Partnership deed not registered

This query is : Resolved

Deepti (Querist)
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19 September 2014 My Client started his partnership business in Oct 2013.But the Partnership deed was registered after March 31,2014.

Can we file the return for FY 2013-14 for the Partnership firm?

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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19 September 2014 Of course you can file ITR of the firm for the FY 2013-14. It is not mandatory for partnership firm to be registered for ITR filing.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 September 2014 Income tax return filing is mandatory but partnership firm registration with Inspector General of Registration under the Partnership Act,1932 is optional.

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Deepti

Deepti (Querist)
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20 September 2014 The Client has not even written the partnership deed.
The agreement was oral.

whether we can provide for remuneration and interest to partners?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 September 2014 There should be an 'instrument of partnership' to claim remuneration and interest on capital. Inference is from sections 184(1)(i) and 40(b)(ii) of the Income tax Act,1961.

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