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Overview: Income Tax Return Filing for LLP

A Limited Liability Partnership (LLP) is a unique corporate business structure that combines the benefits of limited liability with the operational flexibility of a partnership. As a distinct legal entity, an LLP must file its Income Tax Return annually, regardless of its income or operational status.

At FirstStartup, we understand the complexities of LLP taxation and provide comprehensive ITR filing services to ensure full compliance and optimal tax efficiency.

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LLP Taxation Structure

An LLP is taxed as a separate entity, similar to a company but with certain distinct features:

Flat tax rate of 30% on total income
Surcharge: 12% if total income exceeds ₹1 crore
Health & Education Cess: 4% on tax and surcharge
Partner's remuneration and interest are allowed as deductions subject to limits

Required Documents

PAN of the LLP
LLP's Certificate of Incorporation
LLP Agreement
Financial Statements (Balance Sheet, P&L Account)
Bank statements for the entire financial year
Form 26AS (Tax Credit Statement)
GST returns (if applicable)
Digital Signature Certificate of authorized partner

Tax Audit Requirements

An LLP must get its accounts audited if:

Total capital contribution exceeds ₹25 lakhs, or
Annual turnover exceeds ₹40 lakhs
Business turnover exceeds ₹1 crore (₹10 crores if 95% digital transactions)

Annual Compliance Requirements

Income Tax Return filing using Form ITR-5
Annual Return filing with ROC (Form 8 & Form 11)
Statement of Account & Solvency (Form 8)
Tax Audit Report in Form 3CA-3CD (if applicable)
GST Returns (if registered)
TDS Returns (if applicable)

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