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Business Tax
Updated: 15th August 2026•Income-tax Act, 2025 (TY 2026-27)

LLP Taxation Guide: 30% Flat Tax, AMT (Sec 115JC) & Partner Deductions

एलएलपी (सीमित दायित्व साझेदारी) कर नियम

Comprehensive guide to Limited Liability Partnership (LLP) taxation in India: flat 30% tax, Alternate Minimum Tax (AMT) under Section 115JC, partner remuneration rules, MCA compliance filings (Form 8 & Form 11), and ITR-5 submission.

Written by: Author Profile
Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel
Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Taxed at a flat rate of 30% plus 12% surcharge (if total income > ₹1 Crore) and 4% cess (effective 31.2%).
Subject to Alternate Minimum Tax (AMT) u/s 115JC at 18.5% on adjusted total income if regular tax is lower.
Section 40(b) partner remuneration and 12% interest on capital deductions are fully available.
No Dividend Distribution Tax (DDT) on profit distribution to partners.
LLP is NOT eligible for Section 44AD presumptive taxation scheme.

Who is Eligible & When Does it Apply?

Applicability #1

Limited Liability Partnerships registered under the Limited Liability Partnership Act, 2008.

Step-by-Step Procedure & Compliance Roadmap

1

Prepare Books of Account

Maintain accrual double-entry accounting records.

2

Conduct Statutory Audit (If Turnover > ₹40L or Contribution > ₹25L)

Obtain audit report under the LLP Act and Section 44AB tax audit if applicable.

3

File MCA Form 11 (Annual Return) by 30th May

Submit annual return on the MCA portal.

4

File MCA Form 8 (Statement of Accounts) by 30th October

Submit financial statements to the Registrar of Companies (ROC).

5

File ITR-5 on Income Tax Portal

Submit ITR-5 before 31st July (non-audit) or 31st October (audited).

Mandatory Documents Checklist

LLP Agreement, PAN, MCA Form 8 & 11, Audited Financials, DSC of Designated Partner

Common Mistakes & Compliance Risks to Avoid

•Assuming LLPs can file presumptive ITR-4 (LLPs must file ITR-5).
•Missing MCA Form 11 filing deadline incurring ₹100/day penalty.

Frequently Asked Questions

Is LLP tax higher than Private Limited Company tax?

LLP is taxed at flat 30% (effective 31.2%), whereas a Private Limited Company can opt for Section 115BAA concessional 22% rate (effective 25.17%). However, LLPs have zero dividend tax on profit withdrawal.

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.