ITR Filing for Proprietorship Firm Made Easy at CADesk India!
CADesk India provides holistic support when it comes to ITR filing for proprietorship firm, starting from data collection to filing your tax return we have got you completely covered!
- Simple 3 step process
- Completely Online
- Assisted by Income tax Experts
Why Should I Use CADesk IndiaFor Proprietorship Tax Filing In India?
Based on the annual turnover you have to file ITR of proprietorship firm tax returns, and by choosing CADesk India you can finish this process in just 3 easy steps!
Contact our experts
Start the paperwork
Complete ITR filing
Contact our experts
Start the paperwork
Complete ITR filing
Just like other incorporated firms such as partnerships and LLPs, proprietors also must pay tax on their earnings. As per the law proprietorship and the proprietor are considered as a single entity and are subjected to income tax returns. As a result, the laws that control the payment of the proprietor's income tax also apply to the proprietorship.
However, the income tax rates of the registered companies are fixed based on flat rates. On the other hand, a single proprietorship will not be taxed as a different legal entity. All the business owners should file their taxes as an individual return like other individual taxpayers of the country. Based on the Income-tax rules and the slab rates the proprietorship tax is also subjected to the deduction.
- CADesk If the total income exceeds ₹3 lakhs, all owners under the age of 60 are required to file an income tax return under the Income Tax Act
- If the income exceeds ₹3 lakhs, owners above the age of 60 must file income tax
- If the total income exceeds ₹3 lakhs, proprietors under the age of 80 must pay income tax
- If the income exceeds ₹5 lakhs, proprietors above the age of 80 are required to file proprietorship tax returns.
On meeting certain conditions, Sections 10A, 10B, 80-IA, 80-IAB, 80-IB, and 80-IC will provide deductions.
As a sole proprietor, the following documents are required for ITR filing:
- PAN card
- Aadhar card
- Bank account details
- Form 16, 16A and 26AS
- Advance tax payment challan
The advantages of filing IT returns are:
| Income Tax Slab | New Regime Income Tax Slab Rates FY 2021-22 (Applicable for All Individuals & HUF) |
|---|---|
| ₹0- ₹2.5 lakh | NIL |
| ₹ 2.5 lakh – ₹3.00 lakh | 5% (tax rebate u/s 87a is available) |
| ₹3.00 lakh – ₹ 5.00 lakh | |
| ₹5.00 lakh- ₹7.5 lakh | 10% |
| ₹7.5 lakh – ₹10.00 lakh | 15% |
| ₹10.00 lakhs – ₹12.50 lakh | 20% |
| ₹12.5 lakhs – ₹15.00 lakh | 25% |
| > ₹15 lakh | 30% |
- ITR 3 Form: If the proprietorship is run by a hindu undivided family (HUF) or any other owner
- ITR 4 Form: This one is used by proprietorships that are subject to presumptive tax schemes. Filing this form will reduce the burden of compliance for small businesses and still provide you with the deductions of HUFs.
Subsequently, our experts will register it in the official portals. The assessment year and ITR filing type will be chosen based on the scenario. You will be provided the required confirmation after completing the process.
Losses in the business, if any, can be carried forward if the proprietor files an income tax return before the deadline.
- Income tax return filing wherein the audit is not necessary 31 July of every year
- Income tax return filing wherein the audit is necessary on 31 October of every year.
Depending on the annual turnover of the proprietorship, auditing may be necessary under the following scenarios.
- During the assessment year, the turnover of the proprietorship firm conducting business exceeds ₹1 crore
- In the case of a professional proprietorship, an audit is required if the total receipts of the business exceed ₹50 lakh
- An audit is required whenever a proprietorship is subject to any presumptive tax scheme, regardless of yearly turnover.
As per the Income Tax Act of 1961 the proprietorship firm's audit must be performed by a certified Chartered Accountant. Don't worry if you don't have a CA at your disposal, CADesk Indiawill cover you with that!
If you are looking for a one-stop solution to file your proprietorship income tax returns then CADesk is the best option. We have our in-house chartered accountants who can audit your income complying with all the terms and conditions explained in the Income-tax Act. All you have to do is reach out to our experts. They will complete proprietorship income tax return filing in just 3 legit steps in the most affordable range.
When compared to other competitors we provide the most affordable pricing to file your income tax returns.
| Category | Charges |
|---|---|
| Sole Proprietors - Presumptive | ₹1499 |
| Sole Proprietor - Non Presumptive with books | ₹4999 onwards |
Our experts deal with more than 1000 companies in a month in multiple legal disciplines. Apart from the firms we also have a large number of individuals who choose CADesk for all their legal aspects. Trust us, CADesk can make all your legal aspects simple!
Recent Updates
ITR submissions for FY 2021–22 must be received by 31 July. Individuals whose accounts do not need to be audited are subject to this deadline. This deadline has not been extended by the government.
ITRs are being filed for the fiscal year, or FY 2021–2022, in the assessment year, or AY 2022–2023. Similar to this, income earned during the current fiscal year 2022–23 will be reported in the ITR for the following year, or the assessment year 2023–23.
According to the income tax laws, the last day to file an ITR for the fiscal year 2022–23 (AY 2024–23) is 31 July 2023.
FAQs on ITR Filing for Proprietorship Firm Made Easy at CADesk!
Form ITR3 and form ITR4 have to be filed for proprietorship income tax returns. You can also reach out to CADesk for filing them online.
Yes, as per the Income-tax Act all the proprietors who are less than 60 years of age and Hassan income of more than ₹2.5 lakhs should file income tax returns.
ITR2 is filed by resident individuals who have a total income tax exceeding ₹50 lakh. And is usually filed by individuals who own more than one house property. So an individual taxpayer having income through a business cannot use ITR2.
Auditing the tax income is mandatory if the sales or turnover causes ₹1 crore. Since the Proprietorships forms for taxes to individuals under the Income tax Act auditing becomes mandatory.
Technically speaking sole proprietors should pay the entire tax amount by themselves. The self-employment tax rate is around 15.3% out of which 12.4% is for social security up to a particular annual income and two-point nine percent is covered for Medicare with no income limit.
The total income earned by the proprietors and the business owners is called the proprietor’s income.
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