Business Turnover > ₹1 Cr
Audit required under Section 44AB(a). Threshold rises to ₹10 crore if 95% or more of receipts and payments are through digital/banking channels.
BUSINESS TAX FILING
Tan Registration Registration
Professional business ITR filing for Companies, LLPs, Partnership Firms and Proprietorships. Corporate tax, tax audit coordination, MAT/AMT computation, advance tax planning and DSC-based filing .
ITR-5/6Entity Forms
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DSCMandatory for Companies
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SAMPLE
Tax Filing / TAN Certificate
Income Tax Department — sample acknowledgement / certificate
Illustrative sample. Your official certificate is issued after approval.
01
Entity-Specific Forms
ITR-6 for companies · ITR-5 for LLPs & firms · ITR-3/4 for proprietors
02
Tax Audit Integration
Section 44AB report must be filed before ITR due date and data must reconcile
03
Advance Tax
Quarterly instalments mandatory if estimated tax liability exceeds ₹10,000
04
MAT / AMT
Minimum Alternate Tax / Alternate Minimum Tax ensures a floor tax even with exemptions
OVERVIEW
What is Business Tax Filing?
Business Tax Filing is the process of declaring the annual income, expenses, deductions and tax liability of a business entity to the Income Tax Department through the prescribed ITR form. It applies to all business structures — Companies (ITR-6), LLPs and Partnership Firms (ITR-5), Proprietorships (ITR-3 or ITR-4), and Trusts/Associations (ITR-7).
Unlike individual ITR filing, business returns involve multi-schedule reporting covering business income computation, depreciation schedules, partner remuneration details, related-party transactions and compliance with accounting standards. For companies, filing must be done using a Digital Signature Certificate (DSC). A well-prepared return aligns financial statements, tax audit report and ITR schedules into a consistent disclosure.
Governing Law
Income Tax Act, 1961
Key Forms
ITR-3, ITR-4, ITR-5, ITR-6, ITR-7
Filing Method
DSC (mandatory for companies)
Audit Threshold
Section 44AB (turnover / receipts)
TAX RATES 2026
Business Entity Tax Rates in India
Tax rates vary based on entity type, turnover and the tax regime chosen. Health and Education Cess at 4% applies on tax plus surcharge for all entities.
| Entity Type | Tax Rate | Effective Rate (Approx.) | Applicable Section |
|---|---|---|---|
| Pvt Ltd / Public (Turnover ≤ ₹400 Cr) | 25% | 26% – 29.12% | Normal Provisions |
| Pvt Ltd / Public (Turnover > ₹400 Cr) | 30% | 31.20% – 34.94% | Normal Provisions |
| Company (New Regime) | 22% | ~25.17% | Section 115BAA |
| New Manufacturing Company | 15% | ~17.16% | Section 115BAB |
| LLP | 30% | 30% – 34.94% | Normal Provisions |
| Partnership Firm | 30% | 30% – 34.94% | Normal Provisions |
| Proprietorship | Slab Rates | 0% – 39% | Individual Tax Slabs |
| Section 8 Company / Trust | 30% | 30% – 34.94% | Normal Provisions |
Important:
Companies opting for Section 115BAA (22% rate) must file Form 10-IC before the ITR due date. Once opted, the regime is permanent and most Chapter VI-A deductions (except 80JJAA) are lost. Evaluate carefully before opting.
ITR FORMS
Which ITR Form for Your Business?
Using the wrong form triggers a defective return notice under Section 139(9). Always verify entity type and audit status before selection.
| Business Entity | ITR Form | Key Applicability | Filing Method |
|---|---|---|---|
| Private Limited / Public Company | ITR-6 | All companies not claiming exemption under Section 11 | Mandatory DSC |
| LLP | ITR-5 | All LLPs regardless of turnover or audit | DSC (if audit) or e-verification |
| Partnership Firm | ITR-5 | Registered and unregistered partnership firms | DSC (if audit) or e-verification |
| Proprietorship (Regular Books) | ITR-3 | Proprietors maintaining books with business/professional income | e-Verification or DSC |
| Proprietorship (Presumptive) | ITR-4 | Opting for Section 44AD, 44ADA or 44AE | e-Verification or DSC |
| Trust / Section 8 / AOP / BOI | ITR-7 | Entities under Sections 139(4A) to 139(4D) | DSC or e-verification |
SECTION 44AB
Tax Audit Requirements
Section 44AB mandates audit of accounts for businesses and professionals whose turnover or receipts exceed prescribed thresholds.
Professional Receipts > ₹50 Lakh
Audit required under Section 44AB(b) for professionals such as doctors, lawyers, architects and tax professionals.
Presumptive Opt-Out
If a taxpayer opts for 44AD/44ADA in one year and opts out in any of the next 5 years, audit is mandatory under Section 44AB(e).
Audit Forms
Form 3CA-3CD where accounts are already audited under another law; Form 3CB-3CD where the auditor conducts a full audit. Report must be filed before ITR due date.
Penalty:
Non-filing of the tax audit report attracts a penalty of 0.5% of turnover or ₹1.5 lakh, whichever is lower, under Section 271B.
7-STEP PROCESS
Step-by-Step Business Tax Filing Process
1. Maintain Books of Accounts
Record all business transactions systematically. Companies must follow applicable Accounting Standards or Ind AS. Proper bookkeeping is the foundation of accurate tax computation.
2. Get Tax Audit Conducted (If Applicable)
If turnover exceeds thresholds or you are opting out of presumptive taxation, appoint a tax professional for audit under Section 44AB. Auditor issues Form 3CA-3CD or 3CB-3CD.
3. Compute Business Income
Start with net profit per books. Add back disallowed expenses under Sections 40, 40A and 43B. Claim allowable deductions including depreciation under Section 32. Arrive at taxable business income.
4. Calculate Total Tax Liability
Apply the applicable tax rate based on entity type and regime. Compute surcharge and cess. Check MAT/AMT. Credit advance tax, TDS and TCS. Determine self-assessment tax or refund.
5. File ITR with Digital Signature
Select the appropriate ITR form. Fill all schedules. Upload the return with DSC (mandatory for companies and audit cases).
6. Pay Self-Assessment Tax (If Any)
If liability exceeds advance tax and TDS credits, pay the balance as self-assessment tax via Challan 280 before filing.
7. E-Verify & Download Acknowledgement
Complete e-verification through DSC, Aadhaar OTP, net banking or bank EVC. Download and store the acknowledgement. An unverified return is treated as not filed.
DOCUMENTS REQUIRED
What you need for business tax filing
1. Financial Statements
Audited Balance Sheet and Profit & Loss Account with notes to accounts, prepared as per applicable standards.
2. Tax Audit Report
Form 3CA-3CD or Form 3CB-3CD. Auditor certification of accounts and tax-specific clauses in 3CD.
3. Computation Sheet
Detailed income computation with schedules showing taxable income under each head and tax liability working.
4. Tax Credit Records
Form 26AS, AIS and TIS for cross-verification of TDS, TCS, advance tax and reported financial transactions.
5. Banking & GST Data
All business bank statements for the FY, GSTR-3B, GSTR-1 and Annual Return (GSTR-9) for turnover reconciliation.
6. Authorisations
Board resolution for audit appointment and ITR signing (companies). Form 16A from deductors. Partner authorisation for firms.
ADVANCE TAX
Advance Tax Obligations for Businesses
Every business entity with estimated tax liability exceeding ₹10,000 must pay advance tax in quarterly instalments.
| Instalment | Due Date | Cumulative % of Tax |
|---|---|---|
| 1st Instalment | 15 June | 15% |
| 2nd Instalment | 15 September | 45% |
| 3rd Instalment | 15 December | 75% |
| 4th Instalment | 15 March | 100% |
Interest:
Section 234B (default): 1% per month if advance tax paid is less than 90% of assessed tax. Section 234C (deferment): 1% per month on shortfall of any instalment. Presumptive taxpayers under 44AD/44ADA may pay the entire amount by 15 March.
MAT & AMT
Minimum Alternate Tax Provisions
MAT and AMT ensure that profitable businesses pay a minimum level of tax even when normal tax liability is reduced through exemptions and deductions.
| Parameter | MAT (Section 115JB) | AMT (Section 115JC) |
|---|---|---|
| Applicable To | All companies (except 115BAA / 115BAB) | LLPs, partnership firms, individuals/HUFs claiming certain deductions |
| Tax Base | Book profit as per Companies Act P&L | Adjusted total income |
| Rate | 15% of book profit (+ surcharge + cess) | 18.5% of adjusted total income (+ surcharge + cess) |
| Trigger | When normal tax < 15% of book profit | When normal tax < 18.5% of adjusted total income |
| Credit Carry Forward | 15 years | 15 years |
| Not Applicable If | Company opts for 115BAA or 115BAB | Adjusted total income ≤ ₹20 lakh |
KEY BENEFITS
Benefits of Timely Business Tax Filing
Avoid Penalties & Interest
Prevents late fees under Section 234F, interest under 234A/234B/234C, and penalty for non-filing of audit report under Section 271B.
Carry Forward Losses
Business and capital losses can only be carried forward for set-off against future income if the return is filed within the original due date.
Better Banking & Credit Access
Filed tax returns are essential for business loans, credit facilities, overdraft limits and working capital financing.
Government Tender Eligibility
Tax compliance history is a mandatory criterion for participation in government and PSU tenders and procurement processes.
Investor Confidence
Clean compliance records build trust with investors, auditors and business partners during due diligence and fundraising.
Faster Refund Processing
Timely filing with proper reconciliation of advance tax and TDS speeds up refund claims and reduces department queries.
WHY CHOOSE US
Why Corporate Mart for Business Tax Filing?
We align financial statements, tax audit report and ITR schedules into one consistent, notice-safe disclosure.
Entity-Specific Expertise
ITR-6 for companies with DSC, ITR-5 for LLPs and firms, ITR-3/4 for proprietors — form selection and schedule mapping done correctly the first time.
Tax Audit Coordination
We coordinate the Section 44AB audit, ensure Form 3CA/3CB-3CD is filed before the ITR due date, and reconcile audit data with the return.
MAT / AMT & Regime Planning
MAT/AMT computation, credit tracking, and evaluation of Section 115BAA / 115BAB options so you choose the lower lawful tax path.
Post-Filing Notice Support
Basic notice readiness review and support for clarifications, so you are not left alone after the acknowledgement is generated.
Books → Audit (if needed) → Income Computation → Tax Liability → DSC Filing → e-Verify → Track
FAQ
Frequently Asked Questions
A Private Limited Company must file Form ITR-6. This applies to all companies under the Companies Act 2013 (including OPC and Section 8 companies that do not claim Section 11 exemption). Filing must be done with a Digital Signature Certificate (DSC).
Both LLPs and Partnership Firms file Form ITR-5. DSC is required if a tax audit is applicable; otherwise e-verification is available.
When business turnover exceeds ₹1 crore (₹10 crore if 95%+ transactions are digital), or professional receipts exceed ₹50 lakh, or the taxpayer opts out of presumptive taxation within the next 5 years after having opted in.
Under Section 115BAA the rate is 22% (effective ~25.17% with surcharge and cess). New manufacturing companies under Section 115BAB can opt for 15% (effective ~17.16%). Once opted, the regime is permanent and most Chapter VI-A deductions are lost.
Yes. All companies registered in India must file an Income Tax Return even if they have zero income or are dormant. Non-filing can lead to the company being struck off and penalties under the Income Tax Act.
Penalty under Section 271B of 0.5% of turnover, capped at ₹1.5 lakh. The audit report must be filed on the Income Tax portal before the ITR due date.
If estimated tax liability exceeds ₹10,000, pay 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Shortfalls attract interest under Sections 234B and 234C.
When a company pays MAT under Section 115JB that exceeds its normal tax liability, the excess can be carried forward as MAT credit for 15 years and set off against normal tax in future years when normal tax exceeds MAT.
