What is the Process of Filing Income ITR of LLP?
Step – 1: Prepare Statement of accounts for the LLP”
- Preliminary Expenses
- TDS on payments of the LLP
- Consider the provisions of GST on LLP (if applicable)
- Partners remuneration (Special Treatment)
- Professional tax Payment of LLP (if applicable)
- Consider good practices of Tax Planning.
Step – 2: Income Tax Computation”
Step – 3: Check for expense disallowance under Income Tax Act/Rules”
- The preliminary expenses are allowed only up to 1% of capital employed in the LLP
- All payouts are disallowed as expenses if required TDS is not deducted.
- Penalty on delayed tax payments like TDS, GST, etc is not allowed
- Partners Salary is limited to 90% of the profit up to 3 Lakh or 60% after that.
- Please check the LLP Agreement for the provision of partner remuneration.
- Consult our specialist CA for further assistance.
Step – 4: Payment of Income Tax of the LLP”
Step – 5: Create a profile of the LLP on the Income Tax Portal for Filing Returns.”
Step – 6: Filing of Income Tax Return for Your LLP”
Note – 1: Due Date of filing LLP Income Tax Return
- ITR filing for the LLP has begun since 1st April.
- The Last Date is 31st July
- In the case of Tax Audit, the Last Date is 30th September. Tax audit is applicable if the annual turnover has crossed Rs.40 lakhs, or if the capital contribution has crossed Rs.25 lakhs in the concerned financial year
- In case, the LLP has carried out international transactions or certain Specified Domestic Transactions and has to file Form 3CEB, the last date is 30th November
- The applicable form is ITR-5
- Belated ITR can be filed until the end of the assessment year.
Note – 2: Consequences of Not Filing LLP ITR
- The loss of the LLP can be allowed to be carried forward
- There shall be interest under section 234A
- Refunds of TDS (if any) shall be delayed
- You can still file late returns with late Fine under section 234F
- The late fine is from Rs. 1000 to Rs. 1000 depending on taxable income and delay
- Non-filing shall have an impact on due diligence of the LLP