Partnership Firm ITR Filing

A partnership firm is a separate taxpayer: it files its own return in ITR-5 and is taxed at the firm rate, separately from the personal returns of its partners. The firm can deduct partner remuneration and interest on capital within the limits allowed by the Income Tax Act and the partnership deed.

Getting the firm's return right means computing income correctly, allowing remuneration and interest within limits, checking whether a tax audit applies, and reconciling with TDS and GST data — then filing on time.

Two things catch firms out. The due date for AY 2026-27 is 31 August 2026 where no audit is required and 31 October 2026 where one is — and the same row of the table sets the date for the partners' own returns, so a firm that slips takes its partners with it. Separately, under the Income-tax Act, 2025 a firm paying a partner salary, remuneration, commission, bonus or interest deducts 10% once the amount for the tax year exceeds ₹20,000 (section 393(3), Table Sl. No. 7) — an obligation many firms discovered late, and one that needs a TAN and quarterly returns.

We finalise the firm's computation, apply partner remuneration and interest, check audit applicability, and file ITR-5.