How to file Business Returns?

Filing business tax returns is the process where a business has to report its income and expenditure to the Income Tax department.

Every business that is operating in India, whether small or big have to file Income Tax returns every year.

A business tax return is nothing, but a statement of income earned and expenditure of the business.

If the business earns some profits, they have to pay taxes on that profit.

If you are a business owner in India, you need to file the income tax returns every year.

Every partnership firm, also need to file the returns every year, whether there is profit or loss.

If there are no business activities/transactions, then nill returns must be reported by the partnership firm, before the due date.

There may be a chance of getting refund, if you have paid excess taxes earlier.

Businesses need to use Sugam ITR-4 for Income Tax return if they have selected for the presumptive income scheme as per section 44AD and Section 44AE of the Income Tax Act.

If you are a sole proprietor, and you have some other source of income like, Income from house property, interest income etc., then all these has to be clubbed under the same return.

If your total income before deductions is above the basic taxable limit of Rs 2.5 lakh, you have to mandatorily file ITR.

For companies, firms, business tax return needs to be filed irrespective of profit or loss.

What are the documents required for filing ITR for business?

  • PAN card
  • Aadhaar card
  • Loan documents to claim a rebate
  • A balance sheet of the financial year
  • Certificates showing the tax deducted at the source (TDS)
  • Challan copy of income tax payments such as advance tax and self-assessment tax.