Startup India Scheme: Eligibility Criteria, Benefits & Application Details

The 100 Rizing Stars of 2025

Below are the 100 startups recognised as Rizing Stars 2025.

• Affluense AI: An AI-powered platform that helps businesses discover and engage HNI & UHNI individuals with real-time, 360° profiles.
• Alchemyst AI: Alchemyst AI is a context engine that provides AI applications with persistent memory, business data, and operational context so agents remain accurate, reliable, and production-ready. It is a standalone context layer that can be integrated into the stack through our APIs, SDKs and MCPs.
• Amyra Farms: Amyra Farms is a Farm-to-Table company dedicated to growing and processing high-quality Coffee, Pepper, and Vanilla.
• Ambitio: AI Copilot for Higher Education Abroad. Ambitio's AI platform assists in the complete study abroad journey, right from program selection to crafting your application and getting those dream admits.
• Amrutam: Amrutam is a global Ayurvedic lifestyle brand on a mission to make Ayurveda accessible, authentic, and contemporary. Rooted in ancient wisdom and backed by modern science, they create holistic solutions for health, wellness, and beauty.
• Avasar: Avasar is a micro-task platform that helps individuals in Tier 2/3/4 India earn income through simple, smartphone-based tasks like referrals, surveys, promotions & gigs.

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• BabyAmore: Baby Amore is a eCommerce website catering to every baby’s need. Their focus is to sell organic, eco friendly and premium baby products.
• Bharat Intelligence: Bharat Intelligence is building India’s operating system for agricultural labour. They organise farm labour into trained, verified crews and deliver agricultural work as a managed service
• Bolna: Bolna is a Voice AI Platform purpose-built for India’s scale, linguistic complexity, and cost sensitivity. They enable enterprises to go live with thousands of concurrent calls in days.
• Bombay Musk: Bombay Musk is a luxury car perfume brand designed to elevate every drive with premium fragrances that embody sophistication and style.
• Booon: Booon.in is India’s First fashion-forward platform delivering all the style needs in just 2 hours.
• Broadway: With a vision of a shared economy in retail, Broadway provides a platform of 20,000+ sq ft canvases in prime malls for brands to paint their stories, captivate consumers through unique narratives and in-person engagements to establish trust and induce trials.

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• Calquity: CalQuity is building the future of equity research with an AI-powered platform that unifies filings, earnings calls, and news into a single intelligent interface.
• Cashvisory: Cashvisory empowers first-time investors with expert-backed strategies and simplified tools, making wealth-building accessible to everyone.
• CellBell: Cellbell primarily offers ergonomic office and gaming chairs online in India, along with related services like delivery, installation, and warranty support. They focus on providing comfortable and durable seating solutions at affordable prices.
• Cleevo: With an unique powder-to-liquid technology, Cleevo aim to inspire a new generation of clean and simplify life.
• Clevrr AI: Clevrr AI is a SaaS platform helping D2C/Consumer brands unify data from 50+ omnichannels into a single source of truth with an AI Agent on top of it.
• CodeAnt: CodeAnt AI is the Code Health platform built for the AI era. They bring AI Code Review, Code Security, Code Quality, and Engineering Metrics into one unified platform.
• Cogniti: Cognitii is a mobile first, AI powered ecosystem that helps schools detect learning needs early, personalise support for children with developmental and learning disabilities, and reduce educator workload.
• Courtyard Farms: Courtyard Farms delivers 100% natural, fresh goat milk and dairy products directly from farm to doorstep, promoting healthier, preservative-free nutrition.
• Crustdata: Crustdata is an AI-powered people and Company Search tool for sales, recruitment and investment with the freshest, most trusted data.

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• DaanVeda: DaanVeda is an AI-driven fundraising intelligence platform, empowering nonprofits to raise more funds efficiently. They offer a unified solution addressing key challenges in the fundraising landscape.
• depX: depX is an AI Ecosystem for DevOps. Deploy, manage and monitor your entire cloud infrastructure with as few as two lines in English. depX offers a no-code, ChatGPT-like interface for DevOps and Cloud engineers.
• Dodo Payments: Dodo Payments is a global Payments & Billing platform helping SaaS and AI-native businesses scale across 150+ countries.
• Dressfolk: Dressfolk is on a mission to modernise timeless Indian weaves. They design and co-produce all garments with the artisan community from scratch.
• Dropon Delivery: Dropon is an emerging startup in eco-friendly, tech-driven logistics, transforming on-demand delivery with AI-powered optimisation and green mobility.

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• Earth Story Farm: Earth Story Farm grows, make and source chemical-free products, preserving the goodness, freshness and locking their complexity of flavours.
• Earthful: Shark Tank-approved Earthful was founded in 2020 by sisters and IIT Kharagpur alumnae Veda Gogineni and Sai Sudha G. They are on a mission to tackle undernutrition in India with clean, plant-based nutrition. Earthful offers 100% natural supplements- free from additives and backed by science.
• Eternz: Eternz is a new-age jewellery and watch marketplace redefining how India discovers and experiences fine craftsmanship. With a deep love for design and detail, they bring together curated collections from India’s finest brands as well as exquisite international names.

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• Findr: Findr is an AI workspace that lets you instantly capture, delightfully organise, and chat with anything you've saved. This includes PDFs, videos, articles, links, emails, information inside apps, and more.
• Fixit: Fixit is an AI-powered junior broker, an agentic sales assistant built for real estate sales who don’t have time to chase dead leads. It qualifies, nurtures, and follows up with every prospect.
• Foramour: Foramour offers 18k gold plated jewellery brand that makes gifting effortless yet thoughtful.
• Frelo: Frelo is an AI based platform for Indian startups seeking top-tier freelancers in Tech, Design and Content. They simplify the hiring process by streamlining the posting of requirements, freelancer selection, and payments.
• Fuell: Fuell provides clean, bite-sized snacks, made from just dry fruits and nuts, with no added sugar or preservatives.
• Future AGI: Designed for the modern era of Generative AI, Future AGI provides intuitive tools for fine-tuning prompts, LLM experimentation, evaluating models, annotating data or optimising performance, making complex AI workflows seamless and efficient.

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• Get Your Lawyers: Get Your Lawyers is a cutting-edge AI-powered SaaS platform designed for legal professionals, providing an all-in-one solution for end-to-end legal practice management.
• GetWebsite.Report: A complete webpage audit tool to get personalised insights & AI-powered actionable fixes to improve design, usability, user experience & SEO on all devices to maximise conversion.
• Gud Gum: Gud Gum is India's first plastic-free, all-natural & biodegradable chewing gum. Free from all artificial sweeteners, flavours & colours.
• Guestara: Guestara is an AI Guest Management Platform designed to meet the needs of hospitality professionals worldwide.

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• Heizen: Heizen is building an ecosystem to build, deploy, and manage fully functional enterprise-grade AI Apps.

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• Indian Hemp Store: Indian Hemp Store is India's 1st Hybrid Hemp Marketplace.
• Indiehaat: IndieHaat was started with a vision and direction to surface the beautiful hidden treasures of the magnificent world of handmade products.
• Ivory: Ivory transforms the ageing experience by nurturing sharper minds and healthier living. They help in the early detection of neurodegenerative risks and provide personalised brain health solutions.

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• Jumkey: Jumkey introduces safer materials for the environment which are skin friendly, sustainable and meets International quality standards.

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• Kaftanize: Kaftanize is a popular clothing line with fashion-conscious ladies.Their clothing is crafted from premium fabrics with an emphasis on simple shapes and understated elegance.
• Komplai: Komplai is an AI-powered solution that helps businesses manage their financial accounts and all regulatory filings.
• Kreo: Kreo is a consumer electronics brand they enable content creators & gamers to elevate their passion beyond limits by providing them with premium products.

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• Lamhenow: Lamhenow is a sustainable gifting solutions company. They are creating products which will be long-term and timeless, keeping in mind the creativity.
• Lawberry: Lawberry is a pioneering legal tech platform that combines AI intelligence with legal expertise. The primary features include AI-powered research, drafting, and summarisation tools, alongside robust case management features.
• Layerpath: Layerpath's Path AI turns the website into a live product conversation. It answers questions, shows the right demo, and books meetings- so your team only talks to ready buyers.

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• Magic Decor: Magic Decor has a curator-driven method to customise wall murals and wall decorative items. Their core is driven by on-demand production and an enhanced manufacturing process driven by automation.
• Magicroll: Magicroll.ai is an AI-powered video editing and creation platform that helps creators, brands, and businesses turn raw footage into polished, engaging videos in minutes.
• Medial: Medial is the next-gen professional social media platform from India to the world.
• MeetMinutes: With support for 30+ languages, including unique mixed languages, seamless integration with popular tools and CRMs, and a focus on capturing key insights and action items, MeetMinutes is an indispensable partner in achieving meeting excellence.
• Mohi Fashion: Mohi Fashion is a curated multi-designer Indian ethnic wear marketplace sourcing from authentic sellers across India for special occasions, weddings.
• Mugafi: Mugafi is a next-gen entertainment powerhouse combining Tech, AI, storytelling, and cultural depth to build original cinematic universes.
• Mumchies: Mumchies offers wholesome traditional-meets-contemporary sweets, savouries & millet delights made with premium ingredients for healthy, delicious snacking.
• My Thrift Baby Loot: My Thrift Baby Loot is an easy platform where Parents can declutter by selling the things that their babies have outgrown to other parents who can buy the essentials at a lot lower than market price, save their money and save the planet in the process too.

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• Nesta Toys: Nesta Toys offer simple & open-ended play where the child drives the playtime. The toys are designed to encourage kids to see new possibilities and spur their imaginations.
• Niyantha: Niyantha is building the Vehicle Cloud and AI Platform for transportation, agriculture and seafood supply chains.
• Nuvie: Nuvie is redefining healthy eating by creating food products that make wellness both enjoyable and accessible.

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• OhNuts: Oh! Nuts is a health-focused snack brand from India that’s reinventing how people think about munching- with chips made from real nuts that are crispy and flavourful

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• Pinq Polka: Pinq Polka provides high-quality products that address both women’s hygiene and fashion needs, helping them navigate each day with assurance and poise.
• Pipeshift: Pipeshift is a fast, scalable, and production-ready orchestration platform to build with open-source AI- embeddings, vector databases, LLMs, vision models, and audio models- in any cloud or on-prem.
• Praylady: Praylady has gained a niche through its state-of-the-art manufacturing technology, and for producing unparalleled cookware that rings a bell in every kitchen in town.
• Pype AI: Pype AI delivers ready-to-deploy, speciality-trained voice agents for healthcare. They automate critical patient interactions- scheduling, follow-ups, treatment prep, and 24/7 support- helping hospitals go live in days.

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• Quash: Quash is a SaaS tool that helps companies streamline and speed up their software testing process. It helps testers report bugs quickly, and assists developers in resolving them.
• QuicReach: QuicReach offers pre-scheduled shared cabs tailored for solo travellers. Their solution combines the affordability of public transport with the comfort of personal cabs, providing a unique and much-needed alternative for long-distance travel.

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• Ressl AI: Ressl AI is building the future of Salesforce implementation and operations, powered by AI agents. They partner with fast-growing companies to scale their Salesforce orgs without scaling headcount.
• Ruskle: Ruskle is a modern Indian snack brand reinventing the traditional rusk with baked, flavour-rich, no-maida varieties like Butter Garlic, Blueberry, Green Chutney, and more for guilt-free tea-time snacking.
• Rustic Art: Rustic Art is an organic and natural personal and home care brand that believes in sustainable manufacturing and a sustainable lifestyle. All the products are cruelty-free & vegan.

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• SaveSage: SaveSage simplifies a user's credit card journey by helping them choose the best card based on their spending habits.
• Scoutflo: Scoutflo is on a mission to make Infrastructure management self-serve for developers.
• Shram: An AI-powered to-do list that automatically captures tasks from the screen and voice, so work manages itself.
• Silver talkies: Silver Talkies is a pioneering social enterprise on a mission since 2014 to make healthy and active ageing a desirable and viable goal for older adults.
• SimplAI: SimplAI is a full-stack Agentic AI Operating System built for enterprises that need to move beyond isolated LLM experiments and deploy AI that actually runs production workflows.
• Skillsync: Skillsync is a search platform to find engineers & scientists based on their code / research. They are on a mission to organise the world's talent.
• Sprentzo: Sprentzo is an innovative sports platform with a mission to make sports more accessible, affordable, and community-driven across India.
• Stimuler: Stimuler is building audio-AI to help the global population speak (English) better! Their advanced AI engines listen, provide detailed feedback on the essential speech metrics & then provides guided practice for improvement!
• Stumbll: Stumbll Events is an AI-powered event planning and management platform designed to simplify organising mid-sized gatherings (25-100 attendees).
• Sunfox: Sunfox Technologies is at the forefront of cardiac healthcare innovation, transforming lives with their flagship product, Spandan.
• Supaboard: Supaboard is an AI analytics platform transforming scattered data into actionable insights without requiring a data team.
• SuperErgo: SuperErgo is a work-tech brand revolutionising the modern workspace with ergonomically designed furniture and accessories.
• Swastya Organic farms (Lokkanahalli): Pure, chemical-free organic foods & wellness products crafted with traditional farming and women-led care for healthy living.
• Swizzle: Swizzle offers refreshing ready-to-drink mocktails that bring clean, premium taste to every sip- perfect for modern, health-conscious drinkers.

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• Tagda Raho:  Tagda Raho is reviving India’s traditional strength training with handcrafted gada, mudgar and functional workouts for modern fitness.
• Theater Apparel: Theater is a dynamic and rapidly growing fashion startup based in India. Their mission is to create India's best design-led, mass-premium western fashion company.
• Trackk: Trackk is a New-Gen trading platform, designed for speed, precision, and simplicity. From faster trading to insightful analytics, they're reimagining how the new generation connects with wealth and opportunities.
• Trupeer AI: Trupeer AI is the AI video platform for the end-to-end software lifecycle.
• Twiddles: Twiddles brings indulgence without guilt. Co-founded by cricketing legend Yuvraj Singh, they create delicious, nut-based spreads and snackable bites that combine rich flavours with healthy ingredients.

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• Unjob.ai: Unjob. ai is the world’s first AI-powered freelance platform that helps brands hire talent instantly, without job posts, interviews, or endless browsing.
• Urban Animal: India's 1st dog DNA test to understand a dog's genetic makeup to provide smarter care!

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• Vaani AI: Vaani research is building the next generation of human-like Voice AI systems that can handle & automate complex, longer conversations with unmatched accuracy and empathy.
• Veltos AI: Veltos AI is a next-gen game generation platform that empowers anyone to create, play, and share games with the power of AI.
• VideoSDK: VideoSDK is providing end-to-end solutions in real-time communication technology. They started with mission is to help developers build interactive and immersive live video experiences.
• Vyom: Vyom is building the platform to power the future of autonomous robots and drones. They are creating a software-defined ecosystem to empower the robotics industry with unmatched adaptability, flexibility, and scalability.

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• Yuji Labs: Yuji Labs is building industrial intelligence grounded in physics, engineering, and real operational experience.
• Zillout: Zillout is an AI-powered system running the world's most loved venues & experiences.
• Zivy: Zivy tracks conversations across all the Slack channels and brings critical messages to the surface.

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The Rizing Stars of 2025 are a reflection of the everyday realities of building a startup. The late nights, the pivots, the first yes, the many no’s, and the quiet milestones that don’t always make headlines. These 100 startups represent founders who kept showing up, learning from each other, and moving forward with conviction.

And as more founders join the Rize community, this list will continue to grow- bringing new stories, new breakthroughs, and new journeys into focus. Today, we celebrate 100. Tomorrow, there will be many more and we’re excited to build that future together!

What is meant by Addition of Partner?

The addition of a partner involves introducing a new member into an existing partnership firm. This decision requires the unanimous consent of all current partners unless the partnership agreement stipulates otherwise. The incoming partner must possess the legal capacity to enter into a contract, as outlined in the Indian Contract Act, 1872. New partners bring specialised skills and industry expertise, enhancing operational efficiency. Their networks open doors to new business opportunities and markets. Overall, this flexibility enables firms to bring in fresh capital, skills, and expertise to support growth and expansion.

Process Of Addition Of Partners

The process of introducing a new partner involves several key steps:

1. Agreement on terms and conditions: The existing and incoming partners must mutually agree on aspects such as profit sharing ratio, capital contribution, roles and responsibilities.
   
2. Execution of deed of admission: A supplementary agreement containing the terms of admission should be drafted and signed by all partners, including the new entrant.
   
3. Capital contribution: The incoming partner must bring in the agreed capital.
   
4. Intimation to Registrar: Form 3 along with the prescribed fee should be filed with the Registrar within 30 days of the change.
   
5. Notification to stakeholders: The firm must inform its bank, tax authorities, and vendors/suppliers about the new partner's admission.
   

Documents Requirement For Addition of Partners

The following documents are typically required for the addition of a partner:

• A Digital Signature Certificate (DSC) is necessary for e-filing with the Registrar of Companies (ROC).
  
• Form 3 must be filed to update the LLP agreement, reflecting the new partner’s inclusion.
  
• Form 4 is used to notify the ROC about the appointment and obtain the partner’s consent.
  
• A Limited Liability Partnership Identification Number (LLPIN) is essential for all filings.
  These documents ensure the smooth onboarding of a new partner while maintaining regulatory compliance under the LLP Act, 2008. of Admission/Supplementary Partnership Deed
  

Advantages Of Adding Partners in Partnership Firms

The introduction of a new partner offers several benefits to a partnership firm:

• Capital infusion to support business growth and expansion
  
• Fresh expertise and skills to enhance the firm's capabilities
  
• Shared responsibilities and decision-making
  
• Potential for increased profitability and market share
  

What is meant by Removal of Partner?

Partner removal in a partnership firm or LLP occurs when an existing partner exits, either voluntarily or by a decision of other partners, as per the partnership agreement. The process must comply with the Indian Partnership Act, 1932, which allows removal only if expressly stated in the agreement and with the consent of all partners (except the one being removed). In LLPs, removal must also adhere to the Limited Liability Partnership Act, 2008 and LLP agreement terms.

Why Removal of a Partner May Become Necessary?

The removal of a partner may become necessary due to several reasons:

• Voluntary retirement or withdrawal
  
• Breach of partnership agreement or trust
  
• Incapacity or inability to perform duties
  
• Misconduct or negligence detrimental to the firm
  
• Insolvency or bankruptcy
  
• Death of the partner
  

Steps Involved In Removing a Partner

The process of removing a partner typically involves:

1. Serving notice: A notice of the proposed removal, specifying the grounds, should be served on the concerned partner.
   
2. Considering reply: The concerned partner must be allowed to submit a response to the notice.
   
3. Majority approval: Obtain at least 75% approval from the remaining partners through a resolution.
   
4. Executing deed of retirement/reconstitution: The change in partnership should be documented through a formal deed.
   
5. Intimating Registrar: Form 4 with the applicable fee should be filed with the Registrar within 30 days.
   
6. Settlement of accounts: The outgoing partner's accounts should be settled as per the partnership deed or mutual agreement.
   

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Section 31: Introduction of a New Partner

Section 31 of the Indian Partnership Act, 1932, governs the introduction of a new partner into an existing firm. It stipulates that a new partner can only be admitted with the consent of all existing partners unless the partnership agreement provides otherwise.

Rights and Liabilities of a New Partner

Upon admission, the new partner becomes entitled to share in the profits and is liable for the losses and debts of the firm from the date of their entry, unless agreed otherwise. They have the right to access the firm's books of accounts and to participate in the management of the business. However, they are not liable for any acts of the firm before their admission, unless they expressly assume such liability.

Section 32: Retirement of a Partner

Rights of Outgoing Partner

Section 36: Right to Conduct a Competing Business

Unless restricted by an agreement, a retiring partner has the right to carry on a business competing with that of the firm and to advertise such business. However, they cannot use the firm's name or represent themselves as carrying on the firm's business.

Right To Share

The retiring partner is entitled to receive their share of the firm's assets, including goodwill, as per the terms of the partnership agreement or mutual understanding. They also have the right to share in the profits of the firm until the date of their retirement.

Section 37: Entitled to Claim

The outgoing partner has the right to claim their due share from the continuing partners. If not paid outright, they are entitled to interest at 6% per annum on the amount due.

Liabilities of Outgoing Partner

Section 32(3) and (4): Liability to the third party

The retiring partner remains liable to third parties for all acts of the firm until public notice of their retirement is given. They are also liable for any obligations incurred by the firm before their retirement unless discharged by agreement.

Section 32(2): Agreement of Liability

The retiring partner and the continuing partners may agree to discharge the retiring partner from all liabilities of the firm, but such an agreement is not binding on third parties unless they are aware of it.

Section 33: Expulsion of a Partner

A partner may be expelled from the firm by a majority of partners if such power is conferred by an express agreement between the partners. The power to expel must be exercised in good faith. Unless agreed otherwise, the expelled partner can claim the value of their share as if the firm were dissolved on the date of expulsion.

Section 34: Insolvency of a Partner

If a partner is adjudicated as insolvent, they cease to be a partner from the date of the insolvency order. Their share in the firm vests with the Official Assignee or Receiver appointed by the court. The firm is dissolved unless the solvent partners buy the insolvent partner's share and continue the business with proper intimation.

Section 35: Death of a Partner

In the event of a partner's demise, their legal heirs or executors step into their shoes. The firm dissolves from the date of death unless the partnership deed provides for continuity. The deceased partner's share in the firm's assets, goodwill, and profits is settled as per the partnership agreement or mutual understanding.

Section 38: Continuing Guarantee Revocation

The estate of a deceased or insolvent partner, an expelled or retired partner, is not liable for the firm's debts contracted after their death, insolvency, expulsion or retirement. A continuing guarantee given to a firm or a third party in respect of the firm's transactions is revoked as to future transactions by any change in the firm's constitution.

Conclusion

Changes in the composition of a partnership firm through the addition or removal of partners are significant events. While new partners can infuse capital and expertise, the exit of partners due to retirement, expulsion, insolvency or death can impact the firm's continuity and harmony. The Partnership Act provides a framework for inducting and removing partners. The terms of entry and exit should be clearly documented in the partnership agreement to minimise disputes. Intimations to the Registrar and third parties should be made promptly. With some foresight and planning, partnership firms can manage changes in their constitution smoothly and continue their business journey.

Frequently Asked Questions

Overview of Taxation for Proprietorships in India

In India, proprietorships are taxed as individual taxpayers under the Income Tax Act. The business income is added to the proprietor's total income and taxed according to the applicable individual tax slabs. Proprietors typically file their income tax returns using:

• ITR-3: For individuals and HUFs having income from a proprietary business or profession
  
• ITR-4 (Sugam): For those opting for the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE
  

Taxpayers can choose between the old tax regime (with deductions and exemptions) or the new one (with lower tax rates but no exemptions).

Do Proprietorship Firms Need to File Income Tax Returns?

Yes, proprietors are legally obligated to file ITRs if their total income exceeds the basic exemption limit, which for FY 2024-25 is:

• ₹2.5 lakh for individuals below 60 years
  
• ₹3 lakh for senior citizens (60-80 years)
  
• ₹3.5 lakh for super senior citizens (above 80 years)
  

Even if the income is below the exemption limit, filing returns is necessary to carry forward business losses, to claim TDS refunds and if there are any foreign assets or income involved.

Importance of Filing Income Tax Returns for Proprietorship Firms

Beyond legal compliance, filing ITR offers several advantages:

• Financial Credibility: Enhances your chances of securing loans, credit lines, or business investments
  
• Business Growth: Essential for bidding in tenders and expanding operations
  
• Avoiding Penalties: Non-filing attracts penalties and interest under the Income Tax Act
  
• Refund Claims: Enables claiming refunds on excess TDS deducted
  

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Tax Audit for Proprietorship

A tax audit is a review of accounts to ensure accuracy and compliance with tax laws. For proprietorships, audit requirements apply if:

• Turnover exceeds ₹1 crore (business)
  
• Gross receipts exceed ₹50 lakh (profession)
  
• Turnover exceeds ₹10 crore if 95% of payments and receipts are digital
  

Non-compliance with tax audit provisions can attract a penalty under Section 271B, which can be up to 0.5% of turnover or a maximum of ₹1.5 lakh.

Presumptive Taxation Scheme: A Simplified Option for Small Proprietors

To ease compliance for small taxpayers, the Income Tax Act offers presumptive taxation schemes:

• Section 44AD: For small businesses with turnover up to ₹2 crore (to be extended to ₹3 crore from AY 2025-26 if cash transactions are below 5%)
  
• Section 44ADA: For professionals with receipts up to ₹50 lakh
  
• Section 44AE: For those involved in the business of transportation
  

ITR Guidelines for Proprietorship Firms – Union Budget 2024–25 Insights

The Union Budget 2024 brought several important changes aimed at easing compliance, promoting transparency, and offering relief to taxpayers, especially for salaried individuals and businesses.

Here's a quick overview of key updates relevant to individual taxpayers and proprietorships:

1. Increased Standard Deduction Under the New Tax Regime

To offer more relief to salaried individuals, the standard deduction under the new tax regime has been increased from ₹50,000 to ₹75,000.

2. Reduced TDS Rates on Specified Payments

The budget has also reduced the Tax Deducted at Source (TDS) rates on certain specified payments to improve ease of doing business and simplify compliance for both payers and recipients. This change will benefit small and mid-sized businesses by easing their cash flow and lowering the burden of upfront tax deduction.

3. Government Scheme for First-Time Entrepreneurs

The Union Budget 2024 introduced a new loan scheme to support first-time entrepreneurs. The scheme aims to promote inclusive entrepreneurship and boost India’s startup ecosystem.

Proprietorship Tax Rate & Surcharge AY 2025-26 | FY 2024-25

Under the New Regime

Under the Old Tax Regime

Deadline for Proprietorship ITR Filing

• Non-audited firms: July 31st of the assessment year (AY)
  
• Audited firms: October 31st of the assessment year (AY)
  

For AY 2025-26:

• Non-audited deadline: July 31, 2025
  
• Audited deadline: October 31, 2025
  

List of Documents Needed for Proprietorship Income Tax Return Filing

• PAN card of the proprietor
  
• Aadhaar card
  
• Bank account statements
  
• Profit & Loss statement
  
• Balance sheet
  
• GST returns (if registered)
  
• TDS certificates (Form 16A/26AS)
  
• Sales invoices and purchase bills
  
• Expense receipts
  
• Investment proofs for claiming deductions (under the old regime)
  

How to File an Income Tax Return for a Proprietorship (Step-by-Step Guide)

Here's a simple, step-by-step guide to help you file accurately and on time:

Step 1: Choose the Right ITR Form

• ITR-3: For proprietors with regular business or professional income
  
• ITR-4: For those opting for the Presumptive Taxation Scheme under Sections 44AD, 44ADA, or 44AE
  

Step 2: Prepare Financial Information

• Compile key documents
  
• Calculate your total income and tax liability
  
• Claim eligible deductions (only under the old regime).
  
• Verify TDS credits and advance tax paid.
  

Step 3: Log into the Portal

• Visit the Income Tax e-Filing portal
  
• Log in using your PAN and password.
  

Step 4: Submit the Return

• Select Assessment Year 2025–26 and the appropriate ITR form (ITR-3 or ITR-4)
  
• Enter all relevant details—income, deductions, taxes paid, etc
  
• Validate and submit the return
  
• E-verify using Aadhaar OTP, bank account, or DSC
  

Step 5: Download

• Download the acknowledgement (ITR-V) and save it for your records.
  

Conclusion

Running a proprietorship already comes with a long to-do list, and filing your income tax return might feel like just another box to check. But here’s the truth: Filing your ITR on time helps you stay on the right side of the law, but it also unlocks serious advantages like improved loan eligibility, smoother business expansion, and better financial credibility.

That’s why choosing the right ITR form (like ITR-3 or ITR-4), keeping your documents ready, and understanding your tax regime can save you a lot of future headaches.

Don’t wait until the last minute- start organising your financials today and file your ITR on time to stay ahead, stay compliant, and build a more credible, growth-ready business.

Frequently Asked Questions