In India, partnerships are taxed as pass-through entities, meaning that the profits and losses of the partnership flow through to the individual partners and are taxed on their personal tax returns. Limited Liability Partnerships (LLPs) are also taxed similarly to partnerships, but with some additional rules and regulations.

For both partnerships and LLPs, the firm is required to file an annual return of income and pay taxes on its profits. However, partners are also required to pay tax on their share of the profits received from the partnership, even if the profits have not been distributed.

In terms of tax rates, the applicable tax rate for partnerships is the same as the rate for individuals, and depends on the amount of taxable income. LLPs, on the other hand, are taxed at 30% plus a surcharge and education cess, with the possibility of a lower rate if they meet certain conditions.

It is important to note that while partnerships and LLPs are taxed similarly in India, there are some key differences between the two in terms of formation, management, and liability. Therefore, it is advisable to seek professional tax advice when setting up either type of entity.