Overview of Partnership Firm Registration Online
A partnership firm, like a sole proprietorship firm, private limited company, limited liability partnership and other organisation is also required to maintain compliances.
List of Compliances For Partnership Firm Registration Online
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Details of Compliances for partnership firm
1.Filing of Income Tax Return
In relation to taxation, the partnership firms taxed as per income tax slab applicable for firms and the partners are taxed as per the income tax slab of individuals.
Tax Slab for Partnership Firms
The partnership firms are taxed at 30%.
Note:
Health & Education cess @ 4% is also levied for partnership firms.
Surcharge @12% is also charged along with the cess, if taxable income exceeds ₹1 Crore
Marginal relief shall also be provided, wherever applicable.
Tax slab for Partners
As stated above, the income of partners is treated as income earned by individuals. Therefore, the individual’s income tax slab is equally applicable on partner’s income.
Income Tax Return for Partnership Firms
The Partnership Firms can either file their Income Tax Return either through Form ITR-4 or ITR-5.
ITR-4:
ITR-4 is to be filed by those partnership firms which are having ing Total Income up to ₹ 50 lakh and having income from Business and Profession which is computed on a presumptive basis.
ITR-5:
ITR-5 is to be filed by those partnership firms who are required to get their account audited.
2. Filing of GST Returns
Every GST registered person is required to file GST Returns and every partnership firm is required itself under GST, if its aggregate annual turnover exceeds Rs. 20 lacs. Usually, the GST registered partnership firms have to file GSTR-1, GSTR-3B and GSTR-9 returns. If the firm has opted for composition scheme, then GSTR-4 is to be filed.
3. TDS Return
The TDS Return is to be filed where the partnership firm has a valid TAN and the type of return to be filed depends upon the purpose of deduction. The types of TDS Return are:
Form 24Q – TDS on Salary
Form 27Q – TDS where deductee is a non-resident, foreign company
Form 26QB – TDS on payment for transfer of immovable property
Form 26Q – TDS in any other case
4. EPF Return filing
The partnership firm is required to get EPF registration if it employs more than 10 persons and accordingly, filing of EPF return becomes mandatory
5. Accounting and bookkeeping
Books of account are required to be maintained, if the partnership firm’s sale/turnover/gross receipts from the business is more than Rs. 25,00,000 or the income from business is more than Rs. 2,50,000 in any of the 3 preceding years.
6. Tax Audit
Partnership firm is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs. 1 crore in the financial year. However, it may be required to get its account audited in certain other circumstances.
Note:
The threshold limit of Rs. 1 crore for tax audit is proposed to be increased to Rs. 5 crore w.e.f., AY 2020-2021, if the cash receipts are limited to 5% of the gross receipts or turnover. The Finance Bill, 2021 has proposed to further increase this limit from ₹5 crore to ₹10 crore.
Documents to be uploaded for Partnership Firm Registration Online Compliance
Following are the documents required for Partnership Compliance:
– PAN Card copy
– Aadhaar Card copy
– Details of sales and purchases made during a relevant financial year
– Details of made during a relevant financial year
– Credit card statements
– Bank account details and statements
– Copy of TDS challans deposited
FAQs
A Partnership Firm is where two or more individuals join hands to carry out a business for profit. The partners become joint business owners and carry out operations governed by the partnership deed.
The partnership firms are required to alternate minimum tax @18.5% of “adjusted total income”. This amount is also subject to increase by adding the surcharge and cess amounts.
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