Partnership Firm Dissolution
Close a partnership firm with settlement of accounts and tax
- 1AgreeDissolution terms and distribution agreed.
- 2ExecuteDeed signed and notices given.
- 3CloseRegistrations cancelled and final return filed.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Partnership Firm Dissolution
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A partnership firm is dissolved by agreement of all partners, by notice in a partnership at will, or on events such as insolvency or court order under the Indian Partnership Act, 1932. The partners execute a dissolution deed, settle accounts under Section 48, give notice to the Registrar of Firms and the public, cancel GST and file a final ITR-5. Assets distributed to partners are taxed in the firm's hands at fair market value under Section 9B.
Since the Finance Act 2021, when a firm distributes a capital asset or stock to a partner on dissolution, the firm is treated as having sold it at fair market value (Section 9B). That can create a tax bill even though no cash changed hands, so the distribution plan should be priced before the deed is signed.
A public notice of dissolution protects partners from liability for acts done in the firm's name afterwards. We draft the deed, compute the settlement and tax, cancel registrations and file the final returns.
| Law | Sections 39–55, Indian Partnership Act 1932 |
|---|---|
| Settlement | Section 48 order of payments |
| Tax on distribution | Section 9B — firm taxed at FMV |
| Notices | Registrar of Firms and public notice |
| Final steps | GST cancellation, final ITR-5 |
Who this is for
Common scenarios where this service is a good fit.
- Partners ending their business
- Firms converting into another form through closure
- Firms after the death or retirement of partners
What you get
Clear deliverables so you know exactly what's included.
- Dissolution deed
- Settlement of accounts and tax computation
- Registrar of Firms and public notices
- GST cancellation and final ITR
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Dissolution terms and distribution agreed.
Deed signed and notices given.
Registrations cancelled and final return filed.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
This page also covers
- Retirement of a partner
- Reconstitution and Section 45(4) tax.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
