ITR filing for LLPs - accurate returns for partnerships

Every LLP registered under the LLP Act, 2008 files ITR-5, regardless of turnover or income level. Unregistered partnerships file as a firm, also under ITR-5. There is no separate ITR form for small vs large LLPs.

31 July if the LLP does not require a tax audit, and 30 September if a Section 44AB audit applies. Belated returns can be filed by 31 December with a late fee under Section 234F.

Yes. LLPs with business income can opt for Section 44AD (8% of digital receipts, 6% of other receipts as taxable income) if turnover is within the threshold. Professional LLPs can use Section 44ADA (50% of gross receipts) subject to eligibility.

A Section 44AB audit is mandatory if turnover exceeds ₹1 crore (or ₹10 crore if at least 95% of transactions are digital), or if the LLP claims presumptive taxation but reports profit below the prescribed percentage while total income exceeds the basic exemption limit.

LLPs are taxed at a flat 30% plus surcharge and cess, with no dividend distribution tax on profit withdrawal by partners. Companies pay 25% or 30% depending on conditions, plus tax on dividends distributed to shareholders. LLPs are often more tax-efficient for profit repatriation.

Schedule BP (Business/Profession) is where the LLP reports its profit and loss computation, adjustments under the Income Tax Act, and depreciation. It must reconcile with the audited P&L and Balance Sheet if an audit applies.

Yes. The LLP files ITR-5 for the entity, and each partner separately reports their share of LLP profit (exempt under Section 10(2A)) along with any remuneration or interest received from the LLP, in their individual ITR.

A belated return can be filed by 31 December with a late fee of ₹5,000 (₹1,000 if total income is below ₹5 lakh) under Section 234F, plus 1% per month interest on unpaid tax under Section 234A. Losses cannot be carried forward if filed late.

Yes, for 8 assessment years, but only if the ITR is filed by the original due date. A belated return forfeits the right to carry forward business losses (though unabsorbed depreciation can still be carried forward indefinitely).

Remuneration paid to working partners is deductible for the LLP (within limits prescribed under Section 40(b)) and taxable as business income in the partner's individual hands, not as salary.

Yes. Every registered LLP must file ITR-5 annually regardless of whether it has any income or business activity, along with the MCA annual filings (Form 8 and Form 11).

The LLP Agreement, PAN and Certificate of Incorporation, bank statements, and audited financials (P&L and Balance Sheet) if an audit applies. We share a detailed checklist tailored to your LLP type after the initial call.