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
NYAY SARTHI INDIA FILINGS simplifies proprietorship tax compliance with expert guidance.
Proprietorship Tax Rate for the Assessment Year 2021-22 when Proprietor's age is less than 60 years
| Taxable Income | Rate of Tax |
| Up to Rs 250000 | N.A. |
| Between Rs 250000 and Rs 500000 | 5% |
| Between Rs 500000 and Rs 1000000 | 20% |
| More than Rs 1000000 | 30% |
Proprietorship Tax Rate for the Assessment Year 2021-22 when Proprietor's age is between 60 and 80 years
| Taxable Income | Rate of Tax |
| Up to Rs 300000 | Nil |
| Between Rs 300000 and Rs 500000 | 5% |
| Between Rs 5,00,000 and Rs 10,00,000 | 20% |
| More than Rs 10,00,000 | 30% |
Proprietorship Tax Rate for the Assessment Year 2021-22 when Proprietor's age is more than 80 years
| Taxable Income | Rate of Tax |
| Up to Rs. 5,00,000 | NA |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Exceeding Rs. 10,00,000 | 30% |
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:
Print two copies of ITR-V
Post signed copy to:
Post Bag No. 1, Electronic City Office, Bengaluru–560100Retain second copy for records
NYAY SARTHI INDIA FILINGS ensures error-free ITR-3 filing for your proprietorship.