Proprietorship Compliance
The business has no separate legal identity, so its compliance runs through the proprietor — which makes the boundary between the two the thing worth getting right.
A proprietorship is not a separate legal entity, so its compliance runs through the proprietor's own PAN: business income is reported in the proprietor's return in Form ITR-3, or ITR-4 where presumptive taxation under Section 44AD or 44ADA is used. GST, TDS and local registrations such as Shops and Establishment or professional tax attach to the business activity rather than to any entity, and apply on their own thresholds.
What our proprietorship compliance service covers
Everything the business owes, filed through the proprietor.
- Income tax return in ITR-3 or ITR-4, with advance tax planning
- Presumptive taxation assessment under Section 44AD or 44ADA
- Tax audit support where Section 44AB applies
- GST registration, returns and input credit reconciliation
- TDS registration, deduction and quarterly returns where liable
- Shops and Establishment, professional tax and Udyam registration
What a proprietor has to handle
Four obligations that follow the business, not the entity.
Income tax
Business income and personal income assessed together in one return, so business decisions move the proprietor's own tax slab.
Presumptive taxation
Section 44AD for eligible businesses and 44ADA for specified professionals, which removes the need for detailed books if the conditions hold.
GST
Registration once the turnover threshold is crossed, or earlier for inter-state supply and e-commerce, followed by periodic returns.
Local registrations
Shops and Establishment, professional tax and Udyam, which vary by state and by the nature of the business.
Our process
Keeping the business and the person properly separated.
Registration review
Checking which registrations the business model actually triggers, and which are unnecessary.
Books and separation
Setting up books and a dedicated bank account so business and personal transactions do not mix.
Periodic returns
GST and TDS returns through the year, with advance tax computed on the combined income.
Annual return
Income tax return filed on the correct form, with audit support where the threshold applies.
Where proprietorships create risk
What sets our approach apart.
Mixed accounts invite scrutiny
Where personal and business money run through one account, unexplained credits are difficult to defend during assessment.
Presumptive taxation has a lock-in
Opting out of Section 44AD after opting in carries consequences for subsequent years, including a compulsory audit requirement in certain cases.
Liability is unlimited
The proprietor is personally liable for business debts, which is often the reason to convert to an LLP or company once the business grows.
Proprietorship Compliance questions answered
What people ask before engaging us.
Not sure which registrations you actually need?
We will map your business model to the registrations it triggers, and leave out the ones it does not.
