Income Tax Return
applicable if turnover is more than 50 Lakhs for service provider or 2 Crore for traders
Filing of Service Tax or VAT Annual Compliances
computation of income ,expenses and deductions are prepared
Proprietors can calculate their tax amount of the respective Assessment Year.axpayers, deductors or collectors can pay taxes in cash/cheque at any designated bank branches by submitting the appropriate Challan An online payment facility is also available
verification of the tax computed
As per Taxation Rules, it is mandatory for an earning individual/entity to file a return irrespective of the fact that tax has been deducted at source by his/her employer or not, and whether he/she is eligible for a refund or not.
Statutory Compliance for Proprietorship
Every Individual shall comply with Staututory requirements applicable to him for VAT, Service Tax and Income tax
File Sales Tax (VAT) Returns every Quarter within the due dates
File Service Tax Returns every Half Year ( every 6 Months) -
Income Tax Return every year before
PROCEDURE FOR ANNUAL COMPALINCE FULFILMENT
Need for Annual Complaince
There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.
Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors
The Proprietor must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business.Therefore, there will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same.
Simplest structure to create and manage. All you need to do is register your business name by getting a DBA (which is very easy) and then getting any local business licenses that is needed
A sole proprietorship also simplifies your ongoing management and tax reporting. If you were to incorporate a business, you would to need to operate it at a higher administrative level — and that means paperwork.
As for taxes, the government doesn’t make any separation between a sole proprietor and the individual. That means that any income you earn with your sole prop business is considered your own personal income.