INCOME TAX · LLPS AND PARTNERSHIPS
Partnership Firm Tax: How Profits Are Calculated, Shared and Reported
A practical guide to firm-level tax, exempt profit shares, presumptive taxation and common partner-account mistakes.
By Vyapar Setu Online | LLPs and partnerships · 28 October 2026
Business Income Tax series · LLPs and partnerships · Article 15 of 27
Two partners may own a business equally, but that does not mean half its turnover goes straight into each partner’s tax return. The firm and its partners have separate tax computations.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
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