Partnership Firm / LLP for AY 2024-25

Returns and Forms Applicable for Partnership Firm / LLP for AY 2024-25

Disclaimer: The content on this page is only to give an overview / general guidance and is not exhaustive. For complete details and guidelines please refer Income Tax Act, Rules and Notifications.

Section 2(23)(i) of the Income Tax Act, 1961 states that the meaning of firm will be same as that in the Indian Partnership Act, 1932. Section 4 of the Indian Partnership Act, 1932 defines Firm as under:

“Persons who have entered into partnership with one another are called individually "Partners" and collectively "a Firm", and the name under which their business is carried on is called the "Firm Name".

As per the Income Tax Act, 1961, firm shall include a Limited Liability Partnership (LLP) as defined in the Limited Liability Partnership Act, 2008. Section 2(1)(n) of the Limited Liability Partnership Act, 2008 defines “Limited Liability Partnership” as a partnership formed and registered under the Act. It is a distinct legal entity separate from its Partner.

1. ITR-4 (SUGAM) – Applicable for Individual, HUF & Firm (other than LLP)

This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than not ordinarily resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:

One House Property

Other sources (Interest, Family Pension, Dividend etc.)

Agricultural Income up to ₹ 5,000

Note: This ITR-4 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g) who has any brought forward loss or loss to be carried forward under any head of income

(h) has total income exceeding Rs. 50 Lakhs

Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

2. ITR-5

This return is applicable to a person being a:

Firm
Limited Liability Partnership (LLP)
Association of Persons (AOP)
Body of Individuals (BOI)
Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
Local Authority referred to in clause (vi) of Section 2(31)
Representative Assessee referred to in Section 160(1)(iii) or (iv)
Cooperative Society
Society Registered under Societies Registration Act, 1860 or under any other law of any State
Trust other than Trusts eligible to file Form ITR-7
Estate of Deceased Person
Estate of an Insolvent
Business Trust referred to in Section 139(4E) and Investment Fund referred to in Section 139(4F)

Note: However, a person who is required to file the Return of Income u/s 139(4A) or 139(4B) or 139(4D) shall not use this form.

Forms Applicable

1. Form 26AS - Annual Information Statement

Provided by

Details provided in the form

Income Tax Department

(It is available on e-Filing Portal: Login > e-File> Income Tax Return > View Form 26AS)

Tax Deducted / Collected at Source

Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS will now be available in AIS mentioned below.

2. AIS - Annual Information Statement

Provided by

Details provided in the form

Income Tax Department

(It can be accessed after logging on to Income Tax e-Filing portal)

Path to access AIS: Go to e-filing portal > login > AIS

Tax Deducted / Collected at Source
SFT Information
Payment of taxes
Demand / Refund
Other information (Like; Pending/Completed proceedings, GST Information, Information received from foreign government etc)

3. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary

Provided by	Details provided in the form
Deductor to Deductee	Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department

4. Form 3CA-3CD

Submitted by	Details provided in the form
Taxpayer requiring mandatory audit under any other law and who is required to get their accounts audited by an Accountant u/s 44AB. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.	Report of audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961

5. Form 3CB-3CD

Submitted by	Details provided in the form
Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.	Report of Audit of Accounts (Form 3CB) and Statement of Particulars (Form 3CD) required to be furnished u/s 44AB of the Income Tax Act, 1961

6. Form 3CEB

Submitted by	Details provided in the form
Taxpayer who enters into an international transaction or specified domestic transaction is required to obtain a report from a chartered accountant u/s 92E. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.	Report from a chartered accountant containing details of all international transaction(s) and specified domestic transaction(s)

7. Form 3CE

Submitted by	Details provided in the form
Non resident taxpayer or foreign company doing business in India who is required to obtain a report from an Accountant u/s 44DA for receipt of specified Incomes from specified Persons. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.	Report from an Accountant, relating to receipt of Income by way of Royalty or Fees for Technical Services from Government or an Indian concern

8. Form 29C

Submitted by	Details provided in the form
Taxpayer who is required to obtain a Report from an Accountant u/s 115JC of the Income Tax Act, 1961	Report u/s 115JC of the Income Tax Act, 1961, for computing Adjusted Total Income and Alternate Minimum Tax of the person other than a company

9. Form 67 -Statement of Income from a Country or Specified Territory outside India and Foreign Tax Credit

Submitted by	Details provided in the form
Taxpayer, to be furnished on or before the due date specified for furnishing the ITR u/s 139(1)	Income from a country or specified territory outside India and Foreign Tax Credit claimed

10. Form 10CCB

Submitted by	Details provided in the form
Taxpayer who is required to obtain a report from an Accountant to claim the Deductions u/s 80(7) / 80- IA / 80-IB / 80-IC / 80-IE of the Income Tax Act,1961	Audit Report in Form 10CCB is a mandatory requirement to claim Deduction u/s 80-I (7) / 80- IA / 80-IB / 80-IC / 80-IE. It is to be filed 1 month before the due date for filing ITR u/s 139(1)

Tax Slabs for Partnership Firm / LLP for AY 2024-25

For the AY 2024-25, a Partnership Firm (including LLP) is taxable at 30%.

Surcharge, Marginal Relief and Health & Education Cess

What is Surcharge?

Surcharge is levied on the amount of income tax at following rates if Total Income exceeds specified limits:

12% if Taxable Income Exceeds ₹ 1 Crore

What is Marginal Relief?

Marginal relief is available from the Surcharge in the following manner:

In case Net Income exceeds ₹ 1 crore, the amount payable as income tax and Surcharge shall not exceed the total amount payable as income tax on Total Income of ₹ 1 crore by more than the amount of income that exceeds ₹ 1 crore

What is Health and Education cess?

Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)

Note: A Firm / LLP shall be liable to pay AMT (Alternative Minimum Tax) at 18.5% of book Profit (plus Surcharge and Health and Education cess as applicable) where the normal tax liability is less than 18.5% of book Profit

Investments / Payments / Incomes on which I can get Tax Benefit

Tax deductions specified under Chapter VIA of the Income Tax Act

Section 80G

Deduction towards Donations made to prescribed funds, charitable institutions, etc.

Donation are eligible for deduction under the below categories

Subject to Qualifying Limit

100% of donations made

50% of donations made

Without any Limit

100% of donations made

50% of donations made

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-

Section 80GGA

Deduction towards Donations made for Scientific Research or Rural Development

Donations are eligible for deduction under the below categories

Research Association or University, College or other Institution for

Scientific Research
Social Science or Statistical Research

Association or Institution for

Rural Development
Conservation of Natural Resources or for Afforestation

PSU or Local Authority or an Association or Institution approved by the National Committee for carrying out any eligible project

Funds notified by Central Government for

Afforestation
Rural Development

National Urban Poverty Eradication Fund as setup and notified by Central Government

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes Income from Profit / Gains of Business / Profession

Section 80GGC

Sum contributed to Political Party or Electoral Trust is allowed as deduction

(subject to certain conditions)

Deduction of total amount paid through any mode other than cash

Section 80IA

Undertaking engaged in Industrial Parks (any undertaking), and any Power Undertaking shall be entitled to claim deduction (subject to certain conditions)

100% of profit for 10 consecutive AYs falling within a period of 15 AY

(No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

Section 80IAB

Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in Development of Special Economic Zone

(subject to certain conditions)

100% of profit for 10 consecutive AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government

No deduction to an assessee, where the development of Special Economic Zone begins on or after 1st April 2017

Section 80IAC

Profit and Gains derived by an eligible start-up from specified business

100% of profit for 3 consecutive AY out of 10 AY beginning from the year in which the eligible start-up is incorporated

Section 80IB

Deduction towards Profits and Gains from specified industrial undertakings other than infrastructure development undertakings- 100% of profit for 10 years from the AY in which it is approved by prescribed authority (if approved after 31st March 2000 but before 1st April 2007).

The deduction under this section is available to an assessee whose Gross Total Income includes any Profits and Gains derived from the business of:

Industrial Undertaking including an SSI in J&K

Commercial Production and Refining of Mineral Oil

Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products

Integrated Business of Handling, Storage and Transportation of Food Grains

(subject to certain conditions)

100% / 25% of profit for 5 / 10/7 years as per conditions specified for different types of undertakings

Section 80IBA

Profit and Gains derived from Developing and Building Housing Projects

100% of profit subject to various conditions specified

Section 80IC

Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states

(subject to certain conditions)

100% of profits for first 5 AY and 25% (30% for a Company) for next 5 AY to manufacture or produce specified article or thing

Section 80IE

Deduction to certain Undertakings set up in North- Eastern states

(subject to certain conditions)

100% of profits for 10 AY subject to various conditions specified

Section 80JJA

Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste

(subject to certain conditions)

100% of profits from activity of collecting, processing and treating bio degradable waste for 5 consecutive AYs

Section 80JJAA

Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies

(subject to certain conditions)

30% of additional employee cost for 3 AY, subject to certain conditions

Section 80LA

Deduction for Income of Offshore Banking Units and International Financial Services Centre

(subject to certain conditions)

100% / 50% of specified income for 5 / 10 AY, as per specified conditions