30 April 2018
Partnership firms are relatively easy to start and are prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
|Obtaining PAN Card||Every Partnership firm must procure a PAN Card from the Income Tax Authorities.|
|Income Tax Return||Every Partnership firm must file an Income Tax return irrespective of the amount of income or loss in Form ITR-5|
|Tax Audit||The Partnership firm is liable for tax audit if:
1. Total Sales/Gross turnover exceeds INR 1 Crore
2. In case of Profession if gross receipts exceed INR 50 lakhs.
The registration of Partnership firms is very simple, which can be done by filing an application with prescribed fees to the Registrar of Firms. It is to be noted that registration of Partnership firms with the Registrar of Firms is not mandatory, but registration with the Income Tax department is mandatory.
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