Complete Guide & Document Checklist
How to File ITR for Business
Step-by-step process, required documents checklist, costs, timeline, and frequently asked questions
Which ITR form you use depends on your business structure. Sole proprietors and partnership partners file business income as part of their personal ITR using ITR-3 or ITR-4. Firms and LLPs file ITR-5. Private Limited and other companies file ITR-6. Getting the right form and understanding if you need a tax audit under Section 44AB is critical - get it wrong and you face penalties.
For FY 2025-26, a tax audit by a Chartered Accountant is mandatory if your business turnover exceeds Rs. 1 crore (or Rs. 10 crore if 95% of transactions are digital). For professionals, the audit threshold is Rs. 50 lakhs of gross receipts. Audited returns are due 31st October 2026; non-audit returns are due 31st July 2026. Presumptive taxation under Section 44AD (businesses) and 44ADA (professionals) can significantly simplify things if you qualify.
Timeline
3-15
working days (depending on audit requirement)
Cost
Government fee: Free (portal)
Professional (CA) fee: Rs. 2,999-24,999 depending on audit and complexity
Who needs to file?
You're a sole proprietor or freelancer with business or professional income
You're a partner in a partnership firm or LLP reporting your share of firm profits
You're a company director receiving salary plus dividends from your company
Your business turnover exceeds Rs. 1 crore and you need a tax audit
You're a professional (doctor, lawyer, CA, architect) with gross receipts above Rs. 50 lakhs
Your business has international transactions requiring a transfer pricing report
Documents required
Click on any document to see detailed requirements and how to obtain it
17
Total Documents
10
Required
4
Ollvy Handles
Identity and Signing
For the entity and the signing director/partner
Entity PAN Card
REQcompany or LLP PAN - different from promoter personal PAN
Aadhaar of Signing Director/Partner
REQfor e-verification of ITR - OTP will be sent to the signatory's Aadhaar-linked mobile
DSC of Signing Director/Partner
REQOLLVYClass 3 DSC for signing ITR and tax audit report - Ollvy can procure if needed
Financial Statements
Audited financials for the financial year
Audited Balance Sheet
REQsigned by auditor and directors - as of March 31
Profit and Loss Statement
REQaudited P&L for the year - revenue, expenses, net profit/loss
Notes to Accounts
REQaccounting policies and disclosures - part of audited financials
Trial Balance
REQyear-end trial balance - basis for preparing financial statements
Tax Documents
TDS, advance tax, and credit statements
Form 26AS and AIS
REQdownload from incometax.gov.in - cross-verify against GST returns and financial statements
TDS Certificates (Form 16A)
from clients who deducted TDS on payments to your business
Advance Tax Challans
proof of advance tax payments made during the year - keep all payment receipts
Tax Computation (CA Prepared)
OLLVYprepared by Ollvy's CA based on financial statements provided - not a document you need to supply
Books of Accounts
Maintained mandatorily under Section 44AA
Books of Accounts (Cash Book, Ledger)
REQmaintained mandatorily under Section 44AA - digital or physical
Tax Audit Report (Form 3CA/3CB + Form 3CD)
OLLVYmandatory when turnover exceeds ₹1 Crore (business) or ₹50 lakh (profession) - prepared by CA
Depreciation Schedule
for businesses with capital assets - depreciation under IT rules is different from Companies Act rates
GST Records
For reconciliation with income
GSTR-3B Summary
REQall 12 months filed - for Clause 44 reconciliation
GSTR-9 Annual Return
annual GST return - mandatory for businesses with turnover above ₹2 Crore
GST Reconciliation Statement (GSTR-9C)
OLLVYmandatory for turnover above ₹5 Crore - reconciles audited P&L with GST returns
Entity PAN Card
Identity and Signing
What is this?
Every company and LLP has its own PAN, separate from the directors' or partners' personal PANs. The business ITR is filed under the entity PAN. If you're filing for a partnership firm, the firm also has its own PAN (applied after executing the partnership deed). The entity PAN must be linked with TAN (Tax Deduction Account Number) if you are deducting TDS on salaries, rent, or contractor payments.
How to get it
The entity PAN was issued by MCA at the time of incorporation (for company/LLP) or applied separately (for partnership firm). Download from the IT portal or locate the original PAN card. If lost, apply for a reprint at NSDL or UTIITSL.
Common Issues
Filing ITR under the wrong PAN (personal instead of entity or vice versa) is a common mistake for new founders. The entity ITR is filed under the company/LLP/firm PAN, not under your personal PAN. Tax audit reports (Form 3CA/3CD) are also filed under the entity PAN.
Requirements
- 01Separate PAN for company/LLP/partnership - not the promoter's personal PAN
- 02Entity PAN is used for: ITR filing, GST, TDS deductions, bank accounts
- 03If lost: apply for reprint at NSDL/UTIITSL
- 04Link entity PAN with TAN if you deduct TDS
Need help with Business ITR?
Ollvy handles complete business ITR filing - from audit coordination to return filing. CA assigned within 24 hours.
File Business ITRStep-by-step process
Determine your correct ITR form
Use ITR-3 for proprietors, partners, or directors with business income and no presumptive taxation. ITR-4 (Sugam) works if you're using presumptive taxation under 44AD, 44ADA, or 44AE. LLPs and firms use ITR-5. Companies use ITR-6.
Check if you need a tax audit
If your business turnover exceeds Rs. 1 crore (Rs. 10 crore for digital transactions) or professional receipts exceed Rs. 50 lakhs, a Chartered Accountant must audit your accounts under Section 44AB before you file.
Finalise your books of accounts
Prepare your profit and loss statement and balance sheet for FY 2025-26. Make sure all income and expenses are properly recorded. If you're using accounting software, export the required reports.
Compute taxable income and deductions
Calculate net profit after all allowable business expenses. Claim deductions under Section 80C, 80D, and other applicable sections. Account for losses from prior years that you can set off against current income.
Get the tax audit done (if required)
Engage a CA to conduct the audit and upload the Tax Audit Report (Form 3CA/3CB and 3CD) on the Income Tax portal before you file your return. The CA signs and uploads using their credentials.
Pay advance tax and self-assessment tax
If your total tax liability after TDS is Rs. 10,000 or more, advance tax must be paid in quarterly instalments during the year. Pay any remaining self-assessment tax via Challan 280 on the Income Tax portal before filing.
File and e-verify your return
Log in to incometax.gov.in, select your ITR form, fill in the required schedules, and submit. E-verify immediately using Aadhaar OTP, net banking, or DSC to complete the process.
Frequently Asked Questions
What is the Presumptive Taxation Scheme under Section 44AD?
Section 44AD lets small businesses with turnover up to Rs. 3 crore declare 8% of turnover (6% for digital receipts) as net profit without maintaining detailed books. This simplifies compliance significantly. But once you opt out of 44AD, you can't come back for 5 years.
What are the due dates for business ITR filing in FY 2025-26?
For businesses not requiring audit: 31st July 2026. For businesses requiring tax audit under Section 44AB: 31st October 2026. For businesses with international transactions requiring transfer pricing report under Section 92E: 30th November 2026.
What's the penalty for not getting accounts audited when required?
You'll face a penalty of 0.5% of total sales or gross receipts, up to Rs. 1.5 lakhs, under Section 271B. Plus, filing after the due date without a valid reason attracts the Rs. 5,000 late filing fee under Section 234F.
Can a sole proprietor use the Presumptive Taxation Scheme under Section 44ADA?
Yes, if you're a specified professional - doctor, lawyer, CA, architect, engineer, film artist, or management consultant. If gross receipts are below Rs. 75 lakhs (with 95% digital receipts), you can declare 50% of receipts as net income without maintaining detailed books.
How is income tax calculated for a Private Limited Company?
Companies pay corporate income tax at 22% (plus surcharge and cess, totaling 25.17% effective rate) under Section 115BAA if they forgo certain deductions. New manufacturing companies can opt for 15% (17.01% effective) under Section 115BAB. Companies not using these concessional regimes pay 30% on net profits.
Common mistakes to avoid
- 01Filing ITR-4 under presumptive taxation when turnover has crossed the Rs. 3 crore limit
- 02Not paying advance tax instalments on time, triggering interest under Sections 234B and 234C
- 03Missing the 31st October tax audit deadline by not engaging a CA early enough
- 04Not claiming depreciation on business assets, resulting in unnecessarily high taxable income
- 05Failing to report all bank accounts in the ITR - this triggers mismatch notices
- 06Not setting off business losses against other income or carrying them forward properly
- 07Treating capital expenditure as revenue expenditure (or vice versa) incorrectly