Annual compliances of a partnership firm
A partnership firm has no Registrar of Companies annual return. Company Suggestion closes the books, files the firm’s income-tax return, and tells the Registrar of Firms when a registered firm changes.
Which annual filings does a partnership firm make?
The yearly work is tax, not MCA.
- Accounts of the firm for the financial year.
- ITR-5, the income-tax return of the firm.
- A tax audit report when section 44AB applies.
- A notice to the Registrar of Firms when a registered firm changes its partners, name or place of business.
GST returns are a separate filing, and only when the firm has a GST registration. An LLP additionally files Form 11 and Form 8.
When does the firm need a tax audit?
Section 44AB sets two business thresholds.
- Turnover above ₹1 crore.
- Turnover above ₹10 crore only when cash receipts and cash payments are each within 5%.
A profession needs the audit when gross receipts exceed ₹50 lakh. The partnership registration page covers the deed.
Which papers does the return need?
The return uses four papers.
- The partnership deed and the profit-sharing ratio
- The books, bank statements and capital accounts
- TDS and GST figures for the year, where those taxes apply
- PAN of the firm and of each partner
What is the yearly order of work?
Company Suggestion closes the year in four steps.
- The books are closed and each partner’s capital account is drawn.
- The tax audit is done when section 44AB applies.
- ITR-5 is filed.
- Any change in the registered firm is filed with the Registrar of Firms.
Frequently asked questions
4 questions cover the rules that decide this registration.
Does a partnership firm file MCA forms every year?
No. A partnership firm is not registered with the Ministry of Corporate Affairs. It does not file AOC-4, MGT-7, Form 11 or Form 8.
Which income-tax return does a firm file?
ITR-5. The Act’s date is 31 July when no tax audit applies, and 31 October when a tax audit applies.
Must changes be told to the Registrar of Firms?
A registered firm informs the Registrar of Firms of a change in partners, the place of business or the name. An unregistered firm has no annual return there.
Is the firm taxed as a company?
No. A partnership firm is taxed as a firm, at 30% plus cess, for assessment year 2026-27. A partner’s share of that profit is exempt under section 10(2A).