Partnership Firm Income Tax Return Filing (2025): Step-by-Step eFiling Guide & Due Dates

Tax law compliance is crucial for all Indian businesses. A partnership firm is no exception, and filing income tax returns on time ensures transparency, avoids penalties, and builds credibility with financial institutions. For the assessment year 2025–26, partnership firms need to submit their returns using the prescribed form and within the notified deadline. The primary form used is ITR-5 e-Filing, which covers partnership firms, LLPs, and certain other entities.

In this blog, we will break down the process of partnership firm tax return filing, due dates, documents required, and a detailed guide on how to e-file step by step.

Understanding Partnership Firm Income Tax Filing

In India, a partnership firm is regarded as a distinct legal entity for taxation reasons. Unlike individual partners who file personal returns, the firm itself must declare its income, expenses, and tax liabilities

Who Needs to File ITR?

• Registered partnership firms under the Partnership Act, 1932
  
  

• Unregistered firms recognized as business entities
  
  

• Firms earning income from business, profession, rental, or other sources
  
  

Regardless of profit or loss, every partnership firm must file its return annually.

Applicable Tax Rates for Partnership Firms (AY 2025–26)

• Flat tax rate: 30% on taxable income
  
  

• Surcharge: 12% (if income exceeds ₹1 crore)
  
  

• Health & Education Cess: 4% on tax + surcharge
  
  

• Alternate Minimum Tax (AMT): 18.5% (if applicable) of adjusted total income
  
  

This makes timely partnership firm tax return filing crucial to avoid penalties and additional interest.

Documents Required for Filing ITR of a Partnership Firm

Before starting the e-filing process, ensure the following documents are ready:

1. PAN card of the firm and partners
   
   

2. Partnership deed copy
   
   

3. Financial statements – Balance Sheet, P&L account
   
   

4. Tax audit report (if applicable)
   
   

5. Bank statements
   
   

6. Details of TDS deducted and Form 26AS
   
   

Partnership Firm ITR Due Date 2025

A crucial component of compliance is being aware of the filing deadline. For AY 2025–26, or the fiscal year 2024–25:

• 31st July 2025 → For firms not requiring audit
  
  

• 31st October 2025 → For firms that require audit under Section 44AB
  
  

• 30th November 2025 → For businesses who need a transfer pricing report for specific domestic or foreign transactions

Thus, every business owner should be mindful of the partnership firm ITR due date 2025 to avoid late filing fees under Section 234F and interest under Sections 234A/234B/234C.

Step-by-Step Guide to E-file Partnership Firm ITR

Step 1: Register/Login on the Income Tax Portal

• Visit https://www.incometax.gov.in

• Log in using the firm’s PAN as the user ID
  
  

Step 2: Choose the Correct ITR Form

• For partnership firms, select ITR-5
  
  

• This form is intended exclusively for businesses, limited liability partnerships, AOPs, BOIs, and some other types of entities.

Step 3: Fill in Basic Details

• PAN, business name, address, and nature of business
  
  

• Details of partners, capital contribution, and profit-sharing ratio
  
  

Step 4: Report Financial Information

• Enter Profit & Loss Account details
  
  

• Balance Sheet data
  
  

• Tax computation, depreciation, and deductions
  
  

Step 5: Upload Audit Reports (if applicable)

• Use Forms 3CA/3CB and 3CD to upload the audit report if turnover surpasses the thresholds set out in Section 44AB.

Step 6: Verify Tax Payments

• Cross-check advance tax and TDS credits with Form 26AS and AIS
  
  

• Pay self-assessment tax if needed
  
  

Step 7: Submit the Return

• Preview the filled form and validate
  
  

• Submit the return online and e-verify using Aadhaar OTP, DSC, EVC, or Net Banking
  
  

This completes the process to e-file partnership firm ITR successfully.

Penalties for Late Filing

Missing deadlines can be costly for firms:

• Late Fee (Section 234F): ₹5,000 if return filed after due date but before 31st December, ₹10,000 after that (₹1,000 if income ≤ ₹5 lakh).
  
  

• Interest (Sections 234A/B/C): 1% per month on outstanding tax.
  
  

• Loss of Carry-Forward Benefits: If a return is filed after the deadline, losses under the business head cannot be carried forward.

Hence, filing on or before the due date is critical.

Tax Audit Requirements for Partnership Firms

Audit becomes mandatory if:

• Business turnover exceeds ₹1 crore (₹10 crore if cash transactions ≤ 5% of turnover)
  
  

• Professional receipts exceed ₹50 lakh
  
  

• Firms declaring income under presumptive taxation but showing profits below prescribed limits
  
  

In such cases, the audit report must be submitted before the return filing date.

Benefits of Timely ITR Filing for Partnership Firms

1. Legal Compliance – Avoid penalties and notices
   
   

2. Loan & Credit Facility – Banks ask for ITR as proof of income
   
   

3. Transparency – Establishes credibility with investors and authorities
   
   

4. Carry Forward Losses – Business losses can be set off against future profits
   
   

5. Smooth Business Operations – No disruption from tax authorities
   
   

Common Mistakes to Avoid

• Using the wrong ITR form
  
  

• Mismatch in TDS/TCS data with Form 26AS
  
  

• Not reporting interest income
  
  

• Ignoring audit applicability
  
  

• Delay in partnership firm tax return filing leading to penalties
  
  

Conclusion

Filing income tax returns is not just a legal obligation but also a strategic move to build trust and financial stability. With the right preparation, documents, and knowledge of due dates, any firm can ensure smooth compliance. Using the Income Tax portal makes the process streamlined, transparent, and efficient.

If you are running a firm, make sure you never miss the opportunity to e-file partnership firm ITR within the stipulated deadlines to stay compliant and stress-free. Visit https://compliancesarathi.in/ for more details.