summary:**

1. **Income Tax Return Filing:**
- No return is required for AY 2017-18 if there were no transactions before 31st March 2017.
- File the Income Tax Return for AY 2018-19 for the Financial Year 2017-18, covering transactions and activities from the date of incorporation onward.

2. **Statutory Audit:**
- A statutory audit is required for the Financial Year 2017-18, even if there are no transactions. Ensure that the audit is conducted and a report is submitted to comply with the Companies Act requirements.

**Additional Steps:**
- **Consult a Professional:** It is always advisable to consult with a Chartered Accountant or a tax professional for detailed guidance and to ensure all compliance requirements are met accurately.

Feel free to ask if you have any further questions or need more specific details!

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