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Is it compulsory to file it return of a partnership firm

Vivek Agrawal (GST Practitioner) (181 Points)

14 December 2016

My partnership firm was formed in 2010-11 and still have not started its business. Hence there is nil income however partners have introduced some capital.

Is it compulsory to file income tax return even if the income is nil

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6 Replies

VINAY BHARGAV KUMAR G (Chartered Accountant) (221 Points)
Replied 14 December 2016

It is mandatory for a firm to file Income Tax return

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Sanjay S (Chartered Accountant) (1375 Points)
Replied 14 December 2016

Yes. Section 139(1) of Income Tax Act, 1961 makes it mandatory for Partnership Firms & Companies to file Return of Income regardless of the level of income earned.

FCA surbhi jain (FCA) (897 Points)
Replied 15 December 2016

Yes.. it is mandatory to file income tax return for a partnership firm even you have a nil incone.

CA.AZAD JAIN (CA) (201 Points)
Replied 29 May 2018

WHERE IS IT WRITTEN IN THE INCOME TAX ACT THAT FILING NIL RETURN IS COMPULSORY FOR PARTNERSHIP FIRM ?

SECTION 139(1)(a) OF IT ACT 1961 READS THAT "A COMPANY/FIRM IS REQUIRED TO SUBMIT ITS RETURN OF INCOME (REGARDLESS OF THE QUANTUM OF INCOME OR LOSS)"

WHAT I UNDERSTOOD FROM ABOVE IS THAT THE ACT SUGGESTS ONLY ABOUT FILING OF RETURN OF INCOME REGARDLESS OF THE QUANTUM OF INCOME OR LOSS. SO WHAT ABOUT THE REURN HAVING NO INCOME OR LOSS???