Home / Partnership Firm Compliance

Updated on 19 Jan 2022  9.00 AM IST | 4 min read

An Overview to Partnership Firm Compliances

A Partnership firm needs to maintain compliances like LLP’s, public or private limited companies. Partnership firm compliance mainly includes income tax return filing whereas LLP & company needs to submit both the reports – Income tax return filing to the income tax department and annual filing to the ministry of corporate affairs. Partnership firms need to complete tax audit if the annual turnover of partnership firm is above Rs.100 Lakhs.


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Basic Partnership Firm Compliances

In addition to complying with the basic compliances, partnership firm also needs to comply with income tax regulations, TDS regulations, GST regulations, ESI regulations etc. The requirement of compliance varies depending upon the type of entity, industry, state of incorporation, number of employees & sales turnover. It has very minimal statutory requirements in comparison to LLP, public or a private limited company. In relation to taxation, partnership firm is taxed under the income tax slab for firms whereas partners of a partnership firm are taxed under the income tax slab for individuals. Partnership firm has to mandatorily fulfill its statutory compliance requirements even if it does not carry out business/service. The major compliances of a partnership firm are periodic and annual compliances. It is not necessary for a partnership firm to file audited financial statements every year. The main and the only annual compliance for a partnership firm is to file income tax return via form ITR-V.


Documents Required For Annual Compliances For A Partnership Firm

  • Invoices of purchase & sales during a financial year
  • Invoices of expenses incurred during a financial year
  • Bank statements for all bank accounts in the name of partners in a financial year.
  • Credit card statement for expenses incurred by partners on behalf of a company (If any)
  • Copy of TDS challans deposited (if any)
  • Copy of GST returns filed (If any)
  • Copy of TDS returns filed (if any)

Procedure For Annual Compliance Fulfillment

The procedure for annual compliance fulfillment is as follows –

  1. Maintain proper books of accounts
  2. Preparation and filing of balance sheet.
  3. Get your accounts certified by CA in case your partnership firm turnover is above 100 Lakhs.

Major Compliances For A Partnership Firm

The procedure for annual compliance fulfillment is as follows –

  • Income tax filing – Every partnership firm has to mandatorily file income tax return to the income tax department. They also need to complete tax audit if the annual turnover of the partnership firm is above Rs.100 Lakhs.
  • GST filing – Partnership firms registered under GST has to mandatorily file GST returns on monthly, quarterly & annual basis.
  • TDS filing – Partnership firms having TAN must file quarterly TDS returns as per TDS rules.
  • ESI Filing – All partnership firms registered under ESI act has to mandatorily file ESI returns. ESI registration is required in case a partnership firm employs 10 or more employees.

Partnership Firm Compliances FAQ’S

If the turnover of a partnership firm is above 100 Lakhs, it is necessary for a partnership firm to get their tax audited.
Partnership firms registered under GST needed to file GST returns monthly, quarterly and annually.
Partnership firms having TAN must file quarterly TDS returns as per TDS rules.
All partnership firms registered under ESI act has to mandatorily file ESI returns. ESI registration is required in case a partnership firm employs 10 or more employees.
A partnership firm has to comply with income tax regulations, TDS regulations, GST regulations, ESI regulations etc.
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Due Dates

  • Due date for deposit of TDS for the period October 2021 to December 2021 when Assessing Officer has permitted quarterly deposit of TDS under section 192, section 194A, section 194D or section 194H

    Jan 07th ,2022
  • Due date for deposit of Tax deducted/collected for the month of December, 2021. However, all the sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

    Jan 07th ,2022
  • Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of November, 2021

    Jan 14th ,2022
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of November, 2021

    Jan 14th ,2022
  • Due date for issue of TDS Certificate for tax deducted under section 194M in the month of November, 2021

    Jan 14th ,2022
  • Due date for filing of audit report under section 44AB for the assessment year 2021-22 in the case of a corporate-assessee or non-corporate assessee (who was required to submit his/its return of income on October 31, 2021)

    The due date for filing of audit report for Assessment Year 2021-22 has been extended vide Circular no. 17/2021, dated 09-09-2021

    Jan 15th ,2022