ITR File for a Proprietorship Firm

Proprietorship Tax Filing Guide
By NYAY SARTHI INDIA FILINGS

Key Features:
• Tax filing identical to individual returns
• No separate legal identity from owner

Financial Year Timeline:
✓ FY: 1st April – 31st March
✓ AY: Following year (e.g., FY 2020-21 → AY 2021-22)

Tax Structure:
✔ Progressive slab rates (like individuals)
✖ No flat tax rate like LLPs/Companies

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Proprietorship Tax Rate for the Assessment Year 2021-22 when Proprietor's age is less than 60 years

Taxable IncomeRate of Tax
Up to Rs 250000N.A.
Between Rs 250000 and Rs 5000005%
Between Rs 500000 and Rs 100000020%
More than Rs 100000030%

Proprietorship Tax Rate for the Assessment Year 2021-22 when Proprietor's age is between 60 and 80 years

Taxable IncomeRate of Tax
Up to Rs 300000Nil
Between Rs 300000 and Rs 5000005%
Between Rs 5,00,000 and Rs 10,00,00020%
More than Rs 10,00,00030%

Proprietorship Tax Rate for the Assessment Year 2021-22 when Proprietor's age is more than 80 years

Taxable IncomeRate of Tax
Up to Rs. 5,00,000NA
Rs. 5,00,000 to Rs. 10,00,00020%
Exceeding Rs. 10,00,00030%

Additional Tax Components Explained
By NYAY SARTHI INDIA FILINGS

Surcharge Applicability:
• 10% on tax when income exceeds ₹50L (up to ₹1Cr)
• 15% on tax when income crosses ₹1Cr

Mandatory Cess:
✓ 4% Health & Education Cess
✓ Calculated on total tax + surcharge

NYAY SARTHI INDIA FILINGS ensures accurate tax computation including all applicable charges.

Why Income Tax Return should be filed by Proprietorship Firms?

Proprietorship Tax Filing Requirements
By NYAY SARTHI INDIA FILINGS

Income Thresholds for Mandatory Filing:
• Below 60 years: ₹2.5L+ income
• 60-80 years: ₹3L+ income
• Above 80 years: ₹5L+ income

Key Benefits of Timely Filing:
✓ Loss carryforward facility
✓ Eligibility for key deductions (Sec 10A, 10B, 80-IA etc.)
✓ Avoidance of penalty charges

NYAY SARTHI INDIA FILINGS ensures compliant tax filing to maximize your proprietorship benefits.

Audit for Proprietorship

Proprietorship Audit Requirements
By NYAY SARTHI INDIA FILINGS

Mandatory Audit Triggers:
✔ Businesses: Turnover exceeding ₹1 crore
✔ Professionals: Gross receipts over ₹50 lakhs
✔ Presumptive Taxation: If income declared is below deemed profits

Audit Specifications:
• Must be conducted by a practicing CA
• Applies even under presumptive taxation scheme

NYAY SARTHI INDIA FILINGS provides complete audit compliance solutions for proprietorships.

Due Date for Filing Tax Return of Proprietorship Firm

Proprietorship ITR Filing Deadlines
By NYAY SARTHI INDIA FILINGS

Standard Filing:
• Due by 31st July (non-audit cases)

Audit-Required Cases:
✓ Due by 30th September

Special Cases:
• International/domestic transactions:

  • Must file Form 3CEB

  • Extended deadline: 30th November

NYAY SARTHI INDIA FILINGS ensures timely filing for all proprietorship types.

Which ITR Form should be used by a Proprietorship Firm?

Proprietorship ITR Filing Guide
By NYAY SARTHI INDIA FILINGS

ITR-3 Eligibility:
✓ Exclusive for proprietors & HUFs
✓ Applies only to proprietary businesses

Important Exception:
✖ Cannot be used by:

  • Partners in partnership firms

  • Must file ITR-2 instead

NYAY SARTHI INDIA FILINGS provides expert ITR selection and filing assistance.

Filing Tax Return of a Proprietorship Firm

ITR-3 Filing Process for Proprietorships
By NYAY SARTHI INDIA FILINGS

Online Filing Options:
✓ Manual signature
✓ Digital signature

Manual Filing Requirements:

  1. Print two copies of ITR-V

  2. Post signed copy to:
    Post Bag No. 1, Electronic City Office, Bengaluru–560100

  3. Retain second copy for records

NYAY SARTHI INDIA FILINGS ensures error-free ITR-3 filing for your proprietorship.