Business tax return
A business tax return is the income-tax return of the person who carries on the business. There is no form by that name. Company Suggestion files ITR-3 for a proprietor, ITR-5 for a firm or an LLP, and ITR-6 for a company.
Which form does a business file?
The form follows who owns the business, not the trade it is in.
| Business | Return |
|---|---|
| Proprietor with books, or income outside the presumptive scheme | ITR-3 |
| Presumptive business or profession, total income up to ₹50 lakh | ITR-4 |
| Partnership firm or LLP | ITR-5 |
| Company, other than one claiming section 11 | ITR-6 |
A partner does not file the firm’s return. The firm files ITR-5. The partner files ITR-3 for interest and remuneration, and the share of profit is exempt under section 10(2A).
When is the business return due?
For the year ended 31 March 2026, section 139(1) sets 31 July where no audit applies and 31 October where the accounts are audited or the person is a company. A partner of an audited firm also has 31 October. A transfer-pricing report under section 92E moves the date to 30 November. The department sometimes extends these dates by order.
Section 44AB requires a tax audit when business turnover exceeds ₹1 crore, or ₹10 crore if cash receipts and cash payments are each within 5 per cent, and when professional receipts exceed ₹50 lakh. That audit report is uploaded before the return.
Which papers does the return need?
The same set starts every business return. The form then adds its own schedules.
- The profit and loss account and the balance sheet
- Form 26AS and the Annual Information Statement
- GST turnover, where the business has a GSTIN
- The tax-audit report, where section 44AB applies
- For a company, the digital signature that verifies ITR-6
What are the filing steps?
Company Suggestion files the business return in four steps.
- The owner is identified: proprietor, firm, LLP, or company.
- The matching form is prepared from the closed books.
- The audit report, where it applies, is uploaded, and then the return.
- The return is verified within 30 days, or by digital signature where the form requires it.
Frequently asked questions
4 questions cover the rules that decide this registration.
Which ITR is a business return?
ITR-3 for a proprietor or a partner, ITR-4 for presumptive income, ITR-5 for a firm or an LLP, and ITR-6 for a company. There is no separate form named business tax return.
Does a loss-making business still file?
A company and a firm must file even in a year of loss. An individual files when income exceeds the exemption, and also files by the due date if a business loss is to be carried forward.
Is a GST return the business tax return?
No. GST returns report supplies. The business tax return is the income-tax return on profit. Both can be due in the same year.
What rate does the business pay?
A firm or an LLP pays 30 per cent plus 4 per cent cess. A domestic company pays 25 or 30 per cent depending on turnover in the previous year 2023-24, or 22 per cent before surcharge and cess if section 115BAA applies. A proprietor pays the individual slabs.