The Income Tax Department has issued an advisory highlighting several recurring errors found in the income tax filings of partnership firms, urging tax professionals and firm partners to exercise greater diligence during the assessment process. The notice follows a pattern of mismatches and omissions observed during recent scrutiny and compliance reviews of business returns filed under the Income Tax Act, 1961.

According to the department, one of the most common mistakes involves the incorrect reporting of profit-sharing ratios among partners. In many cases, the ratio mentioned in the return does not match the Partnership Deed or Udyam registration records. Such discrepancies often lead to unnecessary scrutiny and delay in processing returns.

Another frequently flagged issue is the failure to attach or update the Partnership Deed while filing the first return or during changes in partnership constitution. The department reiterated that a valid, date-stamped Partnership Deed must accompany the return in such cases to validate the firm’s structure and partner remuneration.

Officials also pointed to the inaccurate computation of allowable remuneration and interest to partners, which are subject to limits specified under Section 40(b) of the Income Tax Act. Many firms were found to claim excessive partner salaries or interest payments that exceed the legally permitted thresholds.

Additional errors include mismatched PAN details, incorrect business codes, and missing balance sheet or profit and loss statements in cases where audit is applicable. These mistakes can result in notices under Section 139(9) for defective returns or even penal provisions under Section 271B for audit non-compliance.

The department has advised tax filers to cross-verify all entries, update documents where needed, and ensure alignment with the firm’s legal records. The advisory is intended to reduce compliance risks and improve the efficiency of return processing for partnership entities.