COMPANY ADDA Posted: June 7, 2023

Effortless Proprietorship ITR Filing: All that You Must Know

A Sole Proprietorship Registration must also pay their returns on time just like other firms such as LLP Registration, Pvt. Ltd. registration, etc. According to the law, the proprietorship and the proprietor are assumed to be single units. Therefore, the laws that administer the returns of the proprietor’s income tax return filing in Delhi NCR also apply to the proprietorship.

Income tax return filing

The Significance of Filing ITR for a Proprietorship Firm

If the total income for both proprietorship and sole proprietor is more than 3 lakhs rupees, then it is important for all proprietors who are under the age of 60 years to file for ITR, under the Income Tax Act.
If the income is more than five lakhs rupees, then the owners above 80 years of age are needed to file Sole Proprietorship Tax Returns.

Necessary Documentation for Proprietorship ITR Filing

The following are the required documents for ITR filing for Proprietorship Firm:

Aadhar card,
PAN card,
Advance tax payment challan,
Bank account details, and
Form 16, 16A, and 26AS.

How to File ITR for Proprietorship Firm?

Filing ITR for Proprietorship Firm is very critical and important, and must be filed every year without fail. To file the ITR for proprietorship, the E-sign of the owner is used. All the documents mentioned above are required along with two different forms which are based on the type of proprietorship; those two forms are the ITR 3 Form and the ITR 4 Form.

Deadline for Filing ITR for Proprietorship

The ITR should be filed by the 31st of July every year if the audit is not necessary.
If the audit is important, ITR is filed by the 31st of October every year.

Presumptive Taxation Scheme

To help small businesses and professionals file their ITRs easily, the Indian government introduced this scheme. If the annual turnover of the company is less than two crore rupees, then the businesses are eligible for a presumptive taxation scheme.

The Benefits of This Scheme Are:

The process of tax filing is simplified
Tax liability is reduced
Tax audits are avoided.

Whenever a proprietorship is subjected to any presumptive tax scheme, an audit is necessary, despite yearly turnovers. Also, according to the Income Tax Act of 1961, the audit of the proprietorship must be done by a licensed Chartered Accountant.

In Conclusion, we would like to recommend that you must hire a Tax Consultant in Noida to help you in your ITR filing for proprietorship.

Author : Simran Saxena