The accounting of the LLP is the first step towards the preparation of the financial statements of the LLP. You should be careful and must comply with the provisions of the Income Tax Act, 1961. In particular, the following items require special attention while finalizing the accounts of the LLP.
The computation of taxable income is the most important step in filing an ITR for the LLP. The correctness of the financial statements is very important while doing Tax Computation for your LLP. The income tax laws treat certain expenses differently, and if the expenses do not qualify the law, these are disallowed as an expense and thus increases the taxable income.
Well, as said earlier the income tax department recognizes a particular payout as the expense of the LLP only if it follows the rules. Here is an example of common tax disallowances and the reasons relating to the ITR of LLP
The Income Tax Return for the LLP can be filed only after payment of self-assessment tax. The LLP ITR can be filed with the use of the digital signature of any designated partner. However, the LLP ITR Can also be verified by way of Aadhar Based OTP of the partner who has been registered on the income tax portal