Tag: limited liability partnership

Managing Limited Liability Partnership (LLP) compliance in India requires meticulous attention to statutory timelines, regulatory disclosures, tax filings, and governance responsibilities throughout the financial year. This comprehensive LLP Annual Compliance Calendar for FY 2026-27 (1 April 2026 – 31 March 2027) is designed to serve as a structured, legally accurate, and practically actionable roadmap for LLPs operating in India.

Every LLP registered under the LLP Act, 2008 is required to comply with annual, quarterly, monthly, and event-based filings to remain in good standing with the:

• Ministry of Corporate Affairs (MCA)
• Income Tax Department
• GST Authorities
• Ministry of MSME
• EPFO and ESIC (where applicable)

Failure to comply does not merely result in minor penalties in many cases, penalties accrue daily with no upper limit, and prolonged non-compliance may trigger prosecution or strike-off proceedings.

The most critical annual statutory due dates for FY 2026-27 are:

• Form 11 (Annual Return) – 30th May 2027
• Form 8 (Statement of Account & Solvency) – 30th October 2027
• Income Tax Return (ITR-5) –
  • 31st July 2027 (Non-audit cases)
  • 31st October 2027 (Audit cases)
  • 30th November 2027 (Transfer pricing / international transactions)
• Tax Audit Report (Form 3CA/3CB & 3CD) – 30th September 2027 (where applicable)
• DIR-3 KYC (Designated Partner KYC) – 30th September 2026

Even if the LLP has: No turnover, No transactions, Not commenced operations or Remained dormant, the above filings (Form 11, Form 8, ITR-5, DIR-3 KYC) remain mandatory under law.

What is an LLP?

A Limited Liability Partnership (LLP) is a hybrid business structure governed by the LLP Act, 2008. It combines the operational flexibility of a partnership with the limited liability protection typically associated with companies.

Key characteristics of an LLP include:

• Separate Legal Entity – The LLP is legally distinct from its partners and can own property, enter into contracts, and sue or be sued in its own name.
• Limited Liability – Partners’ liability is restricted to their agreed capital contribution and they are not personally liable for business debts.
• Perpetual Succession – The LLP continues to exist irrespective of changes in partners.
• Flexible Internal Governance – Managed through an LLP Agreement that defines roles, rights, duties, and profit-sharing arrangements.
• Lower Compliance Requirements – No mandatory board meetings or annual general meetings, making LLPs more cost-effective compared to private limited companies.

LLPs are widely adopted by professional firms, consulting businesses, startups, and service-oriented enterprises due to their relatively lower compliance burden compared to private limited companies.

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.

Key Regulatory Authorities Governing LLPs in India

Regulatory Authority	Governing Law	Compliance Areas
Ministry of Corporate Affairs (MCA)	LLP Act, 2008	Form 11, Form 8, Event-based filings
Income Tax Department	Income Tax Act, 1961	ITR-5, TDS, Advance Tax, Tax Audit
GST Network	CGST Act, 2017	GSTR-1, GSTR-3B, GSTR-9
Ministry of MSME	MSME Act	MSME-1 reporting
EPFO	EPF Act	Monthly PF returns
ESIC	ESI Act	Monthly ESI returns

Quarterly LLP Compliance Calendar – FY 2026-27

Quarter 1 (April–June 2026) Key Compliances

This quarter includes the most critical LLP ROC filing Form 11 along with recurring tax and GST obligations.

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 2026	MSME Payments Reporting (Oct 2025–Mar 2026)	Form MSME-1	MCA
30th May 2026	Annual Return of LLP	Form 11	MCA
15th June 2026	First Advance Tax Installment (15%)	Challan No. ITNS-280	Income Tax Dept.
30th June 2026	Return of Deposits (if applicable)	DPT-3	MCA

Quarter 2 (July–September 2026) Key Compliances

The second quarter is compliance-intensive due to quarterly TDS returns, DIR-3 KYC, tax audit completion, and ITR filing for non-audit cases.

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
15th July 2026	Annual Return on Foreign Liabilities and Assets	FLA Return	RBI
31st July 2026	Quarterly TDS Return (Apr–Jun 2026)	Form 24Q/26Q/27Q	Income Tax Dept.
31st July 2026	Income Tax Return (Non-Audit Cases)	ITR-5	Income Tax Dept.
15th September 2026	Second Advance Tax Installment (45%)	Challan No. ITNS-280	Income Tax Dept.
30th September 2026	Director/Designated Partner KYC	DIR-3 KYC	MCA
30th September 2026	Tax Audit Report Filing (if applicable)	Form 3CA/3CB/3CD	Income Tax Dept.

Quarter 3 (October–December 2026) Key Compliances

This quarter includes the crucial Form 8 filing and income tax return filing for audit and international transaction cases.

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
30th October 2026	Statement of Account & Solvency	Form 8	MCA
31st October 2026	Income Tax Return (Audit Cases)	ITR-5	Income Tax Dept.
31st October 2026	MSME Payments Reporting (Apr–Sep 2026)	Form MSME-1	MCA
30th November 2026	Income Tax Return (International Transactions)	ITR-5 + Form 3CEB	Income Tax Dept.
15th December 2026	Third Advance Tax Installment (75%)	Challan No. ITNS-280	Income Tax Dept.
31st December 2026	Belated/Revised Income Tax Return (AY 2027-28, as permitted under law)	ITR-5	Income Tax Dept.
31st December 2026	Annual GST Return	GSTR-9	GST Network

Quarter 4 (January–March 2027) Key Compliances

The final quarter focuses on closing tax liabilities and ensuring compliance completion before the financial year end.

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
31st January 2027	Quarterly TDS Return (Oct–Dec 2026)	Form 24Q/26Q/27Q	Income Tax Dept.
15th March 2027	Fourth Advance Tax Installment (100%)	Challan No. ITNS-280	Income Tax Dept.

Monthly LLP Compliance Calendar 2026–27

The following month-wise compliance tracker ensures LLPs can monitor recurring statutory obligations under the LLP Act, Income Tax Act, GST laws, and allied regulations.

April 2026

1. TDS/TCS Payment for March 2026 – Due by 7th April
   (Deposit using Challan No. ITNS-281)
2. GSTR-7 & GSTR-8 Filing – Due by 10th April
   (Applicable for GST TDS/TCS deductors)
3. GSTR-1 Monthly Filing – Due by 11th April
   (For monthly GST filers)
4. TDS Certificate Issuance (Form 16A) – Due by 14th April
5. PF/ESI Payment and Returns – Due by 15th April
6. GSTR-3B Filing – Due by 20th/22nd April
   (Based on turnover and state classification)
7. Form MSME-1 (Oct 2025–Mar 2026 period) – Due by 30th April
   (Reporting delayed payments exceeding 45 days to MSME vendors)
8. GSTR-4 Annual Return (Composition Scheme) – Due by 30th April

May 2026

1. TDS/TCS Payment for April 2026 – Due by 7th May
2. GSTR-7 & GSTR-8 Filing – Due by 10th May
3. GSTR-1 Monthly Filing – Due by 11th May
4. TDS Certificate Issuance (Form 16A) – Due by 15th May
5. PF/ESI Payment and Returns – Due by 15th May
6. GSTR-3B Filing – Due by 20th/22nd May
7. Form 11 – Annual Return of LLP – Due by 30th May 2026
   (For FY 2025–26; mandatory even if LLP has NIL activity)
8. Quarterly TDS/TCS Returns & Certificates (Q4 FY 2025–26) – Due by 30th/31st May

June 2026

1. TDS/TCS Payment for May 2026 – Due by 7th June
2. GSTR-7 & GSTR-8 Filing – Due by 10th June
3. GSTR-1 Monthly Filing – Due by 11th June
4. TDS Certificate Issuance – Due by 14th June
5. First Advance Tax Installment (15%) for FY 2026–27 – Due by 15th June
   (Deposit via Challan No. ITNS-280)
6. PF/ESI Payment and Returns – Due by 15th June
7. GSTR-3B Filing – Due by 20th/22nd June
8. DPT-3 (Return of Deposits) – Due by 30th June (if applicable)

July 2026

1. TDS/TCS Payment for June 2026 – Due by 7th July
2. GSTR-7 & GSTR-8 Filing – Due by 10th July
3. GSTR-1 Monthly Filing – Due by 11th July
4. GSTR-6 (ISD Return) – Due by 13th July
5. Annual Return on Foreign Liabilities and Assets (FLA Return) – Due by 15th July
   (Applicable if LLP has foreign investment or overseas assets)
6. PF/ESI Payment and Returns – Due by 15th July
7. CMP-08 Filing (Composition Scheme) – Due by 18th July
8. GSTR-3B Filing – Due by 20th/22nd July
9. Quarterly TDS/TCS Returns (Q1 FY 2026–27) – Due by 31st July
10. Income Tax Return (Non-Audit Cases) – Due by 31st July 2026
    (Filed using ITR-5)

August 2026

1. TDS/TCS Payment for July 2026 – Due by 7th August
2. GSTR-7 & GSTR-8 Filing – Due by 10th August
3. GSTR-1 Monthly Filing – Due by 11th August
4. PF/ESI Payment and Returns – Due by 15th August
5. GSTR-3B Filing – Due by 20th/22nd August

September 2026

1. TDS/TCS Payment for August 2026 – Due by 7th September
2. GSTR-7 & GSTR-8 Filing – Due by 10th September
3. GSTR-1 Monthly Filing – Due by 11th September
4. Second Advance Tax Installment (45%) – Due by 15th September
5. PF/ESI Payment and Returns – Due by 15th September
6. GSTR-3B Filing – Due by 20th/22nd September
7. DIR-3 KYC Filing – Due by 30th September
   (Mandatory for all Designated Partners holding DIN)
8. Tax Audit Report Filing (if applicable) – Due by 30th September
   (Form 3CA / 3CB along with Form 3CD)

October 2026

1. TDS/TCS Payment for September 2026 – Due by 7th October
2. GSTR-7 & GSTR-8 Filing – Due by 10th October
3. GSTR-1 Monthly Filing – Due by 11th October
4. GSTR-1 Quarterly Filing (Jul–Sep 2026) – Due by 13th October
5. PF/ESI Payment and Returns – Due by 15th October
6. GSTR-3B Filing – Due by 20th/22nd October
7. Form 8 – Statement of Account & Solvency – Due by 30th October 2026
   (For FY 2025–26; penalty of ₹100 per day applies for delay)
8. MSME-1 Filing (Apr–Sep 2026 period) – Due by 31st October
9. Quarterly TDS Return (Q2 FY 2026–27) – Due by 31st October
10. Income Tax Return (Audit Cases) – Due by 31st October 2026
    (Filed using ITR-5)

November 2026

1. TDS/TCS Payment for October 2026 – Due by 7th November
2. GSTR-7 & GSTR-8 Filing – Due by 10th November
3. GSTR-1 Monthly Filing – Due by 11th November
4. PF/ESI Payment and Returns – Due by 15th November
5. GSTR-3B Filing – Due by 20th/22nd November
6. Income Tax Return (International Transactions / Transfer Pricing Cases) – Due by 30th November
   (Filed using ITR-5 along with Form 3CEB)

December 2026

1. TDS/TCS Payment for November 2026 – Due by 7th December
2. GSTR-7 & GSTR-8 Filing – Due by 10th December
3. GSTR-1 Monthly Filing – Due by 11th December
4. Third Advance Tax Installment (75%) – Due by 15th December
5. PF/ESI Payment and Returns – Due by 15th December
6. GSTR-3B Filing – Due by 20th/22nd December
7. Annual GST Return (GSTR-9) – Due by 31st December
8. Belated / Revised Income Tax Return (as permitted under law) – Due by 31st December

January 2027

1. TDS/TCS Payment for December 2026 – Due by 7th January
2. GSTR-7 & GSTR-8 Filing – Due by 10th January
3. GSTR-1 Monthly Filing – Due by 11th January
4. GSTR-1 Quarterly Filing (Oct–Dec 2026) – Due by 13th January
5. PF/ESI Payment and Returns – Due by 15th January
6. CMP-08 Filing – Due by 18th January
7. GSTR-3B Filing – Due by 20th/22nd January
8. Quarterly TDS Return (Q3 FY 2026–27) – Due by 31st January

February 2027

1. TDS/TCS Payment for January 2027 – Due by 7th February
2. GSTR-7 & GSTR-8 Filing – Due by 10th February
3. GSTR-1 Monthly Filing – Due by 11th February
4. TDS Certificate Issuance (Form 16A) – Due by 14th February
5. PF/ESI Payment and Returns – Due by 15th February
6. GSTR-3B Filing – Due by 20th/22nd February

March 2027

1. TDS/TCS Payment for February 2027 – Due by 7th March
2. GSTR-7 & GSTR-8 Filing – Due by 10th March
3. GSTR-1 Monthly Filing – Due by 11th March
4. Fourth Advance Tax Installment (100%) – Due by 15th March
5. PF/ESI Payment and Returns – Due by 15th March
6. GSTR-3B Filing – Due by 20th/22nd March
7. CSR-2 Filing (if applicable) – Due by 31st March

Critical Annual Compliances for LLPs (FY 2026–27)

While monthly and quarterly filings ensure operational continuity, the backbone of LLP statutory compliance lies in its annual ROC and Income Tax filings. These are non-negotiable obligations under the LLP Act, 2008 and the Income Tax Act, 1961.

Failure to comply triggers daily penalties, interest, disallowances, and in extreme cases, prosecution.

1. Form 11 – Annual Return Filing

(Section 35 of the LLP Act, 2008)

What is Form 11?

Form 11 is the Annual Return that every LLP must file with the Registrar of Companies (ROC). It provides a summary of the LLP’s:

• Business activities
• Number of partners and designated partners
• Contribution received from partners
• Changes in partners during the year
• Details of corporate partners (if any)
• Principal place of business

The filing requirement applies to all LLPs, irrespective of turnover or activity level.

Due Date for Form 11

Form 11 must be filed within 60 days from the close of the financial year. For FY 2026–27 → Due by 30th May 2027

Key Information Required

• Total contribution received
• Details of all partners and designated partners
• Changes in partners during the year
• Summary of business activities
• Details of any body corporate partner

Certification Requirements

• If turnover ≤ ₹5 crore and partner contribution ≤ ₹50 lakh → Digitally signed by Designated Partner.
• If turnover > ₹5 crore OR partner contribution > ₹50 lakh → Must be certified by a Practicing Company Secretary (PCS).

Penalty for Non-Compliance

• ₹100 per day of delay
• No upper limit
• Applies until filing is completed

The penalty is automatic and accumulates daily without cap.

2. Form 8 – Statement of Account & Solvency

(Section 34(3) of the LLP Act, 2008 read with Rule 24 of LLP Rules, 2009)

What is Form 8?

Under Section 34(3), every LLP is required to prepare and file a Statement of Account and Solvency annually. Rule 24 of the LLP Rules, 2009 prescribes the manner and timeline of filing.

Form 8 consists of:

• Part A – Statement of Solvency
• Part B – Statement of Accounts, Income & Expenditure

Due Date for Form 8

Form 8 must be filed within 30 days from the end of six months of the financial year. For FY 2026–27 → Due by 30th October 2027

Contents of Form 8

• Balance Sheet
• Statement of Income & Expenditure
• Cash Flow Statement
• Statement of Partners’ Capital Account
• Disclosure of contingent liabilities
• MSME dues disclosure
• Solvency declaration by Designated Partners

Certification Requirements

Form 8 must be:

• Digitally signed by two Designated Partners, and
• Certified by a Chartered Accountant (CA), Company Secretary (CS), or Cost & Management Accountant (CMA) in practice, where audit is applicable.

Responsibility of Partners (Rule 24 Compliance)

Where audit is not mandatory, the partners must include a declaration acknowledging responsibility for:

• Maintaining proper books of account
• Preparing financial statements accurately
• Ensuring compliance with LLP Act and Rules

This acknowledgment requirement flows directly from Rule 24 of the LLP Rules, 2009.

Penalty for Non-Compliance

• ₹100 per day
• No upper limit
• Applies separately from Form 11 penalty

Non-filing of both Form 11 and Form 8 can result in dual daily penalties.

3. Income Tax Return – ITR-5

Every LLP must file its Income Tax Return in Form ITR-5, regardless of income level or activity status.

Due Dates for FY 2026–27

• Non-audit cases → 31st July 2027
• Audit cases → 31st October 2027
• Transfer Pricing / International transactions → 30th November 2027

Penalties for Late Filing

Under Section 234F:

• Up to ₹5,000
• Restricted to ₹1,000 if total income ≤ ₹5 lakh

Interest under Section 234A:

• 1% per month on unpaid tax

Other consequences:

• Loss carry forward disallowed (except house property losses)
• Possible prosecution under Section 276CC

4. MSME Reporting – Form MSME-1

Under Section 405 of the Companies Act, 2013 (as applicable to specified entities), reporting is required where payment to a Micro or Small Enterprise (MSE) remains outstanding for more than 45 days from the date of acceptance or deemed acceptance. Reporting is done through Form MSME-1.

Due Dates

Reporting Period	Due Date
April – September	31st October
October – March	30th April

Applicability

MSME-1 must be filed if:

• Goods or services are received from a registered Micro or Small Enterprise, and
• Payment remains unpaid beyond 45 days.

Filing is mandatory even if there is a single qualifying outstanding amount.

Penalty for Non-Filing

• LLP Fine → Up to ₹25,000
• Designated Partner Fine → Up to ₹3,00,000
• Continuing Default → ₹1,000 per day

Given the expanded MSME thresholds effective 2025 onward, LLPs should closely monitor vendor classification and payment timelines.

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

Every individual holding a DIN (including LLP Designated Partners) must complete KYC annually.

Due Date

The due date for Designated Partner KYC is 30th September 2026

Modes of Filing Designated Partner KYC

• DIR-3 KYC e-form
• Web-based KYC (if no changes)

Consequences of Non-Compliance

• DIN marked as “Deactivated”
• Cannot sign MCA forms
• Reactivation requires payment of ₹5,000 late fee

6. Audit Requirements for LLPs

LLPs are subject to two types of audit thresholds:

A. Statutory Audit under LLP Act

(Section 34 read with Rule 24 of LLP Rules, 2009)

Audit is mandatory if:

• Turnover exceeds ₹40 lakh, OR
• Partner contribution exceeds ₹25 lakh

If neither threshold is crossed, audit is not mandatory, but financial statements must still be prepared and filed.

B. Income Tax Audit under Section 44AB

Income Tax audit applies independently of LLP Act thresholds.

Audit becomes mandatory if:

• Business turnover exceeds ₹1 crore
• ₹10 crore if cash transactions ≤5% of total receipts/payments
• Professional receipts exceed ₹50 lakh

Tax Audit Report Forms

Where audit is applicable, the following must be filed:

• Form 3CA (if accounts audited under another law)
• Form 3CB (if not audited under another law)
• Form 3CD (Statement of particulars)

Due Date for Tax Audit Report

• 30th September 2027

Penalty for Failure to Conduct Tax Audit (Section 271B)

Penalty is lower of:

• 0.5% of total turnover, OR
• ₹1,50,000

Meaning of “Profession” (Section 44AA read with Rule 6F)

For determining audit applicability under professional receipts threshold:

“Profession” includes: Legal, Medical, Engineering, Architectural, Accountancy, Technical consultancy, Interior decoration, Authorized representatives, Company secretaries, IT professionals (as notified)

Meaning of Authorized Representative

A person who represents another person for remuneration before any tribunal or authority constituted under law, excluding:

• Employees, Legal professionals and Accountancy professionals

If professional receipts exceed ₹50 lakh in a financial year, tax audit under Section 44AB becomes mandatory.

Event-Based LLP Compliances

Apart from annual and recurring filings, LLPs are also required to submit statutory forms whenever specific structural, managerial, or operational changes occur. These are referred to as event-based compliances.

Unlike annual filings that follow fixed calendar dates, event-based filings are triggered by the occurrence of a particular event and must generally be filed within 30 days from the date of such event.

Key Event-Based Filings for LLPs

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

Form 4
Required for filing any change in the partnership structure, including:

• Admission of a new partner
• Resignation of an existing partner
• Cessation due to death or disqualification
• Change in designation to Designated Partner

Form 3
Mandatory when there is any modification to the LLP Agreement. This typically includes:

• Change in profit-sharing ratio
• Change in capital contribution
• Rights and duties of partners
• Execution of Supplementary LLP Agreement

If a change in partnership structure results in alteration of the LLP Agreement, both Form 4 and Form 3 may be required.

Form 15
Required when the registered office of the LLP is shifted. Supporting documents such as proof of new address and consent/NOC must be attached.

Form 5
Filed when the LLP undergoes a change in its name after approval from the Registrar.

First Financial Year Rule for Newly Incorporated LLPs

Under the LLP framework, newly incorporated LLPs are provided flexibility in determining their first financial year.

If an LLP is incorporated after 30th September of a financial year, it may extend its first financial year up to 31st March of the following year, resulting in a financial year of up to 18 months.

Example:

If an LLP is incorporated on 5th October 2026, its first financial year may end on 31st March 2028. This extension provides operational breathing space before the first round of annual filings such as Form 11 and Form 8 become due.

LLP vs Private Limited Company: Compliance Comparison

While LLPs have fewer compliance obligations compared to private limited companies, the penalty structure under the LLP Act is significantly stricter in terms of daily accrual.

Parameter	LLP	Private Limited Company
Annual Return	Form 11 (30th May)	MGT-7 (29th November)
Financial Statements	Form 8 (30th October)	AOC-4 (30th October)
AGM Requirement	Not Required	Mandatory
Board Meetings	Not Mandatory	Minimum 4 annually
Audit	Conditional	Mandatory
Late Filing Penalty	₹100 per day (No cap)	Subject to capped penalties

Under the LLP framework, the ₹100 per day penalty for Form 11 and Form 8 continues indefinitely until filing is completed.

LLP Taxation in 2026: Key Rates and Obligations

Income Tax Rates for LLPs in FY 2025-26 (AY 2026-27)

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 (if applicable)
Long-Term Capital Gains Tax	12.5%	Taxed as per capital gains provisions

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 normal tax or AMT.

Recent Update: Under the final provisions applicable from FY 2025-26, AMT applies only where specified deductions are claimed. LLPs earning solely long-term capital gains without claiming such deductions are not forced into AMT and can continue to be taxed at 12.5% on eligible LTCG.

TDS Obligations for LLPs

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

Nature of Payment	TDS 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 taxable supplies (subject to specific notified exemptions for certain service providers)
• It operates through e-commerce platforms (mandatory registration except where specifically exempted for notified service categories)

Documents Required for GST Registration:

• PAN of the LLP
• Aadhaar 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 under QRMP)
GSTR-3B	Summary return	Monthly/Quarterly	20th of next month (monthly, turnover > ₹5 crore)22nd or 24th of next month after quarter (QRMP, based on state)
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 following the financial year

QRMP Scheme Eligibility

LLPs with aggregate turnover up to ₹5 crore in the preceding financial year can opt for the Quarterly Return Monthly Payment (QRMP) scheme.

This allows:

• Quarterly filing of GSTR-1 and GSTR-3B
• Monthly tax payment through PMT-06 (fixed sum or self-assessment method)

Recent Regulatory Updates for LLPs in 2026

1. AMT Position for LLPs with LTCG
Alternate Minimum Tax (AMT) continues to apply only where specified deductions are claimed. LLPs earning solely long-term capital gains without claiming such deductions remain outside AMT and can avail the 12.5% LTCG tax rate.

2. FDI Policy Review and Sectoral Liberalisation
FDI in LLPs remains permitted only in sectors allowing 100% FDI under the automatic route and without performance-linked conditions.

In 2026, policy discussions are underway to review Press Note 3 (border-sharing country investments) and introduce de-minimis thresholds for small-value investments. However, no formal relaxation specific to LLPs has been notified yet.

3. FEMA Compliance Updates
Proposed FEMA regulatory changes in 2026 aim to streamline export and service remittance rules, extend timelines for realisation of export proceeds, and simplify reporting for cross-border transactions. LLPs engaged in international trade should monitor updated RBI notifications.

4. GST Litigation & Compliance Environment
Recent judicial developments under GST (including input tax credit eligibility and procedural compliance matters) are shaping compliance practices. LLPs should ensure robust documentation to mitigate litigation risk, particularly in high-value or inter-state supply structures.

Mandatory Books & Records Maintenance under LLP Act

Every LLP must maintain proper books of account reflecting a true and fair view of its financial position as per Rule 24 of the LLP Rules, 2009.

LLPs must maintain:

• Books of account (cash or accrual basis)
• Statement of assets and liabilities
• Statement of income and expenditure
• Details of partner contributions
• Records of loans and advances
• Minutes book of partner meetings

Books must be preserved for at least 8 years.

Penalty for Non-Maintenance:

Non-compliance may attract penalties ranging from ₹25,000 to ₹5,00,000, and designated partners may face additional liability in case of deliberate misstatement.

Compliance for Dormant or NIL Activity LLPs

A common misconception is that LLPs with no business activity are exempt from compliance requirements. This is incorrect.

Even if the LLP:

• Has not commenced operations
• Has zero turnover
• Has no financial transactions
• Is temporarily inactive

The following filings remain mandatory:

• Form 11
• Form 8
• ITR-5
• DIR-3 KYC

Failure to comply can result in:

• Daily compounding penalties
• DIN deactivation
• Strike-off proceedings by Registrar

Dormancy does not eliminate statutory filing responsibility.

Penalties Categorized by Regulatory Authority

Understanding penalty structure authority-wise helps in risk assessment.

A. Ministry of Corporate Affairs (MCA)

Non-Compliance	Penalty
Form 11 Late Filing	₹100 per day (No upper limit)
Form 8 Late Filing	₹100 per day (No upper limit)
MSME-1 Non-Filing	LLP up to ₹25,000 + DP up to ₹3 lakh
Non-Maintenance of Books	₹25,000 to ₹5 lakh

B. Income Tax Department

Non-Compliance	Penalty
Late ITR Filing	Up to ₹5,000 (Section 234F)
Late Payment of Tax	1% per month (Section 234A)
Advance Tax Default	1% per month (Section 234B/234C)
Failure to Conduct Tax Audit	Lower of 0.5% turnover or ₹1,50,000 (Section 271B)
Late TDS Filing	₹200 per day (Section 234E)
Failure to Deduct TDS	1%–1.5% per month interest
Wilful Failure to File ITR	3 months–7 years imprisonment (Section 276CC)

C. GST Authorities

Non-Compliance	Penalty
Late GST Return	₹50 per day
Nil GST Return	₹20 per day
Maximum Late Fee	₹10,000

Persistent GST non-compliance may result in registration suspension or cancellation.

Filing Process for LLP Compliances (Step-by-step)

All LLP statutory filings are done online via government portals.

1) MCA Filings (Form 11, Form 8, Event-based Forms)

1. Log in to MCA V3 portal and select the relevant LLP form.
2. Keep ready: DSC of Designated Partner, DIN (active), LLP agreement/event documents, and required attachments.
3. Fill the form, attach documents (properly signed/scanned), and validate.
4. If required, get professional certification (CA/CS/CMA) in the form.
5. Digitally sign, upload, pay fees, and submit.
6. Download and store SRN/acknowledgement + challan for records.

2) Income Tax Filings (ITR-5)

1. Log in to the Income Tax e-filing portal and choose ITR-5.
2. Prepare financial statements and compute tax/AMT where applicable.
3. If tax audit applies: upload audit report (Form 3CA/3CB + 3CD) first, then file ITR-5.
4. File ITR-5 with DSC/e-verification, then save the acknowledgement.

3) GST Filings (GSTR-1 / GSTR-3B etc.)

1. Log in to the GST portal using GSTIN credentials.
2. Reconcile sales (outward) and purchases (inward/ITC) before filing.
3. File returns as applicable and pay tax liability on time.
4. Keep return acknowledgements and ledgers saved to support ITC and avoid compliance issues.

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.

Implementing a Robust LLP Compliance Management System

1. Centralized Compliance Calendar – Maintain a digital tracker with automated reminders, clearly separating monthly, quarterly, and annual filings to ensure nothing is missed.

2. Designated Compliance Responsibility – Assign a responsible person either an internal compliance lead or an external professional to ensure clear ownership and timely execution.

3. Structured Document Management – Keep a secure digital repository for financial statements, tax returns, audit reports, MSME records, LLP agreements, and meeting minutes to ensure readiness for audits, funding, or scrutiny.

4. Periodic Internal Compliance Review – Conduct quarterly reviews to verify statutory payments, reconcile taxes, update partner records, and review registers to proactively reduce compliance risks.

5. Technology Integration – Use integrated accounting and GST software, automated TDS systems, and compliance tools to minimize manual errors and improve efficiency.

Partner Awareness and Governance Discipline

Partners should clearly understand statutory duties and governance expectations.

Recommended actions:

• Share an annual compliance calendar with all partners
• Conduct periodic compliance briefings
• Document internal procedures
• Maintain a proper Minutes Book
• Record all major financial and structural decisions

Strong governance strengthens credibility and reduces regulatory exposure.

LLP compliance is more than routine filing; it is a governance framework that safeguards credibility, operational continuity, and regulatory standing. Beyond statutory submissions, it requires structured monitoring, accurate documentation, internal accountability, and proactive risk management. Non-compliance can result in financial penalties, reputational damage, and heightened scrutiny from authorities. A disciplined, technology-enabled, and professionally supervised approach ensures clean records, reduced risk exposure, and long-term sustainability. At Treelife, our objective is to simplify regulatory complexity and deliver structured compliance solutions, enabling founders and partners to focus on business growth while we safeguard statutory integrity.

For 2026 Compliance Calendar for all Business Types visit, Compliance Calendar 2026