When Are LLP Tax Returns Due

 

Limited Liability Partnerships (LLPs) have become a popular business structure for entrepreneurs and professionals due to their flexibility and limited liability protection. However, like any other business entity, LLPs must comply with tax regulations, including filing income tax returns. Understanding when LLP tax returns are due is crucial to avoid penalties and ensure smooth financial operations.

We’ll walk you through the deadlines, requirements, and key details surrounding the filing of LLP tax returns in India for the financial year 2023-24.

1. What is an LLP Tax Return?

An LLP tax return is a form that an LLP must file with the Income Tax Department, reporting its income, deductions, and taxes owed (if any) for the financial year. Filing a tax return is mandatory for all LLPs, even if there is no income during the year.

2. Due Dates for Filing LLP Tax Returns

The due dates for filing LLP tax returns depend on whether the LLP is required to get its accounts audited.

a. LLPs Not Requiring Audit

For LLPs that do not require an audit of their accounts, the tax return must be filed by July 31 of the assessment year. For instance, if the financial year ends on March 31, 2024, the tax return must be filed by July 31, 2024.

b. LLPs Requiring Audit

LLPs that need to have their accounts audited must file their tax return by October 31 of the assessment year. Therefore, for the financial year ending March 31, 2024, the tax return is due by October 31, 2024.

3. When is an Audit Required for LLPs?

An LLP must undergo a tax audit if:

• The annual turnover exceeds ₹1 crore.
• In the case of LLPs opting for the presumptive taxation scheme (under section 44AD), an audit is required if turnover exceeds ₹50 lakh.

Audits ensure that the LLP’s financial records are accurate and in compliance with tax laws, and they affect the filing due date.

4. Consequences of Late Filing

Failing to file LLP tax returns by the due date can lead to:

• Late filing fees: The penalty for late filing ranges from ₹1,000 to ₹5,000, depending on the delay.
• Interest on unpaid taxes: In addition to late fees, the LLP will be liable for interest on any outstanding tax amounts.

To avoid these penalties, it’s important to ensure that returns are filed before the due date.

5. Filing Requirements for LLPs with No Income

Even if the LLP has no income or is dormant, it is still required to file a tax return. Failure to do so can result in penalties or other legal issues.

6. Which Form to Use for Filing LLP Tax Returns?

LLPs are required to file their tax returns using Form ITR-5. This form is used by entities other than individuals, such as partnerships, LLPs, and other businesses.

7. Steps to File LLP Tax Returns

Here are the basic steps to file an LLP tax return:

1. Prepare Financial Statements: Ensure that the financial statements, including profit and loss accounts and balance sheets, are ready.
2. Determine Audit Requirement: Check if your LLP meets the turnover thresholds for a tax audit.
3. File Form ITR-5: The form can be filed electronically through the Income Tax Department’s online portal.
4. Submit Audit Report: If an audit is required, submit the audited financials along with the tax return.

8. Revising an LLP Tax Return

If errors are found after submitting the tax return, LLPs can file a revised return before the end of the assessment year or before the completion of the tax assessment, whichever is earlier. For example, an LLP that filed its return in July 2024 can revise the return anytime before March 31, 2025.

9. Extension of Due Dates

Occasionally, the government may extend tax filing deadlines due to unforeseen circumstances, such as the COVID-19 pandemic or technical issues with the e-filing portal. It’s essential to stay updated on any such announcements to avoid missing the extended deadlines.

10. Key Takeaways

1.LLPs without audit requirements must file tax returns by July 31 of the assessment year.

2.LLPs requiring an audit must file by October 31.

3.Late filing penalties range from ₹1,000 to ₹5,000, plus interest on unpaid taxes.

4. Filing is mandatory even for LLPs with no income.

5. Use Form ITR-5 for filing LLP tax returns.

For more information visit this site: https://www.mca.gov.in

 

 

 

FAQs

• When is the due date for filing LLP tax returns?

  • For LLPs not required to audit their accounts, the due date is July 31 of the assessment year. For those requiring an audit, it is October 31.

• What happens if LLP tax returns are filed late?

  • Late filing attracts a penalty of ₹1,000 to ₹5,000 depending on the delay, plus interest on unpaid taxes.

• Is tax return filing mandatory for all LLPs?

  • Yes, even if the LLP has no income, tax returns must be file.

• What is the due date for LLPs requiring tax audit?

  • LLPs requiring a tax audit must file their returns by October 31 of the assessment year.

• When is a tax audit require for an LLP?

  • A tax audit is require if the LLP’s turnover exceeds ₹1 crore (or ₹50 lakh in certain cases under presumptive taxation).

• Can the LLP tax return due date be extend?

  • Yes, sometimes the government extends the deadline due to exceptional circumstances, but this is not guarantee.

• What if an LLP fails to file tax returns entirely?

  • The LLP may face penalties, interest charges, and other legal consequences from the tax department.

• Which form is use for LLP tax return filing?

  • LLPs file their tax returns using Form ITR-5.

• Can LLPs revise their tax returns after filing?

  • Yes, LLPs can revise their returns before the end of the assessment year or until the tax assessment is complete.

• What financial year is relevant for filing tax returns?

  • LLP tax returns are file for the financial year that runs from April 1 to March 31.

 

 

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