Annual Compliances For Partnership Firm

A Partnership Firm is formed as a result of an association of two or more persons to carry on a business in the capacity of co-owners. Partnership Firms in India are governed by the Indian Partnership Act 1932. Section 4 of the Indian Partnership Act of 1932[1] defines partnership as “the relation between person who has agreed to share profits of a business carried on by all or any of them acting for all.” All the partners of the firm share the profits and losses in proportion of their respective owners, or as agreed between them. The limitations of sole proprietorship firm gave rise to Partnership firms. Further, in this blog, you shall learn about the compliances involved in Partnership Firms.

• It is necessary for the partnership firm to obtain Permanent Account Number (PAN) and Tax Deduction Account Number from the Income Tax Department.
• A Partnership firm needs to file ITR compulsory  irrespective of the revenue or loss or even with zero turnover
• Partnership Firms having an annual turnover of over Rs. 50 lakhs are required to obtain a tax audit.
• GST registration  and filing of GST  Returns is required for businesses whose annual turnover exceeds Rs 40 lakhs ( Rs 20 lakhs for North Eastern states).
• Partnership firms are also required to file quarterly TDS returns as per TDS rules(if applicable).