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 firstname.lastname@example.org for any type of assistance for filing of Income Tax Return of Partnership Firm.
Advantages of ITR Filing for Partnership Firms
ITR-5: Income tax return 5 is for
AOPs (Association of persons)
BOIs (Body of Individuals)
Artificial Juridical Person (AJP)
Estate of deceased
Estate of insolvent
Business trust and investment fund.
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.
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.
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 1crore or who opt for presumptive taxation for F.Y 2019-20 i.e. A.Y. 2020-21 is 31st July 2020
- For Taxpayer eligible to get Tax audit: Due date for filling Income tax Return for Taxpayer having turnover more than 1crore or who do not opt for presumptive taxation for F.Y 2019-20 i.e. A.Y. 2020-21 is 30th September 2020
Tax payer can file belated Return up to 31 march of the relevant Assessment year
Tax Rate Applicable
Partnership Firms Income chargeable to tax at the rate of 30%
12% of Tax when income exceeds Rs 1crore
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)
FAQ's on ITR Filing for Partnership Firms
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.
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.
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.
Yes. Partnership Firms requires filing Return of Income regardless of the level of income they earned. Its compulsory as per law.
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.
Yes partnership firm do require filling return even if they do not earn any income during the financial year.
ITR-3 is for an individual carrying business or profession or a partner of a partnership firm.