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.
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.
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.
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.