For LLPs & Their Partners

Income Tax Filing for LLPs — Flat 30%, Filed with ITR-5

Income tax for LLPs — filed as ITR-5 at a flat 30% rate plus surcharge and cess, with partner remuneration and interest structured within Section 40(b) limits to keep the LLP's tax bill down without inviting scrutiny.

  • Flat 30% + cess
  • ITR-5 filing
  • Remuneration planning

Free Consultation

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01 MCA-Aligned Filing
02 5 Working-Day Turnaround
03 Fixed, Transparent Fees
04 Direct Consultant Access
LLP-Specific

Taxed differently from an individual — or a company.

An LLP is taxed as a "firm" under the Income Tax Act — a flat 30% on total income, plus a 12% surcharge above ₹1 crore and a 4% health and education cess, filed on Form ITR-5. There's no basic exemption slab the way individual taxpayers get; the flat rate applies from the first rupee of profit.

The one real lever an LLP has is partner remuneration and interest. Paid within the limits set by Section 40(b), it's deducted from the LLP's taxable income and taxed instead as business income in the partners' hands — taxed once, not twice. The remaining profit share stays exempt for partners under Section 10(2A), since it's already been taxed at the LLP level. Get the remuneration structuring wrong, and either the deduction gets disallowed or it invites scrutiny — this is usually the single biggest tax-planning decision an LLP makes each year.

How it works

01 Step

Books & Provisional P&L Review

We review your books of account and provisional profit & loss to estimate tax liability and check how partner remuneration is currently structured.
02 Step

Tax Audit Check

We confirm whether a Section 44AB tax audit applies — turnover above ₹1 crore for a business or ₹50 lakh for a profession, rising to ₹10 crore where cash transactions stay under 5% of the total.
03 Step

Partner Remuneration & Interest

We structure and document partner remuneration and interest within Section 40(b) limits, so it's deductible for the LLP and correctly taxed as business income in the partners' hands.
04 Step

ITR-5 Filing

Filed by 31st July if no tax audit is required, or 31st October (with Form 3CB-3CD) if one applies.

What We Need From You

Checklist
  • Books of account and financial statements for the year
  • Bank statements for the financial year
  • Partner remuneration and interest working papers
  • Details of any TDS deducted or deductible
  • Prior year's filed ITR, if any
  • PAN of the LLP

Plan Your LLP's Income Tax

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Deadlines

Two dates that matter.

01 31st July

No Tax Audit Required

ITR-5 filed directly by 31st July, if turnover stays under the Section 44AB audit thresholds.

02 31st October

Tax Audit Required

Above ₹1 crore turnover (business) or ₹50 lakh (profession) — Form 3CB-3CD is filed by a chartered accountant ahead of the ITR-5.

FAQ

Frequently asked questions

A flat 30% on total income, plus a 12% surcharge if income exceeds ₹1 crore, plus 4% health and education cess — there's no basic exemption slab the way individual taxpayers get.

No. Remuneration and interest paid to partners within Section 40(b) limits are deducted from the LLP's taxable income and then taxed as business income in the partner's hands — only once. The remaining profit share is exempt in partners' hands under Section 10(2A), since it's already been taxed at the LLP level.

If turnover exceeds ₹1 crore for a business, or ₹50 lakh for a profession — though this rises to ₹10 crore for businesses where cash receipts and payments each stay under 5% of the total.

31st July if no tax audit is required, 31st October if one is — audited LLPs also need Form 3CB-3CD certified by a chartered accountant ahead of the return.

Yes, provided the return is filed by the original due date — a belated return forfeits the right to carry forward most types of loss.

Last Note

If your business could only get one thing right, make it the structure.

That is what we help you decide. Then we file it, register it, and keep it compliant year after year.

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