Contents hide
1. Proprietorship Compliance
1.1. Proprietorship
1.2. Income Tax Return Filing for Proprietorship
1.3. Is it Necessary for Proprietorship to File ITR?
1.4. Income Tax Slab Rate for Proprietorship Firms
1.5. Tax Rates for Proprietors Opting for an Alternate Tax Regime under Section 115BAC
1.6. Rates of Surcharge under the Normal Tax Regime
1.7. Rates of Surcharge under Alternate Tax Regime
1.8. Simplifying Proprietorship Compliance in India with EYC International
1.8.1. Surcharge Rates under Alternate Tax Regime
1.9. Presumptive Taxation Scheme for Proprietorship
1.10. Deadlines for Proprietorship Tax Return Filing
1.11. Essential Documents for Proprietorship Income Tax Return Filing
1.12. Filing Income Tax for a Proprietorship
1.13. TDS Return Filing
1.14. GST Return Filing
1.15. EPF Return Filing
1.16. Accounting and Bookkeeping
1.17. Proprietorship Firm Audit
1.18. Streamline Your Proprietorship Compliance with EYC International
1.19. Our Services: Zero Late Fee on Compliance
1.20. Other Services: Business Branding India
1.21. Patent Filling
1.22. Content Marketing
1.23. Social media marketing
1.24. Business Branding
1.25. Link Building
1.26. Pay per click
1.26.1. Business Branding India
1.26.1.1. Annual Compliances Filing with ROC

Proprietorship Compliance

Running a Sole Proprietorship in India comes with a set of crucial financial and legal responsibilities. Compliance with various tax and regulatory requirements is essential to ensure your business’s smooth operation and growth. This includes filing Income Tax Returns, TDS Returns, GST Returns, EPF Returns, maintaining accurate accounting records, and sometimes undergoing a Tax Audit.

Filing tax returns is an essential obligation for businesses operating as sole proprietorships in India. At EYC International, we understand the significance of Compliance with Indian tax laws and the potential benefits that come with it. Our comprehensive services are designed to assist business owners in navigating intricate compliance requirements. By partnering with EYC International, you can fulfill your tax obligations and explore opportunities to optimize your tax benefits, allowing your business to succeed while following tax rules.

Proprietorship

EYC International Private Limited India

A sole proprietorship in India is the most basic business setup, where a single individual owns and runs the business.

Income Tax Return Filing for Proprietorship

In India, proprietorships have the same tax responsibilities as their owners. A proprietorship is an extension of the owner, meaning the tax process is similar to what individuals go through. The income tax rules that apply to individual proprietors also apply to proprietorships.

Proprietorships, like partnerships and companies, must pay taxes based on their earnings. For tax purposes, proprietors and their businesses are viewed as single entities. The income tax filing process for proprietorships aligns with the tax returns of the Proprietor. Since a proprietorship isn’t considered a distinct legal entity, it has no unique tax identification number. Instead, the Proprietor’s Permanent Account Number is used for filing returns on behalf of the proprietorship.

Is it Necessary for Proprietorship to File ITR?

Yes, under the Income Tax Act in India, proprietorship firms must file income tax returns based on the age and income of the Proprietor:

  • Below 60 Years: Proprietors below 60 must file an income tax return if their total income exceeds Rs. 3 Lakhs.
  • Between 60 and 80 Years: Proprietors aged between 60 and 80 must file an income tax return if their total income exceeds Rs. 3 Lakhs.
  • Above 80 Years: Proprietors aged 80 and above must file an income tax return if their income exceeds Rs. 5 Lakhs.

Filing ITR before the deadline is crucial because it allows business losses to be carried forward for future use. Additionally, certain deductions under sections like 10A, 10B, 80-IA, 80-IAB, 80-IB, and 80-IC can only be claimed if the proprietorship’s ITR has been filed on or before the due date.

Income Tax Slab Rate for Proprietorship Firms

The income tax landscape for proprietorship firms has witnessed significant changes in the 2023-2024 budgets. The revised income tax regime has introduced an enhanced tax rebate threshold of Rs. 3 lakh for both salaried individuals and taxpayers. Moreover, the tax rebates for individual and salaried taxpayers have been elevated from Rs. 5 lakh to Rs. 7 lakh under this updated income tax framework.

Proprietor’s AgeNet Income RangeRate of Income Tax (%)
Below 60 YearsUp to Rs. 2,50,000–
Rs. 2,50,001 to Rs. 5,00,0005
Rs. 5,00,001 to Rs. 10,00,00020
Above Rs. 10,00,00030
60-80 YearsUp to Rs. 3,00,000–
Rs. 3,00,001 to Rs. 5,00,0005
Rs. 5,00,001 to Rs. 10,00,00020
Above Rs. 10,00,00030
Above 80 YearsUp to Rs. 5,00,000–
Rs. 5,00,001 to Rs. 10,00,00020
Above Rs. 10,00,00030

Tax Rates for Proprietors Opting for an Alternate Tax Regime under Section 115BAC

An alternative tax regime for proprietors was introduced by the Finance Act 2020 as Section 115BAC. Assesses must give up specified exemptions and deductions to take advantage of this tax regime.

Net Income RangeRate of Income Tax (%) (FY 2022-23)Rate of Income Tax (%) (FY 2023-24)
Up to Rs. 2,50,000––
Rs. 2,50,001 to Rs. 3,00,0005–
Rs. 3,00,001 to Rs. 5,00,00055
Rs. 5,00,001 to Rs. 6,00,000105
Rs. 6,00,001 to Rs. 7,50,0001010
Rs. 7,50,001 to Rs. 9,00,0001510
Rs. 9,00,001 to Rs. 10,00,0001515
Rs. 10,00,001 to Rs. 12,00,0002015
Rs. 12,00,001 to Rs. 12,50,0002020
Rs. 12,50,001 to Rs. 15,00,0002520
Above Rs. 15,00,0003030

Rates of Surcharge under the Normal Tax Regime

In addition to the Income Tax amount calculated, individuals must pay Surcharge and Cess based on the above-mentioned tax slabs.

Nature of IncomeRange of Total IncomeUp to Rs. 50 lakhs (%)Rs. 50 lakhs to Rs. 1 crore (%)Rs. 1 crore to Rs. 2 crores (%)Rs. 2 crores to Rs. 5 crores (%)More than Rs. 5 crores
Short-term capital gain as per under Section 111A or Section 115ADNil10151515
Long-term capital gain covered under Section 112A or Section 115AD, or Section 112Nil10151515
Dividend income not being dividend income chargeable to tax at the special rate under sections 115A, section 115AB, section 115AC, section 115ACANil10151515
Unexplained income chargeable to tax under Section 115BBE2525252525
Any other incomeNil10152537

Rates of Surcharge under Alternate Tax Regime

Simplifying Proprietorship Compliance in India with EYC International

In addition to the Income Tax amount calculated, proprietors must also pay Surcharge and Cess based on the tax slabs outlined below for the Assessment Year 2024-25:

Nature of IncomeRange of Total IncomeSurcharge Rate (%)
Short-term capital gain (Section 111A or Section 115AD)Up to Rs. 50 lakhsNil
Rs. 50 lakhs to Rs. 1 crore10
Rs. 1 crore to Rs. 2 crores15
Rs. 2 crores to Rs. 5 crores15
Above Rs. 5 crores15
Long-term capital gain (Sections 112A, 115AD, 112)Up to Rs. 50 lakhsNil
Rs. 50 lakhs to Rs. 1 crore10
Rs. 1 crore to Rs. 2 crores15
Rs. 2 crores to Rs. 5 crores15
Above Rs. 5 crores15
Dividend income (Not chargeable under special rate)Up to Rs. 50 lakhsNil
Rs. 50 lakhs to Rs. 1 crore10
Rs. 1 crore to Rs. 2 crores15
Rs. 2 crores to Rs. 5 crores15
Above Rs. 5 crores15
Unexplained income (Section 115BBE)Up to Rs. 50 lakhs25
Rs. 50 lakhs to Rs. 1 crore25
Rs. 1 crore to Rs. 2 crores25
Rs. 2 crores to Rs. 5 crores25
Above Rs. 5 crores25
Any other incomeUp to Rs. 50 lakhsNil
Rs. 50 lakhs to Rs. 1 crore10
Rs. 1 crore to Rs. 2 crores15
Rs. 2 crores to Rs. 5 crores25
Above Rs. 5 crores37

Surcharge Rates under Alternate Tax Regime

For the Assessment Year 2024-25, if a proprietor opts for the alternate tax regime as per Section 115BAC, the surcharge rate is 25%, compared to the previous rate of 37%.

Presumptive Taxation Scheme for Proprietorship

The Presumptive Taxation Scheme, outlined in Section 44AD of the Income Tax Act, is designed to ease the tax burden on small businesses in India. This scheme allows small businesses to calculate income on an estimated basis, simplifying tax calculations and reducing compliance requirements. It enables taxpayers to pay taxes at a minimum rate without maintaining detailed accounting records.

Deadlines for Proprietorship Tax Return Filing

The filing deadline for a proprietorship’s income tax return in India varies based on specific conditions:

  • No Audit Required: File by July 31st.
  • Audit Required: File by September 30th.
  • International Transactions or Specific Entities: File by November 30th.

Essential Documents for Proprietorship Income Tax Return Filing

Ensure you have the following documents ready to file your Income Tax Return (ITR):

  • PAN Card
  • Bank Account Details
  • Aadhaar Card
  • Advance Tax Payment Challan
  • Form 16, 16A, and 26AS

Filing Income Tax for a Proprietorship

Proprietorships typically file annually unless exempted. The income tax of a proprietorship is considered the proprietor’s personal income. Depending on your business type, you will use:

  • Form ITR-3: For proprietorships run by a Hindu Undivided Family (HUF) or other proprietors.
  • Form ITR-4 Sugam: For proprietorships under the presumptive tax scheme.

TDS Return Filing

TDS returns are mandatory for proprietors with a valid TAN. Depending on the deduction purpose, the return types include Form 24Q for TDS on Salary, Form 27Q for non-resident foreign companies, Form 26QB for property transfers, and Form 26Q for other cases.

GST Return Filing

Proprietors must register for GST if their turnover exceeds Rs. 20 lakhs. GST filing includes GSTR-1 and GSTR-3B returns, detailing outward and inward supplies, along with tax payments. The filing frequency depends on the GST scheme chosen.

EPF Return Filing

Proprietors with more than 20 employees must register for EPF and file EPF returns, ensuring compliance with employee provident fund regulations.

Accounting and Bookkeeping

Maintain proper books of accounts if your sales/turnover/gross receipts exceed Rs. 25,00,000 or your business income exceeds Rs. 2,50,000 in any of the preceding three years.

Proprietorship Firm Audit

An audit is required under these conditions:

  • Turnover Exceeds Rs 5 Crore: For businesses involved in trade or commerce.
  • Professional Proprietorship with Receipts Over Rs 50 Lakh: For consultancies or service-based businesses.
  • Under the Presumptive Tax Scheme: Regardless of turnover, an audit is mandatory.

A certified Chartered Accountant (CA) must conduct the audit to ensure compliance with the Income Tax Act of 1961.

Streamline Your Proprietorship Compliance with EYC International

EYC International is your trusted partner in managing the compliance needs of your Sole Proprietorship. We simplify Income Tax Returns, ensuring timely submissions and adherence to tax regulations. Our services extend to TDS Return filing, GST Return filing, and EPF Return filing, ensuring your business stays compliant with all regulatory requirements.

With EYC International, focus on growing your business while we handle your compliance needs, safeguarding your financial health and legal standing.

Ready to file your Proprietorship Income Tax Return with ease? Get started with EYC International today!

Our Services: Zero Late Fee on Compliance

Startup India Registration₹4999/-
GST Registration₹999/- 
APEDA Registration₹1199/-
12A and 80G Registration₹11999/-
PT (Professional Tax) Registration₹1199/-
GEM (Government e-Marketplace) Registration₹999/-
Udyam (MSME) Registration₹499/-
NSIC (National Small Industries Corporation) Registration₹2999/-
IEM (Industrial Entrepreneurs Memorandum) Registration₹2999/-
IEC (Import Export Code) Registration₹999/-
Preparation and filing of GST returns₹4999/- For 12 Months
PF (Provident Fund) & ESIC (Employees’ State Insurance Corporation) Registration₹1999/-
Food License ( FSSAI Registration)₹1199/-
Trade Marks Registration₹4999/-
MOA and AOA Amendments₹2999/-
Adding or Removal of Directors₹2499/-
GST (Letter of Undertaking) LUT Registration₹1199/-
e-Anudaan (Grants-In-Aids To NGOS)₹1199/-
CSR-01 Form (To get CSR funding).₹2499/-
NGO DARPAN Registration (maintained by NITI Aayog)₹2499/-
Digital Signature (Class-3) For 2 Years.₹999/-
ISO 9001:2015 Quality management systems₹2999/- For Three Years
CE REGISTRATION (Conformite Europeenne, conformity with European health, safety, and environmental protection standards on commercial products).₹ 9999/- For Three Years

Other Services: Business Branding India

Private Limited Company Registration₹7999/-
Limited Liability Partnership – (LLP)₹8999/-
Annual Compliances Filing with ROC ₹15999/-
Startup India Registration ₹4999/-
Certificate and other Licenses ₹999/- Start From
ISO Certification ₹999/- Start from
Trade Mark Registration₹4999/- 
Patent Filling ₹1,999/- Start From
Copyright₹11999/- Start From
Search Engine Optimization ₹4999/- Start From
Content Marketing₹ 4999/- Depending on projects 
Link Building₹99/- Start From
Social Media Marketing  The per month package starts from – Basic ₹11,999/-/- Advanced for ₹29,999/-/- and Enterprise for ₹39,999/-₹11999/- 
Brand Strategy₹49,999/-
Pay Per Click – The per month package starts from – Basic ₹10,000/- Advanced for ₹20,000/- and Enterprise for ₹30,000/-₹9,999/-
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Remember, this is a long-term process. The fees mentioned are just given for an idea.

Patent Filling

#The cost of filing a patent depends on the type of applicant and the stage of the patent process. The standard filing fee for different entities is ₹1,999 for individuals, startups, MSMEs, and educational institutions, and ₹9,999 for large entities. The patent office also charges additional fees for early publication, examination requests, extra sheets, and extra claims. 
  • Novelty search: ₹12,000–₹15,000
  • Patent drafting: ₹30,000–₹35,000
  • Professional services: ₹1,000–₹5,000

Content Marketing

# The cost of content marketing in India can range from a few thousand rupees to several lakhs per month, depending on the project’s complexity and the level of expertise required. Here are some average costs for different content marketing components:
  • Content strategy: ₹10,000–₹25,000 (one time)
  • Content creation: ₹15,000–₹50,000 per month
  • Graphic design: ₹5,000–₹20,000 per month
  • Tools like plagiarism checkers and Grammarly: ₹2,000–₹10,000 per month
  • Promotion on social media and PPC: ₹10,000–₹30,000 per month
  • A basic social media management package might cost ₹15,000–₹30,000, while a full-fledged SEO and content marketing strategy could cost ₹30,000–₹50,000 per month.

Social media marketing

#Social media marketing (SMM) in India can cost between INR 10,000–50,000 or more per month, depending on several factors:
  • Platforms managed
  • Frequency of posting
  • Additional services
  • Scope of the project
  • Level of expertise required
  • Services included
SMM packages typically include services like:

strategy development, content creation, community management, social media advertising, analytics tracking, and reporting. 

Here are some examples of SMM package prices:
  • INR 12,000 per month for small businesses, INR 24,000 per month for advanced businesses, and INR 35,000 per month for enterprise businesses. 

Business Branding

#A basic branding package starts from ₹50,000 and ₹2,00,000 or more. This may include services like Logo design,  Website development, and initial marketing materials.
#Big branding Package Starts ₹10,00,000–₹50,00,000, which may include strategy and global brand identity

Link Building

#Link-building costs can vary widely depending on the quality and volume of links, as well as the industry. In 2024, link building prices can range from₹10000/- per month, or ₹10000–₹1,5000/- per link. Medium-quality links from a website with a Domain Rating of 50 to 70 might cost around ₹25,000.00

Average prices per link range from ₹99/- to ₹999/- for the low end ₹1,999–₹49,999/- for the medium end, and ₹59,999/- to ₹1,99,999/- for the high end.

Pay per click

#The cost of pay-per-click (PPC) range starts from ₹10,000/-to ₹1,000,000/- per month. The cost can include agency management fees and advertising budgets. For example,

We are always available to answer your queries that may arise. 

Feel free to revert to us whenever you require any assistance by Calling, WhatsApp, or Email.

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