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ITR File For A Partnership Firm in India

Partnership Firm Compliance

Partnership firms are needed to continue compliance like LLPs and Companies incorporated in India. Partnership firm compliance incorporates filing of income tax return while corporate bodies like Company and LLP need both income tax return filing with the Income Tax Department and annual return filing with the Ministry of Corporate Affairs. Partnership firms that are having annual turnover of more than Rs.100 lakhs are also necessary to get a tax audit.

Besides basic compliance, partnership firms may also be needed to follow GST regulations, TDS regulations, VAT or CST regulations, ESI regulations, service tax regulations and others. The compliance of a business depends on the kind of industry, entity, state of incorporation, sales turnover and number of employees.

One Click Business Solutions is the largest business services provider in India. We offer a variety of services like partnership firm compliance, LLP registration, trademark filing, GST registration, income tax filing and others. We at One Click Business Solutions can help you managing compliance of your partnership firm. Feel free to contact us for partnership compliance maintenance through with our experienced and learned professionals.

Major Compliances for a Partnership Firm

GST Filing - Under the GST rule, partnership firms having GST registration need to file monthly, quarterly and annual GST returns.

Income Tax Filing - Income tax filing should be filed by all partnership firms. Partnership firms having more than Rs.100 lakhs of annual turnover are needed to perform tax audit.

TDS Filing - Quarterly TDS returns should be filed by partnership firms having TAN and are needed to deduct tax at source according to TDS rules.

TDS Filing - Quarterly TDS returns should be filed by partnership firms having TAN and are needed to deduct tax at source according to TDS rules.

ESI Return - ESI return needs to be filed by all partnership firms which are having ESI registration. ESI registration is necessary once the partnership firm has more than 10 employees.

Tax Audit for Partnership Firm

An audit would be needed for a partnership firm if the total sales turnover is more than Rs.1 crore during the financial year. In case of a professional firm, audit would be necessary if total gross receipts exceed Rs.50 lakhs throughout the financial year under assessment.

Due Date for Partnership Firm Tax Return

Income tax return of a partnership firm that doesn't need audit is due on 31st July. If the income tax return of a partnership firm is to be audited according to Income Tax Act, then the return would be unpaid on 30th September.

Most Important Compliances for a Partnership Firm

Committed Advisor

Your partnership firm will be allocated a committed Compliance advisor who will be a single point of contact to offer assistance for you and manage the compliance for the partnership. You can get in touch with him at anytime and get help on topics related to your partnership compliance.


Partnership firms needs to maintain accounts and make financial statements at the end of each financial year. We have dedicated compliance advisor to help maintaining accounts and also making financial statement for your partnership firm at the end of financial year.

Income Tax Return Filing

Income tax return of a partnership firm needs to be filed at the end of each financial year. Based on the type of business activity, compliance advisor will prepare all the documents and file tax return for your partnership firm.

GST Return Filing

GST return is required to be filed by all entities having GST registration. If your partnership firm has GST registration, we can help you filing GST returns.

Filing TDS Return

TDS return should be filed by all entities that are required to deduct tax at source and possess TAN registration. If your partnership firm possesses TAN registration, we can help filing TDS return also.

Documents Needed

Invoices for purchase or sale

Invoices for expenditure

Credit Card Statements when expenses are incurred by Partner for the Firm

Copy of TDS challans deposited

Copy of TDS Returns

Bank Statement from 1st April to 31st March of the pertinent Financial Year for all bank accounts of the Firm

Any other relevant documents, if needed

Process of ITR file for a Partnership Firm

Step 1 - Documentation

Step 2 – GST Returns

Step 3 – TDS Returns

Step 4 – Finalization of Balance Sheet

Step 5 – Income Tax Return

Step 6 – Tax Audit

Rate of Income Tax for Partnership Firm

A partnership firm (including LLP) is taxable at 30%.

In addition :

Surcharge - 12% of tax where total income is more than Rs. 1 crore

Health and Education cess - 4% of income tax plus surcharge

Frequently Asked Questions

Ques: What is a Partnership Firm?

A Partnership Firm is where two or more individuals join hands to carry out a business for profit. The partners become owners of joint business and run operations controlled by the partnership deed. The regulations are minimal, which makes it a desirable option for businesses having joint owners. Moreover, in a partnership firm the partners are jointly and individually liable for debts of the firm. This type of structure is perfect if there are no/ reduced requirement of external funds and decreased risk of bad-debts. An example of Partnership Firm is a Consultancy firm.

Ques: What is a Partnership Deed?

A Partnership Deed is known as legal document that sets down the requirements relating to how the partnership will be controlled, details about the partners, their shares, responsibilities and roles.

Ques: Is it compulsory to register a partnership?

No, it is not essential to register a Partnership. However, it is recommended to register the firm to offer it a legal identity. Annual compliances are obligatory regardless of the registration status of the Partnership.

Ques: 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.

Ques: 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.

Ques: Can filing of partnership annual compliances be done online?

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

Ques: 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.

Ques: What are the annual compliances of Partnership firm?

The annual compliances of a Partnership Firm chiefly comprise filing of income tax return. Moreover, partnership firms should follow GST regulations, TDS regulations, ESI regulations and others. The need of compliance for a partnership firm is based on the kind of industry, entity, number of employees, state of incorporation and annual turnover.

Ques: When do partnership firm file their GST returns?

Under the GST regime, partnership firms have to file monthly, quarterly and yearly GST Returns.

Ques: 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.

Ques: 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.

Ques: When a Partnership Firm needs to file ESI return?

ESI Return should be filed by Partnership Firms who have done ESI registration. A Partnership firm must take ESI Registration, if it exceeds 10 employees.

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