+919311686569 | team@taxmytax.com
We Provide Consulting Service 24x7 Support

Income Tax Return of Partnership firm Online

A partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.  It is mandatory for every partnership firm to file the return of income irrespective of amount of income or loss. Call CA helps you to get the all tax compliances done professionally with an hassle process.

GET STARTED AT
₹ 4,999 All Inclusive
  • 501+
    Happy Client
  • 11+
    Win Awards
  • 51+
    Dedicated Support
  • 101+
    Client Testimonials
How to file Income Tax Return of Partnership firm Online ?
A Step by step guide that will help you e-file income tax return by Call CA Income Tax Team
Step 1 Concept Understanding

Our team helps you to gather all the required data for Partnership ITR Filings and helps you to maintain an easy system for ITR Filings

Step 2 Submission of Requisite Documents

Our team of professionals prepare the necessary data and guides you for ITR status and upload the ITR Return with EVC or DSC

Step 3 Filing of Return and Reporting

Our Income tax team will file the return and share you the acknowledgement. We also provide the Computation report that enables you for better and transparent understanding of your ITR

Overview & Concept

In India, we have a definite law that covers all aspects and functioning of a partnership, The Indian Partnership Act 1932. The act also defines a partnership as “the relation between two or more persons who have agreed to share the profits from a business carried on by either all of them or any of them on behalf of/acting for all”.So in such a case two or more (maximum numbers will differ according to the business being carried) persons come together as a unit to achieve some common objective. And the profits earned in pursuit of this objective will be shared amongst themselves.The entity is collectively called a “Partnership Firm” and all the individual members are the “Partners”.

What are the Income Tax Rates for Partnership Firm ?

A flat rate of 30% on the total income after deduction of interest and remuneration to partners/Designated Partners at the specified rates + Surcharge of 12% if Total Income exceeds 1 Crore and will be further increased by Health and Education Cess 4% on Income-tax (Wef A.Y. 2019-20 education Cess secondary and higher education Cess @ 3% replaced by Health and Education Cess 4% )

Remuneration to Partners

The partners of the firms are taxed with consideration of following pointers :
  •     Interest payable to partners shall be in accordance with the terms of the partnership deed, however, it shall not exceed 12% per annum.
  •     Remuneration payable to partners shall be in accordance with the terms of the partnership deed, however, it shall not exceed the following limit:
    On first Rs. 3 Lakhs of book profit or in case of loss - Rs. 1,50,000 or 90% of book profit, whichever is more; rest of the balance of the book profit - 60% of book profit.

ITR Form

Partnership firms are required to file income tax return in form ITR 5. Like all other income tax forms, ITR 5 is an attachment less form and there is no requirement for submitting any documents or statements along with a partnership firm tax return. However, the taxpayer must save all records pertaining to the business and produce the same before tax authorities when requested.

What are the Due Dates for Filing of ITR ?

The income tax return due date for most partnership firms is July 31 of the assessment year. Partnership firms required to get its accounts audited under the income tax Act must file the income tax return before the September 30th deadline.

Tax Audit for Partnership Firm

The Income Tax Department has made provisions for tax audit under Section 44AB of the Income Tax Act 1961. The purpose of an income tax audit is that an individual or organisation’s taxes are examined by an external agency to check that all the information regarding income, expenditure and deduction has been filed correctly. Income Tax Audit has been made mandatory, and all taxpayers have to get the accounts of their business or organisation audited as per as the provisions of Section 44AB of the Income Tax Act.

An Income Tax audit has several objectives. It ensures that all businesses maintain a proper book of accounts and other expense and revenue records in a proper manner. A tax audit also ensures that the total income and claims for deduction are correctly entered when filing the returns. This brings down chances of fraud.

Income tax audit applies to certain classes of businesses. If a proprietor is running a business and sales turnover exceeds Rs 1 crore, a tax audit is mandatory. LLPs with an annual turnover of more than Rs 40 lakh or capital contribution of Rs 15 lakh needs to audit their accounts by a chartered accountant. All kinds of companies, whether it is a private limited company or one person company need to get tax audits done irrespective of annual turnover.

Why Call CA ?

We get your Income tax return  done with complete online support. You need not to step outside your home and we guide you to enter into the business world hasselfree. At Call CA , our team helps you to understand the concept of ITR filing and help you to arrange the right documention done for the ITR Filings . Call CA has a TAT for ITR  is 5 working day

FAQs

How is the ITR of a partnership filed?

The Income Tax Return of a Partnership firm is filed in form of ITR-5 with the Income Tax Department.

Can filing of partnership annual compliances be done online?

Yes, the entire process of the ITR filing and audit can be done online.

Is a digital signature mandatory for ITR filing of partnership?

Yes, in case of online filing of the ITR, the digital signature of the partners is needed.

When does a Partnership firm require Tax Audit?

Once partnership firm can make an annual turnover of Rs. 2 crores, it is mandatory for a Partnership Firm to get their accounts audited, as per the Income Tax Act, 1961.

What are the essential needs for filing TDS returns for a Partnership Firm?

As per TDS rules, a partnership firm is supposed to file quarterly TDS returns, if they have a TAN and deduct tax at source.

What are the due dates for annual filing of a partnership?

The ITR of the Partnership firm must be filed by July 31 in case no audit is required. If an audit is conducted, the ITR can be filed by September 30.

Contact With Us