finance

If you are a proprietorship firm, it is mandatory for you to file income tax returns (ITR) every year. ITR filing is the process of submitting information related to your income to the Income Tax Department. In this guide, we will provide a complete guide on ITR filing for proprietorship firms. Who should file ITR for proprietorship firms? Every proprietorship firm whose annual income exceeds the basic exemption limit is required to file ITR. The basic exemption limit for the financial year 2022-23 is Rs. 2.5 lakhs for individuals and HUFs, and Rs. 5 lakhs for senior citizens aged 60 years or above but less than 80 years. For super senior citizens (aged 80 years or above), the limit is Rs. 5 lakhs. Types of ITR forms for proprietorship firms The type of ITR form to be filed depends on the type of income earned by the proprietorship firm. The following are the types of ITR forms available for proprietorship firms: ITR-1 (SAHAJ): This form is applicable for individuals having income fro...