Simplest Business Structure · Solo Owner · Pan-India
One Stop Solution for Your
Proprietorship Firm
Income Tax, GST, TDS and all regulatory compliance for your Proprietorship — handled by dedicated Chartered Accountants. ITR-3 or ITR-4. Presumptive taxation. Zero penalties.
🏠 Delhi·🏠 Bihar·🏠 Bangalore·🏠 Goa
3,000+Proprietors Managed
4.9★Rating
ITR-3/4Filing Experts
ZeroLate Penalties
⭐ 4.9 Rated
🏆 3,000+ Proprietors
📋 ITR-3 + ITR-4 Experts
🔒 Zero Late Penalties
📍 Pan-India Service
⚠️ Key Deadlines ITR-3/4 (No Audit): 31 July every year · ITR-3 (With Audit): 31 October every year · GST (Monthly): 11th & 20th
📖 What You Must Know
Proprietorship — The Simplest Business Structure
A Sole Proprietorship is not a separate legal entity. The owner and the business are the same person in law. No registration required (optional). Business income = owner's income. Owner's PAN = firm's PAN.
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Owner = Business
No separate PAN for the firm. Owner's personal PAN is used for all business transactions, GST, bank accounts and income tax.
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Taxed at Slab Rates
Business profit is added to owner's total income and taxed at individual slab rates (0%, 5%, 10%, 15%, 20%, 30%). Not 30% flat like firms/companies.
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Lowest Compliance
No ROC. No MCA filings. No board meetings. No annual return. Just Income Tax (ITR-3 or ITR-4), GST if applicable and TDS if applicable.
⏰ Compliance Calendar
Proprietorship — Key Due Dates Every Year
A Proprietorship's compliance is the lightest of all entities — no MCA, no ROC. Just IT return, GST and TDS (if applicable). The critical decision: ITR-3 (actual accounts) vs ITR-4 (presumptive).
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ITR-3 (No Audit)
31 July every year
ITR-3 — Actual accounts₹1,000–5,000 late fee
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ITR-3 (With Tax Audit)
31 October every year
ITR-3 + Form 3CA/3CB₹1,000–5,000 late fee
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Advance Tax Q1
15 June every year
Challan 2801%/month interest
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Advance Tax Q3
15 December every year
Challan 2801%/month interest
📌 ITR-3 is for proprietors maintaining actual books of accounts. Business income is computed after deducting all actual expenses. Tax is at individual slab rates — so if total income (salary + business + other) is below ₹3 lakh (old regime) or ₹4 lakh (new regime), no tax is payable. Tax Audit mandatory when business turnover exceeds ₹1 crore (₹10 crore if 95%+ digital transactions) or professional receipts exceed ₹50 lakh.
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ITR-4 (Presumptive)
31 July every year
ITR-4 — Sec 44AD/44ADA₹1,000–5,000 late fee
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Business (Sec 44AD)
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6% or 8% of T/O deemed profitT/O must be ≤₹3 crore
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Profession (Sec 44ADA)
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50% of gross receipts deemedReceipts must be ≤₹75 lakh
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Advance Tax (Presumptive)
15 March every year
Single instalment only1%/month if not paid
📌 ITR-4 / Presumptive Taxation — the biggest tax simplification for small proprietors. Under Sec 44AD (business): Declare 8% of cash turnover or 6% of digital turnover as profit — no need to maintain detailed books. Under Sec 44ADA (professionals like doctors, lawyers, engineers, architects, CAs): Declare 50% of gross receipts as profit. No tax audit needed. Advance tax in a single instalment by 15 March. Turnover limit: ₹3 crore (Sec 44AD), ₹75 lakh (Sec 44ADA).
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GSTR-1 Monthly
11th every month
Outward Supplies₹50–200/day
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GSTR-3B Monthly
20th every month
Tax Payment₹50–200/day
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GSTR-9 Annual
31 December every year
Annual Return₹200/day
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GSTR-4 (Composition)
30 April every year
If Composition Scheme₹50–200/day
📌 GST mandatory if turnover exceeds ₹20 lakh (₹10 lakh for special category states) or for interstate supplies or e-commerce sellers regardless of turnover. Composition Scheme available up to ₹1.5 crore — pay 1% GST, file quarterly CMP-08 and annual GSTR-4. Composition businesses cannot issue tax invoices and cannot take ITC. Most small proprietors prefer regular scheme for ITC benefits.
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TDS Deposit
7th every month
Challan 281 (if TAN held)1.5%/month interest
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TDS Returns
Quarterly
26Q / 24Q₹200/day penalty
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EPF / ESI
15th every month
If 20+ employeesDamages 5–25%
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TAN — When Required?
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Only if deducting TDS—
📌 TAN and TDS are required for a Proprietorship only if the proprietor deducts TDS on payments to employees (salary, 24Q) or vendors (rent 194I, professional fees 194J, contractor 194C). Small proprietors whose annual turnover or payments don't cross the relevant thresholds may not need TAN. No TDS is deducted by the proprietor on their own drawings — owner withdrawals are not salary; they are part of business profit and reflected in ITR-3/ITR-4.
📋 All Services
Everything Your Proprietorship Needs
From ITR filing to GST registration to MSME certificate — click any service for details.
⭐ Most Popular Bundle
🕉️
Nirvana Compliance Package
All-In-One Annual Proprietorship Compliance
Complete peace-of-mind for your Proprietorship — ITR-3 or ITR-4 (whichever is optimal), GST returns, TDS compliance and tax planning under one dedicated CA. Lowest compliance. Zero penalties. One fixed price.
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✅ Everything Included
✅ ITR-3 or ITR-4 — Optimal choice
✅ Tax Audit (if applicable)
✅ GST Returns — Monthly & Annual
✅ TDS Returns (if applicable)
✅ Advance Tax Planning
✅ Old vs New Regime Optimisation
✅ 44AD vs 44ADA Assessment
✅ Dedicated CA on WhatsApp
💰 Tax Compliances — Annual
Annual
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ITR-3 — Actual Accounts
ITR-3 (Business Income)
For proprietors maintaining books of accounts. Business income computed after actual expenses. Tax at individual slab rates. Tax audit needed when turnover exceeds ₹1 crore (business) or ₹50 lakh (profession). Due 31 July or 31 October.
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Annual⚡
ITR-4 — Presumptive Taxation
ITR-4 (Sec 44AD / 44ADA)
For small proprietors — declare 6%/8% of business turnover (Sec 44AD, max ₹3Cr) or 50% of professional receipts (Sec 44ADA, max ₹75L) as profit. No books, no audit, one advance tax instalment on 15 March. Due 31 July.
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If Applicable📊
Tax Audit — Form 3CB/3CD
Form 3CB + 3CD (by CA)
Mandatory when business turnover exceeds ₹1 crore (₹10 crore if digital) or professional receipts exceed ₹50 lakh. Conducted by CA. Form 3CB (audit report) + Form 3CD (statement of particulars). Due 30 September.
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Monthly🧾
GST Returns
GSTR-1 + GSTR-3B + GSTR-9
Monthly GSTR-1 (11th) and GSTR-3B (20th). Annual GSTR-9 (31 December). GST mandatory if turnover exceeds ₹20L. Composition scheme available up to ₹1.5 crore — file GSTR-4 annually instead.
View Details →
If Applicable💳
TDS Compliance
26Q / 24Q (if TAN held)
TDS on rent (194I), contractor (194C), professional fees (194J) if payments exceed thresholds. TAN needed only if deducting TDS. No TDS on proprietor's own withdrawals. TAXAJ assesses TDS applicability.
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Monthly👥
Payroll & EPF/ESI
EPF + ESI + PT + 24Q
Payroll for employees, EPF ECR challan, ESI, professional tax and salary TDS. EPF mandatory when 20+ employees. ESI for employees earning below ₹21,000. Note: Proprietor's own drawings are not salary — no payroll for owner.
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📋 Registrations & Conversions
Registration
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GST Registration
GSTIN in Proprietor's PAN
GST registration for Proprietorship in proprietor's own PAN. Mandatory if turnover exceeds ₹20L or for interstate supply. Single GSTIN covers all business activities of the proprietor across India.
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Registration🏭
MSME / Udyam Registration
Udyam Certificate
Free registration on MSME/Udyam portal gives access to priority sector lending, subsidised loans, government tender preference, delayed payment protection and MSME schemes. Valid for proprietorships.
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Registration🌐
Import Export Code (IEC)
IEC — DGFT
IEC registration in proprietor's name for import or export of goods or services. Mandatory for all importers and exporters. No annual renewal required — linked to proprietor's PAN permanently.
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Registration🏪
Shop & Establishment Licence
State-Specific Registration
State-specific Shop & Establishment Act registration — required for most business premises. Gives the proprietorship official recognition, helps open current accounts and is needed for some government tenders.
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Convert🤝
Convert to Partnership Firm
Partnership Deed
Bring in partners by executing a Partnership Deed. Business assets and liabilities can be transferred to the partnership. GST and IT registrations amended. Suitable when adding a business partner.
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Convert🏢
Convert to Pvt Ltd / LLP
Slump Sale / New Incorp
When the business grows — convert to Private Limited Company or LLP for limited liability, separate legal entity status and ability to raise investment. TAXAJ handles the complete conversion with tax planning.
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✅ Full Compliance Checklist
Everything Your Proprietorship Must Do Every Year
The simplest compliance of any business structure — TAXAJ handles all of it so you can focus on your business.
💰 Income Tax
ITR-3 or ITR-4 — choose optimal 31 Jul / 31 Oct
Tax Audit 3CB/3CD (if T/O > threshold) 30 Sep
Advance Tax Q1: 15% by 15 June 15 Jun
Advance Tax Q2: 45% by 15 Sep 15 Sep
Advance Tax Q3: 75% by 15 Dec 15 Dec
Advance Tax Q4: 100% by 15 Mar 15 Mar
Old vs New Tax Regime comparison Before ITR
Section 80C, 80D deductions claimed In ITR
🧾 GST & TDS
GSTR-1: Monthly outward supplies 11th monthly
GSTR-3B: Monthly GST payment 20th monthly
GSTR-9: Annual GST return 31 Dec
TDS deposit (if TAN held) 7th monthly
TDS Returns 26Q / 24Q Quarterly
Form 16A to vendors Quarterly
📋 Registrations (Ongoing)
GST registration active and valid Always
Shop & Establishment licence renewed Annual
MSME / Udyam registration updated If changed
IEC (if importer/exporter) kept active Always
Current bank account in firm name Always
Proprietor's Aadhaar & PAN linked Always
👥 If You Have Employees
Salary TDS (24Q) — if salaries paid Monthly
EPF ECR Challan (20+ employees) 15th monthly
ESI (if applicable employees) 15th monthly
Professional Tax — state-specific Monthly
Form 16 for all employees 31 May
POSH compliance (10+ employees) Annual
⚠️ Penalties
What Happens If You Miss Deadlines?
Proprietorship penalties are primarily income tax and GST related — simpler than company penalties but still significant.
| Filing / Obligation | Due Date | Penalty for Default | Risk |
|---|---|---|---|
| ITR-3 / ITR-4 (late) | 31 July | ₹1,000 if income ≤₹5L / ₹5,000 if income >₹5L | Sec 234F late fee |
| ITR-3 with audit (late) | 31 October | ₹1,000 if income ≤₹5L / ₹5,000 if income >₹5L | Sec 234F late fee |
| Tax Audit (when required) | 30 September | 0.5% of turnover or ₹1.5 lakh whichever is lower | Sec 271B penalty |
| Advance Tax Shortfall | Quarterly | 1% per month under Sec 234B / 234C | Interest on tax |
| GSTR-3B Monthly (late) | 20th monthly | ₹50–200 per day depending on turnover | GSTIN suspension |
| GSTR-1 Monthly (late) | 11th monthly | ₹50 per day for nil return / ₹200 per day otherwise | ITC blocked for buyers |
| TDS Return Late (26Q) | Quarterly | ₹200/day up to TDS amount deducted | IT notice |
| Non-filing of ITR | 31 July / 31 Oct | Prosecution under Sec 276CC if tax >₹25,000 | Criminal prosecution |
⚙️ How It Works
TAXAJ Handles Your Proprietorship in 4 Steps
01
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Share Your Details
PAN card, previous ITR, GST credentials, bank statements and business income details via WhatsApp.
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02
👨💼
CA Assigned in 1 Hour
CA reviews your income, determines ITR-3 vs ITR-4, old vs new regime and advance tax planning.
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03
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Return Prepared
ITR-3 or ITR-4 prepared with all deductions, GST reconciliation and tax audit (if needed). You review and approve.
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04
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Filed & Acknowledged
ITR filed. Acknowledgement and ITR-V emailed to you. Advance tax schedule for the year shared.
🏆 Why TAXAJ
Why 3,000+ Proprietors Choose TAXAJ
ITR-3 vs ITR-4, old vs new regime, 44AD vs 44ADA — your CA makes the right call every time.
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ITR-3 vs ITR-4 Guidance
TAXAJ analyses your actual profits vs presumptive income — recommends whichever ITR form results in lower tax.
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Old vs New Regime
CA compares both tax regimes for your specific income level and deductions — files under the regime that saves more tax.
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Advance Tax Planning
Quarterly advance tax schedule calculated so you don't pay interest under Sec 234B/234C on missed instalments.
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Audit Threshold Alert
TAXAJ tracks your monthly GST turnover — alerts you when approaching ₹1 crore (business) or ₹50L (profession) audit limit.
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WhatsApp-First CA
Your CA responds same-day on WhatsApp. No call centres, no ticket queues — one person who knows your business.
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Zero Late Fee Record
No TAXAJ proprietorship client has paid a Sec 234F late fee on our watch.
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GST + ITR Together
CA handles both your GST returns and ITR in one engagement — ensures GST turnover matches ITR income to avoid notices.
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Growth Conversion
When it's time to upgrade to LLP or Pvt Ltd — TAXAJ plans and executes the conversion with full tax optimisation.
❓ FAQ
Frequently Asked Questions
A Proprietorship can file either ITR-3 or ITR-4 depending on the nature and size of the business. ITR-3 — for proprietors maintaining actual books of accounts and computing actual business profit after all expenses. Required when: (1) turnover exceeds ₹1 crore for business or ₹50 lakh for profession, or (2) you want to show a lower profit than the presumptive rate, or (3) you have capital gains, carried-forward losses or speculative income. ITR-4 — for proprietors opting for Presumptive Taxation under Sec 44AD (business, turnover up to ₹3 crore, declare 6%/8% as profit) or Sec 44ADA (specified professions, receipts up to ₹75 lakh, declare 50% as profit). TAXAJ calculates both options and files whichever saves more tax.
No. A Proprietorship does not have a separate PAN card. The owner (proprietor) and the business are the same legal person — so the proprietor's personal PAN is used for all business purposes: income tax filing, GST registration, bank current account, TDS deduction, Import Export Code and all other business registrations. This is fundamentally different from companies (which have their own PAN), LLPs (which have their own PAN) and even Partnership Firms (which get a separate PAN in the firm's name). The proprietorship's ITR is filed under the proprietor's personal PAN as an individual with business income.
Section 44AD (for business): A proprietor with business turnover up to ₹3 crore can declare 8% of total turnover (6% for digital receipts) as net profit without maintaining detailed books of accounts or getting a tax audit. Tax is then paid on this deemed profit at individual slab rates. Advance tax in a single instalment by 15 March. Section 44ADA (for specified professions like doctors, lawyers, engineers, architects, CAs, IT professionals): A professional with gross receipts up to ₹75 lakh can declare 50% of gross receipts as profit — no books, no audit. Note: If in any year you opt out of presumptive and show actual profits, you cannot use presumptive for 5 years from that year.
Tax audit under Section 44AB is mandatory for a Proprietorship when: (1) Business turnover exceeds ₹1 crore (₹10 crore if 95%+ receipts and payments are digital), (2) Professional gross receipts exceed ₹50 lakh, (3) Proprietor opts out of Presumptive Taxation (Sec 44AD/44ADA) and income exceeds the basic exemption limit. Audit conducted by a CA in Form 3CB (for business — proprietorship) or Form 3CA (for cases falling under Sec 44AB otherwise). Detailed Form 3CD prepared. Due 30 September. Without audit: ITR due 31 July. With audit: ITR due 31 October. Penalty for not getting audit done when required: 0.5% of turnover or ₹1.5 lakh, whichever is lower (Sec 271B).
The choice between Old and New Tax Regime is the most impactful tax decision a proprietor makes every year. New Regime (default from 2023-24): Lower slab rates but no deductions allowed — no 80C (LIC, PPF, ELSS), no 80D (health insurance), no HRA, no home loan interest. Old Regime: Higher slab rates but all deductions available. Proprietors with: (1) significant 80C investments, (2) home loan, (3) HRA, (4) health insurance premiums — typically save more under Old Regime. Others — especially younger proprietors without large deductions — may save more under New Regime. TAXAJ computes both for every client and files under the tax-optimal regime.
No — a proprietor cannot pay themselves a salary that is deductible from business income. Unlike a company director or a partner in a partnership, the proprietor and the business are the same legal person — there is no transaction between them. The proprietor's earnings from the business are entirely the business profit (after all third-party expenses) and taxed as "Income from Business or Profession" in the ITR. If the proprietor hires employees and pays them salary, that is deductible as a business expense. But money the proprietor draws for themselves — called "drawings" or "withdrawals" — is simply taking their own money and is not a deductible expense.
Since a Proprietorship has no separate legal existence, it automatically ceases to exist when the proprietor dies. The business assets and liabilities become part of the proprietor's estate and are inherited by legal heirs as per succession laws or a Will. The GST registration, bank accounts and all business registrations stand cancelled on the proprietor's death. Legal heirs who wish to continue the business must start fresh registrations — either as a new proprietorship, partnership or company. This is a key risk of the proprietorship structure — unlike companies or LLPs, there is no perpetual succession. TAXAJ recommends transitioning to an LLP or Pvt Ltd once the business reaches a meaningful scale.
🔗 Related Services
More TAXAJ Services for Proprietors
🏪
Register Proprietorship
Shop act + MSME
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ITR-3 / ITR-4 Filing
Annual IT return
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GST Registration
In proprietor's PAN
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MSME / Udyam
Free registration
🌐
Import Export Code
IEC registration
®️
Trademark
Brand protection
🏢
Convert to Pvt Ltd
Upgrade entity
🤝
Convert to LLP
Limited liability
⚠️
IT Notice Reply
Expert response
🧑💼
Ask a CA Online
Free 15-min consult
Get Your Proprietorship's Compliance Handled
ITR-3 / ITR-4 · Tax Audit · GST Returns · TDS · Old vs New Regime · 44AD vs 44ADA — one dedicated CA for everything.
🏆 3,000+ Proprietors · ✅ 4.9★ Rated · 📋 ITR-3/4 Experts · 🔒 Zero Penalties · 📍 Pan-India