Patnership Firm Audit Mandatory.

Sir,

In patnership firm Sale Rs. 60 Lacs Net profit Rs. 20000/- Can we file ITR without Audit? or audit mandatory in this case. Which ITR form we need to file ?

Thank you.
Replies (5)
Quick Summary
This discussion clarifies whether a partnership firm with sales of £60 Lakhs and a net profit of £20,000 requires a tax audit. It explains that an audit is only mandatory if the firm opted out of Section 44AD in any of the preceding five years. The correct ITR form depends on whether Section 44AD is being used; otherwise, ITR 5 is applicable. The advice also covers how to handle filings when a business transitions from proprietorship to a partnership mid-year, emphasising that only partnership data should be used for the firm's ITR.

ITR 4 if filing under sec, 44AD IT act; otherwise ITR 5.

Tax audit mandatory only if opted out of sec. 44AD in any of precedding 5 years; otherwise no.

Sir, one more query Actually Earlier its proprietership from 1st april to 29 May 2023 work under proprietership. and from 1st June to 31 March 2024 Work under patnership firm so Sir, we need to prepare two balance sheet.
1 Balance Sheet ( Prop.) 1.04 to 31.05.23
2. Balance Sheet ( Patnership) 01.06 to 31.03.2024

For filing ITR of partnership firm consider only the data related to its PAN, not earlier one.

Thank you Sir,

You are welcome               

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details