Proprietorship ITR Filing (ITR-3 / ITR-4)

How It Works

1. 1

   Document Collection and Review

   Gather bank statements, GST returns, purchase-sale records, TDS certificates, and investment proofs. Reconcile GST turnover with bank credits to identify discrepancies before filing.

2. 2

   Determine Applicable Form and Scheme

   Assess whether ITR-4 (presumptive under 44AD/44ADA) or ITR-3 (regular books) applies based on turnover, profession type, and taxpayer preference.

3. 3

   Computation of Income and Tax

   Compute business income after allowable deductions, add income from other heads, apply Chapter VI-A deductions, and calculate final tax liability including surcharge and cess.

4. 4

   Tax Audit (if applicable)

   Where turnover exceeds the prescribed threshold, a chartered accountant conducts a tax audit and uploads Form 3CA/3CB and 3CD on the income tax portal before the return is filed.

5. 5

   Return Preparation and Validation

   Prepare the ITR using the income tax utility or portal, validate all schedules including Schedule BP, Schedule AL (if income exceeds Rs 50 lakh), and cross-check with pre-filled data.

6. 6

   Filing and e-Verification

   Submit the return on incometax.gov.in and e-verify within 30 days using Aadhaar OTP, net banking, or digital signature. Download the ITR-V acknowledgement for records.