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Proprietorship / Freelancer ITR – Expertvuw
Income Tax

Income Tax Return Filing for Proprietors and Professionals

Last updated: 2 October 2026

If you run a business or practise a profession in your own name, your return needs business income computed correctly — on books or under the presumptive scheme. Our team prepares the computation and return, and coordinates the tax audit with an independent CA where it applies.

Overview

How proprietors and professionals are taxed

  • Business or professional income of a proprietor is taxed as the owner’s income, at individual slab rates, under the old or new regime.
  • ITR-3 is used where books of account are maintained; ITR-4 for presumptive income.
  • Presumptive schemes — small businesses can declare profit at a set percentage of turnover (commonly 8%, or 6% for digital receipts), and eligible professionals at 50% of gross receipts, within the prescribed limits, without detailed books.
  • Tax audit — required where business turnover exceeds ₹1 crore (₹10 crore where cash transactions are within 5%), or professional receipts exceed ₹50 lakh, and in some presumptive cases. The audit is done by a Chartered Accountant in practice.
  • Due dates for FY 2025-26 — 31 July 2026 for non-audit cases (check any change for ITR-3/ITR-4), and 31 October 2026 where tax audit applies.

Based on the Income-tax Act, 1961 (for FY 2025-26) and the Income-tax Act, 2025. Last updated: 27 September 2026.

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What This Service Covers

What our proprietorship ITR service covers

1

Choosing between regular books and the presumptive scheme

2

Profit and loss computation from your records

3

Coordination with an independent CA for the tax audit, where required

4

Advance tax review and ITR-3 / ITR-4 filing

5

GST and TDS figures matched with the return

Key facts at a glance

ITR-3

For business or profession with books

ITR-4

For presumptive income

8% / 6%

Presumptive profit rates for eligible businesses

50%

Presumptive profit for eligible professionals

₹1 crore

Turnover above which tax audit usually applies

CA only

Tax audit by a practising Chartered Accountant

Common Issues

Where proprietor returns commonly go wrong

Mismatches with GST and AIS lead to notices.

Turnover mismatch

Turnover in the return differs from GST returns.

Presumptive misuse

Scheme used beyond its limits or conditions.

Advance tax missed

Interest charged for not paying advance tax.

Related Services

Related services

Related services.

Accounting & Bookkeeping

Books for your business.

GST Return Filing

GST compliance.

Income Tax Planning

Planning the year.

Sole Proprietorship

Business set-up.

Documents Required

Documents we need from you

Business Records

Tax Records

Our Process

How we file your return

1

Review

Business model and scheme chosen.

2

Books

Records reviewed and profit computed.

3

Audit

CA engaged for tax audit, if required.

4

Match

Figures matched with GST and AIS.

5

Filing

ITR-3 or ITR-4 filed and e-verified.

6

Planning

Advance tax for the next year planned.

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After Filing

After filing

Keep records ready in case of questions.

Processing

Intimation reviewed for adjustments.

Records

Books and bills kept for the statutory period.

Advance tax

Paid in instalments next year.

Notices

Replied to on time if received.

Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    Which ITR form should a proprietor use?

    ITR-3 where books are kept, and ITR-4 for presumptive income.

    A scheme where eligible businesses declare profit at a set percentage of turnover (commonly 8%, or 6% for digital receipts) and eligible professionals at 50% of receipts.

    Generally when business turnover exceeds ₹1 crore (₹10 crore with low cash) or professional receipts exceed ₹50 lakh, and in some presumptive cases.

    Only a Chartered Accountant in practice.

    No. It is added to the owner’s income and taxed at slab rates.

    About Expertvuw

    Who handles your case

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    Tax work is handled by Expertvuw’s team. Audits and certifications required by law are issued by independent Chartered Accountants, and representation before tax authorities and tribunals is made by authorised professionals or advocates.

    Expertvuw Management Pvt Ltd