Partnership Firm Tax Return Filing - eFile Procedure

Updated on: Jun 20th, 2025

1 min read

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.

Taxation of 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.

Deductions Allowed

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:

Remuneration paid to the partners is exempt only up to a specified limit. The excess remuneration paid is not allowed as a deduction.
Interest on Capital paid is exempt only up to 12%. Interest exceeding 12% is not allowed as a deduction.
Salaries, bonuses, remunerations, and commissions paid to the non-working partners of the firm.

Filing of Tax Returns for a Partnership Firm

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.

Due Date For Partnership Income Tax Return Filing

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:

Where the firm is not required to be audited – the income tax returns must be filed by 15th September 2025 (For AY 2024-25 only).
Where the firm is required to be audited – the firm has to file its income tax returns by 31st October

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

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Frequently Asked Questions

Which type of ITR form is required for a partnership firm?

For the purpose of filing tax returns for a partnership firm, it must use the Form ITR-5

Is it mandatory for partnership firms to undergo an income tax audit?

If a partnership firm’s turnover and gross receipts exceed Rs 1 crore in business, it’s required to have an income tax audit. For firms engaged in professional work, the audit is necessary when turnover exceeds Rs 50 lakh.

Can partnership firms file ITR - 4 under Section 44AD?

Yes, this is applicable only if your partnership firm’s total income is up to Rs. 50 lakhs and you’ve opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.

Can a partner's salary be deducted as an expense under section 44AD & 44ADA?

Firms that are taxed under the presumptive taxation under sections 44AD or 44ADA cannot deduct remuneration paid to partners.

About the Author

CA Mohammed S Chokhawala

Content Writer

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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