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Tax Return Filing for Proprietorship

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Complete By*: 08-11-2025

File your Business tax return online with our Tax experts.

 

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Market Price: ₹3100
Kudos Price: ₹1699 incl. all
You Save: ₹1401
Government Fee: Included
Complete By*: 08-11-2025

File your Business tax return online with our Tax experts.

 

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Market Price: ₹4999
Kudos Price: ₹2999 incl. all
You Save: ₹2000
Government Fee: Included
Complete By*: 08-11-2025

File your Business tax return online with our Tax experts.

 

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Tax Return Filing for Proprietorship

Income Tax Act lays down the necessity for Proprietorship Tax Return filing. Just like other business forms such as Companies and LLPs, the proprietorship is also liable to pay tax. As the proprietorship is not separate from its proprietor, thus follows the same Tax Return norms as the Individual Taxpayer. Live up the legal facets of your proprietorship without any worries. Let Kudos file your timely return in the simplest way possible.

Who shall file proprietorship Income Tax Returns?

Income Tax Act makes it mandatory to file Income Tax Returns in the following cases:

  • Proprietors with upto the age of 60, if the total income exceeds the amount of Rs. 2.5 lakhs shall file the Income Tax Return.
  • Proprietors over 60 to 80 years of age, if the total income crosses the value of Rs. 3 Lakhs are liable to file the Income Tax return.
  • Proprietors over 80 years of age, if the income exceeds the amount of Rs. 5 lakhs shall file the Income Tax Return.

Kudos Startup is presently facilitating more than thousands of proprietorship firms in filing their Income Tax Return right on time. Get linked with us for a timely filing of Proprietorship Income Tax return.

New tax regime & Old Tax regime

Income Tax Slab Existing Regime Slab Rates for FY 19-20 and FY 20-21 New Regime Slab Rates for FY 20-21
Resident Individuals & HUF < 60 years of age & NRIs Resident Individuals & HUF > 60 to < 80 years Resident Individuals & HUF > 80 years Applicable for All Individuals & HUF
Rs 0.0 – Rs 2.5 Lakhs NIL NIL NIL NIL
Rs 2.5 – Rs 3.00 Lakhs 5% (tax rebate u/s 87a is available) NIL NIL 5% (tax rebate u/s 87a is available)
Rs. 3.00- Rs 5.00 Lakhs 5% (tax rebate u/s 87a is available) NIL
Rs. 5.00 – Rs 7.5 Lakhs 20% 20% 20% 10%
Rs 7.5 – Rs 10.00 Lakhs 20% 20% 20% 15%
Rs 10.00 – Rs. 12.50 Lakhs 30% 30% 30% 20%
Rs. 12.5 – Rs. 15.00 Lakhs 30% 30% 30% 25%
> Rs. 15 Lakhs 30% 30% 30% 30%

When does a Proprietorship Firm require a Tax Audit?

Like several other Taxpayers, a proprietorship is also open to a mandatory Tax inspection known as Tax Audit for proprietorship.

The provision of the Income Tax Act reflects the following norms for Tax Audit in the case of a proprietorship:

  • Tax Audit is a must if the total sales turnover of a proprietorship exceeds Rs. 1 Crore in a financial year.
  • For professionals, audit becomes mandatory when the total gross receipts exceed Rs. 50 Lakhs in the year under assessment.
  • In the case of presumptive taxation, Tax Audit becomes compulsory when the deemed profit exceeds the claimed profit under the scheme.

Proprietorship Firm Tax Return Due Dates

As per the Income Tax Act, the return in the form ITR-3 and ITR-4 Sugam is due on 31st July of every year. Form ITR-4-Sugam is for a proprietor registered under the presumptive taxation scheme. Form ITR-3 is also for a Hindu Undivided Family having a proprietary business or profession. The proprietor need to get their account audited shall file form ITR-3 by 30th September of every year.

Proprietorship Tax Return Filing in India

The provisions of Proprietorship Income Tax Return filing states that the proprietorships in India need to file the return every year. The procedure of filing the return of proprietorship is just as same as that for a proprietor itself as both are considered to be the same under the law.

Why a Proprietorship Firm shall File Income Tax Return?

Income Tax Return is just not a financial liability but also a privilege. Filing Income Tax Return by the due date serves the proprietorship with several perks. Timely Tax Return filing allows carrying forward the losses if any in the case of proprietorship. Moreover, a proprietorship enjoys the deductions under Chapter VI-A by filing the Income Tax Return before the due date.

Other details for Income Tax Return filing for Proprietorship

If there is a case where the proprietorship enters into any specified domestic transaction or any international transactions with analogous entities, then Form – 3 CEB shall be duly filed. The Income Tax Return is due on 31st October for the proprietorship firms that file Form no. 3 CEB under the Income Tax Act.

How to File a Proprietorship Firm Income Tax Return

In the case of a proprietorship firm, the Income Tax Return is filed in the Form ITR-3 or ITR-4 Sugam that can be filed either online using the digital signature of the concerned proprietor or manually.

Kudos Startup helps you in filing the return timely at a minimal fee. Contact us to get the best assistance and legal support for your Proprietorship Income Tax filing in just a few simple steps:

  • 1

    Fill our easy form.

  • 2

    Get a call from our professionals.

  • 3

    Furnish the required details.

  • 4

    Sit back and get your tax return filed timely.

We notify you as soon as the return is successfully filed. Besides, you are free to contact the allotted professional to get the know-how of your case.

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FAQs

  • Whether it is compulsory to file Income tax Return ?
    It is compulsory to file income tax return, if any of the following mentioned conditions are met :-
    • Income of Individual exceeds the basic exemption limit.
    • An individual Deposited more than Rs 1 Crore in one or more Current Accounts during the financial Year.
    • An individual incurred expenditure of more than Rs 2 Lakhs for himself/herself or for any other person for foreign travel during the financial Year.
    • An individual Deposited Rs 50 lakhs or more in one or more saving Accounts during the financial Year.
    • An individual Incurred expenditure of more than Rs 1 lakhs on electricity consumption during the financial Year.
    • An individual had got TDS/TCS deducted of Rs 25000 or more (Rs 50000 for Senior Citizens)
    • An individual total Gross Receipt from profession is more than Rs 10 lakhs during the financial Year.
    • The Total Sales Turnover/ gross receipts from business is more than 60 Lakhs during the financial Year.
  • An individual having income from proprietorship business can file Form ITR-3. Further, a proprietor who would like to pay income tax under the presumptive taxation scheme can file Form ITR-4-Sugam.
  • The tax audit is compulsory for an individual having total sales turnover is exceeding Rs.1Crore during the financial year. Further audit is required in case of professional having total gross receipts of more than Rs.50 lakhs during the financial year.
    Note: The threshold limit of turnover for tax audit is increased to Rs.10 crores, If cash transactions are up to 5% of total gross receipts and payments
  • The penalty for non-filing or delay in filing tax audit report on taxpayers shall be lower of the following:-
    • 0.5% of the total sales turnover or gross receipt.
    • Rs 1,50,000

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