A sole proprietorship is one of the simplest and most common forms of business. In this structure, the business and the owner are treated as a single entity for tax purposes. If you're earning income through a sole proprietorship, here's how you can report it easily.
Web
Steps to Add Sole Proprietorship Income
- Go to File > Business & Profession > Add Business
- Select the appropriate Nature of Business

Choose your Taxation Scheme:
- Regular – Maintain books of accounts and declare actual income and expenses
- Presumptive – Declare income on a presumptive basis under Sections 44AD, 44ADA, or 44AE

Enter your Business Details, including:
- GST Registration (if applicable)
- Business Name
- Enter your Business Address and confirm the Nature of Business
- Fill in the required Income Details, including gross receipts, expenses, and net profit
Steps to Add Assets & Liabilities
- Click on the Assets & Liabilities tab

Enter your assets, including:
- Fixed Assets (e.g., machinery, equipment)
- Investments
- Current Assets (e.g., cash, receivables)
- Other Assets
Enter your liabilities, including:
- Reserves
- Non-current Liabilities (e.g., long-term loans)
- Current Liabilities (e.g., payables)
- Click Save once all details are entered
Once done, head over to the Summary tab to view your:
- Taxable Business Income
- Profit & Loss (P&L) Statement
- Balance Sheet
This gives you a complete snapshot of your sole proprietorship’s financials for the financial year.
Mobile
Steps to Add Sole Proprietorship Income
- Go to File > Business & Profession > Add Business
Select the appropriate
Nature of Business
Choose your Taxation Scheme:
Enter your Business Details, including:
- GST Registration (if applicable)
- Business Name
- Enter your Business Address and confirm the Nature of Business
- Fill in the required Income Details, including gross receipts, expenses, and net profit
Steps to Add Assets & Liabilities
Click on the Assets & Liabilities tab
Enter your assets, including:
- Fixed Assets (e.g., machinery, equipment)
- Investments
- Current Assets (e.g., cash, receivables)
- Other Assets
Enter your liabilities, including:
- Reserves
- Non-current Liabilities (e.g., long-term loans)
- Current Liabilities (e.g., payables)
- Click Save once all details are entered
Once done, head over to the Summary tab to view your:
- Taxable Business Income
- Profit & Loss (P&L) Statement
- Balance Sheet
This gives you a complete snapshot of your sole proprietorship’s financials for the financial year.