ITR for Partnership’s

(ITR for Partnership’s Starts from Rs 2500/-(Charges may vary as per work))

Under the Income Tax Act, 1961, a partnership firm is liable to pay the following tax percentages:

  • 30% income tax
  • 12% surcharges where taxable income is above one crore rupees
  • Up to 12% on interest of capital is allowed
  • Health and Education Cess 4% of tax including surcharges

It is to be noted that a partnership firm has a different legal identity from that of its partners, unlike proprietorships. It is also important to know that for the purposes of paying income tax for a partnership firm it is immaterial whether the firm is registered or not

A partnership firm is also required to pay alternate minimum tax which cannot be less than 18.5% of the adjusted total income.

Partnership firms are not eligible for deductions under section 80 but some deductions are available as follow:

  1. Remunerations or interest paid to the partners of the firm which are not in accordance with the terms of the partnership.
  2. Salaries, bonuses, remunerations, commissions paid to the non-working partners of the firm.

ITR Form: Return is to be filed in form ITR-5, this form is meant for ITR filing of Firms, LLP’s, AOP (Association of Person), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund. 

However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.

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