What is partnership firm?
A partnership firm may be a body of quite one person conducting business under one entity. There are two sorts of partnership firms-
Registered partnership firm
Unregistered partnership firm
Partnership Firm Tax Return Filing
Starts from Rs. 3,500/-
Overview
A registered partnership firm may be a partnership that has been registered with the Registrar of Firms and has received a registration certificate for an equivalent . Any partnership firm that doesn’t have a registration certificate from the Registrar of Firms is an unregistered partnership.
Partnership Taxation
Partnership firm is looked upon as a separate entity. it’s immaterial that partnership is registered or not registered. So partnership firm is taxes under the tax slab for partnership firm and partners are taxed under the tax slab for people.
Income Tax Rates on Partnership Firm for A.Y. 2018-19
- Long-term Capital Gain 20%
- Short-term financial gain u/s 111A 15%
- Other Income 30%
➼ Surcharge of 12% where taxable income including capital gains exceeds Rs.1 crore is subjected to marginal relief If the firm has a net of exceeding Rs.1 crore, the quantity payable as tax and surcharge shouldn’t exceed the entire amount payable as income-tax on total income of Rs.1 crore by quite the quantity of income that exceeds. Rs.1 crore.
➼ Education Cess & Secondary & education Cess are going to be 3 you decide on the quantity of income-tax and surcharge
➼ as per section 115 JC of the tax act, The Alternate minimum tax payable by the Partnership firm can’t be but 18.5% of adjusted total income.
Income Tax Calculation for Partnership Firm
While calculating the tax applicable for a partnership firm, it’s to be noted that Under an tax , the subsequent sort of expenses paid by the partnership firm to the partners isn’t considered as deductions:
➼ Salary, bonus, commission or remuneration paid to non-working partners.
➼ Remuneration or interest paid to the partners which aren’t in accordance with the terms of the partnership deed.
➼ Remuneration or interest paid to the partners is in accordance with the terms of the partnership deed but they belong to the amount before the date of formation of the partnership deed.
Apart from the above conditions, the interest paid to partners should be within the conformity with the terms of the partnership deed and will not exceed 12% once a year . Also, remuneration paid to partners should be consistent with the terms of the partnership deed and will not exceed the subsequent permissible limit:
➼ On first Rs. 3 Lakhs of book profit or within the case of loss – Rs. 1,50,000 or 90% of book profit, whichever is more.
➼ On the balance of the book profit – 60% of book profit.
Documents Checklist
Copy of PAN and Address of the Firm.
Bank Statement for the corresponding year.
Copy of PAN and Aadhaar of Partners.
e-mail ID & Mobile Number.
Income and Expenditure details, if any.
If GST registered, GST Credentials and/or GSTR-3B and GSTR-1 reports for the year.
Form 26AS or Income Tax Login Credentials.
FAQ
1.What is the due date for Filing Income Tax returns for Partnership Firms?
Answer: The due date for filing ITR for partnership Firm without audit is July 31st every year (with few exceptions, where for AY 2021-22 it is Jul 31st, 2020. If the Partnership firm is required to get audited, then the due date is 30th September *.
2. Are the Partners required to file Income Tax Returns?
Answer: Yes, the partners are required to file their income tax returns individually even after filing Partnership Firm IT return.
3. How can I send documents ?
Answer: You can send the soft copies of the required documents to support@setupfilings.com or upload the documents on www.setupfilings.com Website.
4. What is the Draft computation sheet ?
Answer: It is nothing, but your Income Tax computation sheet prepared by setupfilings.com In other words it is summary of you Income Tax computation details.
5. How to give confirmation to draft sent by setupfilings ?
Answer: After receiving draft from setupfilings through mail, you can revert to that mail with your opinion to proceed further.
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