ITR for Proprietorship
Process of Registration
1. Form ITR-3: This form should be used to file income tax if the proprietorship is run by a Hindu Undivided family or any other proprietor.
2. Form ITR-4 Sugam: This form is different from the previous form (ITR-3 as this form is used by proprietorships that fall under presumptive tax schemes. This is to reduce the burden of compliances that fall upon small businesses. As mentioned before the income tax of a proprietorship is the same as that of the proprietor meaning, the business income of the proprietorship is added into the income of the proprietor himself. Therefore the business taxes become the personal taxes of the proprietor. He is still entitled to all tax deductions offered to individuals or Hindu Undivided Family (HUF) as the case may be.
