Partnership Firm Tax Return Filing

A partnership firm is the arrangement where business individuals, parties with their mutual interest to carry on the business collectively called as a “partnership firm”. In this firm there will be legal documents among the partner who carry out business each other.

Partnership firm are of two types in India: they are Registered Partnership firm and unregistered Partnership firm.

Registered Partnership:-In registered Partnership compliances are minimal partnership registration is right choice for small enterprises as formation is straight forward.

According to the Partnership Act 1932, has been in existence in India, This partnership is the oldest type of business entities in India. In this firm which is registered and received registrar certificate .After a partnership firm can be formed before the registration, and non-registration partnership firm has no penalty

How to File Tax Returns for a Partnership Firm?

Filling Tax returns for a Partnership Firm need to be done through the form ITR-5 and this ITR-5 form is used to partnership firm income tax return which is not the tax returns for the return. One must file form ITR-5 for the filling tax returns for a partnership.

The income tax department online portal to file online via Form ITR-5, while filling the income tax in partnership firm ,no need to attach any documents. This documents should be submitted to the income tax department only specially asked for.

Procedure for filing Income tax returns of a partnership firm.

Partnership firm procedure for filling Income tax returns filed by manually or can be filled online through the website. If the Income tax return filed online for the Partnership firm then class 2 digital signatures. It is mandatory to obtain audit for the partnership firm.

In case of filling manually the assessed must have print out of two copies of Form ITR-V. One copy of the form which is signed by the assesses will be sent by ordinary past to Post Bag No.1, Electronic City Office .The other copy will remain the assesses for partner record.

Audit Requirement for Partnership Firms

Any condition that satisfies the Partnership firm would require an account audit:

If in the previous year business carrying total sales exceeds Rs.1crore.
If in the previous year, a profession and gross receipts which exceeds Rs.50.
In partnership firm there are other condition will applicable which makes an audit mandatory.