Partnership Firm Compliance

  • Due Date of Filing 31 July
  • Non Filing Penalty Rs. 10000
  • Applicable for All Firm
  • Fees Starts at Rs.5800/-

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    Partnership Firm Compliance

    Partnership is popular form of business managed and owned by partners. Partnership firm is registered under Partnership Act 1932. Partnership firm required to maintain compliances as Like LLP and companies. Partnership compliances are required as it obligates partners to work in line with the law. Compliances ensure that firm is following government statutory compliances. Registered and unregistered partnership firm required to maintain annual compliances. Partnership firm compliance includes filing of income tax return. For tax filing firm is treated separately then its partners. For LLP apart from tax filing they also need to submit annual return to Ministry of Corporate Affairs.

    In Addition of Income Tax filing compliance , Partnership firm may also required to follow compliances applicable under Goods and Service Tax Act , Professional Tax Act, Labour Law etc. Such compliances include GST Registration , GST Return filing , TDS Return filing , Professional Tax payment & Filing. Based on firm annual turnover , employee size these compliances may vary.

    We are team of Experts in India , offering Partnership firm compliance , Partnership registration , GST Return filing , Income Tax filing and more. Our team can help you to maintain compliance of your partnership firm. Get a free consultation for your partnership firm by scheduling an appointment.

    • ITR Filing Due date 31 July 2020
    • ITR Form 5 Applicable
    • Non Filing Penalty upto Rs.10000
    • Online Filing Applicable
    • Income Tax Rate 30%
    • Audit Applicable if turnover > Rs. 100 / Rs. 50 Lac

    Income Tax Rate on Partnership Firm

    Income Tax rate on partnership firm is 30%. As like individual cases there no income tax slab rate for firm. Income tax in calculated on net profit of firm. After preparing computation of income of firm tax can be calculated. Apart from income tax , surcharge at rate of 12% of tax is applicable if total income exceeds one crore. In addition to this income tax & surcharge firm need to pay 2%. Secondary and higher education cess is applicable on the amount of income tax and the applicable surcharge at the rate of 1%.



    S.No Income Tax Tax Rate Financial Year
    1. Income Tax 30% FY 2019-20
    2. Surcharge if total income exceeds Rs. 1 crore 12% FY 2019-20
    3. Health and Education cess 4% FY 2019-20

    Process of Annual Compliance Filing of Partnership

    Procedure for filing Partnership annual compliance is online. Firm first need to prepare its books of accounts. On basis of books of account firm shall prepare income tax computation sheet. ITR From 5 is applicable for partnership firm. The due date for ITR filing in case of no audit is July 31, and due date in case of an audit is September 30

    Major Compliances for a Partnership Firm

    Income Tax Filing

    Income tax filing applicable to all partnership firm irrespective of annual turnover. For turnover above 100 Lakhs firm is required to get books of account audited.

    GST Filing

    Partnership firm having GST Registration need to follow monthly and annual GST Compliances. Filing of GSTR 3 B , GST Payment , Annual return GSTR9..

    TDS Filing

    Partnership firm who required to follow TDS Compliances need to make monthly TDS payment , file quarterly TDS return and Issue Form 16 & 16A to vendors annualy

    PT Filing

    Partnership firm need to follow state professional tax compliances. Collect professional tax from employees and pay to Department & file PT Return.

    How to fill ITR-5

    ITR -5 can be downloaded online and file online at income tax website. Fill details of firm , nature of business , details of profit & loss statement , balance sheet etc. & submit.

    List of Documents for Annual Compliance for Partnership Firm

    Annual Compliance for Partnership firm consist of prepare accounting record, Prepare partnership firm balance sheet , Profit and loss statement and income tax computation. For processing annual compliances for partnership firm below list of documents are required. 1. Sales Invoices
    2. Purchases Invoices
    3. Cash Book
    4. Expense Bills , Invoices
    5. Credit and Debit Note
    6. Bank Statement
    7. GST Return ( GSTR 1 & GSTR 3 B )
    8. Tax Paid challans
    9. TDS Returns if any
    10. Previous Year Balance sheet

    Partnership firm Compliance Services

    Prepare Balance sheet

    Prepration of Computation

    Tax Planning Advise

    ITR Filing

    FAQ - Partnership Firm Compliance

    1What is Annual Compliance for Partnership firms ?
    Partnership Firm annual compliances include Income Tax filing , TDS Filing , GST Return filing. The compliance due date vary on basis of firms annual turnover.
    2Whether partnership firms annual compliances are compulsory ?
    Yes. Income Tax Filing annual compliance for partnership firm is mandatory irrespective of firms turnover.
    3Can Partnership Firm compliance be filed Online ?
    Yes. Income Tax Filing compliance is complete online. Firm need to download ITR Form 5, fill details and upload it to Income Tax Site.
    4What are Event based compliances for Partnership Firm ?
    Event based compliance required to done at time of certain event. Such as Removal , Addition of Partner , Change in address of firm etc
    5Is GST Return filing Compulsory for Partnership Firm ?
    Partnership firms having GST registration would be required to file monthly, quarterly and annual GST returns.
    6What is due date of Partnership firm annual compliances ?
    1. Income Tax Return filing - 31 July 2. Income Tax Filing Audit case - 30 Sept