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ITR Filing for Business, Proprietorship & Self-Employed Individuals

What is ITR Filing?

What Qualifies as Business?

What Qualifies as Self-Employment?

Types of ITR Form for Self-Employed, Individual Businesses, & Proprietors

ITR for small businesses involves filing different business income ITR forms, as the case may be. Here are the form categories for ITR filing for business.

ITR Form Eligibility
ITR-3  To be filed by an individual having business income or from a profession.
ITR-4 (Sugam)  For firms other than LLPs that fall under presumptive tax schemes, and which have a total income up to ₹50 lakhs. Their income is calculated under Sections 44AD, 44ADA, and 44AE.
ITR-5  For LLPs and partnerships that are not filing ITR 7.
ITR-6  For those companies that are not claiming exemption under Section 11.
ITR-7  For companies mandated to file returns from Sections 139(4A), 139(4B), 139(4C), 139(4D) only.

However, to file ITR for businesspersons and self-employed individuals, use ITR-3 or ITR-4, as the case may be.

Why Business Income, Proprietors & Self-Employed Individuals Should File ITR?

Who is Eligible for Presumptive Taxation?

Presumptive taxation is a scheme for professionals whose gross revenue is up to ₹50 lakhs in the financial year and small businesses whose turnover is up to ₹2 crores, for FY 2022-23. However, the Union Budget 2023 increased these limits as follows.

Category Revised limits  
(FY 2025-26)
Sec 44AD: For small businesses ₹3 crores
Sec 44ADA: For professions including legal, medical, engineering, accountancy, architecture, etc. ₹75 lakhs

Note that the increased limits will be applicable only if 95% receipts are submitted through online modes.

Under Section 44AD, small businesses that opt for presumptive taxation must declare profits of 8% for non-digital transactions or 6% for digital transactions. One can apply for presumptive taxation by filing ITR 3 or ITR 4.

This is an optional scheme under which those who are eligible and choose to pay tax presumptively are exempted from maintaining accounts, etc. The profit is assumed at 8% of gross receipts for businesses and 50% of the gross receipts for professionals in a financial year. Therefore, they have to pay Income Tax as per the Income tax rates applicable to them.

Under the presumptive scheme, assesses are eligible to claim tax-saving deductions under section 80C, all deductions under section 80 of Chapter VI A, and medical insurance premiums under section 80D.

Assesse have the choice to opt out of the Presumptive Scheme in the next financial year; however, they would not be able to claim the benefits of the scheme for the next five financial years.

How to File Online ITR for Individual Having Business Income?

How to File Offline ITR for Small Proprietorship Business?

What are the Documents Required for Filing ITR for Business and Self-Employed?

How to Choose the Right ITR Form?

What is the Due Date for Filing ITR Form for Small Business, Proprietorship and Self-Employed?

The deadline for filing the income tax return for an individual business or self-employed is as follows:

Category of Taxpayer Due Date for ITR - FY 2025-26 (AY 2026-27)
Individual / HUF/ AOP/ BOI (businesses not required to be audited) 31st July 2026
Businesses (requiring an audit) 31st October 2026
Businesses requiring transfer pricing reports (in case they conducted international transactions or certain specified domestic entities) 30th November 2026
Revised return 31-Dec-26
Belated/late return 31-Dec-26
Updated return 31 December 2031 (4 years from the end of the relevant Assessment Year after Budget 2025 amendment)

Can ITR be Filed for the Previous Year?

What are the Income Tax Slabs for Companies and Self-Employed Persons?

For Individuals (businessmen or self-employed) Less than 60 Years

Old Tax Regime FY 2025-26 New Tax Regime FY 2025-26
Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
Up to ₹2,50,000 Nil Up to ₹4,00,000 Nil
₹2,50,001-₹5,00,000 5% above ₹2,50,000 Between ₹4,00,001 and ₹8,00,000 5% of your total income that exceeds ₹4,00,000
₹5,00,001- ₹10,00,000 ₹12,500 + 20% above ₹5,00,000 Between ₹8,00,001 and ₹12,00,000 ₹20,000 + 10% of your total income that exceeds ₹8,00,000
Above ₹10,00,000 ₹1,12,500 + 30% above ₹10,00,000 Between ₹12,00,001 and ₹16,00,000 ₹60,000 + 15% of your total income that exceeds ₹12,00,000 
      Between ₹16,00,001 and ₹20,00,000 ₹1,20,000 + 20% of your total income that exceeds ₹16,00,000 
    Between ₹20,00,001 and ₹24,00,00 ₹2,00,000 + 25% of your total income that exceeds ₹20,00,000
      Above ₹24,00,000 ₹3,00,000 + 30% of your total income that exceeds ₹24,00,000

For Senior Citizens (between 60 years and 80 years)

Existing Tax Regime FY 2025-26 New Tax Regime FY 2024-25
Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
Up to ₹3,00,000 Nil Up to ₹4,00,000 Nil
From ₹3,00,001 – ₹5,00,000 5% above ₹3,00,000 Between ₹4,00,001 and ₹8,00,000 5% of your total income that exceeds ₹4,00,000
From ₹5,00,001 – ₹10,00,000 ₹10,000 + 20% above ₹5,00,000 Between ₹8,00,001 and ₹12,00,000 ₹20,000 + 10% of your total income that exceeds ₹8,00,000
Above ₹10,00,000 ₹1,10,000 + 30% above ₹10,00,000 Between ₹12,00,001 and ₹16,00,000 ₹60,000 + 15% of your total income that exceeds ₹12,00,000
      Between ₹16,00,001 and ₹20,00,000 ₹1,20,000 + 20% of your total income that exceeds ₹16,00,000
    Between ₹20,00,001 and ₹24,00,000 ₹2,00,000 + 25% of your total income that exceeds ₹20,00,000
      Above ₹24,00,000 ₹3,00,000 + 30% of your total income that exceeds ₹24,00,000

For Super Senior Citizens (above 80 years)

Existing Tax Regime FY 2025-26 New Tax Regime FY 2025-26
Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
Up to ₹5,00,000 Nil Up to ₹4,00,000 Nil
From ₹5,00,001 – ₹10,00,000 20% above ₹5,00,000 Between ₹4,00,001 and ₹8,00,000 5% of your total income that exceeds ₹4,00,000
Above ₹10,00,001 ₹1,00,000 + 30% above ₹ 10,00,00 Between ₹8,00,001 and ₹12,00,000 ₹20,000 + 10% of your total income that exceeds ₹8,00,000
      Between ₹12,00,001 and ₹16,00,000 ₹60,000 + 15% of your total income that exceeds ₹12,00,000
      Between ₹16,00,001 and ₹20,00,000 ₹1,20,000 + 20% of your total income that exceeds ₹16,00,000
    Between ₹20,00,001 and ₹24,00,000 ₹2,00,000 + 25% of your total income that exceeds ₹20,00,000
      Above ₹24,00,000 ₹3,00,000 + 30% of your total income that exceeds ₹24,00,000

Categories Tax Rate Surcharge
Section 115BA (Companies having turnover up to ₹400 crores as of FY 2019-20) 25% 7% (in the case that the company has a total income above ₹1 crore and up to ₹10 crores), 12% (in case the total income is above ₹10 crores
Section 115BAA 22% 10%
Section 115BAB 15% 10%
More than ₹400 Crores as of FY 2019-20 30% 7% (for a case where the total income of the company is above ₹1 crore and less than ₹10 crores) 12% (for a case where the company's total income is above ₹10 crores)

Categories Income Tax Rate

Royalty or fees received from the Indian Government or any Indian person under an agreement made before 1st April 1976, which the Central Government has approved

50% 
Any other income 40% 

FAQs about ITR Filing for Business, Proprietorship, & Self-Employed Individuals