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. 3CPS provides income tax return filing for thousands of small and medium sized proprietorship firms across the country. Get in touch with 3CPS Tax Expert to file the income tax return for your proprietorship firm today.
Tax Audit for Proprietorship Firm
An audit would be required for a proprietorship firm if the total sales turnover is over Rs.1 crore during the financial year. In the case of a professional, audit would be required if total gross receipts is more than Rs.50 lakhs during the financial year under assessment. Also, an audit would be required for any proprietorship firm under presumptive taxation scheme irrespective of turnover if the income claimed is lower than the deemed profits and gains under the scheme.
Due Date for Proprietorship Firm Tax Return
The income tax return of a proprietorship that doesn’t require audit is due on 31st July. In case the income tax return of a proprietorship needs to be audited as per Income Tax Act, then the return would be due on 30th September. Proprietorship firms would be required to file Form ITR-3 or Form ITR-4-Sugam. 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 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.
Reasons to Major Compliances for a Proprietorship
Your proprietorship will be assigned a Compliance Manager who will be a single point of contact to help you maintain the compliance for your proprietorship. You can get in touch with your Compliance Manager at anytime and get assistance on matters related to your proprietorship’s compliance.
Proprietorships are required to maintain accounts and prepare financial statements at the end of each financial year. Our Compliance Manager will help maintain accounts and will prepare the financial statement for your Proprietorship at the end of financial year.
Income Tax Return Filing
Income tax return of a proprietorship must be filed at the end of each financial year. Based on the nature of business activity, our Compliance Manager will prepare all the documents and file your proprietorship tax return.
GST Return Filing
GST return must be filed by all entities having GST registration. In case your proprietorship has GST registration, our Compliance Manager can help you file GST returns at an additional cost based on volume.
TDS Return Filing
TDS return must be filed by all entities required to deduct tax at source and having TAN registration. If your proprietorship has TAN registration, our Compliance Manager can help file TDS return at an additional cost.