Properietary firm Bussion income Zero in FY

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If you own a newly established proprietary firm with GST registration but had zero turnover and income in the financial year, you might be wondering which Income Tax Return (ITR) form to use. Despite having the firm and registration, if no business activities were conducted, you can generally file using ITR 2. This is because the absence of business income dictates the appropriate form, even with a registered business entity.

Raj

Raj (Querist)
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18 August 2021 I am a proprietor of a proprietary firm which i started newly in feb 2021. I do not carryout any business in FY 20-201 ( i.e. Zero turnover ) and there is zero income. I have GST registration for this firm which is reflected as Zero turnover in my Form 26AS. I have rental income from two house properties

Please advise which ITR form should i fill ITR2 or ITR 3.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 August 2021 File ITR 2 as you don't carry out any business.

Raj

Raj (Querist)
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19 August 2021
please advise
Regards

Raj

Raj (Querist)
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19 August 2021 Thanks sir, it means if there is no business income despite of holding proprietary firm with gst registration. I can file ITR 2 . Is it right understanding?.please advise
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 August 2021 Yes, you are right..........

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