Question 1

What is the ITR form and due date for an LLP?

Accepted Answer

LLPs file ITR-5. Due date is 31 October if subject to tax audit under Section 44AB (turnover > ₹1 crore cash / ₹10 crore digital); otherwise 31 July. Where a transfer pricing report (Form 3CEB) applies, the due date extends to 30 November.

Question 2

How is partner remuneration taxed?

Accepted Answer

Partner remuneration is deductible in the LLP's hands only if authorised by the LLP agreement and within the Section 40(b) limits: ₹3 lakh or 90% of book profit for the first ₹3 lakh of book profit, and 60% of book profit above that. Excess is disallowed. The remuneration is taxable in the partner's hands as business income under Section 28.

Question 3

What is Alternate Minimum Tax for LLPs?

Accepted Answer

Section 115JC imposes AMT at 18.5% (plus surcharge and cess) on adjusted total income of an LLP when regular tax liability is lower. Adjusted total income adds back deductions under Sections 80H–80RRB, 80-IAB, 10AA, 35AD. AMT credit can be carried forward for 15 years under Section 115JD.

Question 4

Is interest paid to partners deductible?

Accepted Answer

Interest on partner capital is deductible under Section 40(b) at a maximum of 12% per annum simple interest. Interest above 12% is disallowed in full. The LLP agreement must specifically authorise the interest payment at the stated rate — a silent or "as agreed" agreement is insufficient.

Question 5

Does an LLP need to file TDS returns?

Accepted Answer

Yes — an LLP is a "person" under Section 2(31) with all TDS obligations. It must obtain a TAN, deduct TDS at applicable rates on professional fees, rent, and contractor payments, deposit via Challan 281, and file quarterly returns (Form 26Q). TDS defaults attract interest under Section 201(1A) at 1.5%/month from date of deduction to date of payment.

Itr Llp

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