Got tax time looming and feeling overwhelmed? You’re not alone. Most founders spend more time worrying about product launches than paperwork. The good news is you can sort your taxes in a few clear steps without pulling your hair out. Below is a quick‑start guide that covers the basics, the most useful deductions, and where to get help.
Step‑by‑Step Filing Checklist
First, gather every financial record you have from the last financial year. That means bank statements, invoices, expense receipts, and loan documents. Even small items like coffee costs for client meetings can matter if they’re business‑related. Next, log into the Income Tax e‑filing portal and verify your PAN, Aadhaar, and bank details – a mismatch will stall the whole process.
Once you’re in, choose the correct ITR form. Most startups fall under ITR‑4 (Presumptive Taxation) or ITR‑3 (Profit and Loss). The form will ask for turnover, profit, and any tax already paid (like TDS). Fill in the figures, double‑check the math, and upload the supporting documents where required. Finally, pay any remaining tax before the deadline and submit the return. You’ll receive an acknowledgment number – keep it safe; you’ll need it for future reference.
Must‑Know Deductions & Credits
Deduction hunting is where you can actually save money. For small businesses, the 2025 updates let you write off a wider range of expenses: office rent, internet, employee salaries, and even a portion of your home‑office space if you work from there. If you’ve taken a business loan, the interest portion is fully deductible – just keep the loan statements handy.
Owners often wonder about the “owner’s draw.” In India, an owner’s draw isn’t a salary, so it’s taxed differently. Treat any draw as personal income and report it under the head “Income from other sources.” This avoids surprise tax notices later. Also, don’t miss GST credits. If you’re GST‑registered, you can claim input tax credit on purchases used for your business. Knowing when you qualify for a GST refund can put cash back in your pocket, especially after large capital expenditures.
Another common miss is Section 80C deductions. Contributions to EPF, PPF, or life‑insurance premiums can reduce your taxable income by up to ₹1.5 lakh. Pair this with Section 80D for health‑insurance premiums, and you’ll shave off a decent chunk of tax.
When you’re stuck, the AP Startup Hub has articles that walk you through each topic. Check out “Small Business Tax Deductions: What Expenses Are Write‑Offable in 2025” for a deep dive on eligible costs. The piece on “Is an Owner’s Draw Taxed?” breaks down the exact filing steps for personal withdrawals. And if you’re dealing with GST, read “GST Registration in India: Who Needs It and Why It Matters” for a clear eligibility checklist.
Finally, stay on top of deadlines. The income‑tax return due date for most entities is July 31st, while GST returns are monthly. Mark these on your calendar, set reminders, and treat filing like any other critical business task. A little habit now saves you penalties and audit headaches later.
Tax filing doesn’t have to be a nightmare. With the right documents, a simple checklist, and a handful of key deductions, you can keep more of your hard‑earned money and stay compliant. Keep this guide on hand, revisit the detailed articles when needed, and file with confidence.
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