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Business Tax Filing: Top Questions Answered

Business Tax Filing: Top Questions Answered (2025 Humane Guide)

Business tax filing is one of those topics that every founder or entrepreneur must face, yet it’s often clouded in jargon and anxiety. Don't worry—here’s a clear, humane FAQ that answers the most pressing questions Indian businesses ask about tax filing in 2025.

1. Who Must File a Business Tax Return in India?

  • Every registered business—private limited companies, LLPs, partnerships, and even sole proprietors with income above ₹2.5 lakh—must file, regardless of profit or loss.

  • Dormant or “zero activity” businesses still have to file an annual return to stay legally compliant and avoid penalties.

2. What Are the Latest Due Dates for FY 2024–25?

  • Regular businesses (no audit): September 15, 2025.

  • Audit-required cases: October 31, 2025.

  • Transfer pricing cases: November 30, 2025.

  • Belated/Revised Return: December 31, 2025.

  • Deadlines apply even for NIL returns.

3. What Forms Do Startups and SMEs Use for Filing?

  • Proprietorships: ITR-3 or ITR-4 (for presumptive income).

  • Partnerships/LLPs: ITR-5.

  • Private limited companies: ITR-6.

  • Picking the right form is critical—using the wrong one may lead to rejection.

4. Do I Need to File Returns If My Business Made No Profit or Was Dormant?

  • Yes. Annual filing is compulsory for all registered entities, whether you had no transactions, losses, or were inactive. Non-filing causes legal and compliance issues.

5. What Documents Should I Keep Ready?

  • PAN and TAN of the business.

  • Financial statements (P&L, balance sheet).

  • GST returns (if registered).

  • TDS/TCS payment challans.

  • Bank statements.

  • Investment records and loan details.

  • Old ITR acknowledgements for carry-forwards.

6. Can I File Myself, or Do I Need a CA?

  • Small/straightforward businesses can DIY via the income tax portal or reliable tax platforms.

  • For companies, multiple incomes or complex deductions, a CA or tax professional is strongly advised.

7. What if I Miss the Filing Deadline?

  • Late filing attracts a ₹5,000 fee (₹1,000 if total income is below ₹5 lakh), interest on unpaid taxes, and loss of benefits (like carry-forward of losses).

  • Delayed returns are accepted till December 31, 2025, for FY 2024–25.

8. What Are the Major Deductions and Benefits Available?

  • R&D, salaries, rent, interest, marketing, depreciation—all are deductible.

  • DPIIT-recognized startups may claim a 3-year tax holiday (Section 80-IAC).

  • Carry forward and set-off of losses, but only if the return is filed on time.

9. Can Startups Use Presumptive Taxation?

  • If gross receipts are under ₹50 lakh (business) or ₹75 lakh (digital receipts), you may opt for presumptive taxation via ITR-4 for minimal compliance.

  • This is not available for LLPs/companies, or if you want to claim detailed expenses.

10. Do I Need to File If There’s No Tax Payable?

  • Yes, filing is mandatory for compliance, proof for banks/investors, and to access government schemes and refunds.

Bonus Pro Tips

  • Always e-verify your filed return for it to be considered valid.

  • Digitize and back up all records for at least 6 years.

  • Don’t skip NIL returns; it’s required even if you didn’t do business this year.

  • Seek timely professional advice for multiple incomes, fundraising, or international transactions.

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