Business Income Tax Filing
Return preparation for proprietors and small businesses, including income computation from your books.
Business income tax filing covers the return for a proprietor or small business, prepared from the year’s books rather than from a salary certificate. The work sits mostly before the return itself — establishing what the taxable profit actually is.
Book profit and taxable profit are rarely the same figure. Depreciation follows the rates in the Income Tax Act rather than your accounting policy, and several expenses are disallowed or deferred by specific provisions.
What this costs
Business - Sole Proprietor
₹4,749 plus GST
- Business Income
- Assisted ITR Filing
- Tax Expert Support
Where book profit and taxable profit diverge
- Depreciation computed under the Act, which differs from book depreciation
- Section 43B items — statutory dues allowed only when actually paid
- Section 40(a) — expenses disallowed where TDS was not deducted or deposited
- Section 40A(3) — cash payments above the prescribed limit disallowed
- Personal expenses routed through the business
- Provisions and unascertained liabilities, which are not deductible
- Interest and remuneration to partners, within the limits in Section 40(b)
The TDS trap
Section 40(a) disallows an expense entirely where tax should have been deducted and was not, or was deducted and not deposited by the due date. For payments to residents the disallowance is a proportion of the expense; for payments to non-residents it can be the whole of it.
This is the single largest avoidable addition we see in small business assessments. The cost of the disallowance almost always exceeds the tax that should have been withheld.
Advance tax
Where the liability crosses the threshold, advance tax is payable in four instalments through the year. Businesses taxed presumptively under Sections 44AD or 44ADA pay the whole amount in a single instalment by 15 March.
Interest under Sections 234B and 234C runs on shortfalls, and it is charged regardless of whether the return itself is filed on time.
How we handle it
- 1 Finalising the books Accounts are closed and reconciled against the bank, GST returns and Form 26AS.
- 2 Computing taxable profit Book profit is adjusted for depreciation under the Act and every applicable disallowance.
- 3 Checking the audit trigger Turnover and the cash transaction proportion are tested against the Section 44AB thresholds.
- 4 Comparing regimes and schemes Regular computation is compared against presumptive taxation, and the old and new regimes against each other.
- 5 Preparing the return The correct form is prepared with the computation sent to you for approval.
- 6 Filing and verification The return is filed and e-verified, and the acknowledgement sent to you.
Frequently asked questions
Why is my taxable profit higher than my book profit?
Because depreciation follows the Act rather than your accounting policy, and provisions such as Sections 43B, 40(a) and 40A(3) disallow or defer specific expenses.
What happens if I did not deduct TDS on an expense?
Section 40(a) disallows the expense, in part for resident payments and potentially in full for non-resident payments. The disallowance usually costs far more than the tax that should have been withheld.
Do I need an audit?
Only where turnover crosses the Section 44AB threshold, or where you declared presumptively and then declared lower profits. A higher threshold applies where cash transactions are minimal.
Can I claim my home office and vehicle?
Where genuinely used for business, yes, with the personal proportion excluded. Claiming wholly personal expenses is the most common ground of addition in a small business assessment.
When is advance tax payable?
In four instalments where liability crosses the threshold. Under presumptive taxation it is a single instalment by 15 March. Interest runs on shortfalls regardless of when the return is filed.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about Business Income Tax Filing
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
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