ITR Filing — Business / Profession

Businesses and professionals are required to file income tax returns under Section 139(1) of the Income Tax Act, 1961 if their total income exceeds the basic exemption limit, or if they are companies or firms (mandatory regardless of income). The applicable forms are:\n\n- ITR-3: For individuals/HUFs with income from business or profession (including partners in partnership firms), requiring full P&L and balance sheet\n- ITR-4 (Sugam): For individuals/HUFs/firms opting for presumptive taxation under Section 44AD (business turnover up to ₹3 crore), Section 44ADA (professionals, gross receipts up to ₹75 lakh), or Section 44AE (transport operators)\n- ITR-5: For partnership firms, LLPs, AOPs, and BOIs\n- ITR-6: For companies (other than Section 11 exempt entities)\n\nPresumptive taxation (Sections 44AD / 44ADA): Eligible businesses/professionals can declare income at a flat 8% of turnover (6% for digital payments) or 50% of gross receipts respectively, without maintaining detailed books, provided turnover limits are met.\n\nTax audit under Section 44AB: Mandatory if turnover exceeds ₹1 crore (₹10 crore where digital transactions ≥95%). Professionals: if gross receipts exceed ₹50 lakh. Tax audit report in Form 3CD must be filed before the due date (30 September).\n\nDue dates:\n- Non-audit cases: 31 July of the assessment year\n- Audit cases: 31 October (extended in practice)\n- Transfer pricing: 30 November