Every LLP must file an income tax return each year, whether or not it earned a profit. An LLP is taxed at a flat 30%, files Form ITR-5, and is due by 31 October where its accounts require audit. Samkhya files your LLP’s income tax return accurately and on time.
A Limited Liability Partnership (LLP) is a separate taxable entity and must file an income tax return every year, even if it had no income or activity. An LLP is taxed at a flat rate of 30% on its total income, there are no slabs as for individuals, plus a surcharge where income exceeds Rs. 1 crore and a 4% cess. The LLP files Form ITR-5. Where its accounts must be audited, broadly, where turnover crosses the tax-audit threshold, the return is due by 31 October; otherwise it follows the non-audit due date. An LLP may also be subject to Alternate Minimum Tax (AMT). Filing is required to keep the LLP compliant and to carry forward any losses.
Filing the LLP return brings clear benefits:
An LLP’s taxation has these features:
An LLP return involves:
An LLP return is required for:
Filing an LLP return begins with finalising the accounts, the profit and loss account and the balance sheet, and computing the total income at the flat 30% rate, with any surcharge and the 4% cess. Where the tax-audit threshold is crossed, the accounts are audited and the audit report obtained. The income, the partners’ details, and the tax are entered in Form ITR-5, and any balance tax is paid. The return is filed on the income tax portal with the digital signature of a designated partner. An LLP requiring audit files by 31 October; otherwise the non-audit date applies. Because an LLP must file whether or not it traded, even a dormant LLP files a nil return.
For the Return:
For Filing:
Filing an LLP return follows a clear sequence:
Filing your LLP return with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team handles the accounts, computation, and ITR-5 filing.
Once the return is filed:
An LLP is taxed at a flat 30% of total income, with a surcharge of 12% where income exceeds Rs. 1 crore and a 4% cess on top; there are no slab benefits as for individuals. An LLP may also face Alternate Minimum Tax (AMT) at the prescribed rate where it claims certain deductions. The due date depends on audit: an LLP whose accounts must be audited files by 31 October, while one below the threshold follows the non-audit date. Crucially, an LLP must file even with no income, and non-filing attracts a penalty and the loss of carry-forward. Filing on time, with the accounts finalised and any audit completed, keeps the LLP compliant.
| Feature | Detail |
| Form | ITR-5. |
| Tax Rate | Flat 30% of income. |
| Surcharge | 12% above Rs. 1 crore. |
| Cess | 4% health and education cess. |
| Audit Due Date | 31 October. |
| Filing | Mandatory, even if nil. |
Does an LLP have to file a return every year?
Yes. Every LLP must file an income tax return each year, whether or not it earned any income or carried on activity.
How is an LLP taxed?
An LLP is taxed at a flat 30% of its total income, with a surcharge where income exceeds Rs. 1 crore and a 4% cess; there are no slab rates.
Which form does an LLP file?
An LLP files its income tax return in Form ITR-5.
When is an LLP’s return due?
An LLP whose accounts require audit files by 31 October; an LLP below the audit threshold follows the non-audit due date.
What is Alternate Minimum Tax?
AMT is a minimum tax that can apply to an LLP claiming certain deductions, ensuring a minimum level of tax is paid.
What if the LLP had no income?
It must still file a nil return; non-filing attracts a penalty and the loss of the ability to carry forward losses.
