What is Annual Filing for LLP?

In today’s time, each Limited Liability Partnership which is enrolled with the Ministry of Corporate Affairs need to file their annual returns and statement of accounts in the Financial Year. So there is 3 Main Compliance which is obligatory things for the LLP’s that are as follows:- in this article, we will discuss about Annual Filing for LLP in India.

• Annual Return
• Statement of the Accounts or Financial Statements of the LLP
• Income Tax Returns Filings.

Most of the entrepreneurs in India or new startup companies are befuddled with the fact that annual filings for LLP Returns are an obligatory thing regardless of whether they are doing the business or not. The reason is very straightforward, only you are aware that you are not running any business but a government of India is not aware of that. So, it is through the annual filings, you are offering data to the administration about your association. So let’s comprehend which LLP’s need to file the Annual Returns and Income Tax Return filing.

What is the Statement of Account?

Every LLP need to set up their records so even you got the data with respect to your business that how much benefit has been earned by your Limited Liability Partnership. Each LLP need to close their accounts until the 31st March of this year. There is so many software from wave applications to basic spreadsheets where you can maintain your data and records. All LLPs are required to maintain the Books of Accounts in Double Entry System and must prepare a Statement of Solvency (Accounts) each year. LLP Form 8 to be filled the Registrar of LLPs at the before 30th October each year. Annual filing for LLP date is 30^th Oct.Whereas Form 11 contains the summary of LLP partners to make sure if there is any change in the management. Form 11 must be applied for those who registered LLP annual return till 30^th Sept.

What Are The Audit Requirements Under LLP?

The accounts of the LLP whose turnover in any monetary year surpass rupee forty (40) lakhs and contribution surpasses twenty-five (25) lakhs needs to be audited by the well-qualified expert Chartered accountant. Additionally, accomplices of LLP on their optional side despite turnover or contribution may also get their LLP accounts audited. As per the income tax, the need for the annual filing for LLP arises when turnover for surpasses rupee hundred (100) Lakh.

What is the Penalty For Non Filing of LLP annual filing forms?

If you are unable to complete the annual filing for LLP then you will have to pay penalty as per the rules which is Rs 100 per day till it is done. You will not be able to wind up until and unless you file for annual filing. The LLP Act contains provisions for the offense of not filing the returns. To avoid the heavy penalty, utilize your time by consulting the best experts. We at Swarit Advisors are constantly available to help you out in shortest possible time.

If you are thinking of the Filings done by yourself then we recommend that you must employ a legitimate professional. As it is not easy to file and save your tax, it needs proper arrangement and only an expert can do it. In case, if you are not doing any business then also you must file for NIL Returns else it will be risky and you will get into penalties, you can’t close your LLP effectively. So it’s better to consult a specialist, reach us anytime for more details.

Also, Read: What are the Key Highlights of Limited Liability Partnership?