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What is the annual compliance for an Individual or a Proprietor?

There are basically two Proprietorship Firm Compliances Process that is required for an individual.

  • Income tax return
  • GST return, if he is enrolled under the GST Act
  • GSTR-3B monthly
  • GSTR-1 quarterly or monthly
  • GSTR-9 monthly

The annual compliances for Proprietorship Firm, i.e., a taxpayer other than the Private Limited Companies, One Person Companies, Limited Liability Partnerships, Partnership, limited companies are to be called as an Individual or a Proprietor.

Why are These Compliances Required for an Individual or a Sole Proprietor?

  • If an individual income crosses the basic limit of exempted income tax limit then it is obligatory for him to file an Income Tax Return and if his income does not cross the basic limit then it is optional to him for filing the income tax return.
  • An individual who is registered under the GST Act is required to file a GST return on a monthly basis.

The due date for the filing of return is mentioned hereunder:

  • For income tax filing, the last date for filing an income tax return will be 30th July.
  • In the case of GST, the last date of filing GST-3B will be next 20th of the following month.

Documentation Required For Annual Compliances For Proprietorship:

Invoices of purchases and sales during the year and invoices of expenses incurred during the year, Credit Card Statements if Expenses are incurred by Proprietor on behalf of the Company’s Bank Statements from 1st April to 31st March for all bank accounts in the name of the firm, copy of GST returns filed if any, copy of TDS challans deposited if any, copy of TDS Returns filed if any, etc.

What one infers from Partnership Firm Compliances?

Partnership Firm Compliances mainly include filing of income tax return, while corporate entities like LLP and Companies stands in need of both income tax return filing with the Income Tax Department and joint return filing with the Ministry of Corporate Affairs (MCA).

Partnership firms are needed to upkeep compliance under various regulations like LLPs and Companies. Neusource offers an easy process for keeping a record of partnership compliances.

Partnership firms are required to perpetuate compliance like LLPs and Companies registered in India. These firms having an annual turnover of over INR 100 lakhs are also required to procure a tax audit.

Adding further to the basic compliances, partnership firms may also be required to comply with TDS regulations, GST regulations, VAT (Value Added Tax) or CST (Central Sales Tax) regulations, Service Tax regulations, ESI regulations, and many others. The compliance requirements for a business would vary depending upon the type of entity, industry, state of incorporation, number of employees and its sales turnover.

Neusource Startup Minds is the largest and the leading business services platform in India, offering a variety of services like partnership firm compliances, LLP registration, trademark filing, GST registration, income tax filing and much more. Neusource can assist you in upkeeping compliances with your partnership firm. Get a free consultation for partnership compliance maintenance through Neusource by scheduling an appointment with a Neusource Advisor.


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