Partnership Compliance — Annual Tax and Regulatory Compliance for Partnership Firms.

A partnership firm — whether registered or unregistered — is a separate assessable entity for income tax purposes, though it does not have a separate legal identity from its partners under civil law. The firm files its own income tax return (ITR-5), pays tax at the applicable flat rate on its total income, and partners separately account for their share of profit (which is exempt in their hands under Section 10(2A) of the Income Tax Act) and any remuneration or interest received from the firm. The firm is also required to deduct TDS on payments such as salary, rent, and contractor fees where thresholds are crossed.

GST registration is mandatory for a partnership firm whose aggregate turnover exceeds the prescribed threshold, and the firm must file GSTR-1 and GSTR-3B on a monthly or quarterly basis. Where the firm has employees on payroll, PF and ESI registration and periodic contribution filings are required. A firm's tax audit obligation under Section 44AB applies where turnover exceeds ₹1 crore (or ₹2 crore if the firm opts for and is eligible under the presumptive scheme under Section 44AD).

On the deed and governance side, the partnership deed is the foundational document that governs the firm's operations — profit sharing ratios, partner capital, remuneration, and exit provisions. Any change in partners, profit ratios, or firm name requires a deed amendment and, if the firm is registered with the Registrar of Firms, a notice of reconstitution. Dissolution requires final accounts, settlement of liabilities, and regulatory intimation. We manage the full compliance cycle — ITR-5, GST, TDS, deed amendments, reconstitution, and conversion to LLP where desired.