Filing Income Tax Returns (ITR) is a crucial responsibility for business owners in India. Whether you run a sole proprietorship, partnership firm, or a private limited company, filing accurate returns on time ensures compliance and opens doors to various financial and legal benefits. However, the process can be complex, especially with frequent changes in tax laws. To make it easier, here is a detailed checklist every business owner should follow before filing their ITR in FY 2025–26.
1. Determine the Applicable ITR Form
- ITR-3: For individuals and HUFs having income from business or profession.
- ITR-5: For partnership firms and LLPs.
- ITR-6: For companies other than those claiming exemption under section 11.
- Ensure you select the correct form based on your business structure.
2. Keep Your Books of Accounts Ready
- Finalize your profit & loss account and balance sheet.
- Reconcile all bank statements.
- Ensure proper classification of income and expenses.
- Include depreciation, adjustments, and provisions if applicable.
3. Verify Tax Deducted at Source (TDS)
- Reconcile TDS from Form 26AS and TDS certificates.
- Ensure all deductions are correctly reflected and claimed.
- Check TDS on contractor payments, salary, rent, etc.
4. Match GST Returns With Financials
- Reconcile sales and purchases as reported in GSTR-1 and GSTR-3B with books.
- Ensure consistency to avoid mismatch notices from the department.
5. Check Advance Tax & Self-Assessment Tax Payments
- Verify advance tax paid during the financial year.
- Calculate and pay any self-assessment tax, if needed, before filing.
- Ensure challans are properly recorded and available.
6. Report Other Sources of Income
- Include interest income from savings, FDs, and loans.
- Report rental income, capital gains, or dividend income.
7. Ensure Proper Disclosure of Loans & Investments
- Disclose unsecured loans taken or given during the year.
- Mention investments in shares, mutual funds, and other assets.
8. Include All Deductions & Exemptions
- Deductions under Section 80C, 80D, 80G, etc.
- Check for eligible business-specific deductions like Section 35AD, Section 44AD, etc.
9. Declare Depreciation and Carry Forward Losses
- Declare depreciation as per the Income Tax Act.
- Mention business losses carried forward from previous years.
10. Cross-Verify Personal and Business PAN Details
- Ensure PAN matches the registered details on the Income Tax Portal.
- If your Aadhaar is not linked to your PAN, update it before filing.
11. Digital Signature Certificate (DSC) for Companies & LLPs
- Ensure the DSC is active and registered on the portal.
- Required for digitally signing ITR of companies and LLPs.
12. Verify Bank Account Details
- Add and validate primary bank account for refunds.
- Ensure IFSC, account number, and name are correct.
Conclusion
Preparing for ITR filing is not just about uploading a file—it’s about accurate, responsible financial reporting. By following this checklist, business owners can ensure compliance, avoid penalties, and enjoy smoother assessments. If you’re unsure or want expert assistance, consult a tax professional today to make the process stress-free.
Stay compliant, stay stress-free!
