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Partnership Firm Tax Return Filing – Legal Compliance Services by Nd Salva
Operating a Partnership Firm in India entails a broad set of legal and fiscal responsibilities under various statutory regimes. From Income Tax Return (ITR) filing to compliance under GST, TDS, EPF, and Tax Audit requirements, partnership firms must adhere to multiple obligations to avoid penalties and maintain regulatory health.
At Nd Salva Advocates & Legal Consultants, we assist partnership firms with end-to-end compliance for all tax-related filings. With a deep understanding of taxation laws applicable to partnership firms, we ensure accurate, timely, and legally sound submissions across all reporting frameworks.
Understanding a Partnership Firm
A partnership firm is a form of business structure wherein two or more individuals agree to share profits and responsibilities. Based on registration status, a partnership can be:
Registered Partnership Firm – Registered under the Indian Partnership Act with the Registrar of Firms
Unregistered Partnership Firm – Operates without formal registration but is subject to similar taxation rules
Partners are jointly responsible for maintaining transparency, keeping accurate financial records, and ensuring the firm complies with all relevant tax statutes.
Income Tax Return Filing for Partnership Firms
Filing an Income Tax Return (ITR) is mandatory for all partnership firms, regardless of income, profit, or business activity during the year. Even in cases of nil income or loss, filing a NIL ITR is required to remain compliant.
Income Tax Rate for Partnership Firms
| Particular | Rate |
|---|---|
| Income Tax on Taxable Income | 30% |
| Surcharge (if income > ₹1 crore) | 12% |
| Health & Education Cess | 4% on tax + surcharge |
| Minimum Alternate Tax (MAT) | 18.5% of adjusted income (plus cess and surcharge) |
Permissible Deductions
The following deductions are allowed under Section 40(b), subject to conditions laid down in the partnership deed:
Remuneration paid to working partners (within prescribed limits)
Interest on capital up to 12% per annum
However, disallowed expenses include:
Remuneration to non-working partners
Expenses not conforming to the deed or related to pre-deed periods
Applicable ITR Forms
| Form | Applicability |
|---|---|
| ITR-4 | Presumptive taxation scheme (Income ≤ ₹50 lakh) |
| ITR-5 | All other partnership firms (including audited firms) |
ITR Filing Due Dates for AY 2023-24
Non-Audited Firms: 31st July 2024
Audited Firms: 31st October 2024
Transfer Pricing Applicability: 30th November 2024
Additional Statutory Filing Requirements
GST Returns
If the partnership firm is GST-registered (turnover > ₹20 lakh), it must file:
GSTR-1 – Details of outward supplies
GSTR-3B – Summary of monthly returns
GSTR-9 – Annual return
GSTR-4 – If under Composition Scheme
TDS Returns (if TAN is applicable)
TDS returns are required for firms making payments that attract tax deduction:
| Form | Purpose |
|---|---|
| 24Q | TDS on Salary |
| 26Q | TDS on payments to residents |
| 27Q | TDS to non-residents |
| 26QB | TDS on property transactions |
EPF Return Filing
Applicable if the firm employs 10 or more persons and is registered under the Employees’ Provident Fund Act.
Accounting & Bookkeeping
Mandatory if:
Turnover > ₹25 lakh, or
Net income > ₹2.5 lakh (in any of the preceding 3 years)
Proper books must be maintained under Section 44AA of the Income Tax Act.
Tax Audit Requirement
Firms must undergo a Tax Audit under Section 44AB if:
Annual turnover > ₹1 crore
Or under presumptive taxation and income declared is less than 8% of turnover (and income > basic exemption)
Penalties for Non-Compliance
| Nature of Default | Penalty |
|---|---|
| Late ITR filing | ₹1,000 – ₹5,000 u/s 234F |
| Failure to deduct/deposit TDS | Interest @ 1% or 1.5% + penalty u/s 271C |
| Non-filing of GST Return | ₹50 per day (₹20 for NIL returns) |
| EPF Non-compliance | Up to 25% interest + damages |
Why Choose Nd Salva for Partnership Tax Compliance?
At Nd Salva, we deliver precision, legal clarity, and complete coverage for all taxation matters involving partnership firms. Whether you are newly formed or long-established, we act as your strategic legal partner to ensure full-spectrum compliance with the Income Tax Act, GST laws, and allied statutes.
Our Services Include:
Income Tax Return Filing (ITR-4/5)
TDS Compliance & Return Filing
GST Registration & Monthly/Annual Filings
EPF Registration & Filing
Tax Audit Coordination
Legal Opinion on Deductibility & Tax Planning
Assistance with Tax Notices & Scrutiny Handling
Ensure Timely and Compliant Filing with Nd Salva
Whether it’s about managing routine returns or preparing for a tax audit, Nd Salva Advocates & Legal Consultants offers the experience and technical knowledge to support your firm’s tax compliance year-round.
Contact Us Today for a Consultation
