Income Tax Rate for LLP in India
LLP in India is a separate corporate entity formed under the Limited Liability Partnership Act of 2008. LLPs have a separate legal identity different from that of its partner like a company. Moreover, an LLP is the only type of partnership that provides limited liability protection for the partners and one partner is not duty bound or liable for another partner’s misconduct or negligence. As LLPs are a separate legal entity, an LLP must file income tax returns every year. Above all, for the purpose of Income Tax, LLPs are considered the same as partnership firms and Income Tax on LLPs is also charged in the same manner as partnership firms. In this blog, we look at LLP tax filing in brief along with Income Tax Rate for LLP and process for Income Tax filing for LLP in India.
Income Tax Rate for LLP in India FY 2018-19
The income tax rate applicable for LLP incorporated in India is at flat 30% on the total income. Furthermore, along with the income tax, a surcharge is charged on the income tax paid at the rate of 12% when the total income exceeds Rs.1 crore. In addition to income tax, a 4 percent of Health & Education surcharge is also applicable to the income of an LLP.
Health Cess & Education Cess
Health Cess and Education cess of 4 percent is applicable on the amount of income tax and the applicable surcharge.
Minimum Alternate Tax (MAT) for LLP in India
Above all, similar to income tax applicable for a corporation, LLP is also subject to a particular minimum alternate tax. A minimum alternate tax of 18.5 percent of adjusted total income is applicable for LLP. Therefore, income tax paid by LLP cannot be less than 18.5 percent (raised by income tax surcharge, education cess, and secondary and higher education cess).
Deadline for LLP Tax Filing in India
The deadline for LLP tax filing in India is July 31st if tax audit is not needed.
LLP Tax Audit Limit in India
LLP whose sales exceeded Rs. 40 Lakh or whose contribution exceeded Rs. 25 Lakh are needed to get their accounts audited by a practicing CA. The deadline for tax filing for LLP required to procure audit is September 30th.
LLP in India Involved in International Transaction
LLPs that have entered into an international transaction with associated corporate or undertook certain Specified Domestic Transactions are essential to file Form 3CEB. Form 3CEB must be certified by a CA. LLPs who are required to file Form 3CEB have 30th November as the deadline for LLP tax filing.
Process for LLP in India Tax Filing
LLPs shall file income tax return using Form ITR 5. Form ITR 5 is to be filed online through the income tax website using the digital signature of the designated partner. After filing LLP tax return, it is suggested to the taxpayer to print two copies of Form ITR-V. One copy of ITR-V, signed by the assessee shall be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.
LLP Tax Payment
LLP tax payment may be made in physical and mode through designated banks or through e-payment mode. LLPs that are needed to get its accounts audited are required to pay tax through electronic-payment mode only. To pay tax at designated banks, Challan ITNS 280 as specified below must be provided with the tax payment.
LLP in India is a separate corporate entity formed under the Limited Liability Partnership Act of 2008. LLPs have a separate legal identity different from that of its partner like a company. For more information visit the official website of Company Vakil.