Annual Compliance - Partnership Firm

Partnership Firm Tax Return Filing

Under Income Tax Act, a partnership firm is defined as “Persons who have entered into a partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name”. There are two categories of Partnership firms in India, registered partnership, or unregistered partnership. Registered partnership firms are those firms having a registration certificate from the Registrar of Firms. All other partnerships that do not have a registration certificate would be classified as an unregistered partnership firm.

BASIC

iNR 10,299

Yearly Bookkeeping

Dedicated Accountant

Bank Statement Reconciliation

Financial Statement Preparation

Business Tax Return Filing

STANDARD

iNR 13,299

Yearly Bookkeeping

Dedicated Accountant

Bank Statement Reconciliation

Financial Statement Preparation

Business Tax Return Filing

GST Compliance

PREMIUM

iNR 20,299

Yearly Bookkeeping

Dedicated Accountant

Bank Statement Reconciliation

Financial Statement Preparation

Business Tax Return Filing

GST Compliance

TDS Compliance

Partnership Tax Rate

Partnership firms are liable to pay income tax at the rate of 30% of total income. In addition to the income tax, a partnership firm is liable to pay income tax surcharge on the amount of income tax at the rate of 12%, when total income exceeds Rs.1 crores. In addition to the income tax and surcharge, a partnership firm must pay education cess and secondary higher education cess.

Education Cess is applicable on the amount of income tax and the applicable surcharge at the rate of 2%. Secondary and higher education cess is applicable on the amount of income tax and the applicable surcharge at the rate of 1%.

Procedure for Filing Partnership Firm Tax Return

Income tax return of a partnership firm can be filed manually or online through the income tax website.

In case of manual filing, the assessee must print out two copies of Form ITR-V. One copy of ITR-V signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy should be retained by the assessee for his/her record. If the income tax return is filed online, then a class 2 digital signature will be required for the Partner of the firm. Also, online income tax return filing is mandatory for partnership firms required to obtain an audit.

Partnership Firm Tax Return Due Date

The income tax return due date for most partnership firms is July 31 of the assessment year. Partnership firms required to get its accounts audited under the income tax Act must file the income tax return before the September 30th deadline.

Audit Requirement for Partnership Firms

Partnership firms that conform to any of the conditions below would be required to get the accounts audited:

  • Carrying on business and total sales exceed Rs.1 crore in the previous year.
  • Carrying on a profession and gross receipts in profession exceed Rs.50 lakhs in any previous year.

In addition, there are other conditions applicable which could make an audit mandatory for a partnership firm.

If a partnership firm entered into international transactions or specified domestic transactions a report must be furnished in Form No. 3CEB under section 92E. For partnership firms required to furnish Form 3CEB, the deadline for filing tax return is 30th November.manually or online through the income tax website.manually or online through the income tax website.


Updated on 18/07/2021