Annual Compliance - Partnership

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%.
 

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.