Tax compliance for a startup is not the same as tax compliance for an established business. The stakes are higher, the deadlines tighter, and the consequences of a misstep — a late TDS deposit, a missed GST return, an incorrect advance tax — can trigger notices and penalties that distract founders from building the business. We manage every filing, every deadline, and every obligation.
From monthly GST returns to founder income tax filings, TDS compliance to foreign remittance certificates — we handle the entire tax compliance calendar so you never face a surprise notice.
GST return filing is not a once-a-year task — it is a recurring monthly or quarterly obligation that starts from the first month after GST registration. A late GSTR-3B attracts interest at 18% per annum on the tax liability and a late fee of ₹50 per day (₹20 for nil returns), up to ₹10,000 per return. A mismatch between GSTR-1 (outward supplies) and GSTR-3B (tax payment) triggers auto-generated scrutiny notices. For startups on the Quarterly Return Monthly Payment (QRMP) scheme, the compliance is lighter but still requires monthly challan payments and quarterly GSTR-1 and GSTR-3B filings. Annual GSTR-9 and GSTR-9C (reconciliation statement) further require a full-year reconciliation of your books with GST portal data. We manage the entire GST return filing cycle — every form, every month, without exception.
Tax Deducted at Source (TDS) is one of the most punishing compliance areas for startups — because failure to deduct, deposit late, or file returns incorrectly triggers both interest and disallowance of the underlying expense in your income tax assessment. The moment a startup starts paying salaries, contractor fees, rent, professional charges, or any payment above the threshold, TDS obligations kick in. TAN registration is mandatory before the first TDS deduction. Deposits must reach the government by the 7th of the following month (or by 30 April for March deductions). Quarterly TDS returns — Form 24Q for salary, Form 26Q for all other payments — must be filed within 31 days of the quarter end. We deduct correctly, deposit on time, file all quarterly returns, generate Form 16/16A for payees, and respond to TDS traces mismatch notices.
Income tax filing for a startup involves two distinct but deeply connected obligations: the company's own ITR (ITR-6 for companies, ITR-5 for LLPs) and the founders' personal ITRs — which are often far more complex than they appear. Startup founders typically have multiple income streams: salary from the company, dividends, capital gains from ESOP exercise or share transfers, freelance or consulting income, rental income, and interest. The interaction between the entity's financials and the founders' personal returns requires coordinated planning — particularly around ESOP taxation, angel tax exemptions, loss carry-forwards under Section 72, and the 80-IAC tax holiday for DPIIT-recognised startups. A return filed without this coordination leaves significant tax on the table or creates assessment risk. We file the entity return, all founder returns, and handle assessment notices, refund follow-ups, and rectification requests.
Advance tax is the mechanism by which income tax is paid during the financial year — in four instalments — rather than in a single lump sum at year-end. It is mandatory for any taxpayer (company, LLP, or individual founder) whose estimated tax liability for the year exceeds ₹10,000. Getting advance tax wrong in a startup context is common and expensive: startups often have uneven cash flows, sudden revenue events (a large contract closed in Q3, a funding round, ESOP exercise), and loss positions that reverse unexpectedly. Underestimating advance tax triggers interest at 1% per month under Sections 234B and 234C. Overestimating unnecessarily blocks working capital. We compute advance tax instalments based on your projected revenue, cost run-rate, and expected tax position — and revise the estimate mid-year if your financials change materially.
Any startup that pays a foreign vendor, a foreign consultant, a software subscription to an overseas provider, a royalty, a dividend to a foreign shareholder, or any other sum to a non-resident is required to furnish Form 15CA — an online undertaking to the Income Tax Department that the remittance is tax-compliant. In most cases, Form 15CA must be accompanied by Form 15CB — a certificate from a Chartered Accountant confirming the nature of the payment, the applicable tax treaty provisions, the rate of withholding tax, and the basis for any claim of exemption or reduced rate. Banks will not process the outward remittance without these forms. We analyse the nature of every foreign payment, determine the applicable DTAA treatment, compute withholding tax, issue Form 15CB, and file Form 15CA — covering every cross-border payment from the routine (AWS, Google, software tools) to the complex (royalty, management fees, technical services, dividends to foreign investors).
A tax audit under Section 44AB of the Income Tax Act is mandatory if a startup's turnover exceeds ₹1 crore (₹10 crore in cash-light businesses) or if it is claiming a lower profit than the presumptive rate under Sections 44AD or 44ADA. The audit must be conducted by a Chartered Accountant and the report — Form 3CD — filed digitally by 30 September of the assessment year. Transfer pricing becomes relevant the moment a startup has an international transaction with an Associated Enterprise (AE) — a foreign holding company, a related party overseas, or a subsidiary. Every such transaction must be benchmarked against arm's length pricing, documented in a Transfer Pricing Study report, and disclosed in Form 3CEB — filed by 31 October. Startups that have received foreign investment, have a parent-subsidiary structure, or make payments to related foreign entities are almost always subject to transfer pricing rules. We conduct the tax audit, prepare the 3CD report with all required clauses, perform the TP benchmarking study, and file Form 3CEB — ensuring full compliance with the documentation requirements that, if absent, attract penalties of 2% of the transaction value.
Missing any of these deadlines triggers interest, penalties, or forfeiture of rights that cannot be undone. Every date below is one we track, prepare for, and file — on your behalf, automatically.
Tax compliance for startups demands precision across GST, TDS, income tax, advance tax, and cross-border payments — all running concurrently. We manage the entire tax calendar for every client, proactively, without reminders — so founders can focus entirely on building the business.
We initiate every filing before the due date — not on the last day. Our compliance calendar runs 30 days ahead of every deadline, with internal review before submission, so errors are caught before filing not after.
We file both the company ITR and all founder ITRs — and we plan them together. ESOP perquisite tax, dividend income, capital gains, and salary are all treated holistically to minimise the combined tax burden across the entity and its founders.
Foreign payments, NRI founders, foreign investors, and overseas subsidiaries add FEMA, DTAA, and transfer pricing layers that most generalist CAs are not equipped for. We handle it all in-house — from Form 15CA/CB to TP study reports.
Income tax notices, GST scrutiny, TDS traces mismatches, and demand orders are handled by our team without the founder needing to understand the process. We respond, represent, and resolve — protecting your standing with the department.
Whether you need GST return management, TDS compliance, income tax filing for the entity and founders, advance tax computation, Form 15CA/CB for foreign payments, or a tax audit — we handle every obligation on your behalf, every month, without exception.
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