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ITR-5 Filing Package Inclusions
ITR-5 preparation for firms, LLPs and AOPs
Financial statements and partner remuneration schedules
Remuneration and interest deduction computation (40(b))
E-filing with DSC/e-verification
Acknowledgement and tax computation handover
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Overview: Whose Return Is This?
Your firm made money this year. Before the partners divide what is left, the firm itself pays tax — as a separate person in the eyes of the Income-tax Act. ITR-5 is the form through which that happens. It is not for individuals and not for companies. It exists for the entities in between: partnership firms, LLPs, associations of persons, bodies of individuals, co-operative societies, local authorities, and trusts not claiming charitable exemption. Not an individual, not an HUF, not a company, not filing ITR-7 — then ITR-5 is almost certainly your form.
Why does the form matter so much for firms? Because a firm is taxed flat at 30%, with no basic exemption and no slabs. Every rupee of deduction you miss is taxed at the full rate. The two deductions that make or break a firm’s return — partner remuneration under section 40(b) and interest on partner capital — are also the two the assessing officer examines first. Get the deed clause wrong, pay a non-working partner, or exceed the 40(b) ceiling, and the excess lands straight back in the firm’s taxable income.
This page walks through the whole picture: who files ITR-5, how firms are taxed, the 40(b) maths with a worked example, AMT exposure, audit triggers, the filing process, and the mistakes we keep seeing in real returns. Current for AY 2026-27 (FY 2025-26), governed by the Income-tax Act, 1961 — with notes on what the Income-tax Act, 2025 changes from 1 April 2026.
Who Files ITR-5 vs ITR-4 vs ITR-6 vs ITR-7
Wrong form, wasted filing. Here is the decision matrix.
ITR-4 (Sugam)
ITR-5
ITR-6
ITR-7
Who
Resident individuals, HUFs, and firms (not LLPs) on presumptive taxation
Firms, LLPs, AOPs, BOIs, AJPs, local authorities, co-operative societies, societies, trusts not claiming section 11 exemption
Companies (other than those claiming exemption u/s 11)
Trusts claiming exemption u/s 11, political parties, specified institutions, colleges/universities
Income condition
Total income up to ₹50 lakh; business/profession computed u/s 44AD, 44ADA, or 44AE
No income ceiling
No income ceiling
Filed u/s 139(4A)/(4B)/(4C)/(4D)
Presumptive link
Mandatory — the form exists for 44AD/44ADA/44AE
Used when the firm is not on presumptive, or income exceeds ₹50 lakh, or it is an LLP
N/A
N/A
The firm-specific rule of thumb: a partnership firm with turnover within the 44AD ceiling (₹2 crore, or ₹3 crore where cash receipts do not exceed 5%) and total income up to ₹50 lakh can take the simple road — ITR-4. Everything else files ITR-5: firms with income above ₹50 lakh, firms maintaining regular books, firms that opted out of the presumptive scheme, and all LLPs — an LLP on presumptive taxation still files ITR-5, never ITR-4.
The ITR-7 boundary: a trust claiming exemption under sections 11/12A files ITR-7 under section 139(4A). A trust that is not claiming that exemption — a private family trust distributing taxable income, for instance — files ITR-5. This is the single most common form error we see: trusts filing ITR-5 while claiming section 11 exemption in the computation. The exemption is simply not available on this form.
A caution on presumptive opt-out: section 44AD(4) locks you in for five consecutive years. Walk away within the lock-in and two things happen — the firm is barred from 44AD for the next five years, and if total income exceeds the basic exemption limit, a tax audit under section 44AB(e) becomes mandatory, which means ITR-5 with a signed 3CA/3CB-3CD. Small firms trip on this more than any other provision.
How Firms Are Taxed: 30%, Flat, From the First Rupee
A firm gets no basic exemption. No slabs. No “first ₹3 lakh free.” The rate is 30% on total income, flat — the same rate whether the firm earned ₹3 lakh or ₹3 crore.
Then the add-ons:
Surcharge: 12% of the income tax, but only where total income exceeds ₹1 crore. Marginal relief applies — the extra tax plus surcharge just above ₹1 crore cannot exceed the income above ₹1 crore.
Health and education cess: 4% on the aggregate of income tax and surcharge.
That gives two effective rates you can quote without a calculator: 31.2% on total income up to ₹1 crore, and 34.944% above ₹1 crore.
Other ITR-5 entities pay differently: co-operative societies face slabs — 10% up to ₹10,000, 20% on the next ₹10,000, 30% above — with 12% surcharge above ₹1 crore and 4% cess, or an optional 22% concessional rate under section 115BAD. The 30% flat rate is specific to firms and LLPs.
The new regime does not exist for firms. Section 115BAC — the default new regime for individuals and HUFs — covers individuals, HUFs, AOPs (other than co-operative societies), BOIs, and artificial juridical persons. Partnership firms, LLPs, companies, and co-operative societies are outside it. There is no concessional rate your firm can opt into. Your tax planning for a firm happens through deductions, timing, and the 40(b) limits — not through regime choice.
Worked example: where the 40(b) ceiling bites
Take a firm of two working partners. For FY 2025-26:
Net profit as per P&L (after charging partner salary of ₹7,50,000 and interest on capital of ₹2,40,000): ₹2,10,000
Book profit = ₹2,10,000 + ₹7,50,000 = ₹9,60,000 (remuneration is added back; interest stays deducted)
Section 40(b) deductible limit:
First ₹3,00,000: 90% = ₹2,70,000 (higher than ₹1,50,000)
Balance ₹6,60,000: 60% = ₹3,96,000
Total deductible: ₹6,66,000
The firm actually paid ₹7,50,000. The excess — ₹84,000 — is disallowed and added back.
Total income = ₹2,10,000 + ₹84,000 = ₹2,94,000
Tax at 30% = ₹88,200; plus 4% cess = ₹3,528. Total payable: ₹91,728. No surcharge — income is well below ₹1 crore.
Now the partners’ side, because this is where confusion lives. The ₹7,50,000 salary each partner received is taxable in their individual hands as income from business or profession — they report it in their own ITR-3s. What is not taxed again is the firm’s residual profit distributed to them: the share of profit is exempt under section 10(2A) because the firm already paid tax on it. One level of tax, applied once. Salary taxed in the partner’s hands; profit share exempt. Mix those two up and you either pay twice or under-report.
Section 40(b): The Remuneration Limits, Explained Practically
Section 40(b) is not a benefit provision. It is a disallowance provision — it tells you the maximum the firm may deduct, and everything above that is added back to income. Three conditions must all hold before you even reach the maths:
1. Working partner only. Salary, bonus, or commission paid to a non-working (sleeping) partner is disallowed in full. No ceiling applies because no deduction applies.
2. Authorised by the partnership deed. The deed must permit remuneration, and the amount — or a clear method of computing it — must be stated. A vague line saying “remuneration as per section 40(b)” does not satisfy the courts or the CBDT. Write the formula into the deed: “90% of the first ₹6,00,000 of book profits and 60% thereafter” is the kind of clause that survives scrutiny; “as decided by partners” is not.
3. Only for the period the deed covers. Remuneration relating to any period before the deed authorised it is disallowed. If you amend the deed in October to permit salary, April-to-September salary stays non-deductible.
The ceiling itself: on the first ₹3,00,000 of book profit (or in case of a loss), the deductible amount is ₹1,50,000 or 90% of book profit, whichever is higher. On the balance of book profit, 60%.
Book profit for this purpose means the net profit as per the P&L — computed under the normal provisions for business income — increased by the remuneration paid or payable to partners (if it was debited). Note what is *not* added back: interest on partner capital, which has its own separate 12% test.
A word on a rumour. A forum post circulating since January 2026 claims the first slab was doubled for FY 2025-26 (₹6 lakh / ₹3 lakh). We traced it as far as it goes: no Finance Act amendment carries that change, the statutory text still reads ₹3 lakh / ₹1.5 lakh / 60%, and the ITAT applied exactly those figures in a 2026 ruling on book-profit computation. Until the CBDT says otherwise in a notification, use the traditional figures.
Practical consequences of breaching the ceiling: the excess is added back to the firm’s income and taxed at 30% plus cess — while the partner has already paid tax on the full salary received. That is genuine double taxation on the excess, and it is entirely avoidable with a deed review before year-end. We run the 40(b) computation for clients in February, not July, because by July the payments are history.
Interest on Partner Capital: The 12% Rule
Interest paid to a partner — working or sleeping, it does not matter — is deductible up to 12% per annum simple interest, provided the partnership deed authorises it. Pay 15% and the extra 3% is disallowed. Pay 12% without a deed clause and the whole amount is disallowed.
Three points partners usually miss:
It is simple interest, and it needs the deed. Courts have repeatedly disallowed interest where the deed was silent, even when the payment was genuine and at market rate.
Netting applies. Where the partner also pays interest to the firm (on drawings, for instance), only the net excess paid by the firm to the partner is tested against the 12% ceiling.
Under presumptive taxation, there is no separate deduction. If the firm is on 44AD, the 8%/6% deemed income is final — partner remuneration and interest are deemed to have been allowed already. Claiming them again in the computation is a straight error.
AMT: The 18.5% Floor Under Your Deductions
Alternate Minimum Tax under section 115JC is the non-corporate cousin of MAT. It says: however many deductions you claim, your tax cannot fall below 18.5% of your adjusted total income (plus surcharge and cess).
Who it catches: any person other than a company — firms and LLPs included — that claims deductions under sections 80-IA to 80RRB (except 80P), section 10AA, or section 35AD (net of normal depreciation). For individuals, HUFs, AOPs, and BOIs there is a ₹20 lakh adjusted-total-income threshold below which AMT does not apply. For firms and LLPs, there is no threshold. Claim one of those deductions and the AMT computation applies to you, full stop.
How it works: compute tax under the normal provisions. Separately, compute adjusted total income — total income plus the specified deductions added back — and take 18.5% of it. Pay whichever is higher.
Worked example: when AMT bites
An LLP has taxable income of ₹40,00,000 under normal provisions, after claiming ₹50,00,000 of deductions under sections 80-IA and 35AD.
Adjusted total income = ₹40,00,000 + ₹50,00,000 = ₹90,00,000
Normal tax: 30% of ₹40,00,000 = ₹12,00,000, plus 4% cess = ₹48,000 → ₹12,48,000
AMT: 18.5% of ₹90,00,000 = ₹16,65,000, plus 4% cess = ₹66,600 → ₹17,31,600
Payable: ₹17,31,600. The firm pays nearly ₹4.84 lakh more than its normal-provision tax.
That extra ₹4,83,600 is not lost. It becomes AMT credit under section 115JD, carry-forwardable for 15 successive assessment years and set off in any year the normal tax exceeds AMT. Track it year by year — unutilised credit lapses, and reconstructing a 15-year trail during assessment is nobody’s idea of fun.
Compliance most firms miss: where AMT applies, a Form 29C report from a chartered accountant must be furnished before filing — the return asks for it.
One relief: AMT does not apply to a person who has opted for the new regime under section 115BAC — but as established above, firms and LLPs cannot opt for 115BAC anyway. For an AOP or BOI filing ITR-5 that *has* opted for the new regime, the AMT provisions stand switched off.
Audit Triggers: Section 44AB Thresholds
For AY 2026-27, the tax audit thresholds are:
Business: turnover exceeding ₹1 crore. The threshold rises to ₹10 crore only if *both* cash receipts and cash payments are each 5% or less of the respective totals. Both conditions, not either. Non-account-payee cheques and drafts count as cash.
Profession: gross receipts exceeding ₹50 lakh. There is no enhanced cash-light threshold for professions.
44AB(d): a professional who declares income below 50% of gross receipts under 44ADA, where total income exceeds the basic exemption limit.
44AB(e): the 44AD(4) lock-in case — a firm that opted for presumptive taxation earlier, opts out within five years, and has total income above the basic exemption limit.
What audit means for the return: the audit report (Form 3CA or 3CB with 3CD) must be furnished before the return. For AY 2026-27, the specified date for the audit report is 21 October 2026 (extended from 30 September by CBDT press release dated 28 September 2026). Missing the audit altogether invites penalty under section 271B: 0.5% of turnover or gross receipts, capped at ₹1,50,000.
Presumptive ceilings for reference: 44AD covers turnover up to ₹2 crore (₹3 crore where cash receipts do not exceed 5% of turnover), with deemed income of 8% of turnover — 6% for amounts received through banking channels. 44ADA covers specified professions with gross receipts up to ₹50 lakh (₹75 lakh where cash receipts do not exceed 5%), at 50% deemed income. A firm on 44AD/44ADA pays its advance tax in a single instalment — 100% by 15 March — instead of quarterly.
Documents and Information You Will Need
ITR-5 is annexure-less — nothing is attached to the return. But “nothing attached” does not mean “nothing needed.” Keep ready:
Entity and identity: firm/LLP PAN, partnership deed (registered and current, with all amendments), LLP agreement, certificates of registration, PAN and Aadhaar of all partners, profit-sharing ratios, details of any change in constitution during the year.
Accounts: trial balance, profit and loss account, balance sheet, depreciation chart as per section 32, partner capital and current account ledgers, loan statements, stock records where applicable.
For the 40(b) computation: the deed’s remuneration clause, month-wise salary/bonus/commission paid to each working partner, interest credited on capital, drawings and interest charged thereon.
Tax records: Form 16A TDS certificates with 26AS/AIS/TIS reconciliation, advance and self-assessment tax challans, GST returns for turnover cross-checks, brought-forward losses and unabsorbed depreciation with assessment years, and AMT credit brought forward with a year-wise breakup.
If audited: the signed Form 3CA/3CB-3CD, and Form 29C if AMT applies.
Filing ITR-5, Step by Step
Step 1 — Close the books and fix the deed. Before any computation, confirm the partnership deed on record authorises the remuneration and interest actually paid, for the full year. Amendments made now cannot validate payments already made without authority. Run the 40(b) computation on provisional numbers.
Step 2 — Compute book profit and total income. Arrive at book profit per Explanation 3 to section 40(b). Apply the ceiling. Add back the excess remuneration and any interest above 12%. Claim depreciation, brought-forward losses, and Chapter VI-A deductions.
Step 3 — Test AMT. If the firm claimed any of the specified deductions (80-IA to 80RRB except 80P, 10AA, 35AD), compute adjusted total income and the 18.5% floor. Obtain Form 29C from your CA where applicable.
Step 4 — Complete the audit, if triggered. Get the 3CA/3CB-3CD signed and uploaded by 21 October 2026 for AY 2026-27. The ITR cannot be filed before the audit report where audit applies.
Step 5 — Prepare the return offline. Download the ITR-5 utility (Excel or JSON) for the relevant assessment year from the e-filing portal. Fill the schedules: partner information with PANs and profit shares, P&L and balance sheet figures, depreciation, deductions, TDS/TCS claims, and tax computation. Validate — the utility catches arithmetic errors, not legal ones.
Step 6 — File and verify. Upload the JSON on incometax.gov.in. Firms liable to audit under section 44AB must file with a digital signature; others may verify via Aadhaar OTP or EVC. E-verify within 30 days of filing — an unverified return is treated as not filed.
Step 7 — Pay and reconcile. Pay any self-assessment tax before filing to stop interest under sections 234B and 234C from running. After processing, reconcile the intimation under section 143(1) with your computation — especially TDS credits and AMT credit carried forward.
Common Mistakes (and What They Cost)
Claiming section 11 exemption in ITR-5. A trust that wants charitable exemption belongs in ITR-7. Putting the exemption claim inside an ITR-5 computation does not make it available — it makes the return defective.
Wrong partner PAN mapping. The ITR-5 schedule requires each partner’s PAN and profit share. A transposed digit means the partner’s own return cannot link the salary income, and the firm gets a mismatch notice. Cross-check PANs against the deed, not against last year’s return.
AMT credit confusion. Firms compute AMT, pay it, and then forget to carry the credit forward — or carry it forward without the year-wise trail. The credit is real money (15 years of set-off), but only if the records survive.
Remuneration to non-working partners. The deed names them, the firm pays them, the deduction is zero. Every rupee is added back.
Interest above 12% or without deed authority. Same result — added back, taxed at 30% plus cess in the firm’s hands.
Double-claiming under 44AD. A firm on presumptive taxation that also deducts partner salary and interest in its computation. The deemed 8%/6% already includes those. The assessing officer will disallow the separate claim.
Filing ITR-4 when the firm crossed ₹50 lakh. The ITR-4 ceiling is total income, not turnover. A firm with ₹1.8 crore turnover and ₹55 lakh income on presumptive basis cannot use ITR-4 — it files ITR-5.
Forgetting that salary is taxable for the partner. Partners sometimes treat the entire firm payout as exempt “share of profit.” Only the profit share is exempt under section 10(2A). Salary, bonus, commission, and interest from the firm are taxable as business income in the partner’s own return.
How a Professional Helps — and What We Will Not Promise
A good filing engagement for a firm covers: deed review against actual payments, the 40(b) computation with documentation, book-profit reconciliation, AMT testing with Form 29C coordination, audit-report linkage where 44AB applies, loss and credit carry-forward registers, e-filing with DSC, and a post-filing reconciliation of the 143(1) intimation. That is the work. It is methodical, and it is where the tax gets saved — usually in February, when there is still time to correct course.
What we will not promise: no guaranteed refund of any amount — refunds follow from the computation, not from our wishes. We will not create or backdate a partnership deed to validate payments already made. We will not advise suppressing turnover or routing receipts outside the books. And we will not tell you the 40(b) limits are “flexible” — they are statutory ceilings, and the assessing officer enforces them.
Sources
Income Tax Department — ITR-5 Excel utility release for AY 2026-27 and eligible filers: https://www.businesstoday.in/personal-finance/tax/story/income-tax-department-releases-itr-5-excel-utility-for-ay-2026-27-heres-who-can-file-and-who-cannot-541711-2026-07-08
ITR-5 online filing enablement and eligible categories: https://economictimes.indiatimes.com/wealth/tax/itr-5-and-itr-7-forms-enabled-for-online-filing-who-should-file-these-income-tax-forms-what-are-their-deadlines/articleshow/124041864.cms
ITR-5 Excel utility for AY 2026-27 (released 7 July 2026): https://tradebrains.in/money/income-tax-department-releases-itr-5-excel-utility-for-ay-2026-27-check-who-can-file-and-how-to-download/
ITR-5 form details, DSC requirement for audited firms, annexure-less filing: https://www.moneycontrol.com/news/business/personal-finance/itr-5-form-filing-how-to-download-and-fill-the-form-online-pf5-4215391.html
ITR-5 eligibility and restrictions: https://www.indiafilings.com/itr-5-form
Section 40(b) deduction conditions and limits: https://www.teachoo.com/257/70/Section-40(b)-Deduction-for-Salary-and-Interest/category/Partnership-Business-Income/
Section 40(b) limits and consequences of breach: http://caclubindia.com/forum/partner-remuneration-beyond-40-b-limits-612547.asp
ITAT Mumbai on book-profit computation under 40(b)(v) (2026): https://taxguru.in/income-tax/section-50-deeming-fiction-cannot-reduce-book-profit-section-40-itat-mumbai.html
Firm tax rate, surcharge, and 40(b) treatment: https://www.wintwealth.com/blog/a-guide-for-partnership-firm-tax-rate/
Surcharge rates for firms, LLPs, companies, AOPs: https://www.buddyloan.com/income-tax-slabs
LLP tax rate and AMT: https://www.legalkart.com/legal-blog/income-tax-rate-for-llp---know-the-various-details
AMT under section 115JC — rate, adjusted total income, credit: https://www.incometaxmanagement.com/Direct-Taxes/AY-2021-22/assessment/6-alternate-minimum-tax-amt.html
AMT rate 18.5%, Form 29C, section 115JD credit: https://thelegalqna.com/section-115jc-of-the-income-tax-act-alternate-minimum-tax/
AMT applicability conditions and computation: https://finodha.in/amt-alternative-minimum-tax-under-section-115jc/?query-0-page=3&cst
AMT thresholds for AY 2026-27 (18.5%; 9% IFSC; 15% co-operative societies): https://www.caalley.com/cas-referencer/various-threshold-limits-under-the-income-tax-act-for-ay-2026-27
MAT/AMT under the Income-tax Act, 2025 (section 206): https://aicas.in/9th-Direct-Tax-Workshop/ppt/9DTW-Day-4/Session-XXII-CA-Rajat-Jain-SSKM-ITA-2025-Analysis-of-MAT-and-AMT.pdf
Forms 3CA/3CB/3CD FAQs AY 2026-27: https://taxguru.in/income-tax/forms-3ca-3cb-3cd-faqs-ay-2026-27.html
CBDT extension of audit and ITR dates AY 2026-27 (press release 28.09.2026): https://www.business-standard.com/finance/news/i-t-dept-extends-corporate-tax-audit-itr-filing-deadlines-by-three-weeks-126092800954_1.html
CBDT extension — scope and 271B penalty: https://taxguru.in/income-tax/tax-audit-report-deadline-extended-21-october-2026-cbdt-relief-explained.html
115BAC coverage — firms and LLPs excluded: https://www.caclubindia.com/forum/opting-the-tax-regime-607113.asp
New regime under section 115BAC; firms not eligible: https://vakilsearch.com/blog/section-115bac-of-income-tax-act/
Section 115BAC detailed analysis — no concessional rates for firms/LLPs: https://taxguru.in/income-tax/detailed-analysis-tax-regime-section-115bac-115baa-115bad.html
ICAI — assessment of firms, 115BAC scope: https://resource.cdn.icai.org/88276bos-aps2299-m2-ch9.pdf
Late filing fee 234F and consequences: https://www.corpzo.com/decoding-the-latest-amendments-to-the-income-tax-act-1961-what-you-need-to-know-for-fy-202526
New regime under 2025 Act (section 202) and presumptive consolidation (section 58): https://www.taxtmi.com/news?id=71702
271B equivalent under 2025 Act (Clause 446): https://www.taxtmi.com/highlights?id=90794
TDS section mapping under 2025 Act (effective 01-04-2026): https://www.caclubindia.com/articles/old-vs-new-tds-sections-mapping-under-income-tax-act-2025-complete-guide-for-fy-202627-55160.asp
FAQ
Frequently asked questions
25 answers from our consultants.
You pay for our expert's time — document checking, filing, follow-ups — not the government. The government fee goes to the government; our fee is for the work we do so you don't have to figure it out yourself.
No — a partnership firm is taxed as a separate entity at a flat rate, and partners are taxed on remuneration and interest received. We make sure the two returns don't contradict each other.
Only within the limits in your partnership deed and the statutory caps — excess remuneration is disallowed as a firm expense. We check your deed before computing.
Typically July 31 if no audit is required, typically October 31 if a tax audit applies. We confirm based on your case and manage the sequence.
A firm is generally taxed at a flat rate on its total income, plus applicable surcharge and cess. Share the numbers and we will compute it exactly.
Quote-based, depending on books, audit applicability, and partner count. Request a quote.
LLP partners don't pay personal income tax on the LLP's profits, but the LLP itself files ITR-5. Partner remuneration and interest are taxable in their hands under ITR-3.
Depends on your income sources. Salary + one house + other income: ITR-1. Business or profession: ITR-3 or ITR-4 (presumptive). Companies: ITR-6. Filing the wrong form gets your return marked defective — we pick the right one.
Belated returns attract a fee (Rs.5,000, or Rs.1,000 if income is below Rs.5 lakh), you lose the right to carry forward most losses, and interest accrues under Sections 234A/B/C. File on time — it's free to be punctual.
In a belated return, most Chapter VI-A deductions (80C, 80D etc.) are not allowed. That's real money left on the table. Another reason the deadline matters.
ITR-4, provided yours is a partnership firm and not an LLP, and the income is computed on presumptive basis. Cross ₹50 lakh of total income and you move to ITR-5.
ITR-5 — LLPs are expressly excluded from ITR-4, even when computing income on presumptive basis.
Yes — to working partners, if the deed authorises it and states the amount or computation method. The deduction is capped by section 40(b). What the firm cannot do is pay a sleeping partner and claim it.
No. Courts and the CBDT require the deed to specify the amount or a clear computation method. A bare reference to the section has been held insufficient. Amend the deed with an actual formula.
It is disallowed and added back to the firm’s income. Only up to 12% per annum is deductible, and only if the deed authorises interest.
No. Section 115BAC does not cover partnership firms or LLPs. Your firm pays 30% flat. Regime planning is for the partners’ individual returns, not the firm’s.
Almost certainly the computation applies — firms have no ₹20 lakh threshold. Work out 18.5% of adjusted total income, compare with normal tax, pay the higher, and carry the difference as AMT credit for 15 years. Get Form 29C from your CA.
Firms not liable to tax audit: 31 August 2026. Firms liable to audit: the audit report by 21 October 2026 and the return by 21 November 2026, per the CBDT press release of 28 September 2026.
Fee under section 234F — ₹5,000, or ₹1,000 if total income does not exceed ₹5 lakh — plus interest under sections 234A, 234B, and 234C. You also lose the right to carry forward business losses (though unabsorbed depreciation and brought-forward losses survive).
Yes, under section 10(2A) — the firm has already paid tax on it. But salary, bonus, commission, and interest received from the firm are taxable in the partner’s hands as business income. Do not conflate the two.
Yes — section 184 requires the firm to furnish a certified copy of the revised partnership deed along with the return for that year. Miss it and the firm can be assessed as if no deduction for partner payments is allowable at all.
Yes, under section 139(5) — before the assessment year ends or assessment completes, whichever is earlier. But revision cannot fix a missing audit report or an unauthorised deed.
If the firm’s accounts are liable to audit under section 44AB, yes — DSC filing is mandatory. Other firms may e-verify through Aadhaar OTP or EVC.
Yes. The ceiling applies to aggregate remuneration to all working partners — one or five. With a single working partner, the full ceiling is available to that partner alone.
From AY 2027-28, yes. Confirmed mappings: 44AB → section 63, 44AD/44ADA/44AE → a consolidated section 58, and the new regime (115BAC) → section 202. AY 2026-27 filings stay on 1961 Act numbering. The new numbers for 40(b) and 115JC are not yet verified against the enacted text — do not rely on them yet.
What clients say about working with us
Real stories from businesses we've worked with.
Trademark Registration“
Our Trademark was applied in all the classes with a short span of time by Complykart Trademark Experts and I can say the level of expertise and commitment they carry is remarkable. It's an A+ from my side. We are now sticking to ComplyKart only.
Company Registration“
I found the professionalism of the staff at complykart.com, a pleasure to work with. As a foreigner to India, they took the time to explain the documentation and assisted in every question I raised. I was pleased that complykart.com made it easy for my Business.
Merger & Acquisition“
Trust, Commitment, Dedication and responsiveness are the best things with ComplyKart. Thanks for handling our Merger assignment with so much care. After my business disputes, complykart handles all things with own sense of understanding.
