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Proprietorship Compliances
A Sole Proprietorship is the simplest form of business in India, owned and managed by a single individual. While it offers ease of setup and minimal regulatory requirements compared to companies or LLPs, proprietors must still comply with certain legal, tax, and regulatory obligations to avoid penalties and ensure smooth operations.
Our Proprietorship Compliance Services help business owners stay worry-free by managing all statutory filings, registrations, and documentation on time.
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Who Need To File Proprietorship Compliances?
This service is ideal for:
- Individuals running a sole proprietorship business in India.
- Freelancers, consultants, and small traders who have registered under GST, Shops & Establishment Act, or other local registrations.
- Proprietors earning taxable income and needing to file Income Tax Returns (ITR).
- Businesses requiring renewals, licenses, or annual filings to remain compliant.
Deadline and Penalties for Proprietorship Compliances
Income Tax Return (ITR)
- Deadline: 31st July of the assessment year (for non‑audit cases).
- If tax audit applies: 31st October.
- Penalty: Late filing fee up to ₹5,000 (₹1,000 if income below ₹5 lakh).
- Interest: 1% per month on unpaid tax under Section 234A.
Tax Audit Report (if applicable)
- Deadline: 30th September.
- Penalty: 0.5% of turnover, subject to a maximum of ₹1,50,000.
GST Returns (GSTR‑3B, GSTR‑1)
- Deadline:
- GSTR‑3B: 20th of next month (monthly filers).
- GSTR‑1: 11th of next month (monthly filers).
- Penalty: Late fee of ₹50 per day (₹25 CGST + ₹25 SGST), capped at ₹5,000.
- For NIL returns: ₹20 per day (₹10 CGST + ₹10 SGST).
- Interest: 18% per annum on delayed tax payment.
- Deadline:
TDS Returns (if applicable)
- Deadlines: Quarterly filing by 31st July, 31st October, 31st January, and 31st May.
- Penalty: Late filing fee of ₹200 per day until return is filed.
- Additional penalty: Between ₹10,000 and ₹1,00,000 for incorrect filing.
Other Local Registrations (Shops & Establishment, Professional Tax, etc.)
- Deadline: As per respective state laws — usually annual renewal before expiry.
- Penalty: Varies by state/local authority; may include fines, cancellation of license, or legal notices.
Why Choose Our Service?
Expertise: Our seasoned professionals understand the nuances of tax laws, deductions, and exemptions. We’ll maximize your tax benefits while minimizing your liabilities.
Efficiency: Say goodbye to paperwork hassles. Our streamlined online platform simplifies the entire filing process, saving you time and effort.
Personalized Approach: We recognize that every taxpayer’s situation is unique. We tailor our services to your specific needs, ensuring a customized experience.
Comprehensive Guidance: From gathering necessary documents to accurately filing compliances, we’ll help you through each step.
Timely Filing: We’ll keep you informed about due dates and ensure the timely submission of your compliances.
Post-Filing Support: Need assistance with verification or responding to notices? We’ve got you covered.
List of Documents Required for Proprietorship Compliances
- PAN card of proprietor
- Aadhaar card of proprietor
- Business registration certificate (if applicable)
- GST registration certificate (if applicable)
- Bank statements and invoiceS
- Proof of business address
- Previous year’s tax filings (if any)
FAQ's on Proprietorship Compliances
Non-compliance can lead to financial penalties, interest, cancellation of registrations, and even legal notices.
No formal registration is required, but licenses like GST, MSME, or Shops & Establishment may be necessary depending on business type.
Yes, proprietors must file ITR under their individual PAN, declaring business income.
If turnover crosses prescribed thresholds, GST registration, tax audit, and TDS compliances may apply.
Yes, proprietorships can be converted into private limited companies or LLPs for better scalability and liability protection.