Individual-Propitorship

it is based on individual tax slab rate

Individual Rate

it is based on individual basis only

income of a proprietory business is taxable in the hands of its proprietor, and the taxable income of an individual includes income from his/her proprietory business (also income under other heads) and obviously, taxed at the individual's rates.

Under the Income Tax Act, 1956, the definition of Person is divided into seven parts:

Individual, HUF, Partnership Firm, Company, Local Authority, AOP/BOI, any other artificial juridical person.

Since partnership firm has been categorised seperately, its rate are defined under the act and is assessable independentaly.

But as far as proprietorship business is concerned, it is merely associated with an individual or you can say that is a source of income for an individual of which he will file return in his name by showing profit from that business.

So, proprietorship business is never assessed seperately rather individual carrying on that business is assessed and therefore, the slab of individual shall apply thereof.