Man filing business tax return

Business Tax Return Filing, Types of business tax returns

Every business owner whether a big business or small is supposed to file a tax return, so basically all businesses operating or residing in India are required to file their business tax returns each year. This whole process now could be done online by following simple steps. Also, businesses may be required to file TDS returns and pay advance tax in terms to be biddable UNDER THE INCOME TAX ACT OF INDIA.

What is business tax return filing?

A business tax return is fundamentally an income tax return. In India income tax is obligatory to be filed by Indian citizens each year and on a specified date with a GTI of more than 2.5 lakhs. GTI below 2.5 lakhs is not taxable for filing an income tax return. So, what is a return? Return is a statement that carries information regarding the income and expenditure of a business, it also includes any tax to be paid on profit that you made in your business. Return also contains information regarding the business such as details of assets and liabilities, items like debtors, creditors of the business, fixed assets and loans, etc.

Benefits of filing business tax returns with YourWorc

Why should we file business tax returns

Filing a business tax return comes with benefits such as, you can apply for a loan. business tax return filing saves you from penalty and prosecution also, you can obtain government tenders and claim depreciation, etc.

YOURWORC, a savvy organization with expertized service providers globally provides you with an entrusted legitimate counsel and helps you to file your business tax return by following proper guidelines stated by The Department Of Income Tax, India. YOURWORC guides you through the online procedure of business tax return filing and makes it simpler and affordable. just by providing us with your correct details and documents, we give fuss-free and fast services and fulfill all your requirements. YOURWORC gives you 24 hours of quick queries support and consultancy to solve any issue you face in the filing process.

Documents Required for filing a business tax return

  • PAN card
  • Aadhar card
  • Login credentials (if you have)
  • Bank passbook – stating Account details
  • Bank statement (for a F.Y)
  • FORM 16A & amp; 16B
  • Investment declaration
  • Statement of sales and purchase of stocks, securities, mutual funds and property.
  • Sales & purchase Ledgers (required in filing ITR 3&4)
  • GST Credentials & data (required in filing ITR 3&4)

Types of business return filing

There are different types of business tax return filing. Such business taxes are based upon entities such as the structures and names of the businesses

Sole Proprietorship

A sole proprietorship means a single owner of the firm, who is supposed to file the business tax return of the business. In this the firm and the owner are considered the same so, the procedure of filing tax is the same as the owner’s individual income tax filing

Partnership Firm

This firm is formed by two or more individuals operating the firm together. Under the income tax act, they are to file tax returns as an individual legal entity. Such a firm is required to file taxes regardless of gain or loss.

Limited Liability Partnership

It is a form of corporate business with the benefits of limited liability of a business and flexibility of a partnership form of business. In this form, the tax is payable on an individual basis and the company can obtain untaxed profit. Limited liability companies or LLPs are more preferred as they are taxed as an entity.


this form of business tax return is divided into two categories, domestic and foreign company. Companies registered under the ministry of corporate affairs fall under the domestic company category. This form of business is supposed to follow the same steps as filing a tax return by a limited liability company i.e., each year irrespective of loss or gain of the company. Even companies with no transaction are obligated to file an income tax return.

Who has file a business tax return?

Any person who owns a business or company whether big or small is obligated to file for income tax return each year on a specified date. Each type of business is supposed to follow the guidelines issued by the department of income tax, India. The basic taxable limitation is of 2.5 lakhs and if your total income before the deduction is above the taxable limit, it is mandatory to file income tax return, irrespective of any loss or profit of the business. ITR Forms are available for each category of businesses, ITR 1, ITR 2, ITR 3, ITR 4, 5 & 6.

Proprietorship business: If you are a sole proprietor, business income and other personal income such as salary and interest income should be stated on the same return

Partnership business: Partnership firm whether registered or unregistered has to file a business tax return

Limited liabilities partnership: Business – all the LLPs registered in India is obligated to file their business tax return each year

Companies: All companies registered in India are supposed to file for business tax return every year.

Due dates of filing business tax returns

The Due date to file business tax return for company, limited liability partnership or partnership firm is 31th July after the end of financial year. The Due date may extend according to the department of income tax or the government if needed. For Individual not liable for a tax audit, due date to file return is 30th September after the end of financial year and for individual liable for a tax audit, due date to file return is 30th September. If any loss is incurred during the year and the filing of return is done after the due date, a penalty shall be imposed. Also, a fine can be levied.

Frequently Asked Question

Is it necessary to file business tax return each year?

Yes, it is mandatory to file business tax return each year and before the due date to claim various benefits like loans, government tenders, save you from penalties etc.

What is the difference between business tax return and income tax return?

A business tax return is the same as income tax return. Business tax is applied on companies or LLPs which are functioning in India

Can a business tax return be filed online?

Yes, this whole process could be filed through online mode easily. YOURWORC comes as rescue to save you from the hassle. Our professionals will help you in every step of the filing process

Can I pay my taxes in advance?

Yes, you can pay your taxes in advance that is called pre-payment of your tax liability in the year.  If the tax liability is above Rs. 10,000 in the F.Y. the assessee needs to pay the advance tax

Can an ITR be filed for previous year?

A belated ITR can be filed any time in a F.Y. you can submit tax return up to 3 years

Which ITR form can be filed for business tax?

ITR 4 or Sugam is applicable on business tax for partnership firm and individual tax except LLPs residing in India. 

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