IT FILING OF PARTNERSHIP FIRM

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This query is : Resolved

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A partnership firm established in 2017, which received a subsidy loan for factory construction and had partners invest significantly, has not filed income tax returns since its inception. The key concerns are potential issues arising from non-filing, especially regarding the invested capital, and whether the firm can claim interest paid to partners in the current financial year (2020-21). The discussion also touches upon the lack of sales and purchases, focusing solely on construction and machinery acquisition, and how to handle interest distribution when business operations haven't commenced.

raghavendra b

raghavendra b (Querist)

23 March 2021 DEAR SIR,

ONE OF MY CLIENT IS PARTNERSHIP FIRM YEAR OF FORM 2017. THEY HAVE AVAILED SUBSIDY LOAN FOR CONSTRUCTION OF FACTORY IN THE YEAR OF 2017-18. PARTNERS INVESTED 6,75000/- EACH . NOW MY QUESTION IS FROM THAT YEAR DID NOT FILED INCOME TAX RETURN. IS THERE ANY PROBLEM BECAUSE THEY HAVE INVESTED THE AMOUNT. CAN WE CLAIM LOSS OF INTEREST PAID TO PARTNERS FROM THE LAST FINANCIAL YEAR IN THIS FINANCIAL YEAR 2020-21 FILE INCOME TAX RETURNS. THERE IS NO SALES AND PURCHASES ONLY CONSTRUCTION OF BUILDING AND PURCHASE OF MACHINERIES. PLEASE SOLVE MY PROBLEM HOW TO FILE INCOME TAX RETURN CAN WE CLAIM THE INTEREST PAID TO PARTNERS.

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 March 2021 Section 119(2) (b) of the Income Tax Act, 1961.
File condonation application with CIT. After CIT approval file ITR online.

raghavendra b

raghavendra b (Querist)

24 March 2021 thank you sir,

There is no sales from last financial year now from this march 21 is going to start business is there no any income how to distribute the interest to the partners?

regards sir,

thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 March 2021 You can defer the interst payment.

raghavendra b

raghavendra b (Querist)

25 March 2021 THANK YOUR SIR,

REGARDS

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