Income Tax

Partnership Firm / LLP ITR Filing

Correct ITR-5 filing for firms and LLPs.

About Partnership Firm / LLP ITR Filing

Partnership firms and LLPs must file their income tax return in Form ITR-5, reporting business income and computing tax at the flat firm rate of 30% plus surcharge and cess. A key part of accurate filing is correctly claiming deductions for partners' remuneration and interest on capital within the limits allowed by Section 40(b), which reduces the firm's taxable profit. We prepare the firm's computation, optimise these deductions, determine whether a tax audit is applicable, and file the return on time. We also ensure the firm's return aligns with the individual returns of the partners, keeping the whole structure consistent and compliant.

Who needs this

Partnership firms and LLPs with business or professional income.

Documents required

The process — step by step

  1. Finalise the firm's accounts
  2. Compute remuneration and interest to partners
  3. Check tax-audit applicability
  4. Prepare and file ITR-5
  5. Reconcile with partners' individual returns

Timeline & fees

Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.

Frequently asked questions

At what rate is a firm taxed?

A flat 30% plus applicable surcharge and cess on taxable income.

Are partner salaries deductible?

Yes, partner remuneration and interest are deductible within the Section 40(b) limits.

Which form do firms and LLPs use?

Form ITR-5 is used by partnership firms and LLPs.

Related services

Tax Guider — A unit of Corpzen Advisors Private Limited, Chennai, Tamil Nadu.

+91 86950 08695 · info@taxguider.in · Mon – Sat · 10:00 AM – 7:00 PM