Rate of Income Tax for LLP
For LLPs registered in India, the appropriate income tax rate is 30% of the entire income. A surcharge of the tax payable at the rate of 12% is added to the income tax when the total income exceeds Rs. 1 crore.
Health & Education Cess
The amount of income tax and the appropriate surcharge are subject to a 4% health and education cess.
Minimum Alternate Tax (MAT) for LLP
LLP must pay minimal alternate tax, just like a firm must pay income tax. For LLP, a minimum alternative tax of 18.5% of total adjusted income is applicable. As a result, the LLP's income tax payment cannot be lower than 18.5 percent (increased by income tax surcharge, education cess, and secondary and higher education cess).
LLPs Engaged in Global Transaction
Form 3CEB must be filed by LLPs that engaged in certain Specified Domestic Transactions or international transactions with affiliated businesses. Chartered Accountant certification is required for Form 3CEB. The 3rd of November is the deadline for LLPs that must submit Form 3CEB.
Methodology for LLP Tax Filing
LLPs are required to submit a Form ITR 5 income tax return. The digital signature of the chosen partner may be used to electronically submit Form ITR 5 through the income tax website. The taxpayer must print two copies of Form ITR-V after submitting an LLP tax return.
Send one ITR-V copy that has been signed by the assessee via regular mail to Post Bag No. 1, Electronic City Office, Bengaluru-560100 (Karnataka). The assesses may keep the second copy for his records.
LLP Tax Remittance
Payment for LLP taxes may be made physically through designated banks or electronically. LLPs that must have their accounts audited are only allowed to pay taxes electronically. Challan ITNS 280, as shown below, must be submitted with the tax payment in order to pay taxes at approved banks.
LLP Accounts Updating
Each Limited Liability Partnership must keep accurate accounts with banks on either an accrual basis or a cash basis. Since Private Limited Companies must only have accrual-based books of accounts,
The LLPs can choose to keep their financial records on a cash basis as well. The LLP's registered office must maintain the books of accounts, which must include all the following information:
1. Funds received and spent
2. Assets and obligations
3. A COGS declaration
4. The finished products and inventories statement.
The LLPs must compile their financial statements within six months of the end of each fiscal year in order to submit them to the ROC.
What are Solvency and Statements of Accounts?
Every year, Form 8 must be submitted along with the maintained books of accounts, which detail the profits made as well as other pertinent financial information about the business.
Form 8 must be duly signed and attested by the designated partners. Additionally, it must be certified by a licenced chartered accountant, licenced company secretary, or licenced cost accountant.
A penalty of Rs. 100 per day will be assessed if the statement of accounts and solvency report are not submitted within the allotted time frame.
Annual Limited Liability Partnership filing
The LLPs must choose the partners who will keep accurate books of accounts and submit yearly returns to the Ministry of Corporate Affairs.
Except in cases where the LLPs' annual turnover exceeds Rs. 40 lakh or if the contribution exceeds Rs. 25 lakh, the LLPs' books of accounts do not need to be audited. As a result, the LLPs' annual filing process is less complicated. Even if the LLP has not started doing business, some annual filings are required.
When income tax returns are due ( as extended)
The deadline has been extended from December 31st, 2020, to January 10th, 2021, and if a tax audit is necessary for an LLP, the deadline for IT returns for LLP has been extended from January 31st, 2021, to February 15th, 2021.
The LLP must file a Nil Income Tax return with the tax authorities even if it did not conduct any activity during the current fiscal year.
Form LLP 8 Expires on
LLP Every year, Form 8 must be filed with ROC as an annual filing. Within 30 days of the end of the first six months of the financial year to which the statement refers, a statement of account and proof of solvency must be filed with the registrar. The LLP annual filing deadline is October 30, 2020.
The designated partners' statement regarding the LLP's solvency status is included on this form, together with details regarding the LLPs' statements of assets, liabilities, income, and spending.
LLP Tax Audit
LLPs must have their financial statements audited by a licenced chartered accountant if their contribution or annual turnover exceeds Rs. 25 lakh or Rs. 40 lakh, respectively, in any given fiscal year.
The LLP accounts must include a declaration from the partners stating that they accept responsibility for adhering to the rules governing accounting and the preparation of financial statements in order to qualify for audit exemption.
Every LLP must keep records and provide financial statements at the conclusion of each fiscal year. Our Compliance Manager will assist your LLP with account maintenance and will create your company's financial statement at the conclusion of the fiscal year.
Filing of Form 11
Based on the data you supply, we will create and submit Form 11 for your LLP. We must have the amount each partner made the prior year in order to submit Form 11.
Filing a Form 8
On the basis of the information you supply, we will create and submit Form 8 for your LLP. We will be in charge of preparing the company's accounting and financial accounts in order to file Form 8.
Income Tax Return
A LLP must file an income tax return regardless of income, profit, or loss. As a result, even an LLP with no transactions must file an income tax return each year. If no tax audit is required, the LLP income tax return is due on July 31. The LLP income tax return will be submitted on September 30th if a tax audit is necessary.