Running a small business in India comes with more than just sales and service — it also brings tax responsibilities and compliance deadlines. Whether you’re a startup, consultancy, freelancer, or product-based business, keeping your taxes in order is key to avoiding penalties and building long-term credibility.

This blog offers a complete tax compliance checklist for Indian small businesses in 2025 — covering income tax, GST, TDS, and other must-know filings.

✅ 1. Income Tax Filing (ITR)

All businesses must file income tax returns annually — even if you made a loss or had zero income.

Key Points:

• Due Date (FY 2023–24):

  • July 31, 2024 for proprietorships and partnerships (not audited)

  • October 31, 2024 for companies and audited firms

• Tax Forms:

  • ITR-3 or ITR-4 (Proprietorship)

  • ITR-5 (Partnership/LLP)

  • ITR-6 (Private Limited Companies)

Tip:

Maintain clean digital books using tools like Tally, Zoho Books, or QuickBooks to simplify year-end filings.

✅ 2. GST Returns

If your business is registered under GST, you must file returns monthly or quarterly depending on your turnover.

Mandatory Returns:

Thresholds:

• GST mandatory if turnover > ₹40 lakh (goods) or ₹20 lakh (services)

• Required if you sell across states or via e-commerce

Late filing leads to fines of ₹50–₹200 per day + interest.

✅ 3. TDS (Tax Deducted at Source)

If your business pays:

• Contractors

• Rent

• Professional services

• Salaries

…you may be required to deduct TDS and file quarterly returns.

Action Items:

• Apply for TAN (Tax Deduction Account Number)

• Deduct as per applicable rate (5%–10%)

• File Form 26Q / 24Q quarterly

• Issue TDS certificates (Form 16A/16) to vendors/employees

✅ 4. Advance Tax Payments

If your tax liability exceeds ₹10,000 in a year, you’re required to pay advance tax in installments.

Payment Schedule:

• 15% by 15th June

• 45% by 15th September

• 75% by 15th December

• 100% by 15th March

Missing deadlines may lead to interest under Section 234B and 234C.

✅ 5. Professional Tax (State Level)

Some states like Maharashtra, Karnataka, Tamil Nadu, and West Bengal charge professional tax on salaries or business income.

• Collected monthly or annually

• Requires separate state registration

• Typically ₹2,500/year per director/partner/owner

✅ 6. Annual ROC Filing (for Companies & LLPs)

If you operate as a Private Limited Company or LLP, you must file returns with the Ministry of Corporate Affairs (MCA) every year, even if there’s no activity.

Filings include:

• Form AOC-4: Financial statements

• Form MGT-7: Annual return

• DIR-3 KYC: Director verification

Late fees: ₹100/day for each form, so don’t delay.

✅ 7. Audit Requirements

You are legally required to audit your books if:

• Your turnover exceeds ₹1 crore (business) or ₹50 lakh (professionals)

• Or if you’ve opted for presumptive taxation and certain conditions apply

Hire a Chartered Accountant (CA) to conduct the audit and file Form 3CA/3CD with your return.

📥 Bonus: Tools to Automate Compliance

• Cleartax – GST, ITR, invoicing

• Vakilsearch / IndiaFilings – Online registration & ROC filings

• TallyPrime / Zoho Books – Accounting and GST-ready books

• CA Connect – Link your business directly with your chartered accountant

🧠 Final Thoughts

Tax compliance isn’t just about avoiding penalties — it also improves your eligibility for loans, tenders, investor funding, and government schemes. If you’re a serious business owner in India, build your compliance systems now — not later.