File your partnership firm's income tax return with Legal Startup. A dedicated tax expert works out the firm's income, applies the Section 40(b) limits on partner remuneration and interest, coordinates the tax audit if needed and files the return before the due date.
Free call & custom quote · Professional fee + tax payable, if any
A partnership tax return is the income tax return a partnership firm files every year in its own PAN. The firm is taxed as a separate entity, usually at a flat 30% plus surcharge and cess where applicable, and the partners' share of profit is exempt in their hands.
Last updated: October 2026. Rates, limits and due dates can change, so we confirm the current position before filing. This page is general information, not tax or legal advice.
A partnership firm formed under the Indian Partnership Act, 1932 is a separate taxpayer under the Income-tax Act. It reports its business income, claims deductions, and pays tax at the firm level. Because the firm has paid that tax, a partner's share of the profit is exempt in the partner's own return.
Two items need care. Interest on partners' capital and remuneration to working partners are deductible only up to the Section 40(b) limits, and only if the partnership deed authorises them. Business losses can be carried forward only if the return is filed on time.
Partners also file their own returns, showing the remuneration and interest they received as income. For official forms and filing, use the Income Tax Department portal. Running as a sole owner instead? See our sole proprietorship compliance service. To protect your firm's brand, see our trademark registration online service.
Common rates and dates every partner should know. Confirm current figures before relying on them.
The right route depends on your firm's turnover, books and filing history.
For firms below the audit limit with regular books.
For firms above the limit or with a presumptive shortfall.
Eligible small firms can declare profit at a prescribed rate.
Business losses that should be carried forward.
Returns missed for one or more years.
Differences between your return and department records.
Not sure which route applies to your firm? Share your turnover range and last return, and our experts will review it free of charge.
Why firms file on time and with the right deductions.
On-time filing avoids the Section 234F fee and added interest.
A timely return keeps business losses available for future set-off.
Partner remuneration and interest are claimed within the legal limits.
Filed returns and audited accounts support business loans.
Accurate returns that match AIS and Form 26AS reduce mismatches.
Partners' own returns stay consistent with the firm's.
Filed from anywhere in India without visiting a tax office.
From books review to filed return, here is how online partnership tax return filing works.
Timelines depend on how quickly books and documents are ready and on portal workload. Not to scale.
We check the partnership deed for profit sharing, interest and remuneration clauses, and see what has been filed before.
Books are reconciled and the balance sheet and profit and loss account are prepared.
We confirm whether a tax audit applies or presumptive taxation is available, and choose the right ITR form.
Section 40(b) limits are applied to partner payments, and tax and any advance tax shortfall are worked out.
The return is filed on the income tax portal and verified by a partner as the rules require.
You get the filing receipt and a calendar of advance tax and filing dates for next year.
Keep these ready to avoid delays. Our expert will confirm the exact list for your firm.
The total cost depends on turnover, number of transactions, whether a tax audit applies and how many years are pending. It generally has three parts:
Tax payable by the firm is separate from our fees. Late filing can add a late fee and interest. We calculate these before you pay.
Our fee depends on volume and scope. Call free for a custom quote before you pay anything.
Tax audit fee, bookkeeping, pending years and notice replies are charged separately.
We share a clear, itemised quote before you begin – no hidden charges. Get your free quote →
Choose the situation that matches your firm, or call free for a custom quote.
Your firm is up to date and needs this year's return filed right.
Returns are overdue, or you have received an income tax notice.
You want audit, advance tax and the return handled together.
Our professional fee is quoted after a free call. Tax payable and audit fee are separate; late fee and interest apply to delayed filing. Not sure which option fits? Ask for a free tax check.
Every partnership firm with a PAN must file a return, even with no profit.
Stock, GST and cash transactions make accurate books essential.
Consultants, architects and other practices run as firms.
Keep partner capital, interest and remuneration clean and documented.
Larger turnover often brings tax audit and advance tax planning.
Timely filing preserves losses for future years.
If returns are overdue, speak to us early to limit late fees and interest.
A quick view of how a partnership firm compares with other structures. Ask us what suits your business.
| Structure | Return form | Tax on business income | Tax audit | Owner or partner |
|---|---|---|---|---|
| Partnership firm | ITR-5 (ITR-4 if presumptive) | Flat 30% plus surcharge and cess | Above prescribed limits | Share of profit exempt |
| LLP | ITR-5 | Flat 30% plus surcharge and cess | Above prescribed limits | Share of profit exempt |
| Private limited company | ITR-6 | Company rates, depending on regime | Audit mandatory every year | Dividends taxed |
| Sole proprietorship | ITR-3 or ITR-4 | Individual slab rates | Above prescribed limits | Income taxed in owner's hands |
Good records and timely filing prevent most problems.
Indicative dates for an April–March financial year. Dates can change, so confirm before relying on them.
Instalments on 15 June, 15 September, 15 December and 15 March where tax payable is ₹10,000 or more. Presumptive firms pay once by 15 March.
Usual due date for firms that do not need a tax audit.
Form 3CB-3CD is usually due by this date for firms requiring a tax audit.
Usual due date for firms whose accounts are audited under Section 44AB.
Applies where international or specified domestic transactions need Form 3CEB.
Usual last date for a belated or revised return for the assessment year, with late fee and interest.
Protecting your firm's name is part of staying protected. See our trademark registration online service, or if you have received a trademark notice, our trademark hearing online support.
Quick answers on partnership firm tax return filing in India.
It is the income tax return a partnership firm files in its own PAN every year, reporting the firm's income, deductions including partner remuneration and interest within limits, and the tax payable.
Generally ITR-5. A resident firm other than an LLP that opts for presumptive taxation under Section 44AD and is eligible can use ITR-4.
Generally 31 July of the assessment year for firms not requiring a tax audit, 31 October where a tax audit applies, and 30 November where transfer pricing reporting applies. Dates can be extended, so we confirm them each year.
A flat rate of 30 percent on total income, plus surcharge where income is above the prescribed limit and health and education cess. A partner's share of the firm's profit is exempt in the partner's hands.
Under Section 44AB, generally when business turnover exceeds Rs 1 crore, or Rs 10 crore if cash receipts and payments are within 5 percent, and in certain presumptive taxation cases. The report is in Form 3CB-3CD. We confirm the current limits.
Under Section 40(b), interest on partners' capital is deductible up to 12 percent simple interest a year, and remuneration to working partners is deductible within limits linked to book profit. Both must be authorised by the partnership deed.
Yes, if the tax payable for the year is Rs 10,000 or more. Instalments fall on 15 June, 15 September, 15 December and 15 March, while presumptive taxation firms pay once by 15 March.
A late fee under Section 234F, Rs 5,000 or Rs 1,000 where total income is up to Rs 5 lakh, plus interest on unpaid tax. A late return can also mean losses cannot be carried forward.
Yes, business losses can be carried forward for set-off in later years, but generally only if the return is filed on or before the due date.
It depends on turnover, number of transactions, whether a tax audit applies and how many years are pending. Government fees, where any apply, are separate from our professional fee, and we share an itemised quote after a free call.
Is your firm's tax return due? Speak to our tax expert today – the tax check and the quote are free.
Tell us what you need and our team will get back to you with the right guidance.
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