Who Needs to File?

    • Sole Proprietorships: Treated as individual income; file using ITR-3 or ITR-4 (if opting for presumptive taxation).
    • Partnership Firms/LLPs: File ITR-5; partners may also file individual ITRs (e.g., ITR-2 or ITR-3).
    • Companies: File ITR-6 (private/public companies) or ITR-7 (trusts or Section 8 companies).
    • Mandatory Cases:
     o Businesses with turnover requiring audit (e.g., ₹1 crore for business, ₹50 lakh for professionals, unless opting for presumptive taxation).
     o Firms/companies with foreign income, assets, or high-value transactions (per AIS).
     o Any business with TDS/TCS deducted or claiming tax refunds/loss carry-forwards.

Key ITR Forms for Businesses

Steps to E-File Business ITR (AY 2025-26)

1. Register/Login:
       o Visit incometax.gov.in/iec/foportal.
       o Use PAN (for individuals/firms) or company PAN as user ID.
       o Register if new: Provide PAN, entity details, and verify via OTP.
2. Gather Documents:
       o PAN and Aadhaar (for individuals/partners).
       o Form 26AS/AIS (download from portal for TDS/TCS details).
       o Balance sheet, profit & loss statement (if audit required).
       o Bank statements, invoices, expense records.
       o Form 3CD (audit report, if applicable; e.g., turnover > ₹1 crore for businesses).
       o Investment proofs for deductions (e.g., Section 80G for donations).
       o GST returns (if registered) to align turnover.
3. Select ITR Form and Filing Mode:
       o Choose AY 2025-26 and the appropriate ITR form.
       o Use online mode for pre-filled data (ITR-3/4) or offline utility for ITR-5/6 (download JSON, fill, and upload).
       o For companies (ITR-6), a Digital Signature Certificate (DSC) is mandatory.
4. Fill and Validate:
        o Enter business income: Gross receipts, expenses, and net profit.
        o Presumptive Taxation (optional):
                 o Section 44AD: 6% (digital) or 8% (cash) of turnover (≤ ₹2 crore).
                 o Section 44ADA: 50% of gross receipts (≤ ₹50 lakh for professionals).
         o Claim deductions: Section 80C (individuals), 80G, or business-specific (e.g., 80JJAA for employment generation).
         o Compute tax: For companies, flat 25% (turnover ≤ ₹400 crore) or 30%; for partnerships/individuals, use applicable slabs (new regime: 0% up to ₹3 lakh, 30% above ₹15 lakh).
         o Pay advance tax/self-assessment tax via e-Pay Tax (net banking/UPI). Interest applies for delays (Sections 234A/B/C).
         o Validate: Check errors; preview tax summary.
5. E-Verify and Submit:
         o Submit the return.
         o Verify within 30 days: Use Aadhaar OTP, EVC, DSC (mandatory for companies/audit cases), or net banking. Physical ITR-V (to CPC Bengaluru) is rarely needed.
         o Receive acknowledgment: ITR-V or email confirmation. Track status under "My Account > ITR Status."
6. Post-Filing:
         o Monitor refunds: Check "e-File > Refund Status" (processed in 4-10 hours for many cases).
         o Address notices: Respond to Section 143(1) notices via "e-Proceedings."
         o File revised returns by December 31, 2025, if errors are found.

Audit Requirements

     • Mandatory if turnover exceeds ₹1 crore (business) or ₹50 lakh (profession), unless under presumptive taxation (₹2 crore/₹50 lakh with 95% digital receipts).
     • Submit audit report (Form 3CD) by September 30, 2025 (extended for AY 2025-26).
     • For block assessments (Section 158BC), use ITR-B via e-Proceedings.