Taxation is a crucial aspect of running a business in India. Two of the most common taxes that businesses must deal with are GST (Goods and Services Tax) and Income Tax. While both are essential, they serve different purposes and apply differently. In this guide, we will break down GSThttps://www.taxunplug.com/services/ vs Income Tax to help you understand their key differences, applicability, and impact on your business in 2025.

What is GST?

GST (Goods and Services Tax) is an indirect tax levied on the supply of goods and services. It replaced multiple indirect taxes such as VAT, service tax, and excise duty. GST is a consumption-based tax collected at every stage of the supply chain and ultimately borne by the consumer.

Key Features of GST:

• GST is levied at multiple stages but with an input tax credit mechanism.
• It is applicable to businesses involved in manufacturing, trading, and services.
• The standard GST slabs in India are 5%, 12%, 18%, and 28%.
• Businesses with a turnover exceeding 40 lakh in case of goods and Rs. 20 lakh in case of services (For special category group, the limit will be Rs. 20 lakh and Rs. 10 lakh respectively) must register for GST.
• GST returns must be filed monthly, quarterly, or annually, depending on the business category.

What is Income Tax?

Income Tax is a direct tax imposed on the earnings of individuals and businesses. It is paid on income earned by an individual and on net profit in case of businesses.

Key Features of Income Tax:

• It applies to individuals, businesses, companies, and partnerships.
• The tax rates vary based on the entity type (e.g., individual slabs differ from corporate tax rates).
• Income Tax Return (ITR) has to be filed filing annually.
• Certain deductions and exemptions under Section 80C, 80D, and 10(10D) help reduce tax liability.
• The corporate tax rate for domestic companies in India is 22% (with certain conditions).

GST vs Income Tax: Key Differences

Which Tax Does Your Business Need to Pay?

• If you sell goods or provide services, you must register for GST if your turnover exceeds the prescribed limit.
• If your business earns a profit, you must pay Income Tax based on your net earnings.

Hence business need to pay both taxes.

Tax Compliance Tips for 2025

1. Stay Updated with Tax Laws – GST and Income Tax laws are updated frequently. Regular compliance is crucial.
2. Maintain Proper Records – Keep track of invoices, expenses, and financial statements to avoid penalties.
3. File Returns on Time – Late filing can lead to penalties and interest charges.
4. Seek Professional Help – Consult a tax expert or chartered accountant to optimize tax savings.
5. Use Digital Tools – Leverage GST and income tax filing software for seamless compliance.
6. Follow taxunplug on any of below social platforms for regular updates:
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FAQs on GST vs Income Tax

1. Can a business be liable for both GST and Income Tax?

Yes, if your business supplies goods/services (GST) and earns a profit (Income Tax), you must comply with both.

2. What happens if a business does not file GST returns?

Non-filing of GST returns can result in late fees, interest, and legal action from the tax department.

3. Are freelancers required to pay GST and Income Tax?

Freelancers must pay Income Tax on earnings and GST if their income exceeds Rs. 20 lakh annually.

4. Can businesses claim GST as an expense in Income Tax?

GST paid on purchases can be claimed as an input tax credit, but it is not deductible as an expense in Income Tax calculations.

5. What is the penalty for not filing Income Tax Returns?

Late filing of ITR can result in penalties up to Rs. 5,000 and interest on unpaid tax amounts.

Final Thoughts

Understanding the difference between GST vs Income Tax is essential for business owners in India. Ensuring timely compliance will help you avoid penalties and streamline financial operations. Keep track of GST returns and Income Tax filings to run a legally compliant and profitable business in 2025. With Tanunplug, you can focus on your business growth while we will handle all you compliances in relation to GST and Income tax. The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.

The post GST vs Income Tax: What Every Business Needs to Know in 2025 appeared first on Tax Unplug.

Filing your income tax returns (ITR) on time is crucial to avoid penalties, interest charges, and missed tax-saving opportunities. In 2025, staying updated on key deadlines will help ensure that your taxes are filed smoothly and without hassle.

Key Income Tax Deadlines for 2025

Here are the key dates you need to mark on your calendar:

1. Individual Taxpayers and HUFs (Non-Auditable Accounts):

• Deadline: July 31, 2025
• This applies to salaried individuals, pensioners, and taxpayers with income from other sources like house property, interest, or capital gains.

2. Businesses and Professionals Requiring Audit:

• Deadline: October 31, 2025
• Taxpayers whose accounts are subject to audit under the Income Tax Act, 1961, such as companies, Partners and certain professionals, must adhere to this timeline.

3. Transfer Pricing Cases:

• Deadline: November 30, 2025
• For entities engaged in international transactions or specified domestic transactions that require submission of a transfer pricing report.

4. Revised or Belated Return Filing

• Deadline: December 31, 2025
• Taxpayers who miss the original deadlines can file belated returns, while those who identify errors in their original returns can file revised ones within this timeframe.

5. Advance Tax Payment Deadlines for FY 2025-26 (AY 2026-27)

Advance tax is payable in installments throughout the year. Below are the due dates for each instalment in relation to FY 2025-26:

Penalties for Late Filing if you missed the deadlines

Missing your income tax deadlines can lead to several consequences, including:

Late Fees

• Up to Rs. 5,000 under Section 234F for late filing of returns.

Interest on Unpaid Tax

• 1% per month under Section 234A on outstanding tax liabilities as well as interest under 234B & 234C can be levied.

Restricted Refund Claims

• Delayed refunds for overpaid taxes.

Loss of benefits

• Taxpayers who miss the deadline cannot carry forward certain losses (e.g., business losses, capital losses).

To avoid these penalties, make sure to file your returns on time!

Tips to File Your Income Tax Returns on Time

Filing your ITR can be hassle-free if you follow these simple tips:

1. Keep Documents Ready

• Ensure you have all necessary documents like Form 16, capital gain statement, interest certificates, bank statements etc. This may very on who’s filing ITR.

2. Understand Your Taxable Income

• Calculate your total income from salary, House property, Business or profession, capital gain and any other sources.

3. Use Online Tools

• Utilize the Income Tax Department’s e-filing portal for secure and quick filing.

4. File Early

• Avoid last-minute stress by filing well before the deadline.

5. Consult a Tax Expert

• Seek professional advice if you’re unsure about your tax computation, exemptions or liabilities etc. “Taxunplug” IT professionals will help you in filing your ITR.

Frequently Asked Questions

Here are some common queries about income tax deadlines:

1. What happens if I miss the 31st July 2025 deadline?

• You can still file a belated return by 31st December 2025, but you have to pay late fees and interest on any outstanding tax.

2. Can I revise my income tax return after filing?

• Yes! You can revise your return until 31st December 2025 if you notice any errors or omissions.

3. Do senior citizens have different deadlines?

• No, the deadlines are the same for all individuals. However, senior citizens without business income are exempt from advance tax payments.

4. What is the penalty for late filing of income tax returns?

• A late fee of up to Rs. 5,000 and 1% interest per month on unpaid tax.

5. How can I pay Income Tax?

• Income Tax can be paid online via the Income Tax Department’s e-filing portal or at authorized bank branches.
• You can follow the below mentioned steps for making tax payment :
• Visit to the official page of Income tax department
• Navigating to ‘e-Pay Tax’ Section
• Enter PAN and Mobile Number
• A one-time password (OTP) will be send to verify the mobile number.
• Select the assessment year and payment type (AY 2026-27)
• Select the Payment Method
• Verify Payment Information
• Submit the Payment
• Receive Payment Confirmation and download the challan receipt.
• Also note that while paying the tax, you have to select the required head and sub-head under which the same has to be adjusted.

Final Thoughts

Timely filing of income tax returns not only helps you avoid penalties but also ensures that you can take full advantage of available tax benefits. Stay compliant by marking these important deadlines on your calendar and following the tips for a hassle-free filing experience. If you need further assistance, consider consulting a tax professional like “Taxunplug” by drooping your Name, Email and Phone no. at our website.

2025 Income Tax Deadlines in India

*This above blog is for general guidance purposes only and should not be construed as professional tax advice. The deadlines mentioned above can be extended by CBDT or Govt. of India in some circumstances Hence keep updated with latest updates.

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