Business Owners, Freelancers,
This Is Your Form.

It depends on how you declare your income. If you opt for presumptive taxation under Section 44AD (8% of turnover), you can file the simpler ITR-4 — no P&L or balance sheet needed. But if you want to declare actual profit (lower than 8%) with actual expenses, or if you also have capital gains or foreign income, you need ITR-3. We help you decide which is more beneficial.

Freelancing income is treated as professional income. If your gross receipts are ≤ ₹50 Lakhs (₹75 Lakhs with 95%+ digital receipts), you can opt for presumptive taxation under 44ADA (50% deemed profit) and file ITR-4. But if you want to claim actual expenses (which may be higher than 50%), or if you have capital gains too, you need ITR-3. Most freelancers with significant expenses benefit from ITR-3 with actual profit.

Yes. ITR-3 requires P&L and balance sheet, which means you need to maintain books of accounts. However, the level of detail depends on your turnover and whether audit applies. For small businesses (turnover < ₹2 Crore) without audit, a simple cash book + bank reconciliation is often sufficient. We help you organize whatever records you have into the required format.

Tax audit is mandatory if: (1) Business turnover exceeds ₹1 Crore (₹10 Crore if 95%+ digital receipts), (2) Professional gross receipts exceed ₹50 Lakhs (₹75 Lakhs if 95%+ digital), (3) You opted for presumive taxation but declared income lower than deemed profit. The audit must be done by a practicing CA, and the report must be uploaded before filing ITR-3.

You report three things from the firm: (1) Salary/remuneration — taxable as salary income, (2) Interest on capital — taxable as income from other sources, (3) Share of profit — exempt in your hands (firm already paid tax). All three are reported in Schedule SPI. You also need Form 16A from the firm showing TDS deducted on your salary/interest/commission.

Yes, but carefully. Business expenses (rent, salaries, depreciation, etc.) are deducted from your business revenue to compute net profit. Section 80C deductions (PPF, ELSS, etc.) are then deducted from your gross total income (which includes business profit). However, if you've claimed an expense in your P&L (like LIC premium paid from business account), you cannot claim it again under 80C. We ensure there's no double claim.

The due date for ITR-3 is October 31, 2025 for AY 2025-26 — regardless of whether tax audit applies or not. This is later than ITR-1/ITR-2 (July 31). However, advance tax installments (June 15, Sept 15, Dec 15, March 15) must still be paid on time independently.

ITR-3 handles both seamlessly. Business income goes in Schedule BP (with P&L and balance sheet), and capital gains go in Schedule CG (same as ITR-2 — with FIFO, grandfathering, indexation). The net business profit and net capital gains are both added to compute your gross total income. Losses from one head can be set off against gains from another (with some restrictions). We handle all inter-head set-off optimally.

Yes, you can switch every year — with one exception. If you opt for presumive taxation (44AD) for 5 consecutive years and then opt out in the 6th year, you cannot opt back in for the next 5 years. Also, in the year you opt out, you must maintain books and may be subject to audit if turnover exceeds limits. We track this for you.

Expenses claimed without proper bills/vouchers can be disallowed by the IT department during assessment. For small expenses (under ₹100-200), bank statement entries may suffice. For larger amounts, you need proper invoices. We advise you on what's acceptable and what's risky. If expenses can't be substantiated, it's better to not claim them rather than face disallowance + penalty later.