A sole proprietorship has no MCA or ROC filing; its compliance is the owner's own income tax return and advance tax, plus GST returns, TDS returns and a tax audit once the thresholds are crossed. State registrations such as professional tax and the Shops and Establishments licence sit on top. That is why proprietors assume there is nothing to do — and why the deadlines, which are the same ones companies face, catch them out.
A proprietorship is not a separate legal person, so its compliance is the owner's compliance. Use the table to see which obligations are switched on for your business. Everything below is for FY 2025-26, filed under the Income-tax Act, 1961.
| Obligation | Applies when | What you file |
|---|---|---|
| Income tax return | Where income exceeds the basic exemption limit, and in the other cases the Act specifies | ITR-4 on presumptive, ITR-3 with books |
| Advance tax | Tax liability for the year is ₹10,000 or more | Presumptive: one instalment by 15 March |
| GST registration and returns | Turnover above ₹40 lakh (goods) or ₹20 lakh (services) in most states, or a compulsory case | GSTR-1 and GSTR-3B, monthly or quarterly under QRMP |
| TDS deduction and returns | Preceding year business turnover above ₹1 crore or professional receipts above ₹50 lakh (Sections 194C, 194J) | TAN, monthly deposit, quarterly TDS returns |
| Tax audit | Above the Section 44AB limits — ₹1 crore business (₹10 crore with 5% cash), ₹50 lakh profession (₹75 lakh with 5% cash) | Audit report, then ITR-3 |
| Professional tax | Depends on your state | State return and payment |
| Shops and Establishments | Premises from which you trade, as per state law | Registration and renewal where the state requires it |
GST thresholds are lower in some special category states — ₹20 lakh for goods in several, and ₹10 lakh for services in Manipur, Mizoram, Nagaland and Tripura.
| Filing | Due date | Position on 15 October 2026 |
|---|---|---|
| ITR, non-audit business or profession | 31 August 2026 | Passed — file a belated return now |
| Tax audit report | 21 October 2026 (extended from 30 September) | Open |
| ITR, audit cases | 21 November 2026 (extended from 31 October) | Open |
| GSTR-1, monthly | 11th of the next month | Recurring |
| GSTR-1, quarterly (QRMP) | 13th of the month after the quarter | July–September quarter due 13 October |
| GSTR-3B, monthly | 20th of the next month | Recurring |
| GSTR-3B, quarterly (QRMP) | 22nd or 24th of the month after the quarter, by state | July–September quarter due this month |
| Advance tax, presumptive | 15 March | Was due 15 March 2026 for FY 2025-26 |
Audit-case extensions are from CBDT Circular No. 7/2026 dated 28 September 2026. GST dates are the standard ones and can be extended by notification; check the GST portal before relying on them.
Income earned from 1 April 2026 falls under the Income-tax Act, 2025, and the advance tax for it is already running. Section 408 of the new Act keeps the familiar schedule. If you can see your liability for the year will be ₹10,000 or more, the December instalment is the one to plan for now.
| Instalment | Regular books: cumulative share due | Presumptive under Section 58 | Position on 16 October 2026 |
|---|---|---|---|
| 15 June 2026 | 15% | Nothing due | Passed |
| 15 September 2026 | 45% | Nothing due | Passed: pay any shortfall now, as interest runs on it |
| 15 December 2026 | 75% | Nothing due | Next date |
| 15 March 2027 | 100% | 100%, in one instalment | Final date |
Source: Section 408, Income-tax Act, 2025 (previously Section 211 of the 1961 Act). The single-instalment rule applies to income declared under Section 58(2), the successor to 44AD and 44ADA.
Books are where most proprietors get caught out, because the requirement depends on the last three years, not just this one. For FY 2025-26, Section 44AA of the 1961 Act requires an individual in business to keep books if business income exceeded ₹2,50,000 or turnover exceeded ₹25 lakh in any of the three preceding years. Specified professionals (legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, IT and similar notified professions) must keep books whatever their receipts, unless they opt for 44ADA. From tax year 2026-27 the same rule is Section 62 of the 2025 Act. Books and documents are kept for six years from the end of the relevant assessment year.
| Default | Consequence, FY 2025-26 | Provision |
|---|---|---|
| ITR filed after the due date | ₹5,000 late fee, or ₹1,000 if total income is up to ₹5 lakh, plus interest on unpaid tax | Sections 234F and 234A |
| Books not kept when required | ₹25,000 penalty | Section 271A |
| Tax audit not done when required | 0.5% of turnover or gross receipts, capped at ₹1,50,000 | Section 271B |
| TDS return filed late | ₹200 a day, up to the amount of tax deductible | Section 234E |
| Advance tax short or late | Interest on the shortfall for each month | Sections 234B and 234C |
Penalty figures are from the Income Tax Department's penalties and books-of-account pages, under the 1961 Act that governs FY 2025-26.
If you keep books, a freelancer bookkeeping plan keeps them current through the year, and the income tax calculator gives a quick estimate before each advance tax date. Proprietors still setting up can see the state-wise guides for Bangalore, Mumbai and Delhi.
A freelance IT consultant received ₹42 lakh in FY 2025-26, all by bank transfer, from Indian and overseas clients. Information technology is a notified profession under Section 44AA(1) and receipts are under the ₹50 lakh limit, so 44ADA is available and no tax audit applies. Deemed income is 50 per cent, ₹21 lakh, and she files ITR-4. Advance tax was due in a single instalment by 15 March 2026. Her receipts are above the ₹20 lakh GST threshold for services, so she needs GST registration. She does not deduct TDS — her preceding year receipts were below ₹50 lakh.
Illustrative scenario. If her actual expenses were above half her receipts, keeping books and filing ITR-3 could produce a lower tax — which is why we compute both.
Not registered yet? Start with sole proprietorship registration. Crossed the GST threshold? See GST registration. If you now deduct tax, TDS return filing covers the quarterly returns, and the compliance calendar lists every due date in one place.
Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.
Timeline: Annual retainer
Timeline: Annual retainer
Timeline: Annual retainer
Government fee — paid by you at actuals
There is no government fee to file an income tax return, a GST return or a TDS return. What you pay the government is the tax itself, plus the Section 234F late fee and Section 234A interest if you file after your due date. Professional tax and Shop Act renewal fees are set by your state and paid at actuals.
Every price above is a professional fee, excluding GST and government charges. 50% upfront, 50% on delivery.
All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.
Presumptive under 44AD or 44ADA, or regular books. We compute both — the presumptive rate is deemed income, not a discount, and it only wins where your real expenses are lower.
Due where liability exceeds ₹10,000. Presumptive filers pay all of it in one instalment by 15 March rather than four.
GSTR-1 and GSTR-3B where registered, GSTR-9 above the threshold, and Form 24Q and 26Q where you are liable to deduct.
ITR-3 or ITR-4 for FY 2025-26 was due 31 August 2026 in non-audit cases. Where tax audit applies, CBDT Circular 7/2026 moved the audit report to 21 October 2026 and the return to 21 November 2026.
Tell us your requirement, a CA will call you in 30 minutes.
A proprietorship is not registered with the MCA and has no ROC obligation at all. Everything sits on the income tax and GST side instead.
FY 2025-26, the return you are filing now, is governed by the Income-tax Act 1961. The Income-tax Act 2025 took effect 1 April 2026 and applies to income earned from that date, which you file next year.
Sections 44AD, 44ADA and 44AE merge into a single Section 58 with a serial-number table, 44AB becomes Section 63, Forms 3CA/3CB/3CD become Form 26, and "Previous Year" and "Assessment Year" both become "Tax Year". Thresholds and rates carry forward unchanged.
44AD at ₹2 crore, or ₹3 crore where cash receipts are within 5 per cent, deeming 8 per cent or 6 per cent on digital receipts. 44ADA at ₹50 lakh, or ₹75 lakh on the same cash condition, deeming 50 per cent. An LLP cannot use 44AD; a traditional partnership firm can.
All of it by 15 March, not four quarterly payments. Missing that because you assumed quarterly is a common and avoidable interest charge.
It gets flagged under Section 139(9) with fifteen days to fix. ITR-3 is the right form where you keep regular books or exceed the presumptive limits.
