Launching a startup is exciting—but ignoring tax compliance can land you in trouble fast. From the moment you register your business, the Indian tax system expects regular filings, accurate records, and lawful deductions. In this blog, CA Nikhil Anand breaks down the key tax compliance steps every startup founder must know in 2025.

1. Register the Right Business Structure

Your compliance obligations start with the structure you choose—Private Limited Company, LLP, or Proprietorship.

• Private Limited: ROC filings, audit (if turnover exceeds ₹1 crore), TDS, GST (if applicable)
• LLP: Annual return, Form 8 & 11, tax audit (if turnover exceeds ₹50 lakh)
• Proprietorship: Income tax return, GST, TDS (if applicable)

Tip: Choose a structure that matches your funding, liability, and scalability goals.

2. PAN, TAN & GST Registration

• PAN (Permanent Account Number): Mandatory for all business entities.
• TAN (Tax Deduction Account Number): Required if you deduct TDS.
• GST (Goods and Services Tax): Required if your turnover exceeds ₹40 lakh (₹20 lakh for services), or if you’re doing interstate business or selling on e-commerce platforms.

Note: Voluntary GST registration can also help claim Input Tax Credit.

3. Income Tax Return Filing

All startups—regardless of profit—must file their ITR annually.

• Forms: Usually ITR-3, ITR-4 (Presumptive), or ITR-6 for companies
• Due Date: July 31 for individuals, October 31 for firms/companies

Missing the deadline can lead to penalties under Section 234F.

4. Maintain Proper Books & Records

Startups must maintain financial records for at least 8 years, including:

• Purchase & sales invoices
• Bank statements
• Expense receipts
• Payroll records
• Tax filings

Cloud accounting software like Zoho Books or QuickBooks can simplify this process.

5. TDS Deduction and Payment

If you’re paying rent, salaries, or professional fees, you may need to deduct TDS and deposit it with the government.

• Due Date: 7th of the following month
• Quarterly filing: Form 24Q, 26Q depending on payment type

Failure to deduct or deposit TDS can attract interest and penalties.

6. Annual ROC Compliances (for Companies/LLPs)

Private Limited Companies and LLPs need to file:

• MGT-7 & AOC-4 for companies
• Form 11 & Form 8 for LLPs
• Board meetings, statutory registers, and audit reports (if applicable)

These filings are separate from income tax returns.

7. DPIIT & Startup India Compliance (Optional but Useful)

If you’ve registered with Startup India, you may need to:

• File periodic progress reports
• Maintain eligibility for tax exemptions under Sections 80-IAC and 56(2)(viib)
• Revalidate DPIIT recognition upon funding or structural changes

Startup India benefits can help reduce tax burden and ease funding.

Conclusion

Tax compliance isn’t just a legal formality—it’s a foundation for credibility, funding, and sustainable growth. As a startup founder, knowing these basics helps you avoid costly mistakes and stay focused on your vision.

📩 Need help setting up your startup’s tax and compliance structure? Reach out to CA Nikhil Anand for expert guidance tailored to your business.