Income Tax Return for Partnership Firm

Income Tax Return for Partnership Firm Starting from ₹ 3000/-

Filing ITR

Filing Forms

Flexible and Simple online Process

Consultancy from Experts

On time compliances

Get your registration in 3-4 days

Introduction of Income Tax Return for Partnership Firm

The income earned by the Partnership firm or business is subject to tax. The tax levied on the income of a person is called Income tax, which is levied and collected by the Central Government. Such tax on income earned is payable in the same financial year wherein it is accrued in the form of advance tax by the Partnership Firm.

Legal Window will provide you all the necessary services and legal advice related Return filling and also guide for other compliances. You may get in touch with our team on 072407-51000 or email for any type of assistance for filing of Income Tax Return for Partnership Firm.

Advantages of ITR Filing for Partnership Firms

Easy loan processing

Income Tax return filling helps Partnership firm or business in taking loan from various Financial Institutions. Most of the banks and NBFCs ask for ITR receipts from business for latest three year when a business applies for a high-value loan like business long term loan or working capital loan. Lenders consider ITR as the most authentic document supporting business turnover and income. Hence, you should regularly file income tax return if you want to take loan in the future.

Allow carry forward losses

Income Tax return filling helps in carry forward the losses occur in previous year from the current year Income. Most businesses face losses in the initial years of the business. The business loss or capital losses can be carried forward up to 8 years if the ITR is filed. But if ITR is not filed, the taxpayer is deprived of this benefit.

Define net worth

The ITR filed with the Government defines the financial worth of the business. Return filling help in tracking the net worth of an entity it shows business turnover its assets and income the track of ITR shows the financial capacity and also increases the capital base of a person.

Minimum Requirements for Income Tax Return for Partnership Firm

ITR-5: Income tax return 5 is for

Partnership firms


BOIs (Body of Individuals)

Artificial Juridical Person (AJP)

Estate of deceased

Estate of insolvent

Business trust and investment fund.

AOPs (Association of persons)

Documents Required for Income Tax Return for Partnership Firm

Pan Card and Aadhaar card of the partners

Pan card of firm

Books of Accounts | Financial Statement (Profit or loss Statement and Balance sheet)

Procedure of Income Tax Return for Partnership Firm

1. Complete the Questionnaire
We will provide a questionnaire which is required to be filled by you in which we will sought the basic details and documents pertaining to the Filing of ITR of the partnership firm

2. Review of the documents
All the documents provided to us and the questionnaire will help us to process further for preparation of books of accounts of the partnership firm

3. Filing of Income Tax Return
We will file further send you the provisional statements for your verification and will file your income tax return before the due date and protect you from any penalty after its duly signed by you.

4. Acknowledgement
The next step is check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.

Additional Information on Income Tax Return for Partnership Firm

Due dates for filling Income Tax return

  • For Taxpayer not eligible to get Tax audit: Due date for filling Income tax Return for Taxpayer having turnover less than 1 crore or who opt for presumptive taxation for F.Y 2023-24 i.e. A.Y. 2024-25 is 31st July 2024
  • For Taxpayer eligible to get Tax audit: Due date for filling Income tax Return for Taxpayer having turnover more than 1 crore or who do not opt for presumptive taxation for F.Y 2023-24 i.e. A.Y. 2024-25 is 30th September 2024

Tax payer can file belated Return up to 31st December 2024 of the relevant Assessment year

Tax Rate Applicable

Partnership Firms are taxable at the rate of 30% and 12% surcharge is applicable if the income exceeds Rs. 1 (One) crore.

Penalty of non filling Income Tax Return

Where a person is required to file Income Tax Return u/s 139(1) fails to file the return within prescribed limit u/s 139(1) shall pay prescribed late fee in case

Return file up to 31 December of A.Y : Rs. 5,000/-
Return file after 31 December of A.Y: Rs. 10,000/-

Expenses allowed as deduction

  • Rent, Rates, Taxes, Repairs and Insurance of Building used for the purpose of the business.
  • Repairs & Insurance of Plant, Machinery & Furniture.
  • Depreciation (according to Income Tax Act section 32)
  • Other Deductions (under section 36)


Related Posts

FAQ's on ITR Filing for Partnership Firms

Is balance sheet required for ITR 5?

Yes, if you are filing ITR 4, 5 or 6 then you have to enter the details of Profit and loss A/C and Balance sheet in the Format provided in the Income Tax Utility Forms. Normal persons having salary or other sources Income does not have Balance sheet so they are not required to provide the Details of the same. It is necessary to maintain the books of accounts for filing of income tax return of partnership firm.

Why legal window?

Legal window helps you in best possible manner for filling the return you are eligible for. And also advise to the best tax measure through which you can reduce your tax. And file your Return before the due date.

Can I revise the Income Tax Return after filling?

Yes of course one can revise the ITR after filling before one year after completion of Financial Year if income tax return of partnership firm filed on or before the due date as described by the law. For Example for F.Y 2019-20 revise return can file before 31 march 2021.

Is it mandatory to file ITR for partnership firm?

Yes. Partnership Firms requires filing Return of Income regardless of the level of income they earned. Its compulsory as per law.

What is exempt income in ITR V?

Exempt income is an income that is non chargeable to tax. Exempt income is such as the interest received through agricultural means, interest received through PPF, long term capital gains earned through shares and stocks, and much more.

Is it requires filing nil return?

Yes partnership firm do require filling return even if they do not earn any income during the financial year.

I am a partner in a firm which ITR form should I require filing?

ITR-3 is for an individual carrying business or profession or a partner of a partnership firm.