ITR Filing for Sole Proprietorship Firm - An Overview

Filing Income Tax Return (ITR) for a sole proprietorship firm involves reporting the business's income, expenses, and profits to the tax authorities. As a sole proprietor, you and your business are considered as one entity for tax purposes, and your personal and business incomes are not separate. The process entails determining the applicable ITR form based on the nature and turnover of the business, maintaining proper accounting records, computing business income, claiming deductions, reporting other incomes, and filing the ITR online. If the turnover exceeds the specified threshold, a tax audit may be required. It is crucial to verify and submit the ITR within the designated period, and maintaining records is essential. Seeking guidance from a tax professional ensures compliance with tax laws and maximizes tax benefits.