income tax due date for partner in partnership firm

This query is : Resolved

nikita agarwal (Querist)
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30 July 2017 if a partnership firm falls under tax audit, will the due date of 30 Sept also be applicable to the active partner in the partnership firm

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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30 July 2017 yes 30th sep

nikita agarwal

nikita agarwal (Querist)
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30 July 2017 even if the partner doesn't get any remuneration from partnership firm?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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31 July 2024 Yes, if a partnership firm is subject to a tax audit under Section 44AB of the Income Tax Act, 1961, the due date for filing the return of income for the partners of such firm, whether they receive remuneration or not, is also extended to September 30th of the relevant assessment year.

Here’s why:

### Tax Audit and Due Dates
1. **Partnership Firm:** If a partnership firm is subject to a tax audit, its due date for filing the income tax return is September 30th.
2. **Partners:** The due date for filing the income tax return of partners of such a firm is also extended to September 30th. This is because the income from the partnership firm, which includes the share of profit (exempt under Section 10(2A)) and any remuneration, interest, or commission received from the firm (taxable as business income), must be included in the partner’s return.

### Relevant Provisions:
- **Section 139(1):** This section of the Income Tax Act specifies the due dates for filing returns. It states that if the accounts of the assessee are required to be audited under any law, the due date is September 30th.
- **CBDT Circulars and Notifications:** Circulars and notifications from the Central Board of Direct Taxes (CBDT) have consistently clarified that the due date for filing the return of income for partners of a firm whose accounts are required to be audited is September 30th.

### Practical Implications:
- **Active Partner:** Whether an active partner receives remuneration or not from the partnership firm, their income tax return due date aligns with the firm’s due date if the firm is under a tax audit.
- **Non-Remunerated Partner:** Even if the partner does not receive any remuneration, the due date for filing their income tax return remains September 30th because their share of profit from the firm needs to be reported, and the due date aligns with the firm's audited accounts.

### Example Scenario:
- **Partnership Firm XYZ:** Subject to tax audit, due date for filing return: September 30th.
- **Partner A:** Does not receive any remuneration from the firm.
- **Partner A’s Due Date:** September 30th, because Partner A’s share of profit from the firm must be included in their return, and the firm’s accounts are subject to audit.

### Conclusion:
Thus, if a partnership firm is subject to a tax audit, the due date for filing the income tax return for all partners, regardless of whether they receive remuneration from the firm, is September 30th of the relevant assessment year.