Operating a Partnership Firm in India involves a range of crucial financial and legal responsibilities. It is imperative to adhere to various tax and regulatory requirements to ensure the smooth functioning and growth of your business. These obligations encompass filing Income Tax Returns, TDS Returns, GST Returns, EPF Returns, and occasionally undergoing a Tax Audit.
The submission of tax returns is a fundamental responsibility for Partnership Firms in India. At IndiaFilings, we recognize the importance of complying with Indian tax laws and the potential advantages associated with it. Our comprehensive services are meticulously crafted to aid business proprietors in navigating the intricate landscape of compliance. To simplify these compliance duties, IndiaFilings offers expert guidance, streamlining the process and eliminating hassles for business owners.
By partnering with us, you can meet your tax obligations and explore opportunities to optimize your tax benefits, enabling your business to thrive while adhering to tax regulations.
A partnership firm is a business entity formed by two or more individuals working together under a single enterprise. There are two main categories of partnership firms:
Partnership, in essence, is an agreement entered into by two or more persons who have mutually consented to share the profits or losses arising from a jointly conducted business. The individuals involved in a partnership arrangement are individually known as partners and collectively referred to as a firm. Partners bear the responsibility of operating the firm to its maximum advantage, upholding fairness in their dealings, and maintaining accurate records and full transparency regarding all matters affecting the firm to the benefit of all other partners involved.
Every partnership firm in India is obligated to file income tax returns annually, regardless of whether the firm has generated income or incurred losses during the financial year. Even if there was no business activity and the partnership firm's income is zero (NIL), it is still mandatory to file an NIL income tax return within the stipulated due date.
Under the provisions of the Income Tax Act 1961, a partnership firm in India is subject to the following tax percentages:
Similar to income tax applicable for a company, partnership firms are subject to minimum alternate Tax. A minimum alternate tax of 18.5% of adjusted total income is applicable. Hence, income tax payable by a partnership firm's profits cannot be less than 18.5 percent (increased by income tax surcharge, education cess, and secondary and higher education cess).
When computing the income tax liability of a partnership firm, deductions are permitted for the following:
The Partnership Firms can either file their Income Tax Return either through Form ITR-4 or ITR-5.
ITR-4 is to be filed by those partnership firms which are a Total Income of up to ? 50 lakh and have income from Business and Profession, which is computed under presumptive basis.
ITR-5 is to be filed by those partnership firms who are required to get their account audited.
The deadline for filing ITR for a partnership firm depends on whether an audit is required:
Every GST-registered person is required to file GST Returns, and every partnership firm is required to be under GST if its aggregate annual turnover exceeds Rs. 20 lacs. Usually, the GST-registered partnership firms have to file GSTR-1, GSTR-3B, and GSTR-9 returns. If the firm has opted for a composition scheme, then GSTR-4 is to be filed.
The TDS Return is to be filed where the partnership firm has a valid TAN, and the type of return to be filed depends upon the purpose of deduction. The types of TDS Return are:
The partnership firm is required to get EPF registration if it employs more than ten persons, and accordingly, filing of EPF return becomes mandatory.
Books of account are required to be maintained if the partnership firm's sale/turnover/gross receipts from the business is more than Rs. 25,00,000 or the income from the business is more than Rs. 2,50,000 in any of the three preceding years.
A partnership firm is required to have a tax audit carried out if the sales, turnover, or gross receipts of business exceed Rs. 1 crore in the financial year. However, it may be required to get its account audited in certain other circumstances.
Streamline your partnership firm's compliance effortlessly with IndiaFilings. We are your trusted partner in meeting all your compliance requirements, simplifying the process, and ensuring you meet deadlines while adhering to tax regulations.
Our comprehensive services cover various aspects:
With IndiaFilings by your side, you can concentrate on growing your partnership firm while we take care of your compliance needs. This ensures your business maintains a strong financial footing and legal standing.
Are you ready to file your partnership firm's income tax return with ease? Get started now to experience the convenience and peace of mind that comes with our expert assistance.
Every registered entity has to comply with all the compliance obligations after the completion of each financial year. Majorly, it includes the audit of books of accounts, income tax return filing, and annual forms with the MCA.
|Form||Company Compliance||Due date||Penalty|
|COB Filing||Commence of Business Certificate||To be filed before 180 days of company Incorporation||Rs.50,000 for non-compliance|
|DIR 3 EKYC||Any director with DIN||Before 30th September every year||Deactivation of the DIN
A late filing fee of Rs.5,000
Disqualification of the Directors
|Form ADT 1||Appointment of auditor||Within 15 days from the date of appointment of the Auditor||Late fees will be applicable, with fees ranging from 2 to 12 times the nominal fee, depending on the number of days of delay.|
|Form AOC 4||Filing financial statements of the company||30 days from the conclusion of the AGM||Late fees will be applicable, with fees ranging from 2 to 12 times the nominal fee, depending on the number of days of delay.|
|Form MGT 7||Annual Returns of the Company||60 days from the conclusion of the AGM|
In addition to the above filings, depending on the type of entity and business activity more compliance filing maybe applicable. Please check with an IndiaFilings Advisor to help you with the compliance for your company.
All Limited Liability Partnerships (LLP) registered in India are required to file statutory returns with the Ministry of Corporate Affairs (MCA) each year. IndiaFilings can help you maintain your LLP Compliance at a very affordable price.
|Form||LLP Compliance||Due date||Penalty|
|DIR 3 KYC||For every designated partners of a limited liability partnership (LLP) with DIN||Before 30th September every year||Deactivation of the DIN
A late filing fee of Rs.5,000
Disqualification of the Partners
|Form 11||Annual Returns||May 30th every year||Late fees will be applicable, with fees ranging from 1 to 50 times the nominal fee, depending on the number of days of delay.|
|Form 8||Statements of Accounts and Solvency||30th October every year||Late fees will be applicable, with fees ranging from 1 to 50 times the nominal fee, depending on the number of days of delay.|
Apart from the aforementioned filings, there might be additional compliance filings that could be relevant for LLPs. Please consult with an IndiaFilings Advisor to assist you with the compliance needs of your LLP.
|Private Limited Company||Annual Return (Form MGT-7)||60 days from the conclusion of the AGM or 28th November 2023 (Which Ever is Earlier)|
|Financial Statements (Form AOC-4)||29th October 2023|
|DIR-3 KYC||30th September 2023|
|Form DPT-3||30th June 2023|
|Form ADT-1||15th October 2023|
|ITR 6 (Non audit case)||31st July 2023|
|ITR 6 (Audit Cases)||31st October 2023|
|GSTR 9||31st Dec 2023|
|Limited Liability Partnership||ITR 5 (Non audit case)||31st July 2023|
|ITR Form 5 (Audit case)||30th September 2023|
|Annual return - Form 11||30 May 2023|
|Financial Statements - Form 8||30 October 2023|
Note : Get in touch with our experts to efficiently handle your compliance filings, whether you are an LLP, a company, partnership firm or a proprietorship. Contact us to ensure your compliance is filed before the due date.
Many small businesses pay lakhs in penalty every year to the Government for late filing various statutory returns. Such penalty or late fee paid is not tax deductible and is a drain on profitability. At IndiaFilings, our mission is to provide the most affordable services to our customers and help them avoid all late fee.To achieve our mission - we have built enterprise grade technology to help you proactively know the upcoming compliance and avoid penalty.Checkout our compliance services below, talk to an Advisor and stop paying unwanted late fees.
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