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Annual Compliance - Partnership

Effortlessly file Partnership Firm Tax Returns with TaxRupees. Expert guidance for seamless compliance. Ensure accurate and timely filing to avoid penalties.

Standard Plan

Standard Plan

7599 incl. GST
10000 (24% off)

1 year Accounting, Financial statement preparation, 1 year Income Tax Return Filing, 1 year Dedicated Compliance Manager support and 1 Year Dedicated Accountant and LEDGERS accounting software for a company with a turnover upto 15 lakhs per annum.
  • 1 Year Accounting
  • Financial Statement Preparation
  • 1 Year Dedicated Accountant
  • 1 Year Income Tax Filing
  • 1 Year Annual Return Filing
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Annual Compliance - Partnership

Documents Required For Annual Compliance - Partnership

Bank Statement
Credit Notes
Debit Notes
Investment Proofs(LIC Reciept,Medicliam Reciept,Insurance Reciept, Mutual Funds, Tution Fee, House Loan Slip, Donation Reciept, PF, NPS,
Loan Schedule
Purchase Invoices
Sale Invoices

Partnership Firm Tax Return Filing


If you are a partner in a business partnership in India, you will need to file an annual tax return.
A partnership firm is a business entity formed by two or more people who come together to carry on a trade or business. A partnership is a form of business organization in which two or more people work together to achieve a common goal. Each partner contributes some form of capital, labor, or skill to the venture and shares in the profits or losses generated by the business.
There are three different types of partners in a partnership firm: general partners, limited partners, and sleeping partners. General partners are responsible for the day-to-day management of the business and have unlimited liability for its debts and obligations. Limited partners are only liable up to the amount they have invested in the business and do not take an active role in its management. Sleeping partners are not involved in the management of the business but still share in its profits or losses.
A Partnership firm is a group of people who have entered into a partnership with each other. The name under which their business is carried on is called the "firm name." If a Partnership firm does not have a registration certificate from the registrar, it is an unregistered Partnership firm.

Who Must File a Partnership Return

The Income Tax Act requires that every partnership firm registered under the Income Tax Act must file an annual return of income. The due date for filing the return is 30th September of the assessment year.

What Is the Partnership Return Filing Deadline

The deadline for filing partnership returns in India is 30th September of the assessment year. Returns filed after this date will be considered late and may be subject to penalties.

What Are the Penalties for Late Filing of Partnership Returns

If a partnership return is filed after the due date, a late filing fee will be levied. The late filing fee is INR 5,000 for returns filed on or before 31st December of the assessment year, and INR 10,000 for returns filed after 31st December of the assessment year. In addition, interest at the rate of 1% per month or part thereof from the due date until the date of actual payment will also be charged on any outstanding tax liability.

What is the tax rate for a partnership firm?

A partnership firm is required to file a partnership firm income tax return under the Income Tax Act,1961. Partnership firms are liable to pay income tax at the rate of 30% of total income. Besides, a partnership firm is liable to pay an income tax surcharge of 12% if the total income exceeds Rs.1 crores.
Additional to the income tax and surcharge a partnership firm must pay the education cess and the secondary higher education cess.
Education Cess is applicable on the amount of the income tax and the applicable surcharge at the rate of 2%. Secondary and higher education cess is applicable on the amount of the income tax and the applicable surcharge at the rate of 1%.

Alternative minimum tax

Similar to a private limited company or LLP, partnership firms are also required to pay alternate minimum tax at the rate of 18.5% of "adjusted total income". Alternate minimum tax would be increased by the applicable surcharge, education cess, and secondary and higher education cess.

What are the allowed deductibles?

While calculating the payable income tax an individual must check the available deductible income
  • Remunerations or interest paid to the partners of the firm is not under the terms of the partnership.
  • Salaries, bonuses, remunerations, commissions paid to the non-working partners of the firm.
  • If remuneration paid to partners is following the terms of the partnership deed but such transactions were made or were concerning anything that pre-dates the partnership deed.

What Information Must Be Included in the Partnership Return Form

The Partnership Return Form must include the following information:
  1. The name, address, and PAN of the partnership firm.
  2. The total income of the partnership firm during the financial year.
  3. The total tax liability of the partnership firm during the financial year.
  4. The amount of tax paid by the partnership firm during the financial year.
  5. The balance amount of tax payable by the partnership firm during the financial year.
  6. The due date for filing the return.
  7. The signature of an authorized representative of the partnership firm.

How to File a Partnership Return

Step 1: Gather the Required Documents
To file your partnership return, you will need the following documents:
  1. Partnership Deed - this is the document that outlines the terms of your partnership agreement.
  2. Income Tax Return (ITR) Form - this is the form that you will use to file your partnership return.
  3. Profit and Loss Account (P&L) - this document shows your partnership's income and expenses for the year.
  4. Balance Sheet - this document shows your partnership's assets and liabilities as of the end of the year.
  5. TDS/TCS Statement - if you have paid any taxes on behalf of your partners, you will need to include a statement from the tax authorities showing how much tax you have paid.
  6. Audited Financial Statements - if your partnership is required to get its financial statements audited, you will need to include those in your return as well.
Step 2: Fill Out the Partnership Return Form
Once you have gathered all of the required documents, you can begin filling out the partnership return form (ITR). The form will ask for information about your partnership, such as its name, address, and registration number. You will also need to provide information about each partner, such as their name, PAN number, and share of profits/losses for the year. In addition, you will need to provide financial information for your partnership, such as income and expenses for the year, assets and liabilities as of the end of the year, and any taxes paid on behalf of your partners during the year.
Step 3: Submit the Partnership Return Form
After you have completed and signed the ITR form, you can submit it online or offline depending on which method is more convenient for you. To submit online, you will need to create an account on e-Filing website using either Net banking or Digital Signature Certificate (DSC). After logging in, go to 'Profile Settings' and select 'Add New DSC'. Once DSC is registered successfully then click on 'e-File' menu and select 'Income Tax Returns'. Choose appropriate assessment year & ITR form type then click on 'Submit' button after verifying all details carefully in preview screen shown before final submission.' If filing offline via paper return mode then print 4 copies of ITR V acknowledgement page after successful e-filing & send one copy duly signed by assessee along with self-attested supporting documents like bank statements etc by post only so as it reaches CPC Bangalore within 120 days from due date i.e., 15th August (for AY 2020-21).

FAQs about Partnership Annual Tax Return Filing

Do I Need to File a Partnership Return If I Have No Income in India
No, you are not required to file a partnership return if you have no income in India. However, if you have any income from foreign sources, you must file a return.
What Happens If I Don't File a Partnership Return in India
If you don't file a partnership return in India, you may be subject to penalties. The amount of the penalty will depend on the amount of tax due and whether or not you can show that you had a good reason for not filing a return. In addition, if you don't file a return, the Indian government may initiate criminal proceedings against you.
I Missed the Partnership Return Filing Deadline in India. What Should I Do?
If you missed the deadline for filing your partnership return, you should contact the Indian Tax Department as soon as possible. They may waive the penalty if you can show that there was a good reason for your delay.
If you're a partnership doing business in India, it's important to know the ins and outs of annual tax return filing. Who needs to file, what the deadline is, and what the penalties are for late filing are all important details to be aware of. The Partnership Return Form must include certain information, and can be obtained from the Indian government website. Filing the return involves gathering required documents, filling out the form, and submitting it. If you have questions about filing a partnership return in India, be sure to check out the FAQs section below.



If you don't see an answer to your question, you can send us an email from our contact form.

Partnership  firms are not expected to make an evaluated budget report every year. The duty review might be essential in light of the turnover and different rules.

The consistence for organization firms primarily incorporates the personal expense form documenting not at all like the corporate substances like the LLP and the organization as they need to make personal assessment form filings as well as the yearly bring recording back.

For recording the profits of a Partnership firm Invoices of deals and the buys during a year, costs receipt, bank explanations of the accomplices, TDS return documented duplicate, GST returns it is expected to record duplicate.

The association deed contains every one of the Terms and states of the Partnership. It directs the freedoms and the obligations of each accomplice making the organization deed an exceptionally pivotal report.

The Partnership firm and the accomplices of this firm are viewed as something similar. On account of the association firms, the obligation of the accomplices is likewise limitless and every one of the accomplices are together answerable for the liabilities of the firm.

Independent of the turnover and the benefit or misfortunes made by the accomplices, the association is expected to record annual income tax return.

There are sure limits on the exchange of responsibility for organization. A partner can't move the organization without the assent of the consent of all partner.

yes, it is possible to change over an partnership firm into an organization or a LLP. The course of transformation is exceptionally unwieldy. Thus, the business owner should to consider beginning a LLP or an organization as opposed to selecting a Partnership.

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