Income Tax Return Filing for Businesses in India: A Complete Guide
Income Tax Return (ITR) filing is an annual compliance requirement for all businesses operating in India. The type of ITR form, filing deadlines, and applicable tax rates depend on the business structure, turnover, and nature of operations.
ITR-3: For individuals and HUFs who are partners in firms or carry out proprietary business or profession. This form requires detailed profit and loss account, balance sheet, and tax audit report (if applicable).
ITR-4 (Sugam): For presumptive taxation under Sections 44AD, 44ADA, and 44AE. Businesses with turnover up to Rs. 2 crore can opt for presumptive taxation where only 8% of turnover is deemed as income. Professionals with receipts up to Rs. 50 lakh can declare 50% as income.
ITR-5: For LLPs, Association of Persons (AOPs), and Body of Individuals (BOIs). This form requires details of partners, profit/loss appropriation, and audited accounts if applicable.
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Talk to an expertITR-6: For Private Limited Companies and Public Limited Companies. This form must be filed electronically and requires balance sheet, P&L account, tax audit report, and transfer pricing report if applicable.
Tax Audit: Businesses with turnover exceeding Rs. 1 crore (Rs. 10 crore for digital transactions) must get their accounts audited under Section 44AB. The tax audit report must be filed by September 30, and the ITR must be filed by October 31.
Late Filing Consequences: Late filing fee under Section 234F is Rs. 5,000 if filed after the due date but before December 31, and Rs. 10,000 if filed after December 31. Interest under Sections 234A, 234B, and 234C also applies for delayed filing and payment.
Axaon helps businesses prepare and file their income tax returns with accurate financial statements, tax audit coordination, and deadline tracking to ensure timely and penalty-free compliance.
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