A Limited Liability Partnership (LLP) is formed under the LLP Act, 2008. The LLP is a separate legal entity, distinct from its partners. The liability of each partner is limited to their contribution in the LLP, meaning partners are not personally responsible for the LLP’s debts beyond their investment. This structure combines features of both a company and a partnership. Additionally, a partner is not personally liable for fraudulent acts committed by others.

Benefits of Filing Income Tax Return for LLP

Filing ITR for an LLP ensures legal compliance, enables tax deductions, and improves access to loans and funding while safeguarding the LLP's legal identity.

Key Benefits:

• Lower Tax Rates: LLPs pay a flat 30% tax on profits without the surcharge and cess that apply to private limited companies.
• Tax Deductions: LLPs can claim deductions on business expenses like rent, salaries, and utilities, reducing taxable income.
• Depreciation Claims: LLPs can claim depreciation on fixed assets such as buildings, machinery, and equipment during ITR filing.
• 100% Deductions: LLPs involved in R&D can claim up to 150% of related expenses. Charitable donations under Section 80G and startups can claim up to 100% profit deductions for the first three years.

Documents Required for LLP Income Tax Filing

For smooth ITR filing of an LLP, the following documents are essential:

• LLP PAN Card
• Financial Statements (Balance Sheet, P&L Account)
• Partners’ Contribution Details
• Records of Initial Costs
• TDS Details on LLP Payments
• GST Filings/Provisions (if applicable)
• Details of Partners’ Remuneration/Compensation (if any special treatment is applied)

LLP Income Tax Rates 2024–2025

For AY 2024–25, LLPs are taxed at a flat 30%. In addition, surcharge rates apply based on total income: 10% if income exceeds ₹50 lakh, 15% if over ₹1 crore, 25% if over ₹2 crore, and 37% if over ₹5 crore.

Budget 2024 Tax Update – New Regime Slabs

• Income up to ₹3 lakh is tax-free.
• 5% tax applies to income between ₹3,00,001 and ₹7 lakh.
• 10% tax on ₹7,00,001 to ₹10 lakh.
• 15% tax on ₹10,00,001 to ₹12 lakh.
• 20% tax on ₹12,00,001 to ₹15 lakh.
• 30% tax on income above ₹15 lakh.

Surcharge

If total income exceeds ₹1 crore, a 12% surcharge is levied on tax payable.

Marginal Relief

Marginal relief ensures that tax liability does not increase disproportionately for income just above ₹1 crore. The additional tax cannot exceed the amount by which income surpasses ₹1 crore.

Health & Education Cess

A 4% cess applies on total income tax plus any surcharge.

Alternative Minimum Tax (AMT)

If the LLP's normal tax liability is less than 18.5% of book profit, AMT at 18.5% (plus applicable surcharge and cess) is payable.

How to File an LLP Income Tax Return

Filing an LLP Income Tax Return is done on the official Income Tax Department website. But the process involves handling several documents and legal formalities. A small mistake can lead to rejection or penalties. Sperso Filings makes this process simple with expert assistance in just 3 easy steps:

Step 1: Talk to Our Experts

Our tax experts will guide you through the LLP tax filing process. You just need to provide the required documents.

Step 2: Document Check & Preparation

We will carefully check your documents and prepare everything needed for filing the LLP’s ITR.

Step 3: Filing Your LLP ITR

Our experts will file the LLP’s ITR (Form 5) online on your behalf and update you at every stage. Filing needs an authorised partner’s digital signature.

Any LLP in India must file ITR Form 5 every year, which is available on the income tax portal. The filing is fully online.

Mandatory LLP Compliances

• Annual Return Filing: LLPs must file an annual return (Form 11) with the Ministry of Corporate Affairs (MCA) within 60 days of financial year-end.
• Statement of Accounts & Solvency: Must be filed within 30 days after the financial year ends (Form 8).
• Accounts Audit: LLPs with turnover over ₹40 lakh or capital over ₹25 lakh must get their accounts audited by a CA.
• Income Tax Return: All LLPs must file their income tax return by 30th September each year.

Income Tax Filing & Audit Requirement

Though LLPs are taxed separately, they must file an ITR showing their income and expenses. LLPs exceeding ₹40 lakh turnover or ₹25 lakh capital must also submit audited financials with their ITR. Non-compliance may attract penalties, so all filings must be timely and accurate.

LLP Annual Compliance Schedule

• April: Start of financial year
• May: File Form 11 (Annual Return)
• June: File Form 8 (Accounts & Solvency)
• July: Last date for ITR (if audit not needed)
• September: Last date for ITR (if audit needed)
• October: File Form 10 (if applicable)
• November: File Form 3CEB (if foreign transactions)
• March: Financial year ends

Filing LLP Annual Return

To stay compliant and avoid heavy penalties, a Limited Liability Partnership (LLP) must file its returns regularly. Compared to private limited companies, LLPs have fewer yearly compliance requirements. However, the penalties for non-compliance are much higher. While a private limited company may face a fine of ₹1 lakh, an LLP can be fined up to ₹5 lakh for the same mistake.

Due Dates for LLP Tax Filing

• Annual Return Filing (Form 11): Every LLP must file Form 11 within 60 days of the financial year's end, i.e., by May 30 each year.
• Statement of Accounts (Form 8): LLPs must prepare and close their accounts by March 31st. Form 8 should be filed within 30 days, making October 30th the last date. It must be signed by at least two designated partners.
• Tax Return Filing: LLPs with turnover exceeding ₹40 lakh or capital contribution over ₹25 lakh require a chartered accountant's audit. Such LLPs must file their return by September 30th.

Penalty for Late Filing of LLP, MCA, or Income Tax Return

LLPs face heavy fines for missing MCA or income tax filing deadlines. Delays in filing Form 8 or Form 11 attract a penalty of ₹100 per day, per form. So, failing to file both means a fine of ₹200 per day.

Additionally, the Income Tax Act imposes fines for late return filing. A penalty of ₹5,000 applies if the return due on July 31 is filed between August and December. Filing after December 31 attracts a penalty of ₹10,000.

Income Tax Rate for LLP in India

LLPs and partnership firms pay a flat 30% income tax rate. Income tax slab rates do not apply to them. They must also pay 2% Education Cess and 1% SHEC. A 10% surcharge applies if total income exceeds ₹1 crore in a financial year.

Why Sperso Filings?

Sperso Filings offers hassle-free ITR filing services tailored for LLPs, ensuring smooth tax compliance. Our expert team understands the importance of timely filing to avoid penalties and delivers reliable, efficient service. With our experience and expertise, your LLP’s tax filing is in safe hands. Connect with us today for seamless LLP ITR filing.

Recent Updates on LLP ITR Filing (AY 2025–26)

The Central Board of Direct Taxes (CBDT) has updated various ITR forms and acknowledgement formats for AY 2025–26 (FY 2024–25 onward), including ITR‑1 Sahaj, ITR‑2, ITR‑3, ITR‑4 Sugam, ITR‑5, ITR‑6, ITR‑V, and the digital ack forms.

Who Should File Which Form?

• ITR-1 Sahaj: For residents (not habitually resident) having income up to ₹50 lakh from salary, one house property, interest, and up to ₹5,000 in agriculture. This form cannot be used if TDS is deducted under Section 194N or if tax is due on ESOPs.
• ITR-2: Applicable to individuals and HUFs without business or professional income but with capital gains or losses from assets like equity, mutual funds, or real estate.
• ITR-3: For individuals and HUFs earning income from business or profession (outside presumptive taxation).
• ITR-4 Sugam: For residents with business or professional income under Sections 44AD/44ADA/44AE, with total income up to ₹50 lakh. Includes individuals, HUFs, and non-LLP firms.
• ITR-5: For entities not covered under ITR‑1 to ITR‑4 or ITR‑7—such as LLPs, partnerships, AOPs, BOIs, etc.