Annual Compliances for Proprietorship In India:<


Sole Proprietorships of India have only the minimal statutory compliances, which are much lesser than those applicable to the private or public limited companies.

There is no legal identity of proprietorship firm from proprietor.
The annual income of the proprietor is considered the part of annual income of the sole proprietorship firm.
Every Individual shall comply with Staututory requirements applicable to him

Benefits of Proprietorship Business:

• Not required to file any annual report or financial statements with the MCA
“• Major Statutory Compliances is limited to:
• GST Returns
• Income Tax Returns
• TDS Returns”

Brief About Filing of Income Tax Return(ITR):

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. iNext provides income tax return filing for thousands of small and medium sized proprietorship firms across the country

 ITR is filed on yearly basis, on the following dates depending upon the necessity of financial/tax audit –

When audit is not necessary under any law – July 31 of the assessment financial year
When audit is compulsory under any law – September 30 of the assessment financial year. This gets applied when the annual turnover of the proprietorship firm is over INR One Crore; Or the Service Turnover is more than INR 50 Lac.

Brief About Filing GST Returns:

In case your proprietorship business have GST registration, filing of GST would be mandatory. However due date of filing of different forms will depend upon scheme that you have opted as per your turnover.
For Regular Tax Payer:

Filing of GSTR-1

Due date of Filing: 10th of every following month however for turnover upto 1.5 crore, ,may opt for quarterly filing

Filing of GSTR-2

Due date of Filing: 15th of every following month

Filing of GSTR-3

Due date of Filing: 20th of every following month

TDS return must be filed by all entities required to deduct tax at source and having TAN registration
TDS return must be filed by all entities required to deduct tax at source and having TAN registration
• Filing of TDS Returns: Quarterly
• Due Date of Filing TDS Returns:
Q1: 31st july
Q2: 31st october
Q3: 31st January
Q4: 31st May
Proprietorships are required to maintain accounts and prepare financial statements at the end of each financial year.
Our Compliance team can help you in maintaining the accounts and preparing the financial statements.
GST Return Filing:
TDS Return Filing
Income Tax Return Filing
• Maintain Proper Books of Accounts.
• Prepare and File Balance Sheet.
Implications on Business:
Managing the day to day operations of your business along with complying the applicable laws can be little taxing for any entrepreneur. Often entrepreneurs get overwhelmed by the number of compliances and in absence of professional guidance end up paying interest and penalties. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.
1 Invoices of Purchases and Sales during the year
2 Invoices of expenses incurred during the year
3 Credit Card Statements if Expenses are incurred by Proprietor on behalf on Company
4 Bank Statements from 1 April to 31 March for all bank accounts in the name of firm
5 Copy of VAT or Service Tax returns filed (If Any)
6 Copy of TDS Challans Deposited (If Any)
7 Copy of TDS Returns filed (If Any)

Contact Info

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Phone: +91 11 4357 0296

Mobile: +91 93 50 514064