Can a partnership firm claim depreciation on assets?

A: Yes, a partnership firm can claim depreciation on business assets under the income tax rules for firms, provided they are legally owned and actively used for business purposes throughout the financial year.

Do partners have to pay tax on their income separately?

A: Yes, while tax in a partnership firm applies at the firm level, partners must report their share of income tax on partnership firm earnings in their tax returns to comply with tax regulations properly.

Is TDS applicable to partnership firms?

A: Yes, the partnership firm taxation process requires firms to deduct TDS on payments like rent, professional fees, and salaries to employees and vendors to remain fully compliant with tax laws.

How does GST apply to partnership firms?

A: If the firm’s annual turnover exceeds the GST threshold, GST on partnership firms applies, requiring timely GST registration and regular return filing as per the prevailing government regulations.

What happens if a partnership firm fails to file tax returns?

A: Failure to file tax in a partnership firm on time results in penalties, interest on unpaid taxes, and potential legal consequences that could severely impact business operations and financial stability.