Filing a business income tax return is a key responsibility for every company, as it records your business’s income, expenses, assets, and tax details in one place.
At Filingwise, we make business tax return filing in India simple and stress-free. Our expert team guides you through the process, ensuring accuracy and timely submission, so you never miss deadlines or face penalties. Whether you’re a startup or a growing enterprise, we’re here to support you every step of the way.
What is a Business Tax Return?
A business tax return is an annual income tax filing that reports your company’s financial details, including income, expenses, TDS, assets, and liabilities. It acts as a financial statement for the tax authorities and must be filed before the due date to avoid penalties.
With Filingwise, you can file your business tax returns online with ease and confidence. Say goodbye to tax season stress and focus more on growing your business.
Who Needs to File a Business Tax Return in India?
Filing a business tax return is mandatory for all businesses under Indian tax laws, regardless of size or turnover. The requirement depends on your business structure, such as:
Sole Proprietorship – Treated like an individual, but all business income must be reported.
Partnership Firm – Every partnership must file returns, whether it makes a profit or loss.
Limited Liability Partnership (LLP) – LLPs are required to file returns annually, even with no income.
Companies – Includes Private Limited Companies and One Person Companies (OPCs), which must file returns every year.
In short, if you own or manage a business in India, filing your business income tax return is not optional—it’s a legal requirement.
Key Points for Business Income Tax Filing
Total Income Check – All businesses must calculate income, even with no profit. If it crosses the exemption limit, filing an income tax return is mandatory.
Gross Income Rule – Individuals with income above ₹2.5 lakhs or businesses above ₹3 lakhs must file their returns.
Flat Tax for Firms – LLPs, companies, and partnership firms pay a flat 30% tax, making return filing compulsory every year.
Timely business tax filing keeps you compliant, avoids penalties, and builds trust with banks, partners, and customers.
Types of Business Income Tax Return Filing
- Partnership Firm – Must file ITR-5
Proprietorship – Filed as individual income (ITR-3/ITR-4).
- LLP – File ITR-5 with added LLP compliances.
Company – Private Limited, OPCs, etc., file ITR-6.
Choosing the right ITR form ensures compliance, avoids penalties, and supports smooth business growth.
1) Partnership Firm Income Tax Return Filing
Every partnership firm in India must file an income tax return (ITR), even if there’s no income or only losses. These firms are taxed as separate entities, just like LLPs and companies.
Tax Rate: 30% of total income + 12% surcharge (if income exceeds ₹1 crore) + 4% health & education cess.
Minimum Alternate Tax (MAT): At least 18.5% of adjusted total income, plus surcharge & cess.
Tax Audit: Mandatory if turnover exceeds ₹1 crore (business) or ₹50 lakhs (profession).
Due Date: July 31 for most firms; September 30 if audit is required.
ITR Form: Partnership firms must file using ITR-5.
👉 Filing your partnership firm’s tax return on time ensures compliance, avoids penalties, and strengthens financial credibility with banks and stakeholders.
2) Proprietorship Tax Return Filing Made Simple
Running a business as a sole proprietor? You’re required to file an income tax return (ITR) every year. Since a proprietorship and its owner are legally the same, the return filing process is almost identical to individual tax filing.
When Do Proprietors Need to File?
Under 60 years → File if income is above ₹2.5 lakhs.
60–80 years (Senior Citizens) → File if income crosses ₹3 lakhs.
Above 80 years (Super Senior Citizens) → File if income is more than ₹5 lakhs.
Tax Rates for Proprietorships
Proprietorships are taxed at individual slab rates, not at a flat rate like LLPs or companies. This often makes tax liability more manageable for small business owners.
Proprietorship Tax Return Filing – Key Points
Surcharge (AY 2023-24): Under the new tax regime (Sec 115BAC), surcharge is 25% instead of 37%.
Audit Rules: Audit is needed if turnover exceeds ₹1 crore (business) or ₹50 lakhs (profession).
Filing Deadlines:
Without audit → July 31
With audit → September 30
ITR Forms:
ITR-3 for proprietors/HUF with business or profession.
ITR-4 (Sugam) for those under presumptive taxation.
👉 Filing your proprietorship tax return on time keeps you compliant, avoids penalties, and ensures smooth business operations.
3) LLP Tax Return Filing in India
All LLPs in India must file an income tax return every year, even if there’s no business activity (file NIL return).
Tax Rate: 30% of total income + 12% surcharge (if income > ₹1 crore) + 4% cess.
Minimum Tax: At least 18.5% of adjusted income (MAT applies).
Audit Rule: Mandatory if turnover > ₹40 lakh or capital contribution > ₹25 lakh.
Due Dates: July 31 (no audit) | September 30 (with audit).
Form: LLPs must file ITR-5 online using a partner’s digital signature.
👉 Filing on time keeps your LLP compliant and avoids penalties
4) Company Tax Return Filing in India
If you’ve registered a company in India, whether it’s active, inactive, or even brand new, filing an income tax return every year is mandatory. This rule applies to all types of companies—Private Limited, One Person Company (OPC), Limited Companies, and even foreign companies operating in India.
Who needs to file: Every registered company, regardless of profit, loss, or no business activity.
Tax rates (AY 2024-25):
25% for companies with turnover below ₹400 crores (FY 2020-21).
30% for companies with turnover above ₹400 crores.
Plus surcharge and 4% Health & Education Cess.
Minimum Alternate Tax (MAT): At least 15% of book profits, even if actual tax liability is lower.
Audit requirement: Every company must get its accounts audited annually by a Chartered Accountant.
Due date: September 30 each year (new companies from Jan–Mar also need to file by this date).
Which ITR form: Companies must file using Form ITR-6 online.
👉 Filing your company’s tax return on time keeps you compliant, avoids penalties, and boosts financial credibility with banks, investors, and stakeholders
How Filingwise Helps with Business Tax Return Filing
Filing business taxes doesn’t have to be stressful. At FilingWise, we make the process simple with expert support and easy-to-use tools. Our team guides you through every step—choosing the right ITR form, meeting deadlines, and filing accurately.
With our smart LEDGERS software and professional assistance, small business owners can handle tax filing and accounting smoothly. We keep you updated on due dates, reduce errors, and save you time so you can focus on growing your business.
👉 Simplify your tax return filing with FilingWise—accurate, on time, and stress-free.
