LLP Compliance Calendar FY 2025-26: Annual Deadlines & Checklist

Managing Limited Liability Partnership (LLP) compliance in India requires meticulous attention to various statutory obligations throughout the financial year. This comprehensive LLP Annual Compliance Calendar for F.Y. 2025-26 serves as your go-to resource for tracking all mandatory filings, tax obligations, and regulatory requirements to keep your LLP in good standing with authorities.

Every LLP registered in India must meet a set of annual and event-based compliances to remain in good standing with the Ministry of Corporate Affairs (MCA) and the Income Tax Department. The most important annual due dates are:

• Form 11 (Annual Return): 30th May every year
• Form 8 (Statement of Account & Solvency): 30th October every year
• Income Tax Return (ITR-5): 31st July (if audit not required), 31st October (if audit required), 30th November (if international transaction/TP report)
• DIR-3 KYC (Designated Partner KYC): 30th September every year

Even if the LLP has no business or is dormant, these filings are mandatory.

What is an LLP?

A Limited Liability Partnership (LLP) is a modern business structure in India that combines the flexibility of a partnership with the limited liability benefits of a company. Introduced under the LLP Act, 2008, it is a popular choice for startups, professionals, and small businesses.

Key features of an LLP:

• Separate Legal Entity – The LLP can own property, enter contracts, and sue/be sued in its own name.
• Limited Liability – Partners are not personally liable for business debts beyond their capital contribution.
• Flexible Structure – Managed through an LLP Agreement, giving freedom to define roles and profit-sharing.
• Lower Compliance Costs – Compared to private companies, LLPs have fewer compliance requirements, making them cost-effective.

In short, LLPs offer the best of partnerships and companies, making them an attractive option for entrepreneurs who want credibility with reduced compliance burden.

What is an LLP Compliance Calendar?

An LLP Compliance Calendar is a structured timeline of all statutory obligations that Limited Liability Partnerships must fulfill throughout the financial year. It includes filing deadlines for annual returns, financial statements, tax returns, GST filings, and other regulatory requirements mandated by authorities like the Ministry of Corporate Affairs (MCA), Income Tax Department, and GST Network.

Benefits of Following an LLP Compliance Calendar

• Penalty Avoidance: Timely compliance prevents hefty penalties that can reach up to ₹5 lakh for certain violations.
• Business Reputation: Maintains good standing with regulatory authorities and business partners.
• Operational Efficiency: Prevents last-minute rushes and ensures smooth business operations.
• Financial Planning: Helps in budgeting for tax payments and compliance costs.
• Legal Protection: Safeguards the limited liability status of partners.

Key Regulatory Authorities Governing LLPs in India

Regulatory Authority	Compliance Areas
Ministry of Corporate Affairs (MCA)	Form 8, Form 11, event-based filings, partner details
Income Tax Department	ITR-5, TDS/TCS returns, advance tax, audit compliance
GST Network	GSTR-1, GSTR-3B, annual returns, e-invoicing
EPFO	Monthly PF contributions and returns
ESIC	Monthly ESI contributions and returns
Ministry of MSME	MSME payment reporting (Form MSME-1)

LLP vs. Private Limited Company: Compliance Comparison

While LLPs have fewer compliance requirements compared to private limited companies, the penalties for non-compliance can be significantly higher. Here’s a quick comparison:

Parameter	LLP	Private Limited Company
Annual Returns	Form 11 (Due: 30th May)	MGT-7/MGT-7A (Due: 29th November)
Financial Statements	Form 8 (Due: 30th October)	AOC-4 (Due: 30th October)
Annual General Meeting	Not Required	Mandatory (Due: Within 6 months from FY end)
Board Meetings	Not Mandatory	Minimum 4 per year
Audit Requirements	Required if turnover > ₹40 lakh or contribution > ₹25 lakh	Mandatory for all companies
Maximum Penalty for Non-Compliance	Up to ₹5 lakh	Up to ₹1 lakh

Quarterly LLP Compliance Calendar 2025

Quarter 1 (April-June 2025) Key Compliances

Due Date	Compliance Requirement	Applicable Form	Authority
7th of each month	TDS/TCS payment for previous month	Challan No. ITNS-281	Income Tax Dept.
10th of each month	GST TDS Return	GSTR-7	GST Network
10th of each month	GST TCS Return	GSTR-8	GST Network
11th of each month	GST Return (Monthly filers)	GSTR-1	GST Network
15th of each month	PF Payment and Return	ECR	EPFO
15th of each month	ESI Payment and Return	ESI Challan	ESIC
20th of each month	GST Return (Monthly filers with turnover >₹5 crore)	GSTR-3B	GST Network
30th April 2025	MSME Payments Reporting (Oct 2024-Mar 2025)	Form MSME-1	MCA
30th May 2025	Annual Return of LLP	Form 11	MCA
15th June 2025	First Advance Tax Installment (15%)	Challan No. ITNS-280	Income Tax Dept.
30th June 2025	Return of Deposits	DPT-3	MCA

Quarter 2 (July-September 2025) Key Compliances

Due Date	Compliance Requirement	Applicable Form	Authority
7th of each month	TDS/TCS payment for previous month	Challan No. ITNS-281	Income Tax Dept.
10th of each month	GST TDS Return	GSTR-7	GST Network
11th of each month	GST Return (Monthly filers)	GSTR-1	GST Network
15th of each month	PF Payment and Return	ECR	EPFO
15th of each month	ESI Payment and Return	ESI Challan	ESIC
15th July 2025	Annual Return on Foreign Liabilities and Assets	FLA Return	RBI
31st July 2025	Quarterly TDS Return (Apr-Jun 2025)	Form 24Q/26Q/27Q	Income Tax Dept.
15th September 2025	Second Advance Tax Installment (45%)	Challan No. ITNS-280	Income Tax Dept.
15th September 2025	Income Tax Return (non-audit cases)	ITR-5	Income Tax Dept.
30th September 2025	Director/Designated Partner KYC	DIR-3 KYC	MCA

Quarter 3 (October-December 2025) Key Compliances

Due Date	Compliance Requirement	Applicable Form	Authority
7th of each month	TDS/TCS payment for previous month	Challan No. ITNS-281	Income Tax Dept.
10th of each month	GST TDS Return	GSTR-7	GST Network
11th of each month	GST Return (Monthly filers)	GSTR-1	GST Network
15th of each month	PF Payment and Return	ECR	EPFO
15th of each month	ESI Payment and Return	ESI Challan	ESIC
30th October 2025	Statement of Account & Solvency	Form 8	MCA
31st October 2025	Income Tax Return (audit cases)	ITR-5	Income Tax Dept.
31st October 2025	MSME Payments Reporting (Apr-Sep 2025)	Form MSME-1	MCA
30th November 2025	Income Tax Return (international transactions)	Form 3CEB	Income Tax Dept.
15th December 2025	Third Advance Tax Installment (75%)	Challan No. ITNS-280	Income Tax Dept.
31st December 2025	Belated/Revised Income Tax Return (FY 2024-25)	ITR-5	Income Tax Dept.
31st December 2025	Annual GST Return	GSTR-9	GST Network

Quarter 4 (January-March 2026) Key Compliances

Due Date	Compliance Requirement	Applicable Form	Authority
7th of each month	TDS/TCS payment for previous month	Challan No. ITNS-281	Income Tax Dept.
10th of each month	GST TDS Return	GSTR-7	GST Network
11th of each month	GST Return (Monthly filers)	GSTR-1	GST Network
15th of each month	PF Payment and Return	ECR	EPFO
15th of each month	ESI Payment and Return	ESI Challan	ESIC
31st January 2026	Quarterly TDS Return (Oct-Dec 2025)	Form 24Q/26Q/27Q	Income Tax Dept.
15th March 2026	Fourth Advance Tax Installment (100%)	Challan No. ITNS-280	Income Tax Dept.

Monthly LLP Compliance Calendar 2025

January 2025

1.   TDS/TCS payment for December 2024 (by 7th January)

2.   GSTR-7 & GSTR-8 filing (by 10th January)

3.   GSTR-1 Monthly filing (by 11th January)

4.   GSTR-1 Quarterly filing for Oct-Dec 2024 (by 13th January)

5.   PF/ESI payment and returns (by 15th January)

6.   CMP-08 filing for Composition scheme (by 18th January)

7.   GSTR-3B filing (by 20th/22nd January based on turnover and state)

8.   Quarterly TDS return for Oct-Dec 2024 (by 31st January)

February 2025

1.   TDS/TCS payment for January 2025 (by 7th February)

2.   GSTR-7 & GSTR-8 filing (by 10th February)

3.   GSTR-1 Monthly filing (by 11th February)

4.   TDS Certificate issuance (by 14th February)

5.   PF/ESI payment and returns (by 15th February)

6.   GSTR-3B filing (by 20th/22nd February based on turnover and state)

March 2025

1.   TDS/TCS payment for February 2025 (by 7th March)

2.   GSTR-7 & GSTR-8 filing (by 10th March)

3.   GSTR-1 Monthly filing (by 11th March)

4.   PF/ESI payment and returns (by 15th March)

5.   Fourth Advance Tax installment for FY 2024-25 (by 15th March)

6.   GSTR-3B filing (by 20th/22nd March based on turnover and state)

7.   CSR-2 filing if applicable (by 31st March)

April 2025

1.   TDS/TCS payment for March 2025 (by 7th April)

2.   GSTR-7 & GSTR-8 filing (by 10th April)

3.   GSTR-1 Monthly filing (by 11th April)

4.   TDS Certificate issuance (by 14th April)

5.   PF/ESI payment and returns (by 15th April)

6.   GSTR-3B filing (by 20th/22nd April based on turnover and state)

7.   Form MSME-1 for Oct 2024-Mar 2025 (by 30th April)

8.   GSTR-4 Annual Return for Composition Scheme (by 30th April)

May 2025

1.   TDS/TCS payment for April 2025 (by 7th May)

2.   GSTR-7 & GSTR-8 filing (by 10th May)

3.   GSTR-1 Monthly filing (by 11th May)

4.   TDS Certificate issuance (by 15th May)

5.   PF/ESI payment and returns (by 15th May)

6.   GSTR-3B filing (by 20th/22nd May based on turnover and state)

7.   Form 11 (Annual Return of LLP) (by 30th May)

8.   TDS/TCS returns and certificates for Q4 of FY 2024-25 (by 30th/31st May)

June 2025

1.   TDS/TCS payment for May 2025 (by 7th June)

2.   GSTR-7 & GSTR-8 filing (by 10th June)

3.   GSTR-1 Monthly filing (by 11th June)

4.   TDS Certificate issuance (by 14th June)

5.   First Advance Tax installment for FY 2025-26 (by 15th June)

6.   PF/ESI payment and returns (by 15th June)

7.   GSTR-3B filing (by 20th/22nd June based on turnover and state)

8.   DPT-3 Return of Deposits (by 30th June)

July 2025

1.   TDS/TCS payment for June 2025 (by 7th July)

2.   GSTR-7 & GSTR-8 filing (by 10th July)

3.   GSTR-1 Monthly filing (by 11th July)

4.   GSTR-6 ISD Return (by 13th July)

5.   Annual Return on Foreign Liabilities and Assets (by 15th July)

6.   PF/ESI payment and returns (by 15th July)

7.   CMP-08 filing for Composition scheme (by 18th July)

8.   GSTR-3B filing (by 20th/22nd July based on turnover and state)

9.   Quarterly TDS/TCS returns and certificates for Q1 of FY 2025-26 (by 30th/31st July)

August 2025

1.   TDS/TCS payment for July 2025 (by 7th August)

2.   GSTR-7 & GSTR-8 filing (by 10th August)

3.   GSTR-1 Monthly filing (by 11th August)

4.   PF/ESI payment and returns (by 15th August)

5.   GSTR-3B filing (by 20th/22nd August based on turnover and state)

September 2025

1.   TDS/TCS payment for August 2025 (by 7th September)

2.   GSTR-7 & GSTR-8 filing (by 10th September)

3.   GSTR-1 Monthly filing (by 11th September)

4.   Income Tax Return for non-audit cases (by 15th September)

5.   Second Advance Tax installment for FY 2025-26 (by 15th September)

6.   PF/ESI payment and returns (by 15th September)

7.   GSTR-3B filing (by 20th/22nd September based on turnover and state)

8.   DIR-3 KYC for all DIN holders (by 30th September)

October 2025

1.   TDS/TCS payment for September 2025 (by 7th October)

2.   GSTR-7 & GSTR-8 filing (by 10th October)

3.   GSTR-1 Monthly filing (by 11th October)

4.   GSTR-1 Quarterly filing for Jul-Sep 2025 (by 13th October)

5.   PF/ESI payment and returns (by 15th October)

6.   GSTR-3B filing (by 20th/22nd October based on turnover and state)

7.   Form 8 (Statement of Account & Solvency) (by 30th October)

8.   Income Tax Return for audit cases (by 31st October)

9.   Form MSME-1 for Apr-Sep 2025 (by 31st October)

10.Quarterly TDS returns for Q2 of FY 2025-26 (by 31st October)

November 2025

1.   TDS/TCS payment for October 2025 (by 7th November)

2.   GSTR-7 & GSTR-8 filing (by 10th November)

3.   GSTR-1 Monthly filing (by 11th November)

4.   PF/ESI payment and returns (by 15th November)

5.   GSTR-3B filing (by 20th/22nd November based on turnover and state)

6.   Income Tax Return for international transactions (by 30th November)

December 2025

1.   TDS/TCS payment for November 2025 (by 7th December)

2.   GSTR-7 & GSTR-8 filing (by 10th December)

3.   GSTR-1 Monthly filing (by 11th December)

4.   Third Advance Tax installment for FY 2025-26 (by 15th December)

5.   PF/ESI payment and returns (by 15th December)

6.   GSTR-3B filing (by 20th/22nd December based on turnover and state)

7.   Belated/Revised Income Tax Return for FY 2024-25 (by 31st December)

8.   Annual GST Return (GSTR-9) (by 31st December)

Critical Annual Compliances for LLPs

1. Form 11 – Annual Return Filing

What is Form 11?
Form 11 is the annual return that every LLP must file with the Ministry of Corporate Affairs (MCA), providing details of the LLP’s business activities, partners, and their contributions.

Due Date: Within 60 days from the close of the financial year (30th May 2025 for FY 2024-25)

Key Information Required:

• Details of all partners and designated partners
• Changes in partners/designated partners during the year
• Capital contribution of each partner
• Details of other directorships/partnerships of the partners
• Principal business activities of the LLP

Certification Requirements:

• If turnover ≤ ₹5 crores and partner contribution ≤ ₹50 lakh: Digital signature of designated partner
• If turnover > ₹5 crores or partner contribution > ₹50 lakh: Certification by a practicing Company Secretary.

Penalty for Non-Compliance: ₹100 per day until the form is filed (no upper limit)

2. Form 8 – Statement of Account & Solvency

What is Form 8?
Form 8 is the financial statement filing for LLPs that includes the Statement of Account & Solvency, which provides financial details and solvency status of the LLP.

Due Date: Within 30 days from the end of six months of the financial year (30th October 2025 for FY 2024-25).

Attachments Required with Form 8

When filing Form 8 (Statement of Account & Solvency), LLPs must also attach certain supporting documents, including:

• Disclosure under MSME Act for any unpaid dues to MSMEs
• Statement of contingent liabilities (if any)
• Certification by designated partners

Adding these ensures Form 8 is accepted smoothly by MCA and avoids re-submission hassles.

Key Information Required:

• Balance Sheet and Statement of Profit & Loss
• Cash Flow Statement
• Statement of Partners’ Account
• Declaration of solvency by designated partners
• Accounting policies followed

Certification Requirements:

• If turnover ≤ ₹40 lakh and partner contribution ≤ ₹25 lakh: Digital signature of two designated partners
• If turnover > ₹40 lakh or partner contribution > ₹25 lakh: Certification by an auditor.

Penalty for Non-Compliance: ₹100 per day until the form is filed.

3. Income Tax Return (ITR-5)

What is ITR-5?
ITR-5 is the income tax return form applicable for LLPs to report their income, deductions, and tax liability to the Income Tax Department.

Due Dates:

• For LLPs not requiring tax audit: 15th September 2025.
• For LLPs requiring tax audit: 31st October 2025.
• For LLPs with international transactions: 30th November 2025.

Income Tax Filing (ITR-5) Deadlines and Fees

All LLPs must file their Income Tax Return using Form ITR-5. The due date shifts based on the audit requirement determined above:  

ITR-5 Requirement	Statutory Due Date
ITR-5 (Tax Audit Not Applicable)	31st July
ITR-5 (Tax Audit Is Applicable)	31st October

Penalties for Late ITR-5 Filing:

• Late Filing Fee (Section 234F): A penalty of up to ₹5,000 is levied. This fee is restricted to   ₹1,000 if the LLP’s total income does not exceed ₹5 lakh.  
• Interest (Section 234A): Interest is charged at 1% per month (or part of a month) on any unpaid tax liability starting from the due date.  

Audit Requirements for LLPs:

An LLP’s compliance obligations depend entirely on whether its accounts require auditing. Note that the LLP Act and the Income Tax Act set two separate thresholds.  

Audit Type	Governing Act	Applicable Threshold
Statutory LLP Audit	LLP Act, 2008	Mandatory if: Turnover exceeds ₹40 Lakhs OR Contribution (Capital) exceeds ₹25 Lakhs.
Income Tax Audit	Income Tax Act, 1961	Mandatory if: Business turnover exceeds ₹1 Crore (or ₹10 Cr if cash transactions are below 5%) OR Professional receipts exceed ₹50 Lakhs.

Key Points to Note:

• Digital signature of designated partner required for filing.
• Advance tax to be paid in four installments (15th June, 15th September, 15th December, 15th March).
• Form 3CEB required for international transactions

Penalties for Non-Compliance:

• Late filing fee under Section 234F: Up to ₹5,000.
• Interest under Section 234A: 1% per month on unpaid tax.
• Interest under Section 234B/234C for advance tax defaults.

4. Mandatory Designated Partner KYC (DIR-3 KYC)

Every person holding a DIN (Director Identification Number), including LLP Designated Partners, must complete DIR-3 KYC annually by 30th September.

• Can be done either through e-form DIR-3 KYC or web-based filing on the MCA portal.
• Non-compliance leads to DIN deactivation, and partners cannot sign forms until it is reactivated with a late fee.
• Due Date: 30th September.

Consequences of Non-Compliance:

• DIN Deactivation: The DIN is immediately marked as ‘Deactivated’ by the MCA. The partner cannot sign any MCA forms or be appointed to a new role.  
• Reactivation Penalty: To reactivate the DIN, the form must be filed with a mandatory, one-time penalty of ₹5,000.

Event-Based LLP Compliances

Apart from annual filings, LLPs must also file forms whenever there are changes in their structure or management. These are called event-based compliances, and the timeline is usually 30 days from the event:

Event	Form to be Filed	Timeline
Change in LLP Agreement	Form 3	Within 30 days of change
Appointment/Resignation of Partner/DP	Form 4	Within 30 days
Change of LLP Name	Form 5	Within 30 days
Change of Registered Office	Form 15	Within 30 days

LLPs must be aware of mandatory filings triggered by specific events, all of which generally have a tight reporting deadline within 30 days of the event.  

• Form-4: Filing for any change in the partnership structure (e.g., admission, resignation, cessation of a partner).  
• Form-3: Required if a change in partner status alters the LLP agreement (Supplementary LLP Agreement).  
• Form-15: Mandatory filing if the registered office of the LLP is shifted.

Failure to file these on time attracts penalties and also delays updating MCA records, which can create issues during fundraising, due diligence, or compliance checks.

First Financial Year Rule for Newly Incorporated LLPs

For LLPs incorporated after 30th September of a given year, the first financial year can be extended up to 31st March of the following year.
Example: An LLP incorporated on October 5, 2025, can have its first financial year end on 31st March 2027.

This gives new LLPs some breathing room before their first filings, but from the next year onwards, the regular compliance cycle applies.

LLP Taxation in 2025: Key Rates and Obligations

Income Tax Rates for LLPs in FY 2024-25 (AY 2025-26)

Type of Tax	Rate	Applicable Conditions
Base Income Tax Rate	30%	Flat rate on total income
Surcharge	12%	When total income exceeds ₹1 crore
Health and Education Cess	4%	On income tax + surcharge
Alternate Minimum Tax (AMT)	18.5%	On adjusted total income
Long-Term Capital Gains Tax	12.5%	Exempted from AMT as per Income Tax Bill 2025

Effective Tax Rates with Surcharge and Cess:

Income Range	Effective Tax Rate
Up to ₹1 crore	31.2% (30% + 4% Cess)
Above ₹1 crore	34.944% (30% + 12% Surcharge + 4% Cess)

AMT Calculation:

• Effective AMT Rate (up to ₹1 crore): 19.24% (18.5% + 4% Cess)
• Effective AMT Rate (above ₹1 crore): 21.55% (18.5% + 12% Surcharge + 4% Cess)
• LLPs must pay higher of normal tax or AMT

Recent Update: The Income Tax Bill 2025 has reinstated the AMT exemption for LLPs earning solely long-term capital gains, allowing them to benefit from the lower 12.5% tax rate on LTCG instead of being subject to the 18.5% AMT.

TDS Obligations for LLPs

LLPs must deduct TDS on various payments as per the following rates:

Nature of Payment	TDS Section under Section	TDS Rate	Threshold Limit
Salary to Employees	192	As per slab rates	Basic exemption limit
Professional/Technical Services	194J	10% (2% for technical services)	₹30,000 per annum
Rent for Plant & Machinery	194I	2%	₹2,40,000 per annum
Rent for Land/Building	194I	10%	₹2,40,000 per annum
Contract Payments	194C	1% (Individual/HUF), 2% (Others)	₹30,000 per contract, ₹1,00,000 per annum
Commission/Brokerage	194H	5%	₹15,000 per annum
Interest	194A	10%	₹5,000 per annum (₹40,000 for banks)
Payments to Partners	194T	10%	₹20,000 in a financial year

TDS Compliance Timeline:

• TDS Payment: 7th of the following month
• TDS Returns: Quarterly (31st July, 31st October, 31st January, 31st May)
• TDS Certificates: Quarterly for non-salary (Form 16A) and annually for salary (Form 16)

Penalties for TDS Non-Compliance:

• Late payment interest: 1.5% per month
• Late filing fee: ₹200 per day (capped at TDS amount)
• Failure to deduct/collect TDS: Interest at 1% per month

GST Compliance for LLPs

GST Registration Requirements

An LLP must register under GST if:

• Aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category states)
• It makes inter-state supplies (regardless of turnover)
• It operates through e-commerce platforms

Documents Required for GST Registration:

• PAN of the LLP

• Aadhar cards of partners
• Photos of partners
• Address proof of principal place of business
• Bank account details
• Digital signature certificate (DSC) of authorized signatory

Regular GST Filings for LLPs

Return Type	Description	Frequency	Due Date
GSTR-1	Outward supplies	Monthly/Quarterly	11th of next month (monthly) 13th of next month after quarter (quarterly)
GSTR-3B	Summary return	Monthly/Quarterly	20th of next month (monthly, turnover >₹5 crore) 22nd/24th of next month after quarter (quarterly)
GSTR-7	TDS return	Monthly	10th of next month
GSTR-8	TCS return	Monthly	10th of next month
CMP-08	Composition scheme	Quarterly	18th of month following quarter
GSTR-9	Annual return	Annually	31st December

QRMP Scheme Eligibility: LLPs with aggregate turnover up to ₹5 crore can opt for the Quarterly Return Monthly Payment (QRMP) scheme, allowing quarterly filing of GSTR-1 and GSTR-3B with monthly payment options.

Compliance for Dormant or No-Business LLPs

A common misconception is that LLPs with no business activity don’t need to file returns. This is not true.

• Form 11 and Form 8 must still be filed, showing NIL activity.
• ITR-5 must also be filed, even if there is no income.

Non-filing can lead to heavy late fees (₹100 per day per form) and may even result in the LLP being marked for strike-off by the Registrar.

Recent Regulatory Updates for LLPs in 2025

1. MSME Classification Revision

The Ministry of MSME has revised the classification criteria for Micro, Small, and Medium Enterprises effective from April 1, 2025. The new thresholds are:

Category	Investment in Plant & Machinery	Annual Turnover
Micro	≤₹2.5 crore (up from ₹1 crore)	≤₹10 crore (up from ₹5 crore)
Small	≤₹25 crore (up from ₹10 crore)	≤₹100 crore (up from ₹50 crore)
Medium	≤₹125 crore (up from ₹50 crore)	≤₹500 crore (up from ₹250 crore)

Impact on LLPs: This expansion broadens the MSME landscape, potentially increasing the number of vendors classified as MSMEs. LLPs must be vigilant about tracking payments to such entities and complying with Form MSME-1 reporting requirements.

2. AMT Exemption for LLPs with LTCG

The Income Tax Bill 2025 has reinstated the Alternate Minimum Tax (AMT) exemption for LLPs earning solely long-term capital gains. This allows investment-focused LLPs to benefit from the preferential LTCG tax rate of 12.5% instead of being subject to the higher AMT rate of 18.5%.

3. FDI Restrictions on LLPs

Unlike the progressive easing of FDI norms for companies, LLPs continue to face significant restrictions in foreign investment. The current framework restricts LLPs from receiving foreign investment in sectors with FDI-linked performance conditions or sectors where FDI is permitted below 100% or under approval route.

There are calls for the government to revisit these restrictions and align LLPs with companies in terms of foreign investment policies to enhance India’s attractiveness as an investment destination.

Penalties for Non-Compliance with LLP Regulations

Non-compliance with statutory requirements can result in significant penalties for LLPs.

The most critical risk for an LLP is the non-filing of its two core annual ROC forms. Failure to meet the deadlines results in a statutory fine that compounds daily.  

• Form LLP-8 (Statement of Account & Solvency): Due by 30th October. Late filing incurs a penalty of ₹100 per day.  
• Form LLP-11 (Annual Return): Due by 30th May. Late filing also incurs a penalty of ₹100 per day.  

Crucially, this penalty applies separately for each form and has no maximum limit under the LLP Act. Emphasizing the daily compounding fee is vital for high-anxiety search queries.

Here’s a comprehensive table of penalties:

Non-Compliance Area	Applicable Penalty	Legal Provision
Late Filing of Form 11	₹100 per day (no upper limit)	LLP Act
Late Filing of Form 8	₹100 per day	LLP Act
Late Filing of Income Tax Return	Up to ₹5,000	Section 234F
Late Payment of Income Tax	1% interest per month	Section 234A
Defaults in Advance Tax	1% interest per month	Section 234B/234C
Late Payment of TDS	1.5% interest per month	Section 201(1A)
Late Filing of TDS Return	₹200 per day (capped at TDS amount)	Section 234E
Non-Filing of MSME-1	₹20,000 + ₹1,000 per day (up to ₹3 lakh)	Section 405(4), Companies Act
Non-Maintenance of Books of Account	₹25,000 to ₹5 lakh	LLP Act
Late Filing of GST Returns	₹50 per day (max ₹10,000)	CGST Act
Failure to File ITR	Imprisonment: 3 months to 7 years + fine	Section 276CC

Filing Process & Professional Assistance

All LLP compliances (Form 11, Form 8, DIR-3 KYC, etc.) must be filed online on the MCA V3 portal using a valid Digital Signature Certificate (DSC).

• Forms are auto-processed by MCA but must be verified carefully before submission.
• Pro Tip: Always take help from a professionals such as Treelife to avoid late fees and ensure accuracy. Errors in filings can cause complications during funding rounds or MCA scrutiny.

Best Practices for LLP Compliance Management

1. Implementing a Robust Compliance Management System

To effectively manage LLP compliance requirements, consider implementing these best practices:

• Centralized Compliance Calendar: Maintain a digital calendar with automated reminders for all statutory due dates
• Designated Compliance Officer: Assign a dedicated person responsible for tracking and ensuring timely compliance
• Document Management System: Create a structured repository for all compliance-related documents and certificates
• Regular Compliance Audits: Conduct quarterly internal audits to identify and address compliance gaps
• Professional Support: Engage qualified professionals like chartered accountants and company secretaries

2. Technology Solutions for Compliance Management

Leverage technology to streamline compliance processes:

• Compliance Management Software: Invest in dedicated compliance management platforms that automate reminders and track filing status
• Cloud-Based Document Storage: Store compliance documents securely with version control and easy accessibility
• Digital Signature Certificates: Ensure all designated partners have valid DSCs for timely filings
• Automated Financial Reporting: Implement accounting software that generates compliant financial statements
• Integrated Tax Management: Use tax management software that calculates tax liability and generates filing-ready returns

3. Partner Education and Awareness

Ensure all partners understand their compliance responsibilities:

• Conduct regular orientation sessions on compliance requirements
• Distribute compliance calendars to all partners
• Create a compliance handbook with key responsibilities and timelines
• Share regulatory updates and their impact on the LLP
• Document compliance procedures for knowledge transfer during partner changes

Conclusion: Ensuring Compliance Success for Your LLP in 2025

The LLP Compliance Calendar for 2025 outlines numerous statutory obligations that LLPs must fulfill throughout the financial year. By maintaining a structured approach to compliance management and staying updated with regulatory changes, LLPs can avoid penalties and ensure smooth business operations.

Key takeaways from this comprehensive guide include:

1.   Mark critical annual filing dates: Form 11 (30th May), Form 8 (30th October), and ITR-5 (15th September/31st October)

2.   Track monthly obligations like GST returns, TDS/TCS payments, and PF/ESI filings

3.   Plan for quarterly compliance requirements including advance tax payments and TDS returns

4.   Stay informed about regulatory updates such as the revised MSME classification and AMT exemption for LLPs with LTCG

5.   Implement robust compliance management systems and leverage technology solutions

Remember that the cost of non-compliance can far exceed the investment in proper compliance management. By following this LLP Compliance Calendar for 2025, your LLP can maintain good standing with regulatory authorities and focus on business growth without regulatory disruptions.