Company and partnership tax, worked out the same careful way.
The four moves you know from your own return, built for companies and partnerships. Quarterly instalments, capital allowances, partner shares. Every number explained.
- Individuals (IIT)Y/A 2025/2026 filing is open nowLive
- Companies (CIT)Resident companies up to Rs 500M turnoverPrivate beta
- Partnerships (PIT)Partner shares and capital accountsComing next
No launch dates yet. We open the beta in small cohorts and write to you when yours is ready.
How a partnership return flows.
A partnership is taxed in two places: once in its own return, and again, with credit, in each partner’s. Getting the hand-off right is the whole job.
- The partnership files its own returnIt works out divisible profit from the accounts and pays partnership tax on it. Partner salaries and interest on capital are added back first.Partnership return
- Each partner's share is allocatedBy the profit ratio in your deed, with capital account, current account and drawings effects worked out.Partner shares: 40 / 35 / 25
- Partners file their own returnsEach partner reports their share as income in their individual return, taxed at their own slab rates, with credit for partnership tax paid.Share → each partner's return
- Everything is reconciledWe tie the partnership return to every partner's return and flag mismatches before anyone submits.All partners reconciled
Divisible profit of Rs 6,000,000, shared by the deed's ratio. Pick a partner.
This Rs 2,400,000 goes into Partner A's own return as part of their income, taxed at their own slab rates, with their share of the partnership tax counted as already paid.
The four that catch people out.
These are where hand-made partnership returns usually go wrong. TaxWise spots them from your deed and your dates, and shows you the fix.
- Mid-year admission or retirementIncome is pro-rated up to and from the change date, capital accounts are adjusted and the rest is re-allocated.
- Salaried partnersA salary to a partner is not a deductible cost; it is a share of profit. We point this out whenever the deed mentions one.
- Losses bigger than a partner's stakeA partner's share of a loss is limited by their capital and current account balance. The rest stays in the partnership.
- Interest on capitalTreated as a share of profit, not an expense, and carried to that partner's own return as part of their share.
Straight answers, current for 2025/2026.
At two levels. The partnership pays partnership income tax on its divisible profit in its own return. Each partner then includes their share in their own return, with credit for the partnership tax already paid, so the same rupee is not taxed twice.
From the profit-sharing ratio in your partnership deed, adjusted for salaries to partners, interest on capital and each partner's capital account. TaxWise keeps the capital accounts and time-apportions the split whenever the ratio changes.
Profit is split by the ratio in force for each part of the year. A partner admitted in October shares only in the profit from October onwards. You enter the dates; TaxWise does the apportioning.
No. A partner's "salary" is an appropriation of profit, not a business cost, so it is added back and taxed as part of that partner's share. TaxWise treats it as an allocation so the numbers reconcile.
Not yet. The allocation engine is built and partnerships come next, after the company beta. We are not promising a date until we are sure. Leave your email below and we will write once, the day it opens.
General information, not tax advice for your partnership.
We'll email you the day partnerships open.
One short email. No newsletter. No date promised until we're sure.