Annual Compliance - Partnership
*Government fees included
- 1 year Accounting
- Financial statement preparation
- 1 year Income Tax Return Filing
Partnership Firm Tax Return Filing
Operating a Partnership Firm in India comes with essential financial and legal responsibilities. To ensure the smooth growth of your business, it’s crucial to comply with various tax and regulatory obligations. These include filing Income Tax Returns, TDS Returns, GST Returns, EPF Returns, and, at times, undergoing a Tax Audit. Filing tax returns is a key responsibility for Partnership Firms in India. At Startup Portal, we understand the importance of complying with Indian tax laws and the benefits it offers. Our expert services are designed to help business owners navigate the complexities of compliance, making the process easier and more efficient. Partner with us to ensure your Partnership Firm stays compliant with income tax regulations and explore ways to optimize your tax benefits. This will help your business flourish while meeting all tax requirements seamlessly.
What is a Partnership firm?
A partnership firm is a business organization created by two or more persons collaborating under one venture. There are two primary types of partnership firms:
- Registered Partnership Firm: A registered partnership firm is one that has completed official registration with the RoC and obtained a registration certificate to validate its legal existence.
- Unregistered Partnership Firm: A partnership that does not possess a registration certificate from the Registrar of Firms is known as an unregistered partnership.
A partnership fundamentally involves an arrangement made by two or more individuals who have agreed to collaboratively share the profits or losses generated from a business they run together. The people who take part in a partnership are individually called partners and together known as a firm. Partners should understand the tax rate for partnership firms and its impact on profit distribution. Partners are tasked with enhancing the firm’s advantage, ensuring fair practices, and keeping precise records with complete transparency for the benefit of all partners.
Income Tax Return Filing for Partnership Firms
Partnership Firms in India are required to file Income Tax Returns (ITR) annually, irrespective of whether the firm has earned income or incurred losses during the financial year. It’s essential to understand the partnership firm tax rate, which is set at 30%, to make well-informed financial decisions for your business.
Even if your partnership firm has had no business activity and its income is NIL, filing an Income Tax Return within the due date remains a legal obligation. Ensuring timely and accurate ITR filing is crucial for maintaining compliance with Indian tax laws and avoiding potential penalties.
Audit Requirement for Partnership Firms
Partnership Firm Tax Return Due Date
The due date for filing the partnership tax return filing is dependent on whether the firm is required to be audited or not. When the firm is not required to be audited the income tax returns should be filed by 31st July. When the firm is not required to be audited then the firm has to file its income tax returns by 30th September.
However, the cost of compliance is lesser as compared to the companies. Unlike companies, partnerships need not conduct meetings or maintain a register. Hence, it should be noted non – compliance can be costlier than meeting compliances.