Business Income Tax Return
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Table of Content
- Business Income Tax Return – Overview
- What is a business tax return?
- Eligibility for Business Income Tax Return
Income Tax Return for NRI
What is a business tax return?
Eligibility for Business Income Tax Return:
- Individuals – Sole proprietors earning income through a business or profession.
- Partnership Firms – Including Limited Liability Partnerships (LLPs).
- Companies – Both Private Limited and Public Limited companies.
- Trusts, Associations, and Societies – Engaged in business activities.
- Professionals – Such as doctors, lawyers, architects, and consultants who are self-employed.
Criteria:
- Annual Turnover: If your turnover exceeds the basic exemption limit (as defined for individuals, firms, or companies), you must file a return.
- Audit Requirement: Businesses with a turnover above ₹1 crore (₹10 crores if 95%+ transactions are digital) are required to get their accounts audited under Section 44AB.
- Presumptive Taxation: Businesses opting for presumptive taxation under Section 44AD, 44ADA, or 44AE must also file returns accordingly.
- Losses: Filing is mandatory to carry forward business losses to future years.
- Tax Deducted at Source (TDS): If any TDS has been deducted on your income, filing a return helps claim refunds.
FAQs for Income Tax Return for NRI
Any individual, partnership firm, LLP, or company earning income from business or profession must file an Income Tax Return (ITR) annually, even if the business is operating at a loss or has no income.
• ITR-3: For individuals and HUFs with income from business/profession.
• ITR-4: For presumptive income under Sections 44AD, 44ADA, or 44AE.
• ITR-5: For partnership firms and LLPs.
• ITR-6: For companies (except those claiming exemption under Section 11).
• ITR-7: For charitable trusts and institutions claiming exemption.
• 31st July 2025: For non-audited businesses.
• 31st October 2025: For audited businesses and companies.
• 30th November 2025: For businesses requiring Form 3CEB (transfer pricing).
Late filing attracts a penalty of up to ₹5,000 under Section 234F. You may also have to pay interest under Section 234A and lose benefits like carry-forward of losses or claiming refunds.
Yes. Filing is mandatory, especially if you want to carry forward the loss to offset future profits or maintain legal compliance.
Key documents include PAN, Aadhaar, financial statements (P&L, Balance Sheet), bank statements, GST returns, TDS details, and prior year ITRs. Audit reports are required if applicable.
No. Audit is mandatory only if turnover exceeds ₹1 crore (or ₹10 crores if 95%+ transactions are digital), or for professionals if gross receipts exceed ₹50 lakh.
Yes. You can revise your return before 31st December 2025 or completion of the assessment, whichever is earlier.
BookMyCompliance offers expert tax support and easy-to-use software (LEDGERS) for small businesses. We help with accurate filing, compliance checks, audit support, and meeting deadlines.
Presumptive taxation (under Sections 44AD, 44ADA, and 44AE) allows small businesses and professionals to declare income at a fixed rate without maintaining books of accounts. It is ideal for small taxpayers seeking simplified compliance.
Form 26AS is a consolidated annual tax statement issued by the Income Tax Department. It shows all the taxes deducted at source (TDS), advance tax paid, and self-assessment taxes. It is essential to cross-check this while filing your return to avoid mismatches.
Yes. TDS only indicates that tax has been deducted on certain income. You must still file an ITR to report your total income and claim refunds if TDS exceeds your actual tax liability.
