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How is Taxation of Sole Proprietorships work in India?
- The income of a sole proprietorship is taxed as the income of the sole proprietor. Accordingly, the tax slabs as applicable to the income of the individual sole proprietor apply to the sole proprietorship as well.
- The income of the sole proprietorship is reflected and classified as business income for income tax purposes in the Income...
Wazzeer Professional Network
ProfessionalHow is Taxation of Sole Proprietorships work in India?
-
Wazzeer Professional Network
Professional- The income of a sole proprietorship is taxed as the income of the sole proprietor. Accordingly, the tax slabs as applicable to the income of the individual sole proprietor apply to the sole proprietorship as well.
- The income of the sole proprietorship is reflected and classified as business income for income tax purposes in the Income Tax Return of the sole proprietor.
- The salaries and business expenses can be deducted from the gross receipts/revenues to arrive at the profit. The provisions relating to set-off would also apply i.e. the business-related losses can be carried forward to future years and adjusted against the profits for the said years for the purpose of taxation.
- No tax audit is required to be conducted for the sole proprietorship unless the income of the sole proprietorship exceeds Rs. 1 crore
'Get a Wazzeer' to hire your Accountant to take care of the entire process automatically.
over 3 years ago
View answer
How is Taxation of Sole Proprietorships work in India?
-
Wazzeer Professional Network
Professional- The income of a sole proprietorship is taxed as the income of the sole proprietor. Accordingly, the tax slabs as applicable to the income of the individual sole proprietor apply to the sole proprietorship as well.
- The income of the sole proprietorship is reflected and classified as business income for income tax purposes in the Income Tax Return of the sole proprietor.
- The salaries and business expenses can be deducted from the gross receipts/revenues to arrive at the profit. The provisions relating to set-off would also apply i.e. the business-related losses can be carried forward to future years and adjusted against the profits for the said years for the purpose of taxation.
- No tax audit is required to be conducted for the sole proprietorship unless the income of the sole proprietorship exceeds Rs. 1 crore
'Get a Wazzeer' to hire your Accountant to take care of the entire process automatically.
over 3 years ago
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