Which ITR form should a proprietor use?
A proprietor with business income files ITR-3, or ITR-4 if opting for presumptive taxation under 44AD or 44ADA and eligible. A proprietor who also has capital gains above the ITR-4 limits, or foreign assets, files ITR-3. We decide after reading your GST data and books.
Do I need a tax audit if my turnover is above ₹1 crore?
Generally yes, unless cash receipts and payments are each 5% or less of total, in which case the limit is ₹10 crore. A business that declares profit below the presumptive rate may also need an audit. We check the position on 31 March, not at filing time.
Can I claim my own salary or drawings as a business expense?
No. A proprietor is not an employee of the business, so drawings, salary to yourself and personal expenses are not deductible. Interest on capital and personal tax are also not deductible. We separate these in the books so the profit shown is the taxable profit.
What if I filed late and did not carry forward my business loss?
A business loss can be carried forward for up to eight years only if the return is filed by the original due date. In a belated return you lose the right to carry forward most losses. This is one of the main reasons not to delay filing in a loss year.
Is advance tax compulsory for a business?
Yes if tax payable after TDS is ₹10,000 or more. Instalments fall on 15 June, 15 September, 15 December and 15 March. Presumptive taxpayers can pay the whole amount by 15 March. Missed instalments attract interest under 234B and 234C. See
advance tax calculation.
Does my shop licence or professional tax affect my return?
Professional tax paid by the business is deductible when paid, and licence fees are normal expenses. Professional tax registration and returns are separate filings; if you need them, see
professional tax registration and filing.
What is the last date to file an income tax return?
For individuals and HUFs who do not need an audit, the usual due date is 31 July after the financial year ends. Cases needing a tax audit normally get 31 October, and companies with transfer pricing reports 30 November. The government sometimes extends dates, so we confirm the notified date for your year before we start.
What happens if I miss the ITR due date?
You can still file a belated return under section 139(4), generally until 31 December of the assessment year, but with a late fee under section 234F (₹5,000, or ₹1,000 if total income is up to ₹5 lakh) and interest under 234A. Most losses cannot be carried forward in a belated return, which can cost more than the fee itself.
Do I need to e-verify my return after filing?
Yes. A return is treated as filed only after e-verification, which must be completed within 30 days of filing. You can verify with Aadhaar OTP, net banking, a pre-validated bank account or a demat account. We guide you through it and confirm the processed status on the portal afterwards.
