Partnership is the relationship between persons who have agreed to share the profits of a business carried on by all or any of them. Similar to an LLP, Partnership firms are also liable to pay income tax at the rate of 30% of total income.

In addition to the income tax, a partnership firm is also liable to pay income tax surcharge on the amount of income tax at the rate of 12% when total income exceeds INR 1 cr. Education cess and secondary & higher education cess are also applicable on the amount of income tax and surcharge at 2% and 1% respectively.

Alternate Minimum Tax

Similar to an LLP, a partnership firm is also required to pay alternate minimum tax at the rate of 18.5% of Adjusted Total Income. Alternate minimum tax would be increased by the applicable surcharge, education cess and secondary and higher education cess.

Requirement of Audit for Partnership Firms

If the turnover of the partnership firm exceeds INR 1 cr in the financial year or those firms carrying on professional activity’s gross receipts in profession exceed INR 50 lakhs in the financial year are required to have its books of accounts audited by a practicing Chartered Accountant.

Due Date for Filing Partnership Firm’s Tax Return

Partnership firms operating in India are required to file income tax return every year. The income tax return of a firm, which does not require an audit, is due on 31st July each year. In case if the firm’s books of accounts need to be audited under the Income Tax Act, the returns would be due on September 30th.

OUR CHARGES FOR PARTNERSHIP FIRM TAX RETURN FILING