Company and firm returns

A return is required even when the business makes a loss

Companies and firms have an entity-level filing duty; the absence of profit does not itself remove it. LLPs are covered within the firm category for income-tax purposes. We also examine what the filing means for eligible losses and tax credits carried into later years. An entity with no activity still needs its filing position assessed from its legal status and records. Section 263 of the Income-tax Act, 2025.

For the new Rules, ITR-5 is the general firm and LLP route, while an eligible resident partnership other than an LLP may use ITR-4 under the presumptive-income conditions. ITR-6 covers companies outside the ITR-7 category. Special-status entities need a separate form check. Income-tax Rules, 2026, rule 164.

An audit and an income-tax return are distinct reporting requirements. The tax-audit position, statutory audit and transfer-pricing report can affect both the information required and the working timetable. We identify those dependencies before promising a draft date.

From accounting profit to taxable income

The computation explains why taxable income differs from the accounts. We examine depreciation, expenses requiring tax adjustments, brought-forward losses and credits, material receipts outside the profit and loss account, and transactions that need separate disclosure. Each adjustment is linked to a ledger or supporting working.

For a firm or LLP, the agreement and amendments support the treatment of partner remuneration, interest and allocations. For a company, the financial statements, capital records and relevant tax elections form part of the review. A large debtor write-off, asset disposal or prior-year entry needs an explanation beyond its ledger caption.

The reconciliations cover three distinct records: books and financial statements, the tax computation, and tax deducted or paid. A missing credit is investigated with the payer or payment evidence. A difference between accounts and GST reporting is explained where it affects the return, without assuming that both systems must show identical turnover.

Records the finance team supplies

Provide the final trial balance and accounts, material ledgers, bank reconciliations, fixed-asset register, tax-credit data and payment receipts. We also need prior returns and computations, loss schedules, audit reports or outstanding audit questions, and significant agreements entered into during the year.

A firm or LLP supplies the agreement, partner capital accounts and remuneration or interest calculations. A company supplies details of material capital changes, distributions, foreign transactions and relevant tax options. We send a focused follow-up list after the initial review instead of asking for every business document at once.

If accounts are unfinished, our team completes the closing work and reconciliations needed for the return, with management approval of adjustments. Return preparation cannot resolve an unexplained accounting balance by assigning it to a convenient schedule.

What you receive and approve

The return pack contains the entity computation, material adjustment schedules, tax-credit and payment reconciliation, and the draft return. It identifies matters needing management confirmation and the documents supporting significant judgements.

After approval, we file the return, coordinate authorised verification, retain the acknowledgement and review the processing result. We follow up on processing queries or credit differences. Management confirms the facts and authorises payments; the eligible professional appointed for an audit remains responsible for the examination and signed report. Our team manages the related accounts, reporting and return work, with each role and reporting period identified in the engagement.

Preparation time depends on the accounts close, unresolved audit matters, transactions needing specialist analysis and the completeness of tax-credit records. The filing calendar is set for the entity’s actual period and report category, including any applicable extension. We agree an earlier review date for management rather than treating the legal last date as the first draft date.

The Tax Year 2026–27 calendar

Under the enacted due-date table, the ordinary return date is 30-11-2027 where the transfer-pricing report provisions apply; otherwise it is 31-10-2027 for companies and audited persons. A non-audit firm or LLP with business or professional income ordinarily falls in the 31-08-2027 category. Any residual category requires its own test. These dates concern Tax Year 2026–27, not the earlier-period returns filed in 2026. Finance Act, 2026, amendment to section 263.

A late original return and a revision are different routes. For Tax Year 2026–27, the ordinary belated-return window ends on 31-12-2027 and the revised-return window on 31-03-2028, in each case subject to earlier completion of assessment. A revision after the nine-month point attracts the prescribed fee. Updated returns have separate eligibility and payment conditions and are not a general substitute for these routes. Sections 263 and 428 as amended.

Questions from owners and finance teams

Can the personal return of the partners cover the firm? No. The firm reports its own income. The partners’ returns then use the relevant information from the firm’s final records.

Can we use provisional accounts to meet the deadline? We first identify what remains provisional and how it affects the return or required report. The next step may be to complete a reconciliation, obtain audit evidence or consider the legally available filing route. We explain the consequences before approval.

What happens after filing? We review the processing result and follow up on any mismatch or outstanding action. If a historical correction or substantive dispute needs a separate proceeding, we explain the remedy and handle that work after you approve the next step.

Related services

• Tax audit

• Advance tax

• Company annual filings

• LLP filings

Email TheTaxCo, message us on WhatsApp or book a call. Share the entity type, reporting year, accounts-close status and whether an auditor or transfer-pricing adviser is already appointed.