CONNECT US
NEED TO TALK
WHATSAPP US
Running a business means handling sales, staff, stock, GST, and bank work every day. Income tax return filing is one more task that cannot be missed, and it is not as simple as an individual's return. A business has books of accounts, audit rules, different ITR forms, and many tax rules based on how the business is set up.
A small mistake can lead to a penalty, a notice, or loss of some tax benefits. This guide completely explains about ITR filing for businesses in simple words. It also shows how CA Arpit Gupta can file your return correctly and on time.
If the income is above the exemption limit, Any entity or person who gains income from profession or business must file ITR. Some entities must file even with a loss or zero income. These include:
| Type of Business | How Tax Is Charged |
|
Proprietorship |
Business income is added to the owner's income and taxed at individual slab rates |
|
Partnership Firm |
Taxed at 30% flat rate + surcharge and cess |
|
LLP |
Taxed 30% flat rate + surcharge and cess |
|
Domestic Company |
25% or 22% or 15% depending on the section opted, plus surcharge and cess |
|
HUF |
Taxed at slab rates like an individual |
| Form | Who Should File? |
|
ITR-3 |
Individuals and HUFs with business or professional income (not presumptive) |
|
ITR-4 (Sugam) |
Resident individuals, HUFs, and firms (other than LLP) opting for presumptive tax, with income up to ₹50 lakh |
|
ITR-5 |
Partnership firms, LLPs, AOPs, and BOIs |
|
ITR-6 |
Companies (except those claiming exemption under Section 11) |
|
ITR-7 |
Trusts, institutions, and political parties |
Using the wrong form can make your return defective. We check your business type and income first, and then choose the right form.
If your business is small, you can use presumptive taxation and avoid keeping detailed books.
| Section | Who Can Use It | Turnover Limit | Income You Declare |
|
44AD |
Small traders and businesses (not professionals) |
₹2 crore |
Must declare 8% of turnover or 6% for your digital receipts |
|
44ADA |
Specified professionals like doctors, lawyers, engineers, architects |
₹50 lakh |
50% of gross receipts |
|
44AE |
Goods carriages owners |
Per vehicle basis |
Fixed amount per vehicle per month |
A tax audit under Section 44AB is done by a Chartered Accountant. It is needed in these cases:
| Case | Audit Needed If |
|
Business |
More than ₹1 crore turnover (if payments or cash receipts are 5% or less then ₹10 crore) |
|
Profession |
Gross receipts are more than ₹50 lakh |
|
Presumptive business (44AD) |
If your income is above exemption limit and you declared profit is lower than 6% or 8% |
|
Presumptive profession (44ADA) |
If your income is above exemption limit and you declared profit is lower than 50% |
For all businesses:
For firms and companies, also keep:
Every business should keep proper records. This helps you file correctly and also protects you during a notice or scrutiny.
| Service | What We Do |
|
ITR-3 and ITR-4 filing |
For proprietors and professionals |
|
ITR-5 filing |
For partnership firms and LLPs |
|
ITR-6 filing |
For private and public limited companies |
|
Books and accounts |
Profit and loss account and balance sheet |
|
Tax audit support |
Audit under Section 44AB |
|
Advance tax |
Calculation and reminders |
|
TDS return |
Quarterly TDS return filing |
|
Notice reply |
Reply to income tax notices |
|
Tax planning |
Legal ways to reduce your business tax |
Your business has enough to handle. Let us take care of your tax filing. Send us your records today, and we will prepare, audit if needed, and file your return correctly.
CA Arpit Gupta Call or WhatsApp: +91-7081220600
Call now for ITR filing, tax audit, advance tax, and notice reply for your business.
All rights reserved to Arpit Gupta & Co. | Developed by RNA Infotech
