End-to-End Tax Compliance for Partnership Firms
Operating a partnership firm in India involves multiple tax and regulatory obligations—ranging from Income Tax Return (ITR) filing to GST, TDS, EPF, and tax audit compliance.
At Nd Salva Advocates & Legal Consultants, we offer complete support for all statutory filings, ensuring your partnership firm remains compliant, penalty-free, and financially sound.
Understanding a Partnership Firm
A partnership firm is a business structure where two or more individuals share profits, responsibilities, and liabilities. It can be:
- Registered Partnership Firm – Registered under the Indian Partnership Act
- Unregistered Partnership Firm – Operates without formal registration but taxed similarly
Partners must maintain proper books of accounts and ensure full compliance with all tax laws.
Income Tax Return Filing for Partnership Firms
Filing an ITR is mandatory for all partnership firms, regardless of profit, loss, or business activity.
Even NIL return filing is compulsory to maintain compliance.
Income Tax Rates
- Income Tax: 30%
- Surcharge (if income > ?1 crore): 12%
- Health & Education Cess: 4%
- Minimum Alternate Tax (MAT): 18.5%
Permissible Deductions (Sec 40b)
- Remuneration to working partners
- Interest on capital up to 12%
Not Allowed
- Remuneration to non-working partners
- Expenses outside terms of partnership deed
Applicable ITR Forms
- ITR-4 – For presumptive taxation up to ?50 lakhs
- ITR-5 – For all other partnership firms
ITR Filing Deadlines (AY 2023–24)
- Non-audited firms: 31 July 2024
- Audited firms: 31 October 2024
- Transfer pricing cases: 30 November 2024
Additional Statutory Filing Requirements
GST Filing
GSTR-1, GSTR-3B, GSTR-9, or GSTR-4 (Composition Scheme).
TDS Returns
Forms 24Q, 26Q, 27Q, 26QB (property TDS).
EPF Returns
Applicable if 10+ employees are employed.
Bookkeeping Compliance
Mandatory if turnover exceeds ?25 lakh.
Tax Audit
Required if turnover > ?1 crore or presumptive income is lower.
Penalty Avoidance
Prevent interest, fines, and compliance violations.
Penalties for Non-Compliance
- Late ITR filing: ?1,000–?5,000
- TDS default: 1%–1.5% interest + penalties
- GST late filing: ?50/day (?20 for NIL returns)
- EPF default: Up to 25% interest + damages
Why Choose Nd Salva?
- Specialized in partnership tax laws
- Complete ITR, GST, TDS, EPF compliance management
- Accurate bookkeeping & tax audit coordination
- Legal advisory on deductions and tax planning
- End-to-end support for tax notices & scrutiny