Partnership Firm Annual Compliance
The income tax return and yearly filings a partnership firm owes.
Reviewed by CA Hitendra Pal Singh· company law, tax and complianceLast reviewed
A partnership firm files ITR-5 every year, pays tax at a flat 30%, and needs a tax audit once turnover crosses the limit. The partners then report their share and remuneration in their own returns. There is no ROC, but a firm that skips its return loses carried-forward losses and invites scrutiny of partner drawings.
What is included
- Books finalisation and partners’ capital accounts
- ITR-5 preparation and filing
- Tax audit coordination where turnover requires it
- Partners’ remuneration and interest computation under section 40(b)
- Partner-level return guidance
What we will need from you
- Bank statements and ledgers for the year
- Partnership deed and any amendments
- GST and TDS returns filed
- Fixed-asset and loan details
How long it takes
Filed before 31 July, or 31 October where a tax audit applies.
Timelines are typical, not guaranteed. Government processing times vary, and a query from the officer adds to them. We will tell you where yours stands.
Common questions
We made no profit — do we still file?
Yes. A firm files every year regardless of income, and a nil return is what preserves the losses.
Is the audit compulsory?
Above ₹1 crore turnover (₹10 crore where receipts and payments are mostly digital), or when income is declared below the presumptive rate.