ITR Filing for Sole Proprietorship Firm
- Ledgercrafter provides holistic support when it comes to ITR filing for proprietorship firm, starting from data collection to filing your tax return we have got you completely covered!
- Get Expert Assisted Tax Filing starting at ₹1499/-
Documents Required for Sole Proprietorship ITR Filing
As a sole proprietor, the following documents are required for ITR filing for Proprietorship Firm:
- PAN card
- Aadhar card
- Bank account details
- Form 16, 16A and 26AS
- Advance tax payment challan
Old Income Tax Regime Slabs for Proprietorship Business, Professionals Below 60 Years
As a sole proprietor, the following documents are required for ITR filing for Proprietorship Firm:
| Total Income Tax Range | Income Tax Rate (excluding surcharge and cess) |
|---|---|
| 0 – ₹2, 50,000 | Nil |
| ₹2, 50,001 – ₹5, 00,000 | 5% |
| ₹5, 00,001- ₹7, 50,00 | 20% |
| ₹7, 50,001- ₹10, 00,000 | 30% |
New Income Tax Regime Slabs for Sole Proprietorships and Professionals
| Total Income Tax Range | Income Tax Rate (excluding surcharge and cess) |
|---|---|
| 0 – ₹2, 50,000 | Nil |
| ₹2, 50,001 – ₹5, 00,000 | 5% |
| ₹5, 00,001- ₹7, 50,00 | 10% |
| ₹7, 50,001- ₹10, 00,000 | 15% |
| ₹10, 00,001 – ₹12, 50,000 | 20% |
| ₹12, 50,001 – ₹15, 00,000 | 25% |
| ₹15, 00,001 and above | 30% |
Due Dates of filing ITR for sole proprietorship
| Audit Requirement | Due Date |
|---|---|
| No Audit Required | 31 July |
| Audit Required | 30 September |
| International Transactions or Specific Entities | 30 November |
FAQs on ITR Filing for Proprietorship Firm
Get in touch with Vakilsearch. We will review the necessary financial documents, calculate your income, and file form ITR-3.
ITR-3 should be filed by individuals and HUFs who have income from a proprietary business or profession. The deadline for filing ITR-3 for a proprietorship firm is generally July 31 of the assessment year (e.g. 31 July 2023, for the assessment year 2022-23).
Annual compliances for a proprietorship firm may include filing income tax returns, maintaining books of accounts, obtaining any necessary registrations or licences.
Yes, if the income of the proprietorship firm exceeds the specified threshold limits as per the Income Tax Act, 1961. It is mandatory to file an income tax return.
Yes, as a sole proprietor, you are required to file income tax returns if your total income exceeds the threshold limits specified by the Income Tax Act of 1961
The proprietor’s income refers to the net profit or loss earned by the sole proprietorship firm during a specific financial year. It is calculated by deducting the business expenses from the business income.
No, ITR-2 is not applicable to sole proprietors. It is meant for individuals and HUFs having income from other sources, but not from a proprietary business or profession.
There is no specific maximum turnover limit for a sole proprietorship firm. The turnover can vary based on the nature of the business, industry, and other factors.
Sole proprietorship offers advantages like ease of decision-making, fewer legal formalities, and sole ownership of profits, while partnerships involve shared responsibilities, decision-making, and profits, which may require additional agreements and coordination.
