Partnership Firms in India are registered under the Indian Partnership Act of 1932, and hence, these partnership firms are different from the Limited Liability Partnerships (LLPs) which are registered under the newly introduced LLP Act of 2008. For past many decades in India, partnership firms were hugely popular for small and medium-sized establishments, particularly in the unorganized sector, where partners were acting under their respective personal liabilities. Now, after introduction of the LLP Act in 2008, which advocates for limited liability of the partners, these partnership firms are fast getting replaced by the new LLPs. This webpage provides exclusive information regarding the mandatory annual compliances for partnership firms in India, to help the existing partnership firms of India engaged in various economic fields.
The Indian Partnership Firms registered under the Partnership Act of 1932, are well-facilitated to make only the minimal statutory compliances every year, as compared to the annual compliances to be made by an LLP, a private ltd company, or a public ltd company of India. Here, it may also be just mentioned that, for the purpose of taxation, any Indian partnership firm is taxed under the income tax slab for Indian firms, while its partners are taxed under the income tax slab for individuals. Again, a registered partnership firm is required to make its statutory compliances, even if it does not carry out its business/service.
Broadly, the periodic and annual compliances to be made by a partnership firm of India, relate to the following:
As far as the annual accounts are concerned, a partnership firm is not necessarily required to file the audited financial statements every year with the relevant Registrar. However, the Indian Income Tax Act of 1961 necessitates the partnership firms also for getting their respective financial accounts tax-audited, if the annual turnover of them crosses INR One Crore in any financial year. Thus, in the normal cases, filing only the Income Tax Returns (in Form ITR-V) is the main annual compliance to be made by a partnership firm of India. This ITR is to be filed by a partnership firm on or before the following due dates:
Available are our expert, efficient, and cost-effective services for the Annual Mandatory Compliances (AMCs) of the Partnership Firm located and active anywhere in entire India, and belonging to Indian or Foreign Nationals.