How to file ITR for your Indian business (proprietorship, partnership, company)

Filing the wrong ITR or filing late triggers notices, denied refunds, and prosecution risk. Here is the actual process for each business structure.

Step 1: Pick the right ITR form

Proprietorship: ITR-3 (regular books) or ITR-4 (presumptive 44AD/44ADA). Partnership: ITR-5. LLP: ITR-5. Private/Public Limited: ITR-6. Section 8 / Trust: ITR-7.

Step 2: Reconcile bank, books, GST

Bank balance (end-March) must match book balance. Sales in books must match GSTR-1 totals. ITC claimed in books must match GSTR-3B. Any mismatch = chase down before filing.

Step 3: Compute taxable income

Net profit per books → add/subtract Income Tax Act adjustments (depreciation as per IT Act vs Companies Act, disallowed expenses under 40A/43B, exempt income, etc.) = taxable income.

Step 4: Compute tax + interest + penalty

Tax at applicable rate. Add Section 234A interest (late filing), 234B (advance tax shortfall), 234C (advance tax instalment shortfall) if applicable. Pay before filing on the IT portal.

Step 5: Fill the schedules

Schedule BP (business profits), BS (balance sheet), P&L, Depreciation (DPM), TDS (TDS deducted by/from you), Tax computation, Verification. Each schedule's totals cross-check; the portal flags mismatches.

Step 6: File on incometax.gov.in

Login → e-File → Income Tax Return → AY → ITR form. Either upload JSON from offline utility or fill online. Submit with DSC (companies) or Aadhaar OTP (proprietors).

Step 7: E-verify within 30 days

Filing is not complete until e-verification. Use Aadhaar OTP / DSC / netbanking / EVC sent to bank-registered mobile. Not verified in 30 days = filing is void.

Frequently asked questions