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.
| Requirement | Explanation |
| 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.
Disclaimer:
The content of this article is for information purpose only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of the statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the Author / Treelife is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof.
Let us know and our experts will get back to you shortly.
Treelife Ventures Services Private Limited.
All Rights Reserved. © 2022.
