• This is a notice issued under Section 133(6) of the Income Tax Act, 1961: As per the Act, you are required to respond within 10 days of receiving this notice.

Smart ITR Filing for Self-Employed – Easy, Reliable, and On Time

Important Deadlines:
Annual Deadline: Submit your ITR by July 31st every year to ensure compliance.
Late Filing: Missed the deadline? File with a late fee until December 31st
Updated Return: After December 31st, you can file an updated return to pay any outstanding taxes and penalties. Please note, refunds are not applicable with this option.
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Work Process

How We Work

01

Gather Documentation

Gather all required documents, including GST details and financial statements.

02

Verify Financial Statements

Verify the accuracy and completeness of your financial records for the fiscal year (April 1st to March 31st).

03

Prepare Your Return

Log in to your income tax portal to access the filing platform and accurately report all sources of income.

04

Review and File

Review your return for any discrepancies before filing to ensure its accuracy.

Checklist

Documents Required

GST Details: GSTIN and a summary of the filed GST returns.
Financial Statements: Complete financial records for the fiscal year.
Income Tax Login Details: Required for accessing the e-filing portal.
Additional Income: Report any income earned outside of regular business activities.
Accounting Data: Detailed records to validate income and expense claims.

Service

What's included

Critical Review of Your Documents: Before moving forward, we perform a thorough review of all your documents to ensure accuracy and completeness. This important step helps identify any discrepancies early, ensuring a seamless filing process.

Verification of Form 26AS/AIS and TIS: We cross-check the tax credit statement (Form 26AS), the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS) to ensure all your tax deductions and collections are accurately recorded. This step is essential for matching your tax payments and deductions with government records.

Drafting Your Return: After successful verification, we prepare a draft of your tax return. This draft is shared with you for review, ensuring you are fully informed and satisfied with the computations and details before filing.

Finalizing and Filing Your Return: After incorporating your feedback and receiving your consent, we finalize your tax return. We ensure it complies with all regulations and is submitted within the required deadlines. Your active involvement at this stage is key to completing the filing process smoothly.

ITR Filing for Self-Employed People

What is ITR Filing for Self Employed?

If you are self-employed, it is necessary to report your income to the government and fulfill the requirements for taxation. This category includes individuals who operate small businesses, drive taxis, practice medicine, or offer professional services. ITR filing for self-employed people is the process of sending in a tax report for people who work for themselves. This rule was made by the government to help small companies and workers who don't want to keep detailed records of their income and expenses when they file their taxes. If your total annual income is below Rs 2 crore, you have the option to pay your taxes and share the remaining amount with your partner. This approach reduces the time required and simplifies the process of paying taxes. This post will provide a comprehensive overview of how self-employed individuals can file their ITR.

If your annual sales total less than 2 crore rupees, you have the option to report a portion of that as profit and fulfill your tax obligations accordingly. This helps in improving your tax payment process while also protecting your time and effort.

This guide provides a comprehensive overview of ITR filing for self-employed individuals, detailing eligibility requirements, tax rates, necessary documents, and a step-by-step process for filing your return.

Who Can Use the Presumptive Taxation Scheme?

You can opt for this scheme if:

  • You are an individual, a Hindu Undivided Family (HUF) or a partnership firm (except LLPs).
  • Your total business turnover does not exceed Rs 2 crores in a financial year.
  • You are engaged in one of the following businesses or professions:
  • Retail traders selling goods (shopkeepers, wholesalers, distributors)
  • Civil construction businesses (contractors, builders)
  • Transportation businesses (taxi, truck, or auto-rickshaw owners)
  • Catering or hotel businesses (restaurant owners, food delivery services)
  • Professionals like doctors, lawyers, architects, designers, and consultants

If you qualify, you do not need to maintain detailed accounting records, which makes tax filing much easier.

How Much Tax Do You Need to Pay?

The tax you need to pay depends on your profession or business type. Here are the prescribed tax rates:

  • Retail traders and small businesses: 6% of total digital transactions or 8% of total cash turnover.
  • Construction and contracting businesses: 8% of total turnover.
  • Transport businesses (owning up to 10 vehicles): Rs 7,500 per vehicle per month.
  • Hotel and restaurant businesses: 8% of total turnover.
  • Professional services (doctors, lawyers, etc.): 50% of total gross receipts.

This means, instead of calculating actual profit and loss, you simply declare a percentage of your earnings as taxable income and pay taxes accordingly.

What Documents Are Required?

Even though this scheme does not require detailed bookkeeping, you still need to provide basic documents to file your ITR:

  • PAN Card – Permanent Account Number for tax identification.
  • Aadhaar Card – Proof of identity and mandatory for tax filing.
  • Bank Statements – To show income and transactions.
  • Turnover Statement – Summary of total earnings.
  • Profit and Loss Statement – A simple report of earnings and expenses.
  • Balance Sheet (if applicable) – Shows business assets and liabilities.

These documents ensure accuracy in reporting your income to avoid any legal or tax issues.

Step-by-Step Process to File Your ITR

Follow these steps to complete your ITR filing for self-employed individuals:

  1. Visit the Income Tax Department website and log in using your credentials.
  2. Click on the 'e-file' tab and select 'Income Tax Return.'
  3. Choose the correct assessment year for which you are filing the return.
  4. Select the appropriate ITR form:
  • ITR-3: For individuals and partners in a firm (other than LLPs) with business income.
  • ITR-4: For those opting for the Presumptive Taxation Scheme.
  1. Enter your personal and financial details, including income, tax payments, and deductions (if applicable).
  2. Declare your total turnover and taxable income as per the Presumptive Taxation Scheme.
  3. Upload supporting documents, if required.
  4. Review the details and submit your ITR.
  5. E-verify your ITR using Aadhaar OTP, net banking, or other available options.
  6. Save the acknowledgment receipt for future reference.

Once you complete these steps, your tax return will be processed, and if you are eligible for a refund, it will be credited to your bank account.

Benefits of Presumptive Taxation Scheme

The Presumptive Taxation Scheme provides multiple advantages for self-employed individuals:

  • No need for detailed books of accounts – Saves time and effort in maintaining records.
  • Simplified tax filing process – Less paperwork and fewer calculations.
  • Lower tax burden – Helps small businesses pay reasonable taxes without complex audits.
  • Fast tax compliance – Easy online filing and quick processing by the tax department.
  • No advance tax payments – Tax is paid in a lump sum instead of multiple installments.

This scheme is designed to encourage small businesses and professionals to comply with tax regulations without facing unnecessary complications.

Conclusion

ITR filing for self-employed Individuals under the Presumptive Taxation Scheme can easily pay their tax responsibilities. Instead of keeping extensive financial records, simply report a percentage of your earnings as taxable income and pay the appropriate tax. This strategy not only streamlines tax filing, but it also ensures that you comply with government requirements.

By following the steps outlined in this guide, you can easily file your ITR online, making sure a smooth and stress-free tax filing experience. If you are unsure about any step, consider consulting a tax professional for expert assistance.

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