Income Tax Filing Services India: ITR, TDS, Advance Tax & Professional Tax Compliance

ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh from salary, one house property, other sources (interest), and agricultural income up to ₹5,000. ITR-2: Individuals and HUFs with income from capital gains, more than one house property, foreign income, or income exceeding ₹50 lakh. ITR-3: Individuals and HUFs with income from business or profession (including freelancers, consultants, doctors, lawyers). ITR-4 (Sugam): Individuals, HUFs, and firms opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE. ITR-5: LLPs, partnership firms, AOPs, BOIs. ITR-6: Companies (other than those claiming exemption under Section 11). ITR-7: Trusts, political parties, institutions, colleges, and charitable organizations. Filing the wrong ITR form results in a defective return notice under Section 139(9) — requiring re-filing within 15 days.

Non-audit cases (individuals, HUFs without business income): July 31, 2026. Audit cases (companies, individuals/HUFs with business income exceeding turnover thresholds): October 31, 2026. Transfer pricing cases (companies with international transactions requiring Form 3CEB): November 30, 2026. Belated return: December 31, 2026 (with ₹5,000 late fee under Section 234F; ₹1,000 if income below ₹5 lakh). Revised return: December 31, 2026. Late filing penalties: ₹5,000 under Section 234F + interest under Section 234A (1% per month on unpaid tax from due date to filing date).

Presumptive taxation allows eligible taxpayers to declare income at a prescribed percentage of turnover/receipts without maintaining detailed books of accounts: Section 44AD — for businesses with turnover up to ₹3 crore (if 95%+ receipts are digital): declare 6% of digital turnover + 8% of cash turnover as income. No books of account or audit required. Section 44ADA — for professionals (doctors, lawyers, architects, CAs, engineers, etc.) with gross receipts up to ₹75 lakh (if 95%+ digital): declare 50% of gross receipts as income. Section 44AE — for transporters owning up to 10 goods carriages. If income is declared BELOW the presumptive rate, the taxpayer must maintain books and get them audited under Section 44AB. Virtual Auditor advises on the optimal taxation regime — regular vs presumptive — based on actual profit margins and compliance cost trade-offs.

Late filing consequences: (1) Section 234F late fee: ₹5,000 if filed after due date but before December 31. ₹1,000 if taxable income is below ₹5 lakh. (2) Section 234A interest: 1% per month (or part thereof) on unpaid tax, from the due date to the actual filing date. (3) Loss of carry-forward: Business losses (other than house property loss and depreciation) cannot be carried forward if the return is filed after the due date. This is irreversible — even if you file a belated return, the loss carry-forward is gone. (4) Loss of certain deductions: Some deductions under Chapter VI-A (80-IA, 80-IB, etc.) are not available if the return is filed after the due date. (5) Prosecution risk: Under Section 276CC, failure to file ITR where tax payable exceeds ₹25,000 can result in imprisonment of 6 months to 7 years. This is rarely invoked for first-time defaults but is a real risk for habitual non-filers.

Advance tax is the pay-as-you-earn mechanism — if your estimated tax liability for the year exceeds ₹10,000, you must pay advance tax in quarterly installments: June 15: 15% of estimated tax. September 15: 45% cumulative. December 15: 75% cumulative. March 15: 100%. Interest on shortfall: Section 234B (failure to pay advance tax): 1% per month on the shortfall (if advance tax paid is less than 90% of assessed tax). Section 234C (deferment of advance tax): 1% per month for each quarter where cumulative payment falls short. Senior citizens (60+) without business income are exempt from advance tax. Virtual Auditor computes advance tax quarterly and manages the payment schedule to minimize interest exposure.

For salaried individuals: Form 16 (from employer), Form 26AS/AIS (tax credit statement — verify all TDS credits), bank interest certificates (for savings/FD interest), investment proofs for Chapter VI-A deductions (80C, 80D, 80E, 80G), capital gains statements (from broker/MF), house property details (loan interest certificate, rental income). For businesses: Books of accounts (P&L, balance sheet), bank statements (12 months), GST returns (for reconciliation), TDS certificates (Form 16A from clients), depreciation schedule, tax audit report (if applicable). For companies: Audited financial statements, board resolution authorizing ITR filing, Form 3CA/3CB + 3CD (tax audit report), transfer pricing documentation (Form 3CEB if international transactions), MAT computation (Section 115JB).

New Tax Regime (Section 115BAC — default from FY 2023-24): Lower tax rates with minimal deductions. Rates: up to ₹3L: nil, ₹3-7L: 5%, ₹7-10L: 10%, ₹10-12L: 15%, ₹12-15L: 20%, above ₹15L: 30%. Standard deduction of ₹75,000 for salaried. NO deductions for 80C (PPF, ELSS, insurance), 80D (health insurance), HRA, LTA, or most Chapter VI-A items. Old Tax Regime: Higher rates but full deductions available. Rates: up to ₹2.5L: nil, ₹2.5-5L: 5%, ₹5-10L: 20%, above ₹10L: 30%. All deductions available: 80C (₹1.5L), 80D, 80E, HRA, LTA, etc. Choice: Salaried individuals can switch between regimes every year. Business individuals: once they opt for old regime, they cannot switch back. Virtual Auditor runs a regime comparison for every client — computing tax liability under both regimes to determine the optimal choice.

Individual ITR (salary + capital gains): ₹5,000-₹15,000. Business ITR (proprietorship/partnership): ₹5,999 (professional fees only; govt fees and stamp duty extra)-₹30,000. Company ITR-6 (including computation): ₹15,000-₹50,000. LLP ITR-5: ₹10,000-₹25,000. Tax audit (Section 44AB) — additional: ₹25,000-₹1,00,000. Advance tax management (quarterly): ₹10,000-₹25,000/year. TDS compliance (monthly): ₹5,000-₹15,000/month. Complete annual tax package (ITR + TDS + advance tax + tax audit): ₹50,000-₹2,00,000/year for companies. Virtual Auditor's mid-tier pricing is 20-40% of Big 4 rates — making professional tax compliance accessible to SMEs and startups.

Yes — Virtual Auditor provides complete appellate representation: scrutiny assessment response (Section 143(3)), reassessment/reopening defense (Section 148), CIT(A) appeal (Form 35, within 30 days of demand order), ITAT appeal and representation, penalty appeal under Section 270A/271, and Vivad Se Vishwas settlement advisory. The Finance Act 2025 Section 275 amendment prohibits penalty proceedings while the quantum appeal is pending — an important protection for taxpayers contesting assessments. For detailed appellate procedures, see our Income Tax Appeal Services page.

Yes — Virtual Auditor provides income tax filing services across Chennai, Bangalore, and Mumbai from physical offices. Walk-in consultations available Monday to Saturday, 9 AM to 6 PM. We also serve clients across India through online consultation and digital filing. Call +91 99622 60333 or visit virtualauditor.in to get started. Our income tax practice is led by CA V. Viswanathan (FCA) with expertise in individual, business, corporate, and international taxation.