Income Tax Return Filing Checklist for Indian Small Businesses (AY 2026–27)

• company law
• March 30, 2026

Income Tax Return Filing Checklist for Indian Small Businesses (AY 2026–27)

1. Confirm the Correct ITR Form

• ITR-3 / ITR-4 (Sugam) for proprietors depending on presumptive vs regular books.
• ITR-5 for partnership firms / LLPs.
• ITR-6 for companies (except those claiming exemption under section 11).

2. Close Books Properly

• Ensure sale, purchase, expense, and bank entries are updated till year-end.
• Reconcile:
• Bank statements vs books.
• Cash balance with physical cash.
• Debtors / creditors lists with confirmations where possible.

3. Reconcile With GST and TDS

• Match turnover in ITR with turnover in GSTR-1 and GSTR-3B.
• Check Form 26AS and AIS/TIS for:
• TDS deducted by customers.
• TCS collected by e-commerce platforms / others.

4. Expense and Deduction Review

• Rent, salaries, professional fees, interest.
• Depreciation as per Income-tax Act.
• Eligible deductions:
• Section 80C (if proprietor).
• Section 80JJAA (additional employee cost, if applicable).
• Other business-specific deductions.

5. Loan, Capital, and Cash Review

• Reconcile unsecured loans and capital account.
• Verify that cash deposits and withdrawals are supported and explainable.

6. Prepare Computation and Tax Payment

• Prepare profit & loss and balance sheet.
• Compute total income and tax liability.
• Pay self-assessment tax (if any) before filing ITR.

7. File and Verify ITR

• File ITR before due date to avoid late fees.
• E-verify within required time (Aadhaar OTP, net banking, DSC for companies).

8. Maintain Records

• Keep soft and hard copies of:
• ITR acknowledgement.
• Computation.
• Financial statements.
• Major supporting documents for at least the limitation period for scrutiny.