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Annual Compliances For Proprietorship

Our Packages for Annual Compliances For Proprietorship

Income Tax Return

Income Tax Return

Rs 2000/-
Income Tax Return with Tax Audit

applicable if turnover is more than 50 Lakhs for service provider or 2 Crore for traders

Rs 15000/-
Vat and Service Tax Compliances

Filing of Service Tax or VAT Annual Compliances

Rs 10000/-

Process involved in Annual Compliances For Proprietorship

  • Computation

    computation of income ,expenses and deductions are prepared

  • Tax

    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

    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 

Important  dates: 

  •  25 July - for April to June 
  •  25 October - for July to September
  •  25 january  - for October to December
  •  25 April  - for January to March

File Service Tax Returns every Half Year ( every 6 Months) -
 Important  dates: 

  •  25 October - for April to September and
  • 25 April  - for October to March

Income Tax Return every year before

 Important  dates: 

  • 31st July - All Cases except audit
  • 30th Sep if your turnover is More Than 1 Crore - Service Turnover More  than 25 Lakhs


  •  Maintain Proper Books of Accounts.
  • Prepare and File Balance Sheet.
  • Comply with Sales Tax and Service Tax Requirements.
  • File Income Tax Returns with Income Tax Department.

Need for Annual Complaince

  • Late filing or non-filing of Sales tax Return before the due date will attract a penalty of Rs. 200 per Day.
  • Late filing or non-filing of Service Tax Return before the due date will attract a penalty of Rs. 200 per Day.

Frequently Asked Questions (FAQ's)

what is the capital required to start Propritorship?

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

Is audit required for Proprietorships?

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.

Can other people invest in proprietership?

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors

What are the requirements to be a Proprietor?

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.

does Proprietorship have a separate legal identity?

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.

Feature's of Annual Compliances For Proprietorship


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

Lighter Paperwork

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.

Easier Taxes

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.

Our Package