Proprietorship

The proprietorship and the proprietor are considered to be one. Hence, the income tax returns filed by the proprietor and the proprietorship are the same. As a sole proprietorship is not taxed as a different legal entity, the business owners file their business taxes like their individual returns. Like any other individual taxpayer, a proprietorship firm is also entitled to a proprietorship tax deduction as per the prevailing income tax rules and depending on the slab rates applicable to his income.