Sole Proprietorship is that the most known business framework in India because it is sort of simple to start out and requires minimum legal formalities. The proprietors exercising business activities in India are obliged to file income tax return annually consistent with their slab rates, counting on their annual income as prescribed within the tax Act:
Proprietors below 60 years aged are sure to pay taxes on their annual income exceeding over INR 2.5 Lacs;
Proprietors between 60 to 80 years aged are instructed to file tax returns on their annual income exceeding over INR 3 Lacs;
Proprietors above 80 years aged got to file tax returns on their annual income exceeding over INR 5 Lacs.
Mandates for Filing tax Returns (ITR) where Tax Audit is Required:
Proprietorship firm with total sales exceeding over INR 1 Crore during a fiscal year
Professionals (CA, Lawyers. Doctors) with gross receipts exceeding over INR 50 Lacs during a fiscal year
Other proprietorship firm under any presumptive taxation scheme, regardless of its turnover, where-in the claimed income is lesser than the estimated earnings or gains specified under the scheme
All the above cases require Tax Audits and are sure to file ITR by 30th September. Whereas just in case of proprietorship firms / professionals that don’t require tax auditing got to file ITR by 30th July.
