In India, a business or professional is required to file an income tax return if the total income exceeds the basic exemption limit ( i.e. INR 2,50,000/-). The return must be filed by due date of the assessment year using ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7. The return must include details of business/professional income, expenses, and tax payments. Additionally, if the business/professional has any other sources of income such as capital gains, they must also be declared in the return.
For a Business/Profession followings ITR forms are required to be filed by different entities:
ITR-3 (Income Tax Return Form 3) is the form used by individuals and Hindu Undivided Families (HUFs) in India to file their income tax returns if they have income from a proprietary business or profession.
ITR-4 (Income Tax Return Form 4) is a tax form in India used by individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnership (LLP)) to file their tax returns if they have income from a presumptive business. The ITR-4 form is based on the presumptive taxation scheme under Section 44AD, Section 44AE, and Section 44ADA of the Income Tax Act, 1961.
ITR-5 is a type of income tax return form in India, used by Partnership Firms, LLPs, Association of Persons (AOPs), and Body of Individuals (BOIs).
ITR-6 is a form used for filing Income Tax Return (ITR) in India. It is used by Private Limited Companies/Public Limited Companies to report their income and taxes paid to the government.
ITR-7 is a type of income tax return form in India, used by entities such as Trust, Society, Association of persons, Political parties, and organizations exempt under section 10 of the Income Tax Act.
