ITR for Proprietorship

Get full-suite income tax services with Probal Consulting Group for your Proprietorship business.

    Propel your business with Probal Consulting Group.

    What are Income Tax compliances for the Proprietorship firm?

    For proprietorship firms, the business and Proprietor have treated a single entity under Income Tax Law. Due to this reason, Proprietor and his/her business has to file single return. If the total income for the Proprietor below 60 years of age exceeds INR 2.5 lakh per annum(a rebate of 12,500 available under section 87A if the income is between 2.5 lakh to 3 lakh), he/she has to file an income tax return. If his/her age is age is above 80 years, the threshold income is 3 lakh per annum. For super senior citizen(above 80 years of age), the threshold is 5 lakh.

    The due date for Income tax return filing for Proprietorship firm

    All proprietorship businesses are required to file their ITR before 31st July. For e.g. for the F.Y 2019-2020(A.Y. 2020-2021), the due date will be 31st July. The firms for which audit is required have to file their ITR before 31st September. For e.g. for the F.Y 2019-2020(A.Y 2020-2021), the due date for filing the ITR will be 31st September.



    For all the proprietorships, it is mandatory under the law to file ITR-3 for the regular scheme. If a firm opts for the presumptive taxation scheme, it is mandatory to file ITR-4.

    What is the presumptive taxation scheme?

    This scheme is designed to help small businesses by reducing their compliance. They have to file the income tax return by assuming a particular profit percentage and have to pay tax accordingly.

    Benefits of filing ITR before the due date

    Every business has to file it’s ITR as mandated by the law on or before the due date. Businesses failing to do so will not be able to claim rebate under various sections like 0A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC. Also, the businesses filing the return after the due date will have to pay a certain penalty as mandated by the law.

    Audit for Proprietorship firms

    For a proprietorship firm that provides professional services, the audit is mandatory if the sales are above 50 lakh. For other proprietorship, the audit will be mandatory if the aggregate turnover is above 1 crore. The audit is mandatory for all the proprietorship businesses if they opt for the presumptive taxation scheme.

    Methods of filing ITR for proprietorship firm

    A proprietorship firm can file return manually by filing FORM ITR-V, signing it and sending it to the registered address of Income-tax department. A proprietor can also file the ITR through ITR-3 (SUGAM) using a digital signature certificate (DSC).

    How can Probal Consulting Group help?

    We can help you file your ITR for proprietorship firm after preparing a proper balance sheet and filling all the necessary information to avoid any future hassle.


    Frequently asked questions

    Proprietorship firm can file ITR using ITR-3 or ITR-4 Sugam ITR3 for proprietor and HUF running proprietorship business ITR-4 Sugam for firms that want to file ITR under presumptive taxation scheme
    The due date for filing ITR for the Proprietorship firm os 31st July.
    If the firm’s turnover exceeds INR 1 crore for business and INR 50 lakh for the profession, they will have to perform audits.
    For a proprietor below the age of 60 years, the exemption is allowed up to 2.5 lakh

    Related Services

    Get full-suite income tax services with Probal Consulting Group for your Proprietorship business.
    All the private limited companies are mandated to file MCA annual return and ITR every year.
    File your Partnership return promptly!
    Full-suite ITR filing services for LLPs!
    • +91 8866157880
    • 305, Aakansha Complex, Opp. J K Honda, 10/11 Vijay Plot Corner, Gondal Road, Rajkot 360002.