Income Tax Return for Partnership Firm

Income Tax Return for Partnership Firm

  • Filing ITR
  • Filing Forms
  • Flexible and Simple online Process
  • On time compliances
  • Get your registration in 3-4 days
  • Consultancy from Experts

Talk to Expert: +91 90797 59095

Consult for

Partnership ITR Filing

Introduction of Income Tax Return for Partnership Firm

The income earned by the Partnership firm or business is subject to tax. The tax levied on the income of a person is called Income tax, which is levied and collected by the Central Government. Such tax on income earned is payable in the same financial year wherein it is accrued in the form of advance tax by the Partnership Firm.

Compliance Sagar will provide you all the necessary services and legal advice related Return filling and also guide for other compliances. You may get in touch with our team on +91 90797 59095 or email cssunil93@gmail.com for any type of assistance for filing of Income Tax Return for Partnership Firm.

Advantages of ITR FIling for Partnership Firms

Easy loan processing

Income Tax return filling helps Partnership firm or business in taking loan from various Financial Institutions. Most of the banks and NBFCs ask for ITR receipts from business for latest three year when a business applies for a high-value loan like business long term loan or working capital loan. Lenders consider ITR as the most authentic document supporting business turnover and income. Hence, you should regularly file income tax return if you want to take loan in the future.

Allow carry forward losses

Income Tax return filling helps in carry forward the losses occur in previous year from the current year Income. Most businesses face losses in the initial years of the business. The business loss or capital losses can be carried forward up to 8 years if the ITR is filed. But if ITR is not filed, the taxpayer is deprived of this benefit.

Define net worth

The ITR filed with the Government defines the financial worth of the business. Return filling help in tracking the net worth of an entity it shows business turnover its assets and income the track of ITR shows the financial capacity and also increases the capital base of a person.

Minimum Requirements for Income Tax Return for Partnership Firm

ITR-5: Income tax return 5 is for

  • Partnership firms
  • LLPs
  • BOIs (Body of Individuals)
  • Artificial Juridical Person (AJP)
  • Estate of deceased
  • Estate of insolvent
  • Business trust and investment fund.
  • AOPs (Association of persons)

Procedure of Income Tax Return for Partnership Firm

1. Complete the Questionnaire : We will provide a questionnaire which is required to be filled by you in which we will sought the basic details and documents pertaining to the Filing of ITR of the partnership firm
2. Review of the documents : All the documents provided to us and the questionnaire will help us to process further for preparation of books of accounts of the partnership firm
3. Filing of Income Tax Return : We will file further send you the provisional statements for your verification and will file your income tax return before the due date and protect you from any penalty after its duly signed by you.
4. Acknowledgement : The next step is check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.

Documents Required for Income Tax Return for Partnership Firm

Pan Card and Aadhaar card of the partners
Pan card of firm
Books of Accounts | Financial Statement (Profit or loss Statement and Balance sheet)

Additional Information on Income Tax Return for Partnership Firm

Due dates for filling Income Tax return

  • For Taxpayer not eligible to get Tax audit: Due date for filling Income tax Return for Taxpayer having turnover less than 1 crore or who opt for presumptive taxation for F.Y 2023-24 i.e. A.Y. 2024-25 is 31st July 2024
  • For Taxpayer eligible to get Tax audit: Due date for filling Income tax Return for Taxpayer having turnover more than 1 crore or who do not opt for presumptive taxation for F.Y 2023-24 i.e. A.Y. 2024-25 is 30th September 2024

Tax payer can file belated Return up to 31st December 2024 of the relevant Assessment year
Tax Rate Applicable
Partnership Firms are taxable at the rate of 30% and 12% surcharge is applicable if the income exceeds Rs. 1 (One) crore.

Penalty of non filling Income Tax Return
Where a person is required to file Income Tax Return u/s 139(1) fails to file the return within prescribed limit u/s 139(1) shall pay prescribed late fee in case
Return file up to 31 December of A.Y : Rs. 5,000/-
Return file after 31 December of A.Y: Rs. 10,000/-

Expenses allowed as deduction

  • Rent, Rates, Taxes, Repairs and Insurance of Building used for the purpose of the business.
  • Repairs & Insurance of Plant, Machinery & Furniture.
  • Depreciation (according to Income Tax Act section 32)
  • Other Deductions (under section 36)