📌 Understanding the Basics:

Income Tax Return (ITR) is filed under the Income Tax Act, 1961. It reports your net income, deductions, and tax liability on profits earned during the year.

GST Return (GSTR) is filed under the GST Act, 2017. It captures sales turnover, tax collected, and Input Tax Credit (ITC) claimed during the month/quarter/year.

Despite being two different taxes, if you're a sole proprietor, both must be filed independently but with accuracy and consistency across figures.

ITR Filing for Sole Proprietors:

Sole proprietors (individuals running a business or profession in their name) must file their ITR under one of the following:

1. ITR-3 – If income is from business or profession (normal books maintained)
2. ITR-4 – If opting for presumptive taxation under Section 44AD/44ADA

Key details reported in ITR:

• Gross receipts or turnove
• Business expenses
• Net profit
• Deductions under Chapter VI-A (like 80C, 80D)
• Tax liability or refund

Due Dates:

• Without audit: 15th September (For 2025)
  
• With audit (turnover above ₹1 crore or conditions under Section 44AB): 31st October

📊 GSTR Filing for Sole Proprietors:

If your business is registered under GST, you’re required to file the following GST returns:

1. GSTR-1 (Monthly/Quarterly) – for reporting outward supplies (sales)
   
2. GSTR-3B (Monthly) – summary of outward & inward supplies, tax payable and ITC
3. GSTR-9 (Annually) – annual return (mandatory if turnover > ₹2 crore)
4. CMP-08 & GSTR-4 – for those under the Composition Scheme

Due Dates:

1. GSTR-1: 11th of next month or quarterly deadlines
   
2. GSTR-3B: 20th of next month (or as per state-wise staggered deadlines)

⚠️ Why Consistency Between ITR & GSTR Matters:

The Income Tax Department and GST authorities are increasingly cross-verifying data using tools like AIS, Form 26AS, and GSTN turnover reports. Any mismatch between:

• Turnover in GSTR-3B and
• Gross receipts reported in ITR

✅ Best Practices for Sole Proprietors:

1. Maintain accurate books reconciling GST returns and financial statements.
   
2. Reconcile ITC claimed in GSTR with expenses claimed in ITR.
   
3. Don’t forget to include non-GST income like interest, commissions, or capital gains in ITR.
   
4. Match turnover in ITR and GSTR (net vs gross basis) with proper explanations where needed.
   

📝 Conclusion:

As a sole proprietor or small business owner, it's your responsibility to comply with both Income Tax and GST laws—not just for legal reasons, but also to avoid complications during audits, refunds, or financial applications.

At TaxComp.in, we offer end-to-end compliance solutions for ITR and GST filings. Whether you're a trader, consultant, or freelancer—we help you stay accurate, on time, and stress-free.

👉 Contact us now to file your ITR and GST together—smartly and professionally.