Company Secretary In Selaiyur
Proprietorship Tax Return Filing
Proprietorship firms are required to file income tax return like LLPs and Companies registered in India. 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.
Tax Audit For Proprietorship Firm
An audit would be required for a proprietorship firm if the total sales turnover is over Rs.5 crore (95% payments & receipts on banking) 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.
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.
Income Tax Return For Proprietorship Firms
For the assessment Year 2020-21 only, which relates to income earned in Financial Year 2017-18, 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.