MANAGEMENT

Detailed explanation-1: -Under the Income Tax Act, all proprietors below the age of 60 are required to file an Income tax return if the total income is more than Rs. 3 Lakhs. In the case of proprietors over the age of 60 years are required to file income, but below 80 years, then income tax filing is mandatory if the total income exceeds Rs.

Detailed explanation-2: -Use Schedule SE (Form 1040 or 1040-SR) to figure the tax due on net earnings from self-employment.

Detailed explanation-3: -Because a proprietorship lacks a separate legal entity, the proprietor’s PAN must be used to pay taxes and file returns. You must first register at the e-filing portal; if you are already registered, you must log in with your PAN. Then go to the e-filing menu and choose ‘Income Tax Return.

Detailed explanation-4: -Sole proprietorships are subject to pass-through taxation, meaning the business owner reports income or loss from their business on their personal tax return, but the business itself is not taxed separately. A sole proprietor will submit a Schedule C with their personal 1040 tax return on an annual basis.