Annual Compliance – Proprietorship

Proprietorship Tax Return Filing

Proprietorship firms are required to file income tax return like LLPs and Companies registered in India. Since proprietorship firms are considered to be one and same as the proprietor, the income tax return filing of the proprietorship firm is the same that of the proprietor. Under Income Tax Act, all proprietors below the age of 60 years are required to file income tax return if total income exceeds Rs. 2.5 lakhs. In the case of proprietors over the age of 60 years but below 80 years, income tax filing is mandatory if total income exceeds Rs.3 lakhs. Proprietors over the age of 80 years and above are required to file income tax return if the total income exceeds Rs.5 lakhs. IndiaFilings provides income tax return filing for thousands of small and medium sized proprietorship firms across the country. Get in touch with an IndiaFilings Tax Expert to file the income tax return for your proprietorship firm today.

Income Tax Slab Rate

A new tax regime has been announced where the individuals can pay taxes as per the new slabs subject to certain conditions from FY2020-2021 onwards.

table1

Tax slab rates for sole proprietorship income tax return filing wherein the proprietor’s age is above 60 years but less than 80 years at any time during the previous year.

table2

Tax slabs for proprietorship firms where the age of the proprietor is above 80 years

table3

Tax slab for sole proprietorship firms where the proprietor is a non-resident individual ( Irrespective of the proprietor’s age).

table4

A surcharge is payable over and above the income tax calculated as per the income tax rate provided above.

table5

BASIC

iNR 6,299/Month

Yearly Bookkeeping

Dedicated Accountant

Bank Statement Reconciliation

Financial Statement Preparation

Business Tax Return Filing



STANDARD

iNR 15,299/Month

Yearly Bookkeeping

Dedicated Accountant

Bank Statement Reconciliation

Financial Statement Preparation

Business Tax Return Filing

GST Compliance

PREMIUM

iNR 20,299/Month

Yearly Bookkeeping

Dedicated Accountant

Bank Statement Reconciliation

Financial Statement Preparation

Business Tax Return Filing

GST Compliance

TDS Compliance

Income Tax Return for Proprietorship Firms

For the assessment Year 2019-20 only, which relates to income earned in Financial Year 2017-18, proprietorship firms would be required to file Form ITR-3 or Form ITR-4-Sugam.

Form ITR-3

Form ITR-3 can be filed by a proprietor or a Hindu Undivided Family who is carrying out a proprietary business or profession.

Form ITR-4-Sugam

Form ITR-4-Sugam can be filed by a proprietor who would like to pay income tax under the presumptive taxation scheme. Presumptive taxation scheme is designed to help ease the compliance burden of small businesses by assuming a set profit margin on the total income of the business or profession.

Filing a Proprietorship Firm Tax Return

The income tax return of a proprietorship firm in form ITR 3 or ITR V Sugam can be filed online using the digital signature of the proprietor or manually.

If the income tax return is filed manually, then the proprietor should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the proprietor, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the proprietor for his/her records.

 

More details – https://www.indiafilings.com/proprietorship-tax-return-filing