ITR Filing of Firms and LLPs | CA Assisted ITR Filing For Firm and LLP


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ITR of LLPs and Firms

We make Income tax return filing very easy and simplified.

File your Firm/ LLP Income Tax return if you are Partner/Designated Partner with the help of Chartered Accountants who are Experts in Income Tax Law. Being a Partner/Designated Partner of the Firm/ LLP (as the case may be) comes under your obligation under the Income Tax Act, 1961. You may have lots of confusion as it involves taxation aspect of your business. Request a call back here

Note: Wherever the term Firm has been used, it denotes to Partnership Firm.

At Compliance Ease Cure LLP, Chartered Accountants are qualified to resolve any query related to ITR filing, notice, capital gains, dividend, tax refund, tax audit applicability, tax savings, property tax, and any other query related to Income tax. For any query or problem, you may have, our experts who will assess your firm/ LLP case and advise you for your tax return issues.

E-mail us PAN and Statement of Account at info@complianceease.in

For inquiries, WhatsApp/Call us on 97 73 64 69 99

Income Tax Return is nothing but a prescribed form through which the particulars of income earned by a person (here in you case person means Firm/ LLP) in a financial year and tax payable on such income is communicated to the Income tax department after the end of the relevant financial year.

The forms used to file details of income taxes payable and Paid with Government are known as Income Tax Returns. Income tax return forms are provided for different assessesee by the IT department. It is also a complete online procedure where you need not submit any physical form to the department.

The Central Board of Direct Taxes (CBDT) has made it mandatory to file Income Tax Returns for all Firms and LLPs irrespective of their income or loss. ITR-5 (ITR-4 for presumptive income in case of Firm and not LLPs) is prescribed form of ITR through which the particulars of income earned by Firm/ LLP in a financial year and taxes paid or payable on such income is communicated to the Income tax department after the end of the relevant financial year.

Let us help you understand ITR filing for Firm/ LLP in simple words:

A Firm/ LLP has to file ITR-5 and ITR-4 at the end of the relevant financial year.

ITR Form 5 is a form suitable for bodies such as firms, Body of Individuals (BOIs), Limited Liability Partnerships (LLPs), Artificial Juridical Person (AJP), Association of Persons (AOPs), estate of insolvent, estate of deceased, investment fund, business trust, local authority, and co-operative society for filing the ITR. Any individual or entity belonging to the aforementioned categories is eligible for ITR 5 filing.

The ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also includes those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act, 1961.

Online Tax returns are set up in an excel worksheet & Java Formats, where the income figures are used to calculate the tax liability of persons. Tax returns are to filed every year by Firm/ LLP that received taxable income during the year, whether through regular income, interest, dividends, capital gains, or other profits. Even if your Firm/LLP paid extra tax, we are here to help you to get the refund from the Income tax department. Let our team of Chartered Accountants help you in filing your Firm/ LLP Tax Returns.

Documents Required for ITR of LLPs and Firms

For filing Income Tax returns of your Firm/LLP, we need from you the accurate information on income and TDS paid. Here is a checklist of what we need for e-Filing your Income Tax returns:

  • iconStatement of Account: We need statement of account of the Firm/LLP.
  • iconForm 26 AS: If your Firm/ LLP have previously filed ITR, we can access the same from Income Tax Login if you have login credentials. Form 26AS can also be downloaded through net banking if PAN is mapped to that particular account.
  • iconDetails of bank accounts: We need bank account detail including the IFSC Codes. It is mandatory to give the details of all the bank account of Firm/ LLP for filing income tax returns ITR-5 or ITR-4 (in case of only firm with presumptive income).
  • iconIt is important to note that no document should be provided with the return form when you file the ITR 5 Form. If such documents are attached to the ITR Form 5, they will be removed and handed back to you. You must match the amount of tax deducted, paid, or collected by you or on your behalf with the Tax Credit Statement in Form 26AS.

Legal Procedures for ITR of LLPs and Firms

Below are the Steps for e-Filing of Income Tax Return for Firm/ LLP:

  • iconYou submit all the required details and documents to us.
  • iconOur Compliance Manager (Chartered Accountant) will understand your Firm/ LLP tax implication and liabilities over phone or video call.
  • iconPreparation of the Income Tax Return after discussing all the points in detail.
  • iconFiling of Income Tax Return with the Income Tax Department on your behalf.
  • iconOn successful submission for form, ITR-V would be displayed.
  • iconClick on the link to download the ITR-V.
  • iconITR-V will also be sent to the registered email.
  • iconIf your firm’s accounts need to be audited under Section 44AB, we need to furnish the return electronically with a digital signature.
  • iconE-verify the Income Tax Return by various methods available by looking at the most feasible one for you.
  • iconCECL Team will also send you the computation of income for your understanding.

Features & Benefits for ITR of LLPs and Firms

You must have heard or seen many advertisements which encourages the Firm/ LLP to file the income tax return with the department. But wait, what is the benefit of filing the same. Well, here are the answer which will enlighten your knowledge and encourage you to file your Firm/ LLP income tax return with the department. Some of them are given below:

  • iconLaw Compliant Firm/ LLP: The first and one of the most important benefits of filing of income tax returns is that, it ensures that the Firm/ LLP is compliant with the Indian Income tax laws. By staying within the time lines, the Firm/ LLP would be able to manage his financial affairs effectively.
  • iconLoan Requirement: If a loan (Term Loan or Working Capital Loan) is required to be obtained from any bank or financial institution, the tax returns would be required to prove the ability of the Firm/ LLP to repay the loans. It also becomes a proof that the Firm/ LLP have a regular income and have paid taxes on it and then Banks and other Financial Institutions feel comfortable in giving your Firm/ LLP a loan of any nature including cash credit.
  • iconTo get refund on excess tax paid (if any): If your Firm/ LLP TDS has been deducted more than its tax liability, it becomes very important that your Firm/ LLP file tax returns to claim tax refunds. Without filing the ITR, the Income Tax Department shall not issue tax refunds. Excess taxes paid by any Firm/ LLP either by way of TDS on Fixed Deposit Interests, any other Tax Deductions or advance/self-assessment tax can be refunded only by filing income tax returns.
  • iconTo carry forward the Loss: If your Firm/ LLP have sustained a Business loss or loss under the head “Capital Gains”, your Firm/ LLP can carry forward the loss only if your Firm/ LLP file the Income Tax Return by the due date. Therefore, if your Firm/ LLP have sustained a loss, you must file the Income Tax Return of the Firm/ LLP in time if you want to carry forward the loss for future adjustment with your Firm/ LLP Income. If your Firm/ LLP have any capital loss, you can carry it forward for the next eight consecutive financial years.
  • iconTo avoid penalty: If you do not file your Income Tax Return, the Income Tax Department may impose a penalty. If your Firm/ LLP do not file the Income Tax Return by the due date, you are liable to pay interest as well payable for every month after the due date till the date of filing the return.