Eligibility and Consent The individual must be legally competent to become a partner under Indian contract law The proposed partner must obtain a valid Designated Partner Identification Number (DPIN) A valid Digital Signature Certificate (DSC) is required for filing...
Primary Role of Designated Partners Designated Partners hold the primary responsibility for ensuring compliance in an LLP They are appointed as per the LLP Agreement and must be registered with the Registrar of Companies (RoC) Their duties include ensuring the timely...
Statement of Accounts and Solvency (Form 8) Every LLP must file Form 8 annually, which includes a declaration of solvency and a statement of accounts It must be filed with the Registrar of Companies (RoC) by 30th October each year Applicable even if the LLP has no...
Late Filing of LLP Annual Forms LLPs are required to file Form 11 (Annual Return) and Form 8 (Statement of Accounts and Solvency) every year Form 11 is due by 30th May, and Form 8 is due by 30th October Failure to file these forms on time attracts monetary penalties...
Applicable Form for LLP The correct Income Tax Return form for Limited Liability Partnerships (LLPs) is ITR-5 This form is used by LLPs to report income, deductions, and tax liability It is applicable to all LLPs, whether they are audited or unaudited ITR-5 must be...
Standard Due Date The general due date for filing the Income Tax Return (ITR) for an LLP is 31st July of the assessment year This applies to LLPs not requiring an audit under the Income Tax Act or LLP Act Returns must be filed for the previous financial year ending...
Statutory Audit Applicability Audit for LLPs is not mandatory by default It becomes mandatory only if the LLP crosses specific financial thresholds The audit requirement is governed by the Limited Liability Partnership Act, 2008 LLPs falling below the thresholds are...
Basic Tax Rate The current income tax rate for Limited Liability Partnerships (LLPs) in India is 30% on their taxable income This rate applies to both domestic and foreign LLPs operating in India LLPs are taxed as a separate legal entity under the Income Tax Act, 1961...
No Dividend Distribution Tax (DDT) LLPs are not required to pay Dividend Distribution Tax, unlike companies Profits can be freely distributed among partners without additional tax This avoids double taxation on income, which companies face at the corporate and...
Duty to Act in Good Faith Partners must act in good faith and with integrity in all LLP matters They are expected to work in the best interest of the LLP and its partners Personal interest should not override collective business goals Ethical conduct is essential in...