Frequently Asked Questions on LLP Annual Filing
Table of Content
Annual Compliances by LLP
In upcoming section, we will detail about what all compliances are applicable for an LLP in India. LLP Annual filing contains LLP Form 8, LLP Form 11, Audit and income tax return filing by LLP. In the end, we have also included, LLP Compliance calender for a quick reference.
Important update on LLP Annual Filing Due dates
Under the Revised LLP Settlement Scheme, 2020, All the LLPs can complete their pending Annual Filings without any late filing fees or penalties. The due date for the LLP Annual filing has been extended till 31.12.2020 as the date for the conclusion of the LLP Settlement Scheme, 2020 has been extended from 30th September to 31st December, 2020. Hence all the Annual filing forms given below can be filed on or before 31st December, 2020 without any penalties. This is One time one-time relaxation in payment of additional fees and immunity from prosecution.
1. What is LLP Annual Filing?
Limited liability partnership is a partnership with limited liability. Every LLP which are registered with the Ministry of Corporate Affairs have to file the Annual Returns and Statement of Accounts every year.
2. What are the mandatory compliances of LLP?
There are mainly 3 compliances which are mandatory for every LLP to comply for any financial year.
- Annual Return
- Financial Statements of the LLP
- Income Tax Returns Filings.
3. What if I have not undertaken any business during the year? Do I still need to file returns?
Yes, every LLP has to mandatorily file Annual Returns and financial statements with the Ministry even if they are not doing any business. It is a compulsory requirement of law that even NIL returns should be filed.
4. What is the Audit Requirement for LLP?
Audit under LLP Act: Only those LLP whose annual turnover exceeds Rs. 40 lakhs or whose capital contribution exceeds Rs. 25 lakhs are required to get their accounts audited.
5. What is the due date for filing of Statement of Accounts and Annual Return?
- Filing of Annual Return (Form 11): Annual Return or Form 11 is a Summary of all the Designated Partners like whether there are any changes in the management of the LLP or not. Every LLP is required to file Annual Return in Form 11 to the Registrar within 60 days from the closure of financial year i.e. Annual Returns have to be filed on or before 30th May every year.
- Filing of Statement of Accounts (Form-8): Every LLP is required to prepare and close its accounts until the 31st March every year. From 8 is to be filed by at least two Designated Partners with the Registrar within 30 days after completion of six months of Financial Year. Accordingly, 30th October is the last date for filing annual accounts every year.
6. What are the Income Tax Compliance of LLP?
- Income Tax Return: Every LLP has to file Income Tax Returns every year. The last date of filing of return for LLP is 31st July every year. However, any LLP under tax audit is required to file its Income tax return by 30th September.
- Audit under Income-tax Act: Every LLP whose turnover exceeds INR 2 Cr. in case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such audit will have to be completed and filed by 30th September.
7. What is the consequence if I don’t file my LLP returns in time or delay the filing?
If the filing is not done within stipulated time, there is a penalty of Rs. 100 per day till it complies. You cannot even close or wind up your LLP without filing Annual Accounts. Also, your LLP turns into unlimited statutory liability until you file all due returns.
LLP Compliance Calendar for your quick reference:
Please note that you may file all your pending LLP Compliance forms till 31.12.2020 without any late filing fees.
LLP Compliance Calendar:
|Form Type||Described||Due date||To be filed with|
|Form-8||Filing of Statement of Accounts||30th October||Registrar of Companies|
|Form-11||Filing of Annual Returns||30th May||Registrar of Companies|
|ITR -5||Income tax return||31st July (or 30th September, if tax audit is mandatory)||Income tax department|
|Audit||Tax Audit (only if applicable)||30th September||Income tax department|
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