If total income exceeds Rs. 2.5 lakh, all proprietors under the age of 60 must file an income tax return. If their total revenue exceeds Rs. 3 lakh, business owners who are over 60 but under 80 must file an income tax return. If the total income is more than Rs. 5 lakh, owners who are 80 years of age or older must file an income tax return. Regardless of profit or loss, all Partnership Firms, Corporations, and LLPs are required to file an income tax return each year. Even though there was no transaction, a NIL ITR still needs to be submitted by the deadline.

Tax audits are required for any business with annual sales of more than Rs. 1 crore or for any profession with annual gross earnings of more than Rs. 50 lakh. Additionally, even when these limits have not been exceeded, Tax Audit may still be required. A company that is undergoing a tax audit must file an ITR and a Tax Audit Report by September 30 of each year. Regardless of Turnover, an Audit is required in the event of a Corporation. Similar to this, LLPs must conduct an audit if their contributions or turnover exceed Rs. 40 lakh. Suggested Check out Tax Audit u/s 44AB.

Form ITR-3 or ITR-4-Sugam should be used to file an income tax return for a proprietorship firm. A LLP or partnership firm should file their ITR in Form 5. A company should submit their income tax return using Form ITR-6. Form ITR-7 should be used to file a return in the event of a charitable Trust. In the event that a tax audit is necessary, a return must be digitally signed. In the case of corporations and LLPs, it is required. You can choose to use Aadhar or net banking for e-verification in other situations. The ITR-V (Ack), which you can also physically sign, should be sent to CPC for processing.