Being separate legal entities LLPs  have to file their income tax return every year. LLPs are treated the same as partnership firms for income tax purposes, and LLPs pay income tax in the same way as partnership firms do. Now, Let us look at the LLP tax filing in depth, as well as the LLP Income Tax Rate and the LLP Income Tax Filing Procedure.

Tax Rate: The rate of tax applicable to LLPs is 30% on its total income.

Surcharge: If a LLP has revenue exceeding INR 1 Crore, a surcharge of 12% gets levied.

Health and Education Cess: The amount of income tax and the corresponding surcharge will be increased further by a health and education cess of 4% of the total amount of income tax and surcharge.

In addition to the income earned from business or profession, income from house property (if any property owned by firm or LLP and received rent from it), capital gains (at the time of dissolution of asset of firm or LLP as the case may be), and other sources (like interest on investments held by the firm or LLP) should be considered when computing income tax for a partnership firm or LLP. Deduct all permitted business expenditures (Expenses which are permitted for deduction under section of head Profit and Loss from Business or Profession) from total business income. Reduce allowable partner’s pay and interest from profit.

Minimum Alternate Tax (MAT) for LLP

LLPs are liable to pay minimal alternative tax, which is similar to the income tax that applies to corporations. Minimum Alternate Tax payable by LLPs is 18.5 percent of adjusted gross revenue.

Deadline for LLP Tax Filing

Deadline for filing Tax is 31st july in case a company has no requirement of obtaining a tax audit but the deadlines are different for LLPs mandated to get other requirements completed under the different sections of Income Tax Act, 1961.