• Which ITR to be filed by Director and Proprietor?

Hi,

I hold following positions in two businesses at this moment:
1) Majority shareholder and Director in a Private Limited company.
2) Proprietor of a Proprietorship firm.

Both the businesses are startups and are not profitable at this moment. For now, I do not draw any salaries from any of the two businesses and will not do so for few more years. I have following questions related to ITR filing:

1) Do I continue filing ITR-1 like I used to do it while I was in job.
2) If not, then which is the right ITR to be filed for my case.
3) I have already filed ITR-1 for AY17-18. If a different ITR was to be filed then can I revise now ?
4) As expenditure is lot more than income for both businesses at this moment, so are there any audit requirements ?
Asked 9 months ago in Income Tax from Lucknow, Uttar Pradesh
Hi

For proprietorship concern, the return shall be filed under your PAN only. Even if you're not having incomes, you can file loss return and carry forward the losses to adjust to any future income and save taxes thereby.

Use ITR3. You can revise the return if the amount of expenses are substantial and you want to carry forward the same.
Lakshita Bhandari
CA, Mumbai
1468 Answers
40 Consultations

5.0 on 5.0

Hii
For Company Statutory Audit is Mandatory for proprietorship no Audit required 

If u had filled your 2017-18 ITR on time the. You have to revise the same and file ITR 3 to carry forward loss of proprietorship firm 
This loss is adjustable against future profit thus we can save our tax liability 
Lalit Bansal
CA, Delhi
515 Answers
36 Consultations

5.0 on 5.0

Hi,

1 and 2.  No, You have to file ITR3.

3. Yes, you can revise it. In fact, you should revise it.

4. Yes, you should get your accounts audited. It will help you to carry forward your losses which will decrease your taxes in future years.

Please feel free to call/ revert in case you need any of the above services.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
2929 Answers
123 Consultations

5.0 on 5.0

Hi,

1) No. 
2) You need to file ITR-3 for AY 2017-18 as there is Income from Business
3) Yes. You can revise the return any time before 31-Mar-2018
4) Yes. As per Section 44AD if the turnover is below Rs. 1 Crore and the profit shown is below 8% / 6% as the case may be, then Tax Audit is required.
Pradeep Bhat
CA, Bengaluru
450 Answers
28 Consultations

5.0 on 5.0

Dear Sir,

Please find below details :

- You need to file ITR 4 since have business income / (Loss)
- Sir you can not revise ITR by changing the ITR Form type.

Yes if you do not have any income in excess of 8% of turnover than audit is must
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Hello sir
If in AY17-18 you have the proprietorship business then yiu need to file ITR3 or 4. ITR1 is only for salary income.
Kindly clarify for which year you are asking to file
Vidya Jain
CA, Kolkata
554 Answers
12 Consultations

4.8 on 5.0

1 You have to revise ITR of AY 2017-18 only
2 ITR FORM 4 is for presumptive income where income disclosed on presumptive basis i e no books of Accounts prepare and disclose a certain percentage of revenue as income 
But in your case where you have loss you have to file ITR FORM 3 
3 Audit is only for Company and this is ROC Audit only not income tax audit and no Audit require for proprietorship 


Lalit Bansal
CA, Delhi
515 Answers
36 Consultations

5.0 on 5.0

1)The ITR can be revised only before assessment of return. So, you can go for rectification of return. 
2) ITR-3 is for the assessee who are going for presumptive taxation. and ITR4 is for the assessee who has to keep its books of account and are taxed at normal provison.
3) ITR6 is applicable for only companies. However, audit here referred is Tax audit. If you have gross receipt more than 2 crores or if you are declaring lower profit U/S44AD then you are liable to get your books of accounts audited. 
4)Company are liable to get statutory audit under companies Act. As you have mentioned earllier, there were no income under company, you are not liable to get tax audit. However, you are liable to file ITR6.
5) ITR6 still apply for companies, because they are liable to get account maintained. and
If you are trading under proprietorship business you can go for 8% and file ITR 3. 
Feel free to know if you require further clarifications 
Vidya Jain
CA, Kolkata
554 Answers
12 Consultations

4.8 on 5.0

Dear Sir,

a) No you can not revise the same
b) ITR - 3 is for normal business and ITR - 4 is presumptive business which is applicable where you offer at least 8% profit for tax
c) It need to be done separately and its report need to be submitted by chartered accountant online
d) By revenue do you means sales or profit. If there is sales than it is must to go for business returns
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

1) ITR 3 for AY 2017-18. ITR 4 for AY 2016-17. (From AY 2017-18, ITR 4 was renumbered as ITR 3)
2) ITR 4 is for Presumptive Income. ITR 3 is for Normal Business/Profession Income
3) Company has to get its books Audited under Companies Act and File ITR 6. You as a proprietor have to get your books Audited only if your turnover was above Rs. 1 Crore (For both AY 2016-17 and 2017-18) and file ITR 3/4 as the case may be
4) Audit under Income Tax Act will be required only if the Company's Turnover exceeds Rs. 1 Crore. If tax audit is applicable, the same can be done by any CA. However, it is advisable to get it done from the same CA.
5) Audit not required under Income Tax Act
Pradeep Bhat
CA, Bengaluru
450 Answers
28 Consultations

5.0 on 5.0

1) If you have received Intimation u/s 143(1), that is not completion of assessment. It's a Deemed assessment. Assessment is complete only if an Order u/s 143(3) is issued.
2) No. Audit is not attracted as Turnover is below Rs. 1 Crore
3) Not required in my opinion
4) Not required in my opinion
Pradeep Bhat
CA, Bengaluru
450 Answers
28 Consultations

5.0 on 5.0

1) Yes you need to go for rectification. If you want I can assist you. 
2) Yes, Under Companies Act, every comany need to get statutory audit irrespective of receipt. 
3)For the given transaction, you are not liable to get accounts audited. 
4)No
Vidya Jain
CA, Kolkata
554 Answers
12 Consultations

4.8 on 5.0

1. You can revise your returns for AY 2017-18 and AY 2016-17.
2. As per my opinion, audit is not required until your net income exceeds maximum amount not chargeable to tax.
3. No.
4. No.
Lakshita Bhandari
CA, Mumbai
1468 Answers
40 Consultations

5.0 on 5.0

yes
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

I assume that the query has been taken care of by other experts on the panel.

Feel free to get back in case you have any part of your query left unanswered.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Query is already in process with other experts.

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

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