ITR for LLP
For a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape heavy penalty under the law for non-compliance. A Limited Liability Partnership has only few compliances to be followed every year which is amazingly low as compared to the compliance requirements placed on the private limited companies. However, the fines seem to be quite large. Whilst non-compliance might only charge a Private Limited company INR 1 lakh in terms of penalties, it might charge an LLP up to INR 5 lakh.
1. LLP is separate legal entity form its partners.
2. It can raise funds from Partners, Banks and NBFCs.
3. The procedure for Incorporation, conversion and closure of LLP is simple and easy.
4. It has assets and liabilities that are separate from that of the promoters.
5. LLP can easily Transfer its ownership.
Process of Registration
1. Filing of Annual Return
2. Form -8
3. Form -11
4. Maintenance of Books of Account
5. Filing of Income Tax Returns