Partnership Tax Return Filing
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Operating a partnership firm in India involves fulfilling essential financial and legal obligations. Adhering to various tax and regulatory requirements is critical for the seamless operation and growth of your business. These obligations include filing Income Tax Returns, TDS Returns, GST Returns, EPF Returns, and in some cases, undergoing a Tax Audit. At RMC Auditors, we specialize in simplifying these compliance processes, enabling you to focus on growing your business while ensuring adherence to all legal requirements.
Comprehensive Tax Return Filing Services
Income Tax Return Filing Every partnership firm in India must file income tax returns annually, irrespective of its income status during the financial year. The income tax rate for partnership firms is 30%, and an additional surcharge of 12% applies if the taxable income exceeds ₹1 crore. A 4% Health and Education Cess is also applicable on the total tax liability. Filing NIL returns is mandatory even when no income is generated.
We assist partnership firms in understanding tax implications and filing accurate returns on time, ensuring compliance with all regulations.
GST Return Filing GST registration is mandatory for partnership firms with an annual turnover exceeding ₹20 lakh. GST-registered firms must file returns such as GSTR-1, GSTR-3B, and GSTR-9. For those under the composition scheme, GSTR-4 filing is required. RMC Auditors ensures that all GST-related filings are handled efficiently, keeping your business compliant with GST laws.
TDS Return Filing Firms with a valid TAN must file TDS returns based on the type of deduction:
- Form 24Q: TDS on salaries
- Form 27Q: TDS for non-residents and foreign companies
- Form 26QB: TDS on property transfer payments
- Form 26Q: TDS for other cases
Our expert team ensures accurate and timely TDS filings to help you meet your obligations.
EPF Return Filing Partnership firms employing more than 10 individuals are required to register for EPF and file EPF returns. We assist firms in meeting these requirements to maintain compliance with employee provident fund regulations.
Features of Partnership Firms
A partnership firm is a business entity established by two or more individuals under a mutual agreement to share profits or losses. There are two types of partnership firms:
- Registered Partnership Firm: Formally registered with the Registrar of Firms and issued a registration certificate.
- Unregistered Partnership Firm: Does not possess a registration certificate but operates under a partnership deed.
Partners must be well-versed in tax implications, profit-sharing arrangements, and the importance of transparent record-keeping.
Tax Slabs and Minimum Alternate Tax (MAT) for Partnership Firms
- Income Tax Rate: 30% on taxable income
- Surcharge: 12% if income exceeds ₹1 crore
- Health and Education Cess: 4% on total tax, including surcharge
- Minimum Alternate Tax: 18.5% of adjusted total income, ensuring taxes payable are not below the prescribed limit.
Tax Audit and Accounting Requirements
A tax audit is mandatory if the firm’s turnover or gross receipts exceed ₹1 crore in a financial year. Additionally, maintaining proper books of account is essential if annual turnover exceeds ₹25 lakh or income surpasses ₹2.5 lakh.
At RMC Auditors, we provide complete support in maintaining accurate records and conducting tax audits as required.
Due Date for Filing Returns
- Non-Audited Firms: File returns by 31st July.
- Audited Firms: File returns by 31st October.
Missing deadlines can lead to penalties, but with RMC Auditors, you can rest assured that all filings will be completed on time.
Streamline Compliance with RMC Auditors
At RMC Auditors, we simplify compliance processes for partnership firms, offering a wide range of services, including:
- Income Tax Filing: Accurate and timely submission of income tax returns.
- TDS Filing: Comprehensive support for all TDS-related obligations.
- GST Filing: Hassle-free GST return preparation and submission.
- EPF Filing: Assistance with EPF registration and return filing.
With our expertise, you can focus on expanding your partnership firm while we handle the complexities of compliance. Our team ensures that your business remains in full compliance with tax regulations, safeguarding its financial health and legal standing.
For expert guidance on company incorporation and regulatory compliance, contact us today RMCAuditors is here to help! Text us on whatsApp or call us today .
FAQs
A partnership firm is a business entity formed by two or more individuals who come together under an agreement to share the profits and losses of a jointly managed business. Each individual involved is called a partner, and collectively they form the firm.
- Registered Partnership Firm: A partnership firm that is registered with the Registrar of Firms and has obtained a registration certificate.
- Unregistered Partnership Firm: A partnership that operates without formal registration and does not hold a registration certificate.
- Sharing profits and losses as per the partnership agreement.
- Maintaining accurate records and ensuring transparency in financial dealings.
- Acting in good faith and for the benefit of the firm.
- Ensuring the firm's compliance with applicable legal and regulatory requirements.
Yes, it is mandatory for all partnership firms to file income tax returns annually, even if the firm has no income or has incurred losses during the financial year. Filing a NIL return is required in such cases.
- Income Tax Rate: 30% of taxable income.
- Surcharge: 12% on taxable income exceeding ₹1 crore.
- Health and Education Cess: 4% on the total tax, including surcharge.
MAT ensures that a partnership firm pays a minimum tax of 18.5% of its adjusted total income. This rate is increased by applicable surcharge and cess. MAT prevents firms from avoiding taxes by claiming excessive deductions.
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