Partnership Compliance
Partnership compliance involves adhering to legal and regulatory requirements for a partnership firm. Key compliances include drafting a partnership deed, PAN application, income tax filing, GST registration and returns (if applicable), TDS deductions, and maintaining proper financial records.
Operating a Partnership Firm – Easy My Tax
Running a partnership firm in India comes with key legal and financial responsibilities. At Easy My Tax, we help you manage these compliance requirements with ease, so you can focus on running your business confidently and efficiently.
What is a Partnership Firm?
A partnership firm is a business formed by two or more individuals who agree to share profits and losses from a jointly managed venture. Partnership firms can be:
- Registered, with a certificate from the Registrar of Firms
- Unregistered, without formal registration
Each partner has the responsibility to maintain transparency, fairness, and accurate records for the benefit of the firm.
Income Tax Filing for Partnership Firms
All partnership firms must file income tax returns annually, regardless of profit or loss. Even firms with NIL income must submit a return. The tax rate for partnership firms is:
- 30% on taxable income
- 12% surcharge if income exceeds ₹1 crore
- 4% health and education cess on the tax plus surcharge
- 18.5% minimum alternate tax (MAT) applies if tax calculated is lower than this percentage
Firms can claim deductions on:
- Remuneration and interest to partners (as per the partnership deed)
- Commissions and bonuses paid to working partners
ITR Forms for Partnership Firms
- ITR-4: For firms with income up to ₹50 lakhs under presumptive taxation
- ITR-5: For firms that require an audit or do not opt for presumptive taxation
Tax Filing Deadlines
- 31st July: If the firm is not subject to audit
- 31st October: If the firm requires an audit
GST Return Filing
GST registration is mandatory if turnover exceeds ₹20 lakhs. GST-registered firms must file:
- GSTR-1 for outward supplies
- GSTR-3B for monthly summaries
- GSTR-9 for annual return
- GSTR-4 if under the composition scheme
TDS Return Filing
If your firm has a TAN and deducts TDS, you must file the appropriate returns:
- Form 24Q: TDS on salaries
- Form 27Q: TDS for non-residents
- Form 26QB: TDS on property payments
- Form 26Q: TDS in all other cases
EPF Return Filing
EPF registration and return filing is mandatory if the firm employs more than ten people.
Accounting and Bookkeeping
Firms must maintain proper books of account if:
- Turnover exceeds ₹25 lakhs
- Income exceeds ₹2.5 lakhs in any of the last three years
Tax Audit Requirement
A tax audit is required if turnover exceeds ₹1 crore or under certain conditions as per the Income Tax Act.
Simplify Compliance with Easy My Tax
At Easy My Tax, we provide end-to-end compliance services for partnership firms:
- Filing accurate and timely income tax returns
- Managing GST and TDS filings
- Assisting with EPF compliance
- Handling tax audits and accounting needs
With our support, your firm stays compliant with Indian tax laws while you focus on growth and profitability.
