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ITR Filed By proprietor

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Naveen Kumar

629 Points Posted on 07 January 2021

Dear Sir,

Kindly advise suppose Mr.X is a proprietor of 2 firm and Mr.X is a partner of 1 firm. so can he file 3 income tax return.

Replies (4)

Quick Summary

If you own two proprietorship firms and are also a partner in a third firm, you generally need to file just one Income Tax Return (ITR) as an individual. This single ITR should consolidate income from all your sources, including both proprietorships. Income from a partnership firm is taxed at the firm level, so it's reported separately on the partnership's ITR, not directly on your individual return.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 07 January 2021

In case of proprietorship of two firms of one owner then such financial statements of the firms should be prepared in consolidated basis and itr should be filled.

Partnership income should also be included in return

Giridhar S Karandikar

Team Lead

7558 Points Posted on 07 January 2021

Mr x needs to file two return, one of the proprietor firm and other as a partner of the firm.
partnership firm return would be filed separately.

shubh sarkar

6 Points Posted on 08 January 2021

Mr. X is an Individual who have 3 sources of Income. You need to file just 1 ITR showing income from all the 3 sources. Proprietorship Income will be taxable whearas Income from Partnership is not taxable as taxes are to be paid by the firm.