LLP Income Tax Return Filing (ITR-5)

How It Works

1. 1

   Document Collection and Books Closure

   Collect audited financial statements, bank statements, GST returns, TDS return acknowledgements, and partner capital account details. Ensure Form 8 has been filed with MCA before commencing ITR preparation.

2. 2

   Tax Audit (if applicable)

   Where turnover exceeds the threshold under Section 44AB, a practicing chartered accountant conducts the tax audit and uploads Form 3CB and Form 3CD on the income tax portal. The audit report must be filed before the return.

3. 3

   Computation of Book Profit and Section 40(b) Limits

   Compute the LLP's book profit as defined under Explanation 3 to Section 40(b). Calculate maximum permissible partner remuneration and interest deductions. Identify any disallowances and adjustments.

4. 4

   Preparation of ITR-5

   Prepare the return covering all schedules including Schedule BP (business income), Schedule CG (capital gains), Schedule OTH (other income), Schedule 80G, and reconcile with the audited financials. Verify pre-filled data from AIS/TIS.

5. 5

   Taxpayer Review and Digital Signature

   Share the computation and draft ITR-5 with the designated partner for review and approval. Obtain the DSC of the designated partner, which is mandatory for LLP ITR filing — unlike individual returns, e-verification via Aadhaar OTP is not permitted for LLPs.

6. 6

   Filing and Acknowledgement

   File ITR-5 on incometax.gov.in using the designated partner's DSC. Download and archive the ITR-V acknowledgement and the computation sheet for future reference and audit trail.