ITR for Partnerships

An Income Tax Return (ITR) is a form that partnerships, businesses owned and operated by two or more individuals, must file with the government to declare their taxable income and pay applicable taxes. It helps the government track and collect taxes from partnerships and distributes the tax liability among the partners.

Applications for ITR Filing by Partnerships

Partnerships can use various applications to file ITR online. Some popular options include:

• Income Tax Department’s e-Filing Portal: The official portal for filing ITR online.
• MyReturns: A commercial tax filing platform with a user-friendly interface and expert assistance.

Eligibility Criteria for ITR Filing by Partnerships

Partnerships are generally required to file ITR if they meet the following criteria:

• The partnership is registered under the Indian Partnership Act, 1932.
• The partnership has generated income during the financial year.
• The partnership has not opted for the presumptive taxation scheme.

Documents Needed by Partnerships to File ITR

To file ITR, partnerships typically need the following documents:

• Partnership Deed: A legal document that outlines the partnership agreement, including profit-sharing ratios, partner contributions, and dispute resolution mechanisms.
• Profit and Loss Account (P&L) Statement: A financial statement that summarizes the partnership’s income and expenses during a specific period.
• Balance Sheet: A financial statement that provides a snapshot of the partnership’s assets, liabilities, and equity at a specific point in time.
• Bank account statements
• Proof of business expenses (e.g., invoices, receipts)
• Proof of investments (e.g., mutual funds, stocks, bonds)
• Proof of deductions (e.g., medical expenses, education expenses, donations)