What do I do if my Indian business return is late and my books are incomplete?
Books first, return second. A return in this family assumes accounts capable of supporting the figures in it, and a late return built on estimates is a position you cannot defend if the year is looked at, which a late business year is more likely to attract. The reconstruction is usually possible from bank records, invoices raised, supplier statements and the engagements themselves. Do it year by year rather than in aggregate, because the figures have to belong to the right year. Then file, oldest open year first. The delay continues either way, and a defensible filing is worth the extra weeks.
Does a late business return invite scrutiny of my Indian accounts?
It is fair to assume a late business year draws more attention than a late salary year, because there is more in it to look at: the accounts, the expenses claimed, and whether books existed when the return was prepared. That is an argument for preparing it properly rather than quickly. The audit question is separate and is answered on the year's own facts, not on whether the filing was late. Where an audit requirement applies to an old year, it does not disappear because the year is late, and it has to be dealt with before the return is worth much.
Will I lose my Indian business losses if I file late?
That is one of the first things to check on a late business year, and it is checked year by year rather than answered in general terms. A loss is only useful if it has been reported in a return for the year in which it arose, and how and when that return goes in can affect whether it remains available to set against a later profit. So establish the loss years and their status before deciding the order of work. The answer often changes which years justify full reconstruction and which simply need to be filed.
Does filing late change my permanent establishment position in India?
The characterisation is decided by what was actually done in India in that year, so lateness does not change it. What lateness changes is who raises it first. A return filed on time takes its position quietly; a late business return from a non-resident tends to prompt the question directly, and you then answer it under time pressure with records that are already years old. The work is the same either way and much better done in advance: establish the facts for each year concerned, reach a conclusion, write down the reasoning, and file consistently with it.
Will my Canadian return be penalised as well if I owe tax there?
If there is a balance owing in Canada for the same year, yes, and the Canadian penalty is measured on that balance rather than on the filing alone. For the 2025 tax year it is 5 per cent of the balance owing plus 1 per cent for each full month the return is late, to a maximum of 12 months. Where the Canada Revenue Agency issued a demand to file and charged a late-filing penalty in any of the three preceding tax years, it is 10 per cent plus 2 per cent for each full month, to a maximum of 20 months. The penalty itself does not compound; interest on the unpaid balance compounds daily. Business income also raises the instalment question for the same year, which is worth settling alongside it.
Where do I start with several late years of Indian professional income?
With a list of the years and, for each, a short set of facts: whether you were resident, what the Indian activity actually was, and what records survive. That tells you which years can be rebuilt properly and which need a different approach. Then reconstruct the accounts for the earliest open year and work forward, because expenses, receivables and closing positions carry from one year into the next and cannot be built in reverse. The return is the last step in each year, not the first. Most of the time in this work goes on records; the filings are quick once books exist.
Is money received in India from abroad taxable?
Receiving your own money is not income, and a gift from a specified relative is exempt however large. Two things do bite. A gift from someone outside that relative list is taxable to the recipient once the year's receipts pass the threshold in the gift provisions. And money that is really payment for something — fees, rent, interest, a share of profit — is taxed as that income whatever the bank narration says. The paperwork should match the substance. See gifting money to family in India.
What are Form 15CA and Form 15CB?
They are the certification pair required before certain remittances leave India. Form 15CA is the remitter's declaration filed online; Form 15CB is the accountant's certificate supporting the tax treatment and the rate applied, including any treaty relief. Which combination you need depends on the nature and size of the payment, and banks will generally not process the remittance without them. See Form 15CA.
