What are the steps to file income tax returns for startups in India?

Steps to File Income Tax Returns for Startups in India

1. Determine the Type of Tax Return

   • Choose the correct ITR form based on your startup’s type (e.g., ITR-3 or ITR-5 for companies or firms).

     
     

2. Gather Required Documents

   • PAN card of the company

   • Financial statements (Profit & Loss account, Balance Sheet)

   • Bank statements

   • TDS certificates

   • Audit reports (if applicable)

   • Details of investments, expenses, and income

     
     

3. Register on the Income Tax e-Filing Portal

   • Visit the Income Tax Department e-Filing website

   • Register your startup using PAN as the user ID

     
     

4. Compute Taxable Income

   • Calculate total income including business profits, capital gains, other income

   • Deduct eligible expenses and investments

     
     

5. Get Audit Done (if applicable)

   • If turnover exceeds the prescribed limit (currently ₹1 crore for most businesses), get your accounts audited by a Chartered Accountant

     
     

6. Fill the ITR Form

   • Download the relevant ITR form or fill it online

   • Enter details of income, deductions, tax paid, and other required information

     
     

7. Upload Financial Statements and Audit Report

   • Attach mandatory statements and audit reports if required

     
     

8. Verify and Submit the Return

   • Review all entries carefully

   • Submit the return electronically on the portal

     
     

9. E-Verification

   • Verify the return through Aadhaar OTP, Net Banking, EVC, or by sending a signed ITR-V to CPC Bengaluru

     
     

10. Keep Acknowledgment for Records

    After successful filing and verification, keep the acknowledgment for your records

Additional Tips

• Startups can benefit from various tax exemptions under sections like 80-IAC.

• Consult a tax professional or CA if you are unsure about any step