I was an employee till August of the FY 2022-23. Then i started a partnership firm along with my friend in Jan 2023. I switched to partner from employee in the same FY. What ITR should i file.
Also, We did not register the partnership firm, but having business PAN in the name of the firm. What ITR to use for my business pan. Please advise.
26 July 2023
Thank you for the valuable response, sir. Our company Turn over is less than 3 lakhs. If we go by ITR 4, U/S 44AD, we are not liable to pay any taxes. Does the filing for my business PAN is still mandatory?
26 July 2023
Partnership firm can file ITR 4 u/s. 44AD for eligible business and tax liability over 3 lakhs turnover i.e minimum profit of 24.000/- will be calculated at 30% rate + surcharge. Filing ITR for partnership firm is always mandatory.
26 July 2023
Thank you again, sir. Just to be clear, The total turn over of our firm on this FY2022-23 is just 1,53,552/- which is a digital transaction we received on our current account. (Other than that Myself deposited 5 lakhs from my savings as an investment. I believe that was not accounted as Turnover)
In this case the turn over is less than the minimum turn over you mentioned (3,00,000/-). Can I still go with the ITR-4 U/S 44AD and file zero tax there
26 July 2023
For partnership firm even one rupee income is taxable. There is no exemption limit for partnership firm... So even on Turnover of Rs. 1,53,552 calculate minimum 6 % as profit and pay 30% tax over it.
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