How to File ITR for LLPs (Limited Liability Partnerships)?

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Documents Required

  • Form 16
  • Bank Statement
  • Details of Other Income

How to File ITR for LLPs (Limited Liability Partnerships)?

A Limited Liability Partnership (LLP) is a popular business structure in India that combines the flexibility of a partnership with the limited liability of a company. Just like companies, LLPs are required to file Income Tax Returns (ITR) annually, regardless of their profit or loss.

Who Should File ITR for LLP?

As per the Income Tax Act, 1961, every registered LLP must file an Income Tax Return (ITR) every financial year, even if it:

Has no revenue or operates at a loss

Has not carried out any business activity

Has already paid taxes via TDS or advance tax

Additionally, LLPs must also comply with MCA (Ministry of Corporate Affairs) filings, such as Form 8 & Form 11 for annual returns.

Which ITR Form is Applicable for LLPs?

LLPs in India must file their tax return using ITR-5 Form.

ITR-5 is applicable for:

  • Limited Liability Partnerships (LLPs)
  • Partnership firms
  • Association of Persons (AOPs) & Body of Individuals (BOIs)

ITR-5 is NOT applicable for:

  • Companies (They must file ITR-6)
  • LLPs claiming tax exemption under Section 11 (Income from religious or charitable trusts)

The ITR-5 form can be downloaded from the official Income Tax e-filing portal

Tax Rates for LLPs in India

LLPs in India are taxed at a flat rate of 30% on their net taxable income.

Additional Taxes:

  • Surcharge: 12% on income exceeding ₹1 crore
  • Health & Education Cess: 4% on total tax & surcharge
  • Alternate Minimum Tax (AMT): LLPs must pay a minimum of 18.5% of adjusted total income under Section 115JC
  • Important: LLPs are not eligible for the presumptive taxation scheme (Section 44AD/44ADA). They must maintain proper books of accounts and comply with tax audits if applicable.

4. Step-by-Step Guide to Filing ITR for LLPs

Follow these steps to file an Income Tax Return (ITR) for your LLP:

Step 1: Gather Required Documents

  • Before filing, ensure you have:
  • LLP PAN Card
  • LLP Bank Statements
  • Profit & Loss Account and Balance Sheet
  • TDS Certificates (Form 16A, 26AS, AIS)
  • Tax Payment Challans (Advance Tax, Self-Assessment Tax, etc.)
  • Audit Report (if applicable)

Step 2: File ITR-5 Form Online

  • Visit the official website of Income tax department
  • Click on ‘Login’ and enter your LLP’s PAN and password.
  • Navigate to ‘e-File’ > ‘Income Tax Return’
  • Choose Assessment Year
  • Enter Income & Deductions
  • Report income from business/profession, capital gains, and other sources.
  • Submit & E-Verify
  • After reviewing, click ‘Submit’.

FAQ's About ITR for LLPs

1. Can an LLP file ITR without any income?

Yes, LLPs must file ITR even if there is no income or business activity.

2. Is it mandatory for LLPs to get their accounts audited?

A tax audit is mandatory if the turnover exceeds ₹1 crore.

3. Can LLPs opt for the presumptive taxation scheme?

No, LLPs cannot opt for presumptive taxation (44AD/44ADA). They must maintain proper books of accounts.

4. What happens if an LLP does not file ITR?

  • Penalty of up to ₹10,000 under Section 234F
  • Interest on unpaid taxes
  • Losses cannot be carried forward

5. Can LLPs carry forward business losses?

Yes, business losses can be carried forward for 8 years, but only if ITR is filed before the due date.

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