CA K Sanjay BhargavChartered Accountant
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Which ITR form applies to your business — and by when

CA K Sanjay Bhargav, Chartered Accountant, Bengaluru

Membership No. 250054 · DISA (ICAI)

Published

Short answer: the form follows the entity and how income is computed; the deadline follows whether audit applies. For FY 2025-26, non-audit filers of ITR-3 and ITR-4 have until 31 August 2026 — a permanent change made by the Finance Act 2026 — while audit cases run to 31 October 2026.

The dates first, because one is close

FilerDue date
ITR-1 / ITR-231 July 2026 (passed)
ITR-3 / ITR-4, not liable to audit31 August 2026
Any return where audit under Section 44AB applies31 October 2026
Transfer pricing cases under Section 92E30 November 2026
Belated return, Section 139(4)31 December 2026
Revised return, Section 139(5)31 March 2027

The 31 August date is a permanent amendment to Section 139(1) made by the Finance Act 2026, not a circular extension — it applies from AY 2026-27 onward.

The trap in reading that table: the form does not decide the date. Audit liability does. An ITR-3 filer who is liable to audit under Section 44AB follows 31 October; an ITR-3 filer who is not follows 31 August. So the first question is not which form, but whether tax audit applies.

The forms

FormWho files it
ITR-1 (Sahaj)Resident individual with salary, one house property and other sources, within the income limit. Not where there is business income
ITR-2Individuals and HUFs without business or professional income — capital gains, more than one house property, foreign assets or income
ITR-3Individuals and HUFs with business or professional income computed in the ordinary way
ITR-4 (Sugam)Resident individual, HUF or firm (not LLP) declaring presumptive income under 44AD, 44ADA or 44AE, within the income limit
ITR-5Partnership firms, LLPs, AOPs and BOIs
ITR-6Companies, other than those claiming exemption under Section 11
ITR-7Trusts, institutions and others required to file under the specified provisions

Working it out

Start with the entity.

  • Company → ITR-6. A company is outside the presumptive scheme entirely, and its statutory audit under the Companies Act is a separate obligation from tax audit under Section 44AB — a company crossing the 44AB threshold needs both.
  • LLP → ITR-5. LLPs cannot use Section 44AD, so ITR-4 is not available to them however small the turnover. This catches people who assume an LLP is treated like a partnership firm for this purpose; it is not.
  • Partnership firm → ITR-5, or ITR-4 where it is declaring presumptively and meets the conditions.
  • Individual or HUF → continue below.

For an individual or HUF, the question is how income is computed.

  • Declaring on the presumptive basis under 44AD, 44ADA or 44AE, and within ITR-4's conditions → ITR-4.
  • Business or professional income computed in the ordinary way, or presumptive income where some other factor takes you outside ITR-4 → ITR-3.
  • No business or professional income at all → ITR-1 or ITR-2, depending on the sources.

Whether presumptive is the right election in the first place — and the five-year consequence of leaving it — is a separate question, covered in Section 44AD or regular books.

What takes you out of ITR-4

ITR-4 is narrower than its popularity suggests. Common reasons a presumptive filer must use ITR-3 instead:

  • Total income exceeding the limit prescribed for the form
  • Being a non-resident or not ordinarily resident
  • Holding foreign assets or having foreign income — including RSUs or other employer stock, which brings the Schedule FA disclosure covered in the Schedule FA guide
  • Being a director in a company, or holding unlisted equity shares
  • Income from more than one house property
  • Capital gains in the year
  • Having brought-forward or current-year losses to carry forward

Several of these are common in exactly the group that assumes ITR-4 is the simple option. A consultant with employer stock, or a proprietor who is also a director, is generally an ITR-3 filer.

Why the wrong form matters

A return filed on the wrong form can be treated as defective under Section 139(9). A notice issues requiring the defect to be cured, generally within 15 days of intimation, and an uncured defect can result in the return being treated as never filed.

The consequences of that are worse than they first appear: carried-forward losses are lost, and late-filing consequences follow even though you filed within the deadline. Filing on time on the wrong form is not a neutral error.

Common combinations

SituationForm
Proprietor, turnover ₹80 lakh, presumptive under 44AD, no other complicationsITR-4
Same proprietor, but also holds foreign stock from a former employerITR-3
Freelance professional, receipts ₹40 lakh, presumptive under 44ADAITR-4
Same professional, but with capital gains on shares in the yearITR-3
Trader with F&O activityITR-3 — F&O is business income, see the trading taxation page
Partnership firm, regular books, turnover ₹4 croreITR-5, with audit under 44AB
LLP, any turnoverITR-5 — presumptive not available
Private limited companyITR-6, plus statutory audit under the Companies Act

Under the Income-tax Act 2025

Concept1961 Act2025 Act
Return filing — all categories consolidated139263
Defective return139(9)within 263
Presumptive taxation44AD, 44ADA, 44AE58
Books of account44AA62
Tax audit44AB63

Returns for AY 2026-27 remain under the 1961 Act. Form numbering and the rules prescribing them are being revised for the 2025 Act regime, so the applicable form for a later year should be confirmed rather than carried across. The section mapping guide covers the wider renumbering.


Due dates are stated for AY 2026-27 and can be varied by the Board. The correct form depends on the entity, the sources of income and the basis of computation, and should be confirmed against them before filing.

Frequently asked questions

When is my business return due for FY 2025-26?

If you file ITR-3 or ITR-4 and are not liable to audit, 31 August 2026 — a permanent change made by the Finance Act 2026 to Section 139(1), replacing the general 31 July date for this category. If audit under Section 44AB applies, 31 October 2026. Where transfer pricing provisions apply, 30 November 2026. ITR-1 and ITR-2 filers remained on 31 July 2026.

Does the form decide my deadline?

No — audit liability does. An ITR-3 filer liable to audit under Section 44AB follows 31 October; an ITR-3 filer not liable to audit follows 31 August. The form indicates the likely category but the Section 44AB test is what actually determines the date.

What is the difference between ITR-3 and ITR-4?

ITR-4 is for those declaring income on the presumptive basis under Sections 44AD, 44ADA or 44AE, and is available to a resident individual, HUF or firm other than an LLP, subject to a total income limit. ITR-3 is the general return for individuals and HUFs with business or professional income computed in the ordinary way. A presumptive filer who has income taking them outside ITR-4's conditions files ITR-3 instead.

Which return does an LLP file?

ITR-5. LLPs are outside the presumptive scheme under Section 44AD and cannot use ITR-4. The same form covers partnership firms, associations of persons and bodies of individuals.

What happens if I file the wrong form?

The return can be treated as defective under Section 139(9), with a notice requiring the defect to be cured, generally within 15 days of intimation. An uncured defect can result in the return being treated as never filed — which costs carried-forward losses and brings late-filing consequences even though you filed on time.

I have salary and business income. Which form?

Business or professional income takes you to ITR-3, or ITR-4 where the presumptive conditions are met. Salary is reported within that return. The presence of business income is what rules out ITR-1 and ITR-2, regardless of how small it is.

Not sure which return applies to your business?

Send your entity type, turnover, and the nature of the income. The correct form, whether audit applies and the deadline that follows are confirmed before anything is filed.

Related service: Income Tax & ITR Filing