Partnership Firm Compliance
A partnership firm's annual obligations run through the Income Tax Act as much as the partnership deed — from ITR-5 filing to the rules governing partner remuneration and interest.
Partnership firm compliance covers the recurring obligations a firm must meet each year — filing its income tax return in Form ITR-5, undergoing a tax audit if turnover crosses the threshold, keeping partner remuneration and interest within the limits allowed under the Income Tax Act, and filing GST and TDS returns where applicable. Most of this flows from the partnership deed and the firm's own PAN, since a partnership firm is taxed as a separate entity even though it isn't a company.
What our partnership compliance service includes
Keeping the firm's annual and periodic filings in order.
- Reviewing the partnership deed for remuneration and interest clauses
- Bookkeeping and maintenance of statutory books
- Tax audit assessment and coordination, where applicable
- GST return filing and TDS compliance
- Advance tax computation and payment
- Annual filing of the firm's income tax return (ITR-5)
Areas of partnership firm compliance
The obligations that typically apply to a partnership firm.
Income Tax Filing (ITR-5)
Annual filing of the firm's income tax return, distinct from the individual returns of its partners.
Tax Audit Applicability
Assessing whether the firm's turnover or income triggers a mandatory tax audit for the year.
Partner Remuneration Compliance
Keeping remuneration and interest paid to partners within the limits permitted under the Income Tax Act.
GST & TDS Returns
Periodic GST filings and TDS deduction, deposit and returns where the firm is registered.
Our process
From deed review to annual filing.
Review Partnership Deed
Check remuneration, interest and profit-sharing clauses against Income Tax Act limits.
Maintain Statutory Books
Set up bookkeeping to support the firm's filings and any tax audit requirement.
File Periodic Returns
Handle GST, TDS and advance tax filings as they fall due through the year.
Annual ITR-5 Filing
Prepare and file the firm's annual income tax return, with audit support if required.
Where partnership compliance goes wrong
What sets our approach apart.
Deed not updated for remuneration clauses
Remuneration paid without a matching clause in the partnership deed can be disallowed on assessment.
Turnover crosses audit threshold
Firms often miss that a tax audit has become applicable once turnover grows past the prescribed limit.
GST mismatches go unresolved
Unreconciled GST returns create notices that could have been avoided with regular reconciliation.
Partnership Firm Compliance questions answered
What people ask before engaging us.
Need help keeping your partnership firm compliant?
We'll review your deed and manage the filings through the year.
