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Every year a LLP is required to file an annual return in Form 11 to the registrar of LLP within 60 days of closure of financial year i.e before 30th May immediately falling after the respective financial year.

The Form-11 needs to be certified by at least two DP, however in case, turnover of LLP exceeds 5 crore or the contribution of LLP is 50 lakh then such annual return needs to certified by a practicing company secretary.

The statutory filing fees prescribed is INR 50 which is paid online after uploading the e-form 11 to the MCA portal.

Any contravention of the timeline in filing/ non-filing as such is a punishable offence with a penalty on the LLP which shall not be less than 25k, however it may extend to 5 lakh and each DP is further punishable with a fine which shall not be less than 10k but may extend to 1 lakh.

In case a LLP does not file Form 11 for 5 consecutive years then it is a fit case where LLP may be wound off.

The annual return (Form-11) shall contain following item:
General info. With respect to LLP, period upto which annual return is being filed, start date of F.Y for which annual return is lieu filed, LLLIN, Name of LLP, Registered address of LLP, email id of LLP, any other place of LLP reported to ROC, Business classification, principal business activity of the LLP.
Information relating to the number of DP, total number of changes partner, total contribution by partner and contribution received by partners.
details of individual as partner and details of Body corporate as partners.
Summary of DP/Partners as on 31st March of the respective financial year/ for the period for which annual return is being filed.
Details of Penalty imposed on LLP/DP/Partner under LLP Act and rules.
Details pertaining to compounding of offenses, if any.
A statement/ disclosure whether turnover of LLP exceeds 5cr or not.
Attachment showing details of LLP and its partners. Meaning of financial year:
in relation to an LLP, the first financial year shall be a per.
For the LLP incorporated before september, the first F.Y shall be a period from Date of Incorporation to the current. Financial year i.e (April-March)
in case LLP is incorporated after september, first financial year shall be beginning from Date of Incorporation and ending with 31st March of the next financial year.

E.g, : If LLP is incorporated on 15/10/2015 then first F.Y shall be the period starting from 15/10/2015 to 31/01/2016.

A statement/ disclosure whether turnover of LLP exceeds 5cr or not.

Non-Filing of Form-11 - Taxation

For the Purpose of Income tax, all the provisions applicable to partnership also applies to LLP, LLP is a distinct and separate entity as per Income tax Act, 1961 and assessed separately from its partners.

The Income tax, Act provides separate provisions for computation distribution of income of the LLP and its partners. Therefore, different provisions are made under law.

Following are the important points where expenses are not deductible:-
Any payment of salary/ bonus/ commission or remuneration by whatever name called to any partner who is not a working partner.
Any payment of remuneration who is a working partner but which is not authorised by the LLP agreement / not in accordance with the terms of agreement.
A sum paid as interest to any partners, if not authorized by LLP agreement or not paid in accordance with the LLP agreement.
Remuneration paid to the partners in excess of the amount calculated as under:-
on the first 3,00,000 of Book profit / in case of loss – INR 1,50,000 or @ 90% book profit whichever is higher. -
On balance of book profit @ 60%

However to qualify for the above limit of partner's remuneration, following conditions must be fulfilled:-

LLP agreement must contain a specific clause for allowance of provision of remuneration to its partners.

LLP agreement should contain specific names of the working partner for the affairs of its operations who could be eligible for the remuneration on LLP.

Remuneration should be in accordance to the terms mentioned in the LLP agreement.

Remuneration should be relevant to the period falling after the date of agreement, in other words of it cannot be with any retrospective date.

The aggregate remuneration payable to all working partners should not exceed the outer limit as specified earlier.

LLP agreement should contain specific clause for payment towards interest on capital.

Maximum rate of interest allowed is specified @ 12% p.a. Due date for filing Income Tax return is 31st July falling after the respective financial year.

Note: The financial year for filing ITR of LLP is a period ending on 31st March of every year,
However in case where LLP is subject to tax audit, the due date of filing ITR is 30th Sept. The ITR shall be signed by any authorised DP.

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