A partnership firm is a body of more than one person conducting business under one entity. The Income Tax Return (ITR) form applicable for partnership firms is ITR-5. However, the due date for firms for which audit is not applicable is 15th September 2025 (For FY 2024-25 only) whereas, for firms that have to comply with tax audit provisions 31st October 2025. The firms can also claim deductions if certain conditions have been fulfilled.
Read this article to learn more about Income Tax Filing for partnership firms.
Under the Income Tax Act 1961 a partnership firm is liable to pay tax at flat 30% on their profits. A surcharge of 12% will be applicable when the taxable income of the firm is more than Rs. 1 Crore. The health and education cess of 4% is also applicable to firms.
It is also important to know that for paying income tax for a partnership firm it is immaterial whether the firm is registered or not. Just like LLPs and private limited companies, a partnership firm is also required to pay an Alternate Minimum Tax which cannot be less than 18.5% of the adjusted total income.
When calculating the income tax that needs to be paid, one must pay heed to the available deductible incomes. The following points need to be kept in mind while claiming deductions:
For filing tax returns for a partnership firm, one must use Form ITR-5. The form ITR-5 is used to file tax returns for the partnership firm itself and not for the partners of the firm. Similar to all other income tax return filings, ITR-5 can be filed online via the income tax department online portal.
It is mandatory to file income tax returns electronically. However, a partnership firm is compelled to do e-filing of its income tax returns when the partnership firm is required to get an audit. While filing the income tax returns, the partners must have a class 3 digital signature for verification of the filing process.
The deadline for filing an income tax return for a partnership firm is dependent upon whether the firm is required to be audited or not. The deadlines for filing an income tax return are as follows:
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Limited Liability Partnership (LLP) Registration in India