#ITRforPartnershipFirm/LLP

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ITR for Partnership Firm/LLP

ITR for Partnership Firm/LLP  5/5 Choose Option Choose an option ITR-4 (SUGAM) ITR-5 Clear Add to Cart Firm 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: 1) “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". 2) 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. ITR-4 (SUGAM) Who is eligible to use this Return Form? This Return Form is to be used by an individual or HUF, who is resident other than not ordinarily resident, or a Firm (other than LLP) which is a resident, whose total income for the assessment year 2020 21 does not exceed Rs.50 lakh and who has income under the following heads:- - 1) Income from business where such income is computed on presumptive basis under Section 44AD (i.e. Gross Turnover upto Rs. 2 crore) or Section 44AE (income from goods carriage upto ten vehicles); or - 2) Income from Profession where such income is computed on presumptive basis under Section 44ADA (i.e. Gross receipt upto Rs. 50 lakh); or - 3) Income from Salary/Pension; or - 4) Income from One House Property; or - 5) Interest income and / or income from family pension taxable under Other Sources.   Note 1: The income computed on presumptive basis under sections 44AD or 44AE or 44ADA shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income-tax Act. However, person having loss after giving effect to proviso to sub-section 3 of Section 44AE shall file ITR5 Note 2: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories. Who is not eligible to use this Return Form (A) This Return Form should not be used by a person who– - i) is a Director in a company; - ii) has held any unlisted equity shares at any time during the previous year; - iii) has any asset (including financial interest in any entity) located outside India - iv) has signing authority in any account located outside India; or - v) has income from any source outside India. - vi) has deferred tax on ESOP received from employer being an eligible start-up.   (B) This return form also cannot be used by a person who has any income of the following nature during the previous year:- - i) Profits and gains from business and professions which is not required to be computed u/s 44AD, 44ADA or 44AE, such as income from speculative business, agency business, commission or brokerage income etc - ii) Capital gains; - iii) Income from more than one house property; - iv) Income under the head other sources which is of following nature:- (a) winnings from lottery; (b) activity of owning and maintaining race horses; (c) income taxable at special rates under section 115BBE; Income to be apportioned in accordance with provisions of section 5A; or Agricultural income in excess of ₹5,000.   (C) Further, this return form also cannot be used by a person who has any claims of loss/deductions/relief/tax credit etc. of the following nature:- - i) any brought forward loss or loss to be carried forward under any head of income; - ii) loss under the head ‘Income from other sources’; - iii) any claim of relief under section 90, 90A or section 91; - iv) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or - v) any claim of credit of tax deducted at source in the hands of any other person. SUGAM form is not mandatory Form ITR-4 (Sugam) 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 and profession on presumptive basis under section 44AD, 44ADA or 44AE. However, in case the assessee keeps and maintains all books of accounts and other documents referred to in section 44AA, and also gets his accounts audited and obtains an audit report as per section 44AB, filling up the Form ITR-4 (Sugam) is not mandatory. In such a case, other regular return forms viz. ITR-3 or ITR-5, as applicable, should be used and not this Form. Annexure-less Return Form No document (including TDS Certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. ITR-5 Who is eligible to use this Return Form? This Form can be used by 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),Primary Agricultural Credit Society, Co‐operative Bank other than a primary agricultural credit society or a primary co‐operative agricultural and rural development bank, Primary Co‐operative Agricultural and Rural Development bank, any other 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) , investments fund referred to in section 139(4F) and Any other AOP /BOI. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4D)shall not use this form. Forms Applicable FAQ What is Surcharge? Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates: 2% - Taxable income above ₹ 1 crore - Up to ₹ 10 crore 5% - Taxable above ₹10 crore What is Marginal Relief? Marginal Relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 1 crore and ₹ 10 crore respectively. What is Health and Education cess? Health and Education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).

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