Income Tax Audit for New Partnership Firm

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A new partnership firm, established in October 2024 and registered for GST in December 2024, anticipates nil sales for the 2024-25 financial year. The firm has incurred expenses and acquired fixed assets, leading to potential losses from depreciation. This discussion clarifies whether Income Tax Return filing is mandatory for such a firm and, if so, whether a tax audit is also required, especially considering the anticipated financial loss.

Ashish Gupta

Ashish Gupta (Querist)
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11 February 2025 My client has started business of pharmaceuticals under Partnership Firm. They started the business on October 2024. In December 2024 they got the GST Registration.

They bought some materials & some fixed assets. But they do not have any sale till now & according to them this FY (2024-25) their sale will be NIL.

Is ITR filling is mandatory & if yes is audit required as they have loss arise due to depreciation on Fixed Asset & some expenses to run the business.