ITR Filing — LLP

Filing basis under the Income-tax Act, 1961. LLPs file Form ITR-5, the return prescribed for firms, LLPs, AOPs, BOIs, and similar non-individual, non-company assessees; it requires a full balance sheet, P&L account, and Schedule BP.

Tax audit (Section 44AB) applies to an LLP the same way it applies to any business assessee: mandatory where business turnover exceeds ₹1 crore (raised to ₹10 crore where both cash receipts and cash payments during the year do not exceed 5% of the respective totals); for LLPs carrying on a specified profession, the threshold is gross receipts above ₹50 lakh, with no ₹10 crore digital-transactions relaxation available for professions.

Due dates, AY 2026-27: where a Section 44AB audit applies, the tax audit report is due 30 September 2026 and the ITR-5 return by 31 October 2026; where the LLP is additionally required to furnish an accountant's report in Form 3CEB (international or specified domestic transactions under transfer pricing), the due date extends to 30 November 2026.

Interest paid to partners is capped under Section 40(b)(iv) at 12% simple interest per annum where authorised by the partnership/LLP deed; any excess is disallowed as a business expense regardless of what the deed permits.

Sources: qwikfilings.com and caclubindia.com on Section 44AB thresholds for AY 2026-27; foxtax.in and pkcindia.com on ITR-5 audit-linked due dates (30 Sep / 31 Oct / 30 Nov 2026); kdksoftware.com and bcajonline.org on the Section 40(b)(iv) 12% interest ceiling (WebSearch, 8 Sep 2026). Note: a same-named non-audit due date for ITR-5 is inconsistently reported across sources (31 July vs 31 August 2026) and is deliberately omitted here pending a first-party CBDT circular.

Income tax return filing for an LLP covers the return of the limited liability partnership under the Income-tax Act 1961. The LLP is taxed as a firm under Section 2(23) of the Act read with the LLP Act 2008 — the income is computed under the firm's provisions of Sections 28 to 44DB, the interest and the remuneration to the partners are allowed within the limits of Section 40(b), the tax is paid by the LLP at the slab rates, and the return is filed in ITR-5 under Section 139(1), with the partners taxed only on their own income from the LLP. The LLP combines the firm's tax treatment with the limited liability.

The LLP's return is where the firm's tax positions are decided — the remuneration to the partners under Section 40(b), the interest on the capital, the disallowances, the presumptive positions. The computation must follow the firm's regime faithfully, because the department reads the partners' remuneration against the LLP's profits.

The cost of a mismanaged LLP return is the disallowance: the partner remuneration beyond the Section 40(b) limits, the interest mis-stated, the disallowances missed — each an addition at the assessment with the interest. The LLP's return is also the basis for the partners' own returns, so the firm's errors flow into the members' positions.

This service is for LLPs and their partners. We compute the LLP's income under the firm's provisions, apply the partner remuneration and the interest within Section 40(b), prepare and file the return in ITR-5 under Section 139(1), manage the advance tax and the assessments, and coordinate the partners' returns so the LLP's position and the partners' positions are consistent.