Author: PEAK Business Consultancy Services | Category: Business ITR Filing – India
Running a startup or small business in India comes with a long checklist—one of the most critical items being income tax return (ITR) filing. Whether you’re a sole proprietor, a partnership firm, LLP, or a private limited company, filing your taxes accurately is essential for compliance, funding, credibility, and long-term growth.
This detailed guide walks you through the essentials of tax filing for Indian startups and small businesses, including forms, deductions, schemes, and deadlines. Need help filing your business return? Let our expert team take care of it.
1. Who Needs to File a Business Income Tax Return?
- Sole proprietors and freelancers: Income taxed as personal income under “Profits and Gains from Business or Profession”
- Partnership firms and LLPs: Mandatory to file ITR, irrespective of income or loss
- Private Limited Companies: Compulsory ITR filing each year, even with no income
- Startups registered with DPIIT: Eligible for specific exemptions but must still file returns
2. ITR Forms Applicable to Business Owners
- ITR-3: Individuals or HUFs having income from business or profession
- ITR-4 (Sugam): For presumptive income (Sections 44AD, 44ADA, 44AE)
- ITR-5: For partnership firms, LLPs, AOPs, and BOIs
- ITR-6: For companies other than those claiming exemption under Section 11
Not sure which form applies to you? Our consultants will handle everything end-to-end.
3. Presumptive Taxation Scheme for Small Businesses (Section 44AD)
Businesses with turnover up to ₹2 crore can opt for presumptive taxation under Section 44AD. Here’s how it works:
- 8% of total turnover (6% if received digitally) is deemed as profit
- No requirement to maintain books of accounts
- No tax audit required
4. Presumptive Taxation for Professionals (Section 44ADA)
Professionals such as doctors, architects, and consultants with gross receipts up to ₹50 lakh can opt for 44ADA:
- 50% of gross receipts are considered taxable income
- Books of accounts and audit not required
Important: Once opted out of the presumptive scheme, you cannot opt back in for 5 years. We help you decide whether 44AD/ADA suits your business best.
5. Books of Accounts and Audit Requirements
- Businesses with turnover above ₹10 lakh (professionals) or ₹25 lakh (business) may need to maintain books
- Tax audit is mandatory under Section 44AB if turnover exceeds:
- ₹1 crore for businesses (if not opting 44AD)
- ₹50 lakh for professionals (if not opting 44ADA)
6. Deductions and Tax Saving Opportunities
- Section 80C: Investments in LIC, PPF, NSC, ELSS
- Section 80D: Health insurance premiums
- Section 35: Expenditure on scientific research
- Section 10(38)/112A: LTCG on equity and mutual funds
- Depreciation: Deduct capital expenses over time
- Startup Tax Holiday: DPIIT-registered startups may claim 100% exemption for 3 consecutive years under Section 80-IAC
7. Important Tax Filing Due Dates (FY 2024–25)
- 31st July 2025: For individuals and sole proprietors (non-audit)
- 31st October 2025: For firms, LLPs, companies requiring audit
- 30th November 2025: For businesses requiring transfer pricing audit (Form 3CEB)
8. Common Mistakes by Startup Founders and Small Business Owners
- Using the wrong ITR form
- Missing out on eligible deductions
- Not maintaining books when required
- Delaying tax filing beyond due dates
- Ignoring TDS compliance (filing 26Q, 24Q, etc.)
Avoid errors that can attract penalties—get your business return filed by experts.
9. GST and Income Tax – Are They Linked?
Yes. GST turnover must match income declared in ITR. Discrepancies can result in scrutiny. Ensure that:
- GSTR-3B and GSTR-1 match with books
- Turnover declared in ITR aligns with GST filings
10. Why Choose OurTaxPartner.com for Business Tax Filing?
- Expert handling of ITR forms for individuals, firms, LLPs, and companies
- Advisory on presumptive schemes and startup benefits
- GST and income tax reconciliation
- Year-round compliance support
- Dedicated consultant for tax filing and audit queries
Click here to file your startup or business tax return with confidence
Conclusion
Tax filing for startups and small businesses is more than a compliance ritual—it’s a strategic step toward financial clarity, funding eligibility, and regulatory peace of mind. Whether you operate as a sole proprietor, startup, or growing company, make sure your taxes are filed professionally, on time, and in full compliance with the law.
Let PEAK Business Consultancy Services help you file accurately, claim your deductions, and grow tax-smart. Start now with our affordable business filing solutions.
Need assistance with your business ITR or startup compliance? Visit www.ourtaxpartner.com/filing-service/income-tax-efiling to book your consultation.
