💼 Taxation for Partnership Firms in India by Return Filings Via Flickr:
Partnership firms are separate legal entities for tax purposes. Profits are taxed at 30% (plus cess & surcharge), while partners are taxed separately on their share of profits.
📝 Form for ITR Filing
Use Form ITR-5 for partnership firms, LLPs, AOPs & BOIs
Filing is electronic, unless exempt from audit and opting for paper mode
💡 Deductions & Allowable Expenses ✔ Rent & utilities ✔ Salaries to employees ✔ Depreciation on assets ✔ Interest to partners (per Sec. 40(b)) ✔ Eligible deductions under Sections 80C–80U
📊 Tax Audit & Compliance Rules
Audit if turnover > ₹1 crore (business) or ₹50 lakh (professionals)
Firms under Section 44AD/44ADA must meet specific turnover & profit rules
📅 Due Dates & Penalties
Oct 31 – Firms requiring audit
July 31 – Others (extended for 2025)
Late filing: Up to ₹5,000 penalty (Sec. 234F) + interest
✅ Pro Tip: Keep accurate records for smooth filing and to avoid unnecessary penalties.
🔗 Read on Flickr: Filing Income Tax Returns for Partnership Firms – Step-by-Step Guide 📢 See on X: @ReturnFilings1 post
