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Income Tax Rate For LLP - Know The Various Details
Tax

Income Tax Rate For LLP - Know The Various Details

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.

Type of Firm

Due Date

Firm mandated to get accounts audited under the Income Tax, act or any other law

30th September of the Assessment year

Required to furnish a report in form NUMBER 3CEB under section 92E of the Income Tax Act, 1961

30th November of the Assessment year

Others

31st July of the Assessment year

LLP Tax Audit Limit

LLPs with a turnover more than Rs. 40 lakh or a contribution more than Rs. 25 lakh must have their accounts audited by a practising Chartered Accountant. The deadline for filing tax returns for LLPs that need to submit audit is September 30th.

Also read Know About The Mutual Fund Calculator

LLPs Involved in International Transaction

LLPs who engage in international transactions are required to file Form 3CEB. This requirement also applies to certain specified domestic transactions. This Form 3CEB needs to be certified by an auditor. The annual deadline for filing Form 3CEB is November 30th of every year.

Procedure for LLP Tax Filing

Form ITR 5 is required for LLPs to file their income tax returns. The designated partner's digital signature can be used to file Form ITR 5 online through the income tax website. It is recommended that the taxpayer print two copies of Form ITR-V after filing an LLP tax return. One copy of the ITR-V should be mailed to Post Bag No. 1, Electronic City Office, Bengaluru–560100, signed by the assessee (Karnataka). The assessee can keep the other copy for his records.

Also read about The Income Tax Calculator - The Tool That Helps You Calculate Your Tax.  

LLP Tax Payment

LLP tax payment can be made in physical mode through designated banks or through e-payment mode. LLPs mandated to get their accounts audited are required to pay tax through e-payment mode only. To pay tax at designated banks, Challan ITNS 280 is to be provided with the tax payment.

Return Filing

Every partnership firm and LLP is required to file an income tax return, regardless of the amount of revenue or loss. E-filing is required for Partnership Firms and Limited Liability Partnerships (LLPs) with or without a digital signature. A partnership firm may also file a return of income using the Electronic Verification Code (EVC), however this option is not available for limited liability partnerships (LLPs). An entity that is subject to an audit under section 44AB must submit its return electronically with a digital signature. Signing of the IT Return – by the Managing Partner (in the case of an LLP, the Designated Partner – however, if the designated partner is unable to sign for any reason or if there is no designated partner, any partner may sign the return). The form that must be filled out is (ITR 4 or ITR 5) as per the case.

You may also like reading Income Tax Verification: The checking of your filed taxes.

How To File Quarterly TDS? Know The Process Details
Tax

How To File Quarterly TDS? Know The Process Details

In order to understand the process and procedure of filing quarterly Tax deducted at source (TDS), we should first have a look at what TDS is.

The Definition & Meaning of TDS

TDS is defined as the tax deducted at the source when payment exceeds a certain fixed limit decided by the government in any transaction carried out for business or trade. Deduction of TDS is most typically noticed in the payments of salary in general. While paying salaries to employed workers or paying for services such as rent and construction, TDS is to be extracted if the amount is above the threshold limit amount.

Also read Form 16 – Here Is About Tax Deducted At Source

The TDS return is submitted to the Income Tax Department of India. If one fails to do so, the department may initiate penalties and legal action against the firm’s owner. The TDS return should be filed before the due date.

Quarter

Due Date

April to June (Q1)

July 15

July to September (Q2)

October 15

October to December (Q3)

January 15

January to March (Q4)

May 15

     

What Are The Penalties For Non-filing/Delay?

As per the case and situation, penalties can range from ₹10,000 to ₹ 1,00,000.

How Do We File Quarterly TDS Return?

Well, TDS can be filed through both online and offline processes quarterly.

Here is the Procedure to File TDS Returns Quarterly. As stated, it can be filed through both online and offline methods:

 Online Process

  1. Visit the TIN website and download RPU version 4.1 (4.1 is the latest version.)
  2. The following features are mandatory for installing and extracting the rpu file.
  • Java run-time environment Version 1.6.
  • The operating system should be windows 2003 and above.
  • The Java RPU utility should be installed on the same path as e-TDS/TCS FVU utility jars
  1. If you have all these features, the below screenshot page will appear.
  2. You should choose Form No. from the drop-down as per the purpose for which you have charged the TDS.
  • 24 Q for TDS on Salary
  • 26 Q for TDS on Other than Salary
  • 27 EQ for TCS
  • 24 Q for TDS on Non-Residents
  1. You should have all the data of the owner or firm for whom you are filing the TDS, such as PAN, TAN, address, all the challans, etc. If you file for yourself, you should keep the data readily available. You can even save the data in the form of an excel file and easily copy-paste it.

Also read The Income Tax Calculator - The Tool That Helps You Calculate Your Tax

Herein, you need to Select ‘type of statement to be prepared’: Then you should Choose Regular for fresh quarterly TDS returns and you should select Correction in order to make corrections in the previously filed TDS returns.

Besides, you should select Regular if you are filing for fresh quarterly TDS return using the online method

  1. You should click on continue, then a page will come up wherein you got to fill only three sections. The following three sections:
  • The form
  • The challan
  • The deductee details

The next few how to fill all these sections correctly is mentioned in the next steps.

  1. On the form page, Under, Particulars of statement – You are only required to fill in the details marked with a star (*) symbol.

Fill in these details-

  • PAN number*
  • TAN number*
  • Financial year*
  • Type of Deductor* (Choose your Deductor for which you are filing the TDS. For instance, company in case you are filing for the company).
  • For quarter Ended* (Choose a quarter like first, second, or third for which quarter you are filing the return).

You should fill in all the details very carefully. Always cross-check the financial year.

  1. Now, after filling in the particulars of the statement, go below and fill in Particulars of Deductor (Employer)- You have to fill in all the basic details, Such as-
  • Name
  • Branch if any
  • Mobile number
  • Address
  • Has the address changed Since the last return (select yes if yes, no if not)
  1. Now, You have to fill out the Person’s Particulars responsible for Deduction of Tax – You have to fill in all the basic details, such as:
  • Name
  • Branch if any
  • Mobile number
  • Address

In case the person is the same as the one for whom Deductor’s particular details have been filed, you can choose the same above box.

  1. The last detail for this page you have to add is the Receipt number of the previous TDS return filed for the first quarter (Q1), and then click on save and save your file.
  2. Now come to the Challan page and fill in the details. For adding challan details
  •  Click on Add Rows present at the bottom of the page
  • Enter the number of rows to be added- You have to enter the number of rows you want for entering the number of challans you want to add. Ex- If you have one challan, enter one. If you have ten challans, enter ten.
  • Now, you have to fill in specific details of every challan. Suppose you have prepared data in excel for challan details, you can directly paste it.
  •  Only those fields will be vacant which are relevant to your TDS return filing online, such as.
  • TDS
  • Surcharge
  • Education Cess
  • Interest
  • Fee
  • Penalty/others
  • BSR code/Receipt number
  • The date on which amount deposited through challan
  • Serial number of challan
  • Mode of deposit through book adjustment
  • Interest to be allocated
  • Others
  • Minor head of challan 200-TDS payable by taxpayer 400-TDS regular assessment

Fill all the challan details in this manner correctly.

1. Go to the following page, go to Deductee Details, and fill in the deductee information. If you have two deductees on one challan, insert two rows. If you have four deductees, enter four, and so on.

• To enter rows, go to the bottom of the page and click insert rows, then fill in all of the deductee information.

Charges Per  Deductee

Up to 100 records

43.50

From 101 to 1000 records

204.00

More than 1000 records

662.50

  • When you've finished filling out all of the fields, click the Create File button. The flash message box will inform you if there is a mistake and how to correct it. Then the screen below will show.
  • In this stage, you must upload the challan file. Click here to get the challan file. You will be directed to the TIN website.
  • Enter the TAN number and Quarter period details in the Tan-based view, then save the downloaded file. It's fairly straightforward.
  • You already have the file, so go ahead and select the challan. Simply type the path to the area where you wish to see the error reports in the second column. Sort them if there are any.
  • Select Validate from the drop-down menu.

Offline Process

You must submit your TDS statements to your local TIN facilitation centre, which will issue a receipt if the submission is proper and successful.

• If your application is turned down, you will receive a memo explaining why.

Read also Know About The Mutual Fund Calculator

 

The Income Tax Calculator -  The Tool That Helps You Calculate Your Tax
Tax

The Income Tax Calculator - The Tool That Helps You Calculate Your Tax

About Income Tax 

Income tax is defined as a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income

You may also like to read about GST.

What is Income Tax Calculator?

The Income tax calculator is an easy-to-use online tool that helps you estimate your taxes based on your income after the Union Budget is presented. We have updated our tool in line with the income tax changes proposed in the Union Budget 2022-23.(Read the highlights here)

How to use the Income tax calculator for FY 2022-23 (AY 2023-24)?

Below are the steps to use the tax calculator:

1. Choose the financial year for which you want your taxes to be calculated.

2. Select your age accordingly. Tax liability in India differs based on the age groups.

3. Click on 'Go to Next Step'

4. Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on. (if you want to know your tax liability under the old tax slabs)

Or else, just enter your salary i.e salary without availing exemptions such as HRA, LTA, standard deduction, professional tax and so on. (if you want to know your tax liability under the new tax slabs)

5. Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self occupied property.

6. For Income from Digital Assets, enter the net income ( Sale consideration less Cost of Acquisition), such income is taxed at 30% Plus applicable surcharge and cess.

7. Click on 'Go to Next Step' again.

8. In case, you want to calculate your taxes under the old tax slabs,you will have to enter your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.

9. Click on 'Calculate' to get your tax liability. You will also be able to see a comparison of your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).

Note: Whichever field is not applicable, you can enter "0".

What are the exemptions/ deductions that are disallowed under the new tax regime?

Individual or HUF opting for taxation under the newly inserted section 115BAC of the Act shall not be entitled to the following exemptions/deductions:

(i) Leave travel concession as contained in clause (5) of section 10;

(ii) House rent allowance as contained in clause (13A) of section 10;

(iii) Some of the allowance as contained in clause (14) of section 10;

(iv) Allowances to MPs/MLAs as contained in clause (17) of section 10;

(v) Allowance for the income of minor as contained in clause (32) of section 10;

(vi) Exemption for SEZ unit contained in section 10AA;

(vii) Standard deduction, deduction for entertainment allowance and employment/professional tax as contained in section 16;

You can also read about Form 16.

(viii) Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23. (Loss under the head income from house property for the rented house shall not be allowed to be set off under any other head and would be allowed tobe carried forward as per extant law);

(ix) Additional deprecation under clause (iia) of sub-section (1) of section 32;

(x) Deductions under section 32AD, 33AB, 33ABA;

(xi) Various deduction for donation for or expenditure on scientific research contained in sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35;

(xii) Deduction under section 35AD or section 35CCC;

(xiii) Deduction from family pension under clause (iia) of section 57;

(xiv) Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc). However, deduction under sub-section (2) of section 80CCD (employer contribution on account of the employee in notified pension scheme) and section 80JJAA (for new employment) can be claimed.

Following allowances shall be allowed as notified under section 10(14) of the Act to the Individual or HUF exercising option under the proposed section:

a) Transport Allowance granted to a divyang employee to meet the expenditure for the purpose of commuting between place of residence and place of duty

b) Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office;

c) Any Allowance granted to meet the cost of travel on tour or on transfer;

d) Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

You can even get your tax computation on your mail.

You can also read about Income Tax Verification.

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