Business Tax Filing

Partnership firms (other than LLPs claiming Section 197) and LLPs file ITR-5 under Section 139(1) for AY 2026-27. Sole proprietors with business income file ITR-3. Note: ITR-4 (presumptive) is for individuals / HUFs only — partnership firms and LLPs cannot opt for ITR-4 even under presumptive taxation.

Under Section 44AB, tax audit of books of accounts must be completed and Form 3CD must be uploaded on the e-filing portal by 30 September 2026 (one month before the ITR due date of 31 October 2026). Audit is mandatory if turnover exceeds ₹1 crore (₹10 crore if ≥95% of transactions are digital).

For partnership firms and LLPs requiring audit under Section 44AB, the ITR-5 due date for AY 2026-27 is 31 October 2026. For firms opting for presumptive taxation (turnover ≤ ₹3 crore under Section 44AD), the due date is 31 July 2026. Belated filing window closes on 31 December 2026.

Yes. Section 40(b) allows deduction of partner salary / interest on capital, subject to limits: salary up to ₹1,50,000 per partner or 90% of book profit (whichever is lower) for firms with profits; interest on capital up to 12% simple interest per annum. The deduction is disallowed if paid to a non-working partner beyond of these limits.

Section 44AB audit is required if total sales / turnover / gross receipts exceed ₹1 crore in the previous year (FY 2025-26). The threshold is raised to ₹10 crore if at least 95% of transactions are cashless (bank / UPI / card). For presumptive Section 44ADA (professionals), audit threshold is ₹75 lakh gross receipts.

Section 44AD deems business income at at 8% of turnover ( (or 6% if turnover is received via digital / banking channels) for resident individuals, HUFs, and partnership firms (not LLPs) with turnover up to ₹3 crore (₹75 lakh for cash businesses). Declared income is treated as final; no books of accounts required.

Business tax filing starts from ₹1,999 for ITR-3 proprietorship without audit, ₹3,499 for ITR-3 with audit, ₹2,999 for ITR-5 partnership / LLP without audit, and ₹4,999 for ITR-5 with Section 44AB tax audit including Form 3CD. Tax audit fee includes expert cost.

Section 234F late fee ₹1,000 (income ≤ ₹5L) or ₹5,000 (income > ₹5L) applies for belated filing. Section 271(1)(c) concealment penalty of 100%-300% of tax on concealed amount may apply. Section 276CC prosecution (3 months to 3 years imprisonment + fine) applies if tax due exceeds ₹25,000 and return is not filed.