Limited Liability Partnerships (LLPs) have become a popular business structure in India, especially for professionals, service providers, and small businesses seeking the flexibility of a partnership combined with the legal protection of limited liability. LLPs enjoy easier compliance compared to companies, but they are still required to file annual returns and income tax returns every financial year.
For the Financial Year 2024–25 (Assessment Year 2025–26), LLPs must complete their income tax return (ITR) filing by 30th September 2025, unless extended by the government. With the deadline approaching, every LLP should start preparing its accounts and tax documents well in advance to avoid last-minute hassles, penalties, and interest.
This article provides a comprehensive guide for LLPs on income tax filing for FY 2024–25, including due dates, applicable tax rates, required documents, and filing procedures.
Why Income Tax Filing is Important for LLPs
Income tax filing is not just a compliance requirement but also ensures:
- Legal Compliance – Every LLP must file returns, even if there is no income.
- Transparency – Filing ensures proper reporting of profits, expenses, and tax liability.
- Avoiding Penalties – Timely filing prevents late fees and interest charges.
- Financial Credibility – Filed returns are often required for loans, tenders, and contracts.
- Loss Carry Forward – Losses can be carried forward only if the return is filed before the deadline.
Due Date for LLP Tax Filing (FY 2024–25)
- For LLPs not requiring audit:
- 31st July 2025 (original deadline).
- Extended deadline: 15th September 2025 (as announced for this year).
- For LLPs requiring audit (turnover > ₹40 lakh or capital > ₹25 lakh):
- 30th September 2025 is the due date for filing ITR as well as submitting tax audit reports.
👉 LLPs that enter into international transactions with associated enterprises must also file Form 3CEB by 31st October 2025.
Tax Rates for LLPs in FY 2024–25
Unlike companies that have multiple tax rates, LLPs are taxed at a flat rate.
- Income Tax Rate: 30% of total income.
- Surcharge: 12% if income exceeds ₹1 crore.
- Health & Education Cess: 4% on income tax plus surcharge.
👉 Effective tax rate for most LLPs = 30% + 4% = 31.2%
👉 If income exceeds ₹1 crore = ~34.944% (with surcharge).
Minimum Alternate Tax (MAT) does not apply to LLPs. However, they are subject to Alternate Minimum Tax (AMT) at 18.5% on adjusted total income if they claim certain deductions under Chapter VI-A (like 80-IA, 80-IB).