In a move set to simplify tax compliance for small businesses, the Income Tax Department has upgraded its official e-filing portal to provide enhanced support for Partnership Firm Income Tax Returns (ITRs). The update comes ahead of the new assessment year and is aimed at easing the filing process for the growing number of registered partnership entities in India.

According to a statement by the Central Board of Direct Taxes (CBDT), the portal now includes a streamlined interface for ITR Form 5, which is used by partnership firms, LLPs, and Association of Persons (AOPs). The updated system offers pre-filled data, automated validation checks, integrated TAN-PAN verification, and simplified navigation, making return filing more user-friendly and time-efficient.

Previously, many partnership firms had to rely on third-party software or tax professionals to navigate the complex filing process. With the portal’s enhanced functionality, even firms with modest accounting resources can file returns directly, reducing compliance costs and turnaround time.

“The update is particularly beneficial for small and medium-sized firms with minimal statutory support,” said Renu Sharma, a tax advisor based in Delhi. “It allows firms to review and file returns without extensive back-and-forth, and it ensures better data consistency through integration with GST and TDS systems.”

The Income Tax Department has also released a set of updated guides and help videos to assist users in understanding depreciation schedules, partner remuneration limits under Section 40(b), and disclosure requirements. Firms can also now upload supporting documents, receive real-time notifications, and access error summaries for corrections before submission.

The new system is part of the government’s broader push to digitize tax administration and improve voluntary compliance in the business segment, especially for partnership-based enterprises that form a substantial portion of India’s MSME sector.

Taxpayers are encouraged to review their financials early and make use of the updated system well before the due dates to avoid penalties and ensure smooth processing.