Income Tax Department has prescribed ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 for Income Tax filing of business and profession.
Depending on the type of business, a particular type of ITR form should be used from the forms mentioned earlier.
2. Who is required to file ITR 3?
The assesssees (Individual/HUF) having income from following sources are eligible to use ITR-3 for filing Income Tax Return:
Someone who earns income from a business or profession and is not covered by presumptive taxation.
The assessee who is otherwise eligible for presumptive taxation but with a turnover exceeding Rs. 2 crores in case of business and gross receipts exceeding Rs. 50 lakhs in case of profession.
3. What is the due date for filing business tax return?
• A working partner in firm or LLP is required to file return by 31st July for non-audit case and 30th September in case of audit.
• A partnership firm and LLP is required to file return by 31st July for non-audit case and 30th September in case of audit.
• A LLP is required to file return by 31st July for non-audit case and 30th September in case of audit.
• A trust is required to file return by 31st July for non-audit case and 30th September in case of audit.
4. Who all are required to get their accounts audited under Income Tax Act?
An assessee is liable to get his accounts audited by a Chartered Accountant mandatorily,
If in the Previous Year,
• he was carrying on business and his total sales or turnover exceeded Rs. 1 crore (2 crores in case of presumptive taxation
u/s. 44AD), or
• he was carrying on a profession, and his gross receipts exceeded Rs. 25 lakhs (50 lakhs in case of presumptive taxation u/s. 44ADA) (Applicable from Financial Year 2016-17 onwards), or
• he was carrying on business or profession and is covered under the provisions of section 44AD, 44AE, 44AF, 44BB or 44BBB and claims that his income from the said business is lower than the deemed profits and gains computed under the relevant section
5. What is the penalty if I do not get my books of accounts audited?
Government has prescribed penalty under section 271B of the Income Tax Act for those who are required to get their accounts audited under section 44AB but fails to do so before the specified due date. The quantum of penalty will be equal to of 0.5% of the turnover or gross receipts subject to a maximum penalty of Rs. 1,50,000.
6. I have received an enquiry from the department asking me to file my business taxes. How should I respond? You need to respond to this communication through an online portal basis your PAN.
In case the reply is not satisfactory then you may receive a notice under section 142(1) asking you to file your return, call for additional documents and information.
In extreme cases you may receive a notice u/s 143(2) or 148 if you have failed to report certain income that the department already is aware of.