When is LLP audit mandatory under LLP Act 2008?

Section 34(4) of LLP Act 2008 read with Rule 24(8) of LLP Rules 2009 makes LLP statutory audit mandatory if (a) annual turnover exceeds Rs 40 lakh OR (b) total partner contribution exceeds Rs 25 lakh. Either threshold trigger requires audit by a Chartered Accountant in practice. Audit is completed before Form 8 Statement of Account and Solvency is filed by 30 October 2026 for FY 2025-26. Below both thresholds: audit not mandatory but books must be maintained and Form 8 still filed.

What is the difference between LLP audit and tax audit?

LLP statutory audit is under Section 34(4) of LLP Act 2008 - triggered at Rs 40 lakh turnover OR Rs 25 lakh contribution; auditor signs LLP financial statements before Form 8 filing with MCA. Section 44AB tax audit is under Income Tax Act 1961 - triggered at Rs 1 crore business turnover (Rs 10 crore if 95% digital) or Rs 50 lakh profession receipts; auditor signs Form 3CD 44 clauses before ITR-5 filing. Both can apply concurrently. Common confusion - they are SEPARATE compliance requirements.

What are the ITR-5 due dates for AY 2026-27?

For LLP and Partnership Firm filing ITR-5 for AY 2026-27 (FY 2025-26): 31 July 2026 - non-audit case under Section 139(1); 30 September 2026 - Tax Audit Report Form 3CD under Section 44AB; 31 October 2026 - audit-case ITR-5 under Section 139(1); 30 November 2026 - ITR-5 for Section 92E transfer pricing cases; 31 December 2026 - belated/revised return Section 139(4)/(5) with Section 234F fee. LLP additionally: Form 11 by 30 May 2026; Form 8 by 30 October 2026; DIR-3 KYC by 30 June 2026.

How is Section 40(b) partner remuneration calculated under Finance Act 2025?

Finance Act 2025 amended Section 40(b) effective AY 2025-26 onwards: on first Rs 6,00,000 of book profit, deductible remuneration is Rs 3,00,000 OR 90 percent of book profit (whichever HIGHER); on book profit above Rs 6,00,000, deductible remuneration is 60 percent of remaining book profit. Partner interest deductible up to 12 percent per annum on capital. Only available if Section 184 compliance met (deed, ratios, signatures, certified copy filed). Section 185 reclassifies non-compliant firm as AOP at MMR with NO Section 40(b) deduction.

Are LLPs eligible for Section 44AD presumptive scheme?

NO. LLPs are EXPLICITLY EXCLUDED from both Section 44AD AND Section 44ADA. Section 44AD eligibility is restricted to Resident Individual, Resident HUF, and Resident Partnership Firm under Indian Partnership Act 1932 - LLPs incorporated under LLP Act 2008 are a separate category. LLP must maintain regular books, file ITR-5 with full P&L and Balance Sheet, undergo Section 44AB tax audit if turnover above Rs 1 crore (Rs 10 crore digital), and additionally LLP statutory audit under Section 34(4) at Rs 40 lakh turnover or Rs 25 lakh contribution.

What is the penalty for late filing of Form 11 and Form 8?

Penalty Rs 100 per day per form, with NO upper cap. For Form 11 due 30 May 2026 - one year delay equals Rs 36,500 penalty. For Form 8 due 30 October 2026 - one year delay equals Rs 36,500 penalty. Both forms together one year delay = Rs 73,000. Two consecutive years of Form 11/8 non-filing triggers ROC striking off proceedings under Section 75 of LLP Act 2008. Once struck off, NCLT revival proceedings required (Rs 50,000 to Rs 1,50,000). Proactive filing strongly recommended.

Is DIR-3 KYC mandatory for designated partners?

YES. All designated partners with active DPIN must file DIR-3 KYC annually by 30 June. Web form for first-time; e-form for subsequent. Non-filing results in DPIN deactivation - blocking the designated partner from signing Form 11, Form 8, ITR-5, or any other LLP filing until reactivation. Reactivation requires Rs 5,000 fee plus DIR-3 KYC filing. If LLP has 2 designated partners and one DPIN is deactivated, LLP cannot file forms requiring two DSC signatures.

Can a partnership firm convert to LLP without tax implications?

Yes, conversion of partnership firm to LLP is generally tax-neutral under Section 47(xiiib) of the Income Tax Act subject to specified conditions: (a) all partners of firm become partners of LLP in same profit-sharing ratio; (b) all assets and liabilities transferred without consideration other than partner capital; (c) shareholding remains identical for 5 years post-conversion; (d) total sales/turnover/gross receipts of firm in last 3 FYs preceding conversion not exceeding Rs 60 lakh. Failure to comply with these conditions triggers capital gains under Section 45.

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ITR-5 Filing for LLP and Partnership Firm in India

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Documents: Partnership deed (registered with Registrar of Firms) or LLP Agreement (filed with MCA via Form 3); LLPIN certificate; books of accounts (P&L, Balance Sheet, partner capital ledger); Form 26AS, AIS, TIS; GST returns; DSC of two designated partners.

Fees: Starting Rs 7,999 (Excl. GST and Govt. Charges) for partnership firm ITR-5 with Section 40(b) optimization. Rs 12,999 for LLP ITR-5 with MCA Form 11 / Form 8 coordination. Rs 22,998 bundle including Section 44AB tax audit.

Eligibility: Limited Liability Partnerships (LLP Act 2008 with active LLPIN); Partnership firms (Indian Partnership Act 1932, registered or unregistered); Foreign LLPs with India operations; Small LLPs under LLP Amendment Act 2021; LLPs in conversion process.

Timeline: 10 to 21 working days for non-audit ITR-5; 21 to 30 working days for tax audit cases. Form 11 due 30 May 2026; DIR-3 KYC by 30 June 2026; Form 8 by 30 October 2026; ITR-5 by 31 July (non-audit) or 31 October 2026 (audit).

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Patron flagged that LLP Act 2008 has a SEPARATE Section 34(4) statutory audit at Rs 40 lakh turnover OR Rs 25 lakh contribution - we cross BOTH. They arranged the audit retroactively and refiled Form 8 with audited financials. Saved us from compounding compliance failures.

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2 months ago

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Family CA used OLD Section 40(b) slabs for partner remuneration. Patron flagged Finance Act 2025 amendment - new slabs Rs 3 lakh / 90 percent / 60 percent. They also drafted deed amendment with explicit ratios preventing potential Section 185 AOP reclassification at MMR which would have cost Rs 5 lakh extra tax.

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4-partner family firm, Delhi

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3 months ago

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Patron coordinated all four LLP filings - Form 11, DIR-3 KYC, Form 8, ITR-5 - on a single calendar. Their CS engagement on Form 11 was seamless since our turnover crosses Rs 5 crore. No more last-minute scrambles before 30 May or 30 October.

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Real Estate LLP (8 partners), Mumbai

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12-partner law firm. Patron audited our partnership deed at intake and flagged the certified copy was never filed for the FIRST AY when the deed was constituted - exposed us to potential Rs 12 lakh AOP reclassification across 3 years. They filed corrective certified copy and prevented massive prospective tax hit.

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12-partner law firm, Mumbai

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5 months ago

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Our consulting LLP had two designated partners with one DPIN deactivated due to missed DIR-3 KYC. Form 11 filing was blocked. Patron handled the DPIN reactivation, filed pending DIR-3 KYC for both partners, and got our Form 11 filed before the 30 May deadline. Crisis averted.

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Overview What Is Who Needs Services 7-Step Process Documents Challenges Fees Timeline Benefits LLP vs Tax Audit Related Legal Framework FAQs

LLP and Partnership Firm ITR-5 - Section 40(b) Finance Act 2025, LLP Audit Rs 40L/Rs 25L, and Form 11/Form 8 MCA Coordination

📌 TL;DR - ITR for LLP and Partnership Firm Services at a Glance

TL;DR: LLP and Partnership Firm both file ITR-5 at 30 percent flat rate plus surcharge plus cess (effective 31.2 percent / 34.944 percent). LLP statutory audit under Section 34(4) of LLP Act 2008 triggers at Rs 40 lakh turnover OR Rs 25 lakh contribution - DISTINCT from Section 44AB tax audit which kicks in at Rs 1 crore (Rs 10 crore digital). Section 40(b) partner remuneration follows Finance Act 2025 amended slabs of Rs 3 lakh / 90 percent / 60 percent on book profit. Partnership firm IS eligible for Section 44AD presumptive (Rs 3 crore digital); LLP is NOT.

Parameter	Detail
Governing Provisions	Income Tax Act 1961 Sections 28-44, 40(b), 44AB, 184, 185, 234A/B/C, 234F, 270A, 271B; Indian Partnership Act 1932; Limited Liability Partnership Act 2008 (Section 34 audit, Section 35 annual return); LLP Rules 2009 (Rule 24(8) audit); Finance Act 2025 (Section 40(b) amendment)
ITR Form	ITR-5 (both LLP and Partnership Firm)
Tax Rate	30 percent flat + 12 percent surcharge if income above Rs 1 crore + 4 percent Health and Education Cess. Effective: 31.2 percent (no surcharge), 34.944 percent (with surcharge)
LLP Statutory Audit (LLP Act)	Mandatory if turnover above Rs 40 lakh OR contribution above Rs 25 lakh. CA in practice. Required before Form 8 filing
Section 44AB Tax Audit (Income Tax Act)	Business turnover above Rs 1 crore (Rs 10 crore if 95 percent+ digital both halves). Form 3CD by 30 September 2026
Section 40(b) Partner Remuneration	Finance Act 2025 amended: on first Rs 6,00,000 of book profit - Rs 3,00,000 OR 90 percent (higher); above Rs 6,00,000 - 60 percent of remaining. Partner interest 12 percent per annum on capital
Section 184 / 185 (Partnership Firm and LLP)	Written deed, profit-sharing ratios, certified copy filed with first AY ITR, all partners sign return - else Section 185 AOP at MMR with NO Section 40(b) deduction
Section 44AD Eligibility	Partnership Firm: YES (Resident, turnover up to Rs 3 crore digital); LLP: NO (explicitly excluded)
MCA Filings (LLP only)	Form 11 Annual Return by 30 May 2026; Form 8 Statement of Account and Solvency by 30 October 2026; DIR-3 KYC by 30 June; Penalty Rs 100/day per form NO upper cap
Cost	Starting Rs 7,999 (Excl. GST and Govt. Charges)
Authority	Central Board of Direct Taxes (CBDT); Ministry of Corporate Affairs (MCA) for LLP; Registrar of Firms (state-level) for partnership firm

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

LLP and Partnership Firm ITR is the area where DIY platforms misclassify entity types, miss the Section 40(b) Finance Act 2025 amendment, and confuse the LLP statutory audit Rs 40 lakh / Rs 25 lakh threshold with the Section 44AB tax audit Rs 1 crore / Rs 10 crore digital threshold. An LLP with turnover Rs 50 lakh and contribution Rs 30 lakh needs LLP statutory audit even though Section 44AB tax audit does not apply at that turnover. A partnership firm using OLD Section 40(b) slabs of Rs 1.5 lakh / 90 percent / 60 percent forfeits Rs 50,000 to Rs 2 lakh deductible partner remuneration under Finance Act 2025 amended slabs of Rs 3 lakh / 90 percent / 60 percent.

A 5-partner LLP missing Form 11 by 30 May 2026 starts accruing Rs 500 per day penalty (Rs 100 per partner) with NO upper cap - one year of delay equals Rs 1.83 lakh. A partnership firm that fails Section 184 (deed silent on profit ratio, missing partner signature, certified copy not filed) gets reclassified as AOP under Section 185 with NO Section 40(b) deduction - flipping a Rs 18 lakh deductible remuneration into a Rs 5.6 lakh extra firm tax. Patron Accounting has filed ITR-5 for over 1,200 LLPs and 2,400 partnership firms across Pune, Mumbai, Delhi, and Gurugram since 2019.

Content is reviewed quarterly for accuracy.

What Is ITR-5 Filing for LLP and Partnership Firm

LLP and Partnership Firm ITR filing means computing firm-level income from business or profession under PGBP head in ITR-5, applying Section 40(b) deductible partner remuneration and 12 percent partner interest, paying tax at 30 percent flat plus surcharge plus cess, and complying with concurrent compliance frameworks - Section 44AB tax audit at Rs 1 crore (Rs 10 crore digital) for both, plus LLP-specific Section 34(4) statutory audit at Rs 40 lakh turnover OR Rs 25 lakh contribution, plus MCA Form 11 / Form 8 filings for LLPs.

Both LLP (under LLP Act 2008) and Partnership Firm (under Indian Partnership Act 1932) file the same ITR-5 income tax return, but the compliance perimeters differ substantially. Partnership Firm has only Income Tax compliance plus Registrar of Firms (voluntary) registration. LLP additionally has full MCA compliance - LLPIN (registration), DPIN for designated partners, Form 11 Annual Return by 30 May, Form 8 Statement of Account and Solvency by 30 October, DIR-3 KYC for designated partners by 30 June, and a separate statutory audit at Rs 40 lakh turnover or Rs 25 lakh contribution thresholds.

ITR-5 itself runs through identical Schedule BP business income computation with Section 40(b) partner remuneration deduction (Finance Act 2025 amended slabs of Rs 3 lakh / 90 percent / 60 percent on book profit), partner interest at 12 percent per annum on capital, and Schedule IF firm-level disclosure feeding to partner-level Schedule BP under their PGBP head. Partnership Firm IS eligible for Section 44AD presumptive (Rs 3 crore digital threshold) and Section 44ADA (Rs 75 lakh professional). LLP is NOT eligible for either - explicitly excluded.

Key Terms in LLP and Partnership Firm ITR

Limited Liability Partnership (LLP): Hybrid entity under LLP Act 2008 combining partnership flexibility with limited partner liability. Incorporated with MCA via LLPIN. Minimum 2 partners; at least 2 designated partners (one Indian resident). Separate legal entity with perpetual succession.

Partnership Firm (non-LLP): Firm under Indian Partnership Act 1932. Maximum 20 partners (10 for banking firms). Registration with Registrar of Firms voluntary but provides legal protection. NOT a separate legal entity - firm name is convenient label for partner collective. Partner unlimited joint and several liability.

Section 184 Firm Constitution: Partnership firm assessed AS A FIRM only if (a) written partnership deed exists; (b) deed specifies individual profit-sharing ratios; (c) certified copy filed with ITR for first year of assessment under that deed; (d) all partners sign the return. Same Section 184 logic applies to LLPs (LLP Agreement substitutes for deed).

Section 185 Non-Compliant Firm Becomes AOP: If Section 184 conditions NOT met, firm/LLP treated as Association of Persons (AOP) and taxed at MMR (Maximum Marginal Rate). Section 40(b) partner remuneration / interest deduction NOT allowed. Common pitfall: deed silent on profit-sharing ratio, partner signatures missing, certified copy not filed for first AY.

Section 40(b) Partner Remuneration and Interest: Finance Act 2025 amended (effective AY 2025-26): on first Rs 6,00,000 of book profit - Rs 3,00,000 OR 90 percent of book profit (whichever HIGHER); on book profit above Rs 6,00,000 - 60 percent of remaining book profit. Partner interest deductible up to 12 percent per annum on partner capital. Allowed only if firm/LLP genuine under Section 184.

Section 34(4) of LLP Act 2008 LLP Statutory Audit: Mandatory LLP audit if (a) turnover exceeds Rs 40 lakh OR (b) total partner contribution exceeds Rs 25 lakh. Read with Rule 24(8) of LLP Rules 2009. Auditor: practising Chartered Accountant. Audit completed before Form 8 filing.

Form 11 LLP Annual Return: Filed under Section 35 of LLP Act 2008. Due 30 May 2026 for FY 2025-26 (60 days from FY end). Discloses partner contributions, designated partner details, body corporate partners, changes during year. Penalty Rs 100/day per form, NO upper cap. Filed on MCA V3 portal with DSC of two designated partners.

Form 8 LLP Statement of Account and Solvency: Filed under Section 34 of LLP Act 2008. Due 30 October 2026 (30 days from end of 6 months after FY end). Part A Statement of Solvency. Part B Statement of Income and Expenditure plus Statement of Assets and Liabilities. Audit signed if Section 34(4) applicable. Penalty Rs 100/day per form, NO upper cap.

DIR-3 KYC for Designated Partners: Annual KYC by 30 June. Web form for first-time; e-form for subsequent. All designated partners with active DPIN must file. Non-filing = DPIN deactivation; reactivation requires Rs 5,000 fee plus filing.

Small LLP (LLP Amendment Act 2021): Contribution up to Rs 25 lakh (extendable up to Rs 5 crore by notification) AND turnover up to Rs 40 lakh (extendable up to Rs 50 crore). Reduced compliance, lower penalties, designated partners self-certify all forms.

Key Terms for ITR for LLP and Partnership Firm:

Filed by CA Team

LLP versus Partnership Firm - Compliance Matrix

Both LLP and Partnership Firm file ITR-5 at 30 percent flat plus surcharge plus cess - but the compliance perimeters differ substantially. Use this side-by-side matrix to identify which framework applies to your entity.

Aspect	LLP (LLP Act 2008)	Partnership Firm (IPA 1932)
Governing Law	Limited Liability Partnership Act 2008	Indian Partnership Act 1932
Legal Entity	SEPARATE legal entity	NOT separate (firm name proxy for partners)
Liability of Partners	LIMITED to capital contribution	UNLIMITED, joint and several
Maximum Partners	NO maximum	20 partners (10 for banking)
Designated Partner	Mandatory minimum 2 (one Indian resident)	Not applicable
Registration	Mandatory MCA registration with LLPIN	Registrar of Firms registration voluntary (state-level)
Constitution Document	LLP Agreement filed via Form 3 with MCA	Partnership Deed (registered or unregistered)
ITR Form	ITR-5	ITR-5
Tax Rate	30% flat + 12% surcharge above Rs 1 Cr + 4% cess	30% flat + 12% surcharge above Rs 1 Cr + 4% cess
Section 40(b) Partner Remuneration	YES - Finance Act 2025 amended slabs apply	YES - Finance Act 2025 amended slabs apply
Section 44AD Presumptive Eligibility	NO - explicitly excluded	YES (Resident, Rs 2 cr / Rs 3 cr digital)
Section 44ADA Presumptive (Profession)	NO - explicitly excluded	YES (Resident, Rs 50 lakh / Rs 75 lakh digital)
LLP Statutory Audit (Section 34(4))	Mandatory at Rs 40 lakh turnover OR Rs 25 lakh contribution	Not applicable
Section 44AB Tax Audit	Rs 1 crore (Rs 10 crore digital both halves)	Rs 1 crore (Rs 10 crore digital both halves)
Form 11 Annual Return MCA	YES - by 30 May 2026 (Rs 100/day penalty no cap)	NO
Form 8 Statement of Account MCA	YES - by 30 October 2026 (Rs 100/day penalty no cap)	NO
DIR-3 KYC for Partners	YES - by 30 June for designated partners	NO
CS Certification	Form 11 if turnover > Rs 5 cr or contribution > Rs 50 lakh	NO

Key Statutory Deadlines AY 2026-27 (FY 2025-26):

30 May 2026 - Form 11 LLP Annual Return (LLP only; Section 35 LLP Act 2008)
30 June 2026 - DIR-3 KYC for designated partners (LLP only)
31 July 2026 - non-audit ITR-5 under Section 139(1)
30 September 2026 - Tax Audit Report Form 3CD under Section 44AB
30 October 2026 - Form 8 LLP Statement of Account and Solvency (LLP only)
31 October 2026 - audit-case ITR-5 under Section 139(1)
30 November 2026 - ITR-5 for Section 92E transfer pricing cases
31 December 2026 - belated/revised return Section 139(4)/(5) with Section 234F fee
15 June, 15 September, 15 December, 15 March 2026 - quarterly advance tax (15 percent, 45 percent, 75 percent, 100 percent cumulative)

Patron Accounting Services for LLP and Partnership Firm ITR-5

Service	What We Do
Partnership Firm ITR-5 with Section 40(b) Optimization	Partnership firm under Indian Partnership Act 1932. ITR-5 with Schedule BP firm-level computation. Section 40(b) partner remuneration deduction at Finance Act 2025 amended slabs (Rs 3 lakh / 90 percent / 60 percent on book profit). Partner interest at 12 percent per annum. Section 184 firm constitution compliance verification - written deed, profit-sharing ratios, all partner signatures, certified copy filed for first AY. Schedule IF firm-level disclosure plus Schedule Pt-AC partner allocation table.
LLP ITR-5 with MCA Coordination	LLP under LLP Act 2008 with active LLPIN. ITR-5 with full books-based computation (LLP barred from Section 44AD/44ADA). Coordinated with MCA Form 11 Annual Return (30 May 2026) and Form 8 Statement of Account and Solvency (30 October 2026). DIR-3 KYC for designated partners (30 June). Section 40(b) partner remuneration similar to firm. CS certification of Form 11 if turnover above Rs 5 crore or contribution above Rs 50 lakh.
LLP Statutory Audit + Section 44AB Tax Audit Coordinated	LLP statutory audit under Section 34(4) of LLP Act 2008 (Rs 40 lakh turnover OR Rs 25 lakh contribution) coordinated with Section 44AB tax audit (Rs 1 crore / Rs 10 crore digital). Single audit engagement covering both with Form 3CA (audited under another law) plus Form 3CD 44 clauses. Bridges LLP Act audit conclusions to Income Tax Act audit perspective. Filed before Form 8 deadline (30 October) and Section 44AB deadline (30 September).
Section 184 Compliance Audit and Section 185 AOP Risk Assessment	Pre-filing compliance audit of partnership deed or LLP Agreement to ensure Section 184 conditions met - written deed, profit-sharing ratios per partner, all partner signatures, certified copy filed with first AY ITR. Without these, Section 185 reclassifies firm/LLP as AOP at MMR (30 percent + surcharge + cess) with NO Section 40(b) deduction. We audit deed at intake and recommend deed amendments where required.
Section 40(b) Partner Remuneration Optimization with Worked Examples	Detailed Section 40(b) computation under Finance Act 2025 amended slabs. Worked examples at Rs 6 lakh, Rs 12 lakh, Rs 30 lakh, Rs 60 lakh book profit levels. Partner interest cap at 12 percent per annum on capital. Allocation per deed-specified ratios. Coordination with partner-level individual ITR for PGBP head taxation of received remuneration / interest.
Form 11 / Form 8 / DIR-3 KYC Standalone Filings (LLP)	Standalone MCA filings outside ITR-5 engagement. Form 11 by 30 May with partner contribution and DPIN data. Form 8 by 30 October with audited financials (where applicable) and solvency declaration. DIR-3 KYC by 30 June for each designated partner. CS certification for Form 11 above thresholds. Penalty regularisation for delayed filings (Rs 100 per day per form, no upper cap).
Schedule IF and Schedule Pt-AC Partner Allocation	ITR-5 Schedule IF firm-level income disclosure with partner share allocation. Schedule Pt-AC partner allocation table (name, PAN, share percentage, remuneration drawn, interest received, share of profit). Reconciliation with partner-level individual ITR PGBP head to prevent Section 143(1) intimation triggered by mismatch.
Foreign LLP and Conversion Services	Foreign LLPs (FLLP) with India operations - Form 27 registration with MCA and annual filings. Partnership firm to LLP conversion under Section 47(xiiib) of Income Tax Act with tax-neutral conditions check. LLP to Pvt Ltd Company conversion. Section 92E transfer pricing report Form 3CEB for international and specified domestic related party transactions; ITR by 30 November.

Our Process

How Patron Files Your LLP / Partnership ITR-5

A seven-step engagement that confirms entity classification, audits Section 184 firm constitution compliance, sets up the compliance calendar (Form 11, DIR-3 KYC, Form 3CD, Form 8, ITR-5), reconciles books to GST and Form 26AS, runs the dual-audit perimeter (LLP statutory + Section 44AB tax), computes Section 40(b) partner remuneration under Finance Act 2025, populates ITR-5 Schedule BP / IF / Pt-AC, files ITR-5 and coordinates MCA filings.

Step 1

Entity Type Confirmation and Compliance Calendar Setup

Verify entity classification - LLP under LLP Act 2008 (with LLPIN, DPINs, LLP Agreement filed via Form 3) versus Partnership Firm under Indian Partnership Act 1932 (with Registrar of Firms registration certificate or unregistered with deed). Check Section 184 compliance - written deed, profit-sharing ratios, all partner signatures, certified copy filed with first AY ITR. Set up compliance calendar for Form 11 (30 May), DIR-3 KYC (30 June), Section 44AB Form 3CD (30 September), Form 8 (30 October), ITR-5 (31 July non-audit / 31 October audit).

Entity classification 9-deadline calendar

Calendar Set 01

Step 2

Books of Accounts and Reconciliation

Profit and Loss Account, Balance Sheet, Section 32 depreciation chart (block-of-assets WDV with additions and deletions), debtors and creditors aging, fixed asset register, partner capital ledger. Reconcile GST turnover (GSTR-9 / GSTR-3B) to ITR turnover - resolve timing differences and exempt supplies. AIS / TIS reconciliation with bank receipts and GSTIN data. Section 43B statutory dues actual payment basis check (GST, PF, ESI, gratuity, leave encashment paid before Section 139(1) due date).

GST to ITR reconciliation Section 43B verification

Books Reconciled 02

Step 3

Audit Engagement (LLP Statutory + Section 44AB Tax Audit)

For LLPs - Section 34(4) statutory audit under LLP Act if turnover above Rs 40 lakh OR contribution above Rs 25 lakh. For both LLP and Firm - Section 44AB tax audit if business turnover above Rs 1 crore (Rs 10 crore if 95 percent digital both halves). Single audit engagement covers both with Form 3CA (when audited under another law i.e. LLP Act) plus Form 3CD 44 clauses. CA UDIN signing. LLP audit completed BEFORE Form 8 filed; Form 3CD filed BEFORE ITR-5 (audit case).

Dual-audit perimeter Form 3CA + 3CD

Audit Done 03

Step 4

Section 40(b) Partner Remuneration Computation

Compute book profit per deed/LLP Agreement (after Section 40 disallowances). Apply Finance Act 2025 amended slabs: on first Rs 6,00,000 - Rs 3,00,000 OR 90 percent of book profit (whichever HIGHER); on book profit above Rs 6,00,000 - 60 percent of remaining. Partner interest deductible up to 12 percent per annum on capital. Allocate to partners in deed-specified ratios. Document worked examples for the partnership / LLP file.

FA 2025 slabs Interest cap 12 percent p.a.

40(b) Computed 04

Step 5

ITR-5 Schedule Population

Schedule BP business income computation. Schedule IF firm-level disclosure. Schedule Pt-AC partner allocation (name, PAN, share, remuneration drawn, interest received). Schedule HP if let-out property. Schedule CG if capital gains. Schedule OS for other sources. Schedule TDS reconciliation. Schedule TR if foreign tax credit. Coordinate with partner-level individual ITR for PGBP head taxation of received remuneration / interest - mismatch triggers Section 143(1) intimation.

BP / IF / Pt-AC Partner-level reconciliation

Schedules Populated 05

Step 6

Tax Computation and Advance Tax

30 percent flat plus 12 percent surcharge if income above Rs 1 crore plus 4 percent Health and Education Cess. Effective: 31.2 percent (no surcharge), 34.944 percent (with surcharge). Quarterly advance tax 15 June, 15 September, 15 December, 15 March (15 percent, 45 percent, 75 percent, 100 percent cumulative). Section 234B/234C interest at 1 percent per month for shortfall.

30% flat + cess 4-instalment advance

Tax Computed 06

Step 7

ITR-5 E-Filing and MCA Coordination

File ITR-5 on incometax.gov.in. E-verify within 30 days using DSC of designated partner / partner. For LLP additionally: file Form 11 by 30 May 2026 on MCA V3 portal with two designated partner DSCs and CS certification (if applicable); file Form 8 by 30 October 2026 with audited financials (where applicable); file DIR-3 KYC by 30 June for each designated partner. Track refund / demand. Respond to Section 143(1) intimation, Section 142(1) scrutiny, Section 139(9) defective return within 15 days.

e-Verify within 30 days MCA Form 11 / 8 filed

ITR Filed 07

Document Checklist for LLP / Partnership Firm ITR-5

LLP and Partnership Firm ITR-5 requires documentation across seven categories: entity and identity, books of accounts, Section 40(b) partner remuneration, GST and indirect tax, Section 40 disallowances, audit (where applicable), and MCA filings (LLP only).

A. Entity and Identity

PAN of LLP / Firm and PAN of all partners (Aadhaar linked)
For LLP: LLPIN certificate, LLP Agreement (filed via Form 3), Form 4 for any change in partners, DPINs of designated partners
For Partnership Firm: Partnership Deed (registered or unregistered), Registrar of Firms certificate (if registered), Form 1 / Form 5 for changes
GSTIN registration certificate (where applicable)
DSC of designated partners (Class 3, valid)
Bank account details of LLP / Firm

B. Books of Accounts and Financial Statements

Profit and Loss Account FY 2025-26
Balance Sheet as on 31 March 2026 with capital account, reserves, current assets, fixed assets, secured / unsecured loans, current liabilities
Trial balance; cash book, bank book, sales register, purchase register, expenses ledger
Section 32 depreciation chart - block-of-assets WDV with additions and deletions
Partner capital ledger and current account ledger
Closing stock valuation (cost or NRV whichever lower under ICDS-II)

C. Section 40(b) Partner Remuneration / Interest

Section 40(b) computation with Finance Act 2025 amended slabs (Rs 3 lakh / 90 percent / 60 percent on book profit)
Partner-wise remuneration drawn during FY
Partner-wise interest paid at maximum 12 percent per annum on capital
Partnership Deed / LLP Agreement profit-sharing ratio (must specify per-partner fractions, not just "equally")
Book profit computation worksheet

D. GST and Indirect Tax Reconciliation

GSTR-1 / GSTR-3B / GSTR-9 / GSTR-9C for FY 2025-26
GST turnover summary - taxable, exempt, zero-rated, non-GST
Reconciliation with ITR turnover - timing differences and exempt supplies
TDS and TCS certificates Form 16A / 27D
Form 26AS, AIS, TIS download from incometax.gov.in

E. Section 40 Disallowances Documentation

TDS payment challans for Section 40(a) compliance
Related party transactions list for Section 40A(2)
Cash payment register for Section 40A(3) (no payment above Rs 10,000 in cash per person per day)
Section 43B statutory dues - GST, PF, ESI, gratuity, leave encashment payment proofs (paid before due date Section 139(1))
Section 269ST / 271DA - cash receipt above Rs 2 lakh per transaction check

F. Audit Documentation (Where Applicable)

For LLP statutory audit (Section 34(4) of LLP Act): audited financials by CA in practice if turnover above Rs 40 lakh OR contribution above Rs 25 lakh
For Section 44AB tax audit: Form 3CA (if also audited under LLP Act) or Form 3CB; Form 3CD 44 clauses
CA UDIN for audit signing
Engagement letter and management representation letter

G. MCA Filings Documentation (LLP only)

Form 11 LLP Annual Return (filed by 30 May 2026)
Form 8 LLP Statement of Account and Solvency (filed by 30 October 2026)
DIR-3 KYC for each designated partner (filed by 30 June 2026)
CS certification on Form 11 (if turnover above Rs 5 crore or contribution above Rs 50 lakh)
MSME disclosure statement attached to Form 8

Common LLP / Partnership Firm Challenges and Patron Solutions

Challenge	Impact	How Patron Accounting Solves It
LLP confusing Rs 40 lakh / Rs 25 lakh statutory audit with Rs 1 crore Section 44AB tax audit	Critical confusion between LLP Act audit and Section 44AB tax audit. An LLP with FY 2025-26 turnover Rs 55 lakh and partner contribution Rs 32 lakh is BELOW the Section 44AB tax audit threshold (Rs 1 crore) but ABOVE the Section 34(4) of LLP Act 2008 statutory audit threshold (Rs 40 lakh OR Rs 25 lakh - crosses BOTH). LLP statutory audit is mandatory by a CA in practice; without it, Form 8 cannot be filed validly with MCA. Patron's solution: dual-perimeter audit assessment at intake, single audit engagement covering both with Form 3CA + Form 3CD, filed before respective deadlines (30 September for Form 3CD, 30 October for Form 8).
Old Section 40(b) slabs costing Rs 50,000 to Rs 2 lakh in lost partner remuneration deduction	Most DIY platforms still use OLD Section 40(b) slabs of Rs 1.5 lakh / 90 percent / 60 percent. Finance Act 2025 amended effective AY 2025-26: on first Rs 6,00,000 of book profit - Rs 3,00,000 OR 90 percent (whichever HIGHER); above Rs 6,00,000 - 60 percent. Worked example: 4-partner family firm with FY 2025-26 book profit Rs 35 lakh - old slabs give Rs 21.9 lakh deductible; new slabs give Rs 22.8 lakh - difference Rs 0.9 lakh additional deduction = Rs 28,000 less firm tax. Patron's solution: every Section 40(b) computation uses Finance Act 2025 amended slabs with worked-example documentation.
Section 184 firm constitution gaps triggering Section 185 AOP reclassification	Partnership firm or LLP MUST have written deed/agreement with profit-sharing ratios (per-partner fractions, not just "equally"), all partner signatures, and certified copy filed with first AY ITR. Section 185 reclassifies non-compliant firm/LLP as AOP at MMR (30 percent + surcharge + 4 percent cess) with NO Section 40(b) deduction - flipping a Rs 18 lakh deductible remuneration into Rs 5.6 lakh extra firm tax. Patron's solution: deed audit at intake, deed amendment drafting where required, fresh certified copy filing with current AY ITR-5 for any deed amendment.
LLP missing Form 11 / Form 8 / DIR-3 KYC with no upper cap penalty	LLPs face FOUR mandatory annual MCA filings - Form 11 by 30 May, Form 8 by 30 October, DIR-3 KYC by 30 June, plus ITR-5. Form 11/8 penalty Rs 100 per day per form with NO upper cap - one year of delay equals Rs 36,500 per form. Two consecutive years of Form 11/8 non-filing triggers ROC striking off proceedings under Section 75 of LLP Act 2008, requiring NCLT revival (Rs 50,000 to Rs 1,50,000). DIR-3 KYC non-filing deactivates DPIN blocking all LLP filings. Patron's solution: integrated 4-filing compliance calendar with proactive reminders and DSC management.
LLP filing ITR-4 instead of ITR-5 - Section 139(9) defective return	LLPs are EXPLICITLY EXCLUDED from Section 44AD AND Section 44ADA presumptive schemes. DIY platforms allow LLP to select ITR-4 - producing Section 139(9) defective return notice with 15-day cure window. Failure to cure converts ITR to invalid return triggering Section 139(1) non-filing penalties. Patron's solution: entity classification gate at intake blocks LLP from presumptive ITR-4; LLP always filed via ITR-5 with full books-based Schedule BP computation.

LLP / Partnership Firm ITR-5 Filing Fees

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 7,999 (Excl. GST and Govt. Charges)
Partnership Firm ITR-5 (non-audit)	Starting from Rs 7,999 (Excl. GST and Govt. Charges)
LLP ITR-5 with MCA Form 11 + Form 8 Coordination	Starting from Rs 12,999 (Excl. GST and Govt. Charges)
LLP ITR-5 + Section 44AB Tax Audit + MCA Bundle	Starting from Rs 22,998 (Excl. GST and Govt. Charges)
Section 44AB Tax Audit Add-on (Form 3CD)	Starting from Rs 9,999 (Excl. GST and Govt. Charges)
LLP Statutory Audit Standalone (Section 34(4))	Starting from Rs 7,999 (Excl. GST and Govt. Charges)
Form 11 Standalone (LLP Annual Return)	Starting from Rs 1,999 (Excl. GST and Govt. Charges)
Form 8 Standalone (Statement of Account and Solvency)	Starting from Rs 2,999 (Excl. GST and Govt. Charges)
DIR-3 KYC Per Designated Partner	Starting from Rs 999 (Excl. GST and Govt. Charges)
Section 92E Transfer Pricing Case (Form 3CEB)	Starting from Rs 24,999 (Excl. GST and Govt. Charges)
LLP Penalty Regularisation (Delayed Form 11/8)	Starting from Rs 4,999 (Excl. GST and Govt. Charges)

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved. GST extra at 18%. Multi-entity packages and group LLP compliance discounts available. Larger turnover or multi-state GST entities priced on assessment.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free ITR for LLP and Partnership Firm consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Engagement Timeline and Statutory Deadlines

Stage	Estimated Timeline
Partnership Firm ITR-5 (non-audit)	7-10 working days	31 July 2026
LLP ITR-5 (non-audit)	10-14 working days	31 July 2026
LLP ITR-5 + MCA Form 11 + Form 8 Bundle	14-21 working days	30 May (Form 11) / 30 Oct (Form 8) / 31 Jul (ITR-5)
LLP Statutory Audit + Section 44AB Tax Audit + ITR-5	21-30 working days	30 Sep 2026 (Form 3CD); 30 Oct (Form 8); 31 Oct (ITR-5)
LLP Statutory Audit Standalone	14-21 working days	30 October 2026 (before Form 8)
Section 92E Transfer Pricing Case	30-45 working days	30 November 2026
Form 11 / Form 8 Standalone	2-3 working days	30 May / 30 October
DIR-3 KYC Per Designated Partner	1 working day	30 June 2026
LLP Penalty Regularisation (Delayed Forms)	7-14 working days	No deadline - earlier filing minimises penalty

                    
                    Urgency note: Form 11 due 30 May 2026 is the FIRST critical LLP deadline in the financial year - missing it triggers Rs 100 per day per form penalty with NO upper cap. DIR-3 KYC due 30 June - missing it deactivates DPIN, blocking Form 11 / Form 8 / ITR-5 filings until reactivation (Rs 5,000 + filing). Section 184 firm constitution: certified copy of deed must be filed with FIRST AY ITR under that constitution; deed amendments require fresh certified copy filing with the AY when amendment is effective. Section 271B audit penalty applies if Section 44AB audit not done - 0.5 percent of turnover or Rs 1.5 lakh whichever lower. Two consecutive years of Form 11/8 non-filing triggers ROC striking off under Section 75 of LLP Act 2008, requiring NCLT revival (Rs 50,000 to Rs 1,50,000).

Key Benefits

Benefits of CA-Led LLP / Partnership Firm ITR-5 Filing

Dual-Audit Perimeter Mapping

LLP Act audit (Rs 40L turnover OR Rs 25L contribution under Section 34(4)) tracked separately from Section 44AB tax audit (Rs 1 cr / Rs 10 cr digital). Both perimeters live concurrently. Single CA engagement covers both with Form 3CA + Form 3CD.

Section 40(b) Finance Act 2025 New Slabs

Rs 3 lakh / 90 percent / 60 percent on book profit slabs applied (replacing OLD Rs 1.5 lakh / 90 percent / 60 percent). Worked examples at Rs 6L, Rs 12L, Rs 30L, Rs 60L book profit levels. Partner interest at 12 percent per annum on capital correctly capped.

Section 184 Firm Constitution Audit

Deed audit at intake - written deed, profit-sharing ratios per partner (not just "equally"), all partner signatures, certified copy filed with first AY ITR. Deed amendment drafting where required. Section 185 AOP reclassification at MMR averted.

LLP 4-Filing Compliance Calendar

Form 11 by 30 May, DIR-3 KYC by 30 June, Form 8 by 30 October, ITR-5 by 31 July (non-audit) / 31 October (audit). Rs 100/day no-cap penalty for Form 11/8 averted. DPIN deactivation prevented. ROC striking off risk eliminated.

LLP Presumptive Block

LLP correctly excluded from Section 44AD and Section 44ADA - filed via ITR-5 with full books-based Schedule BP computation. Section 139(9) defective return notice (LLP filing ITR-4) prevented. Partnership firms correctly enabled for Section 44AD where eligible.

CS Certification Coordination

Form 11 CS certification triggered if LLP turnover above Rs 5 crore or contribution above Rs 50 lakh. Practising Company Secretary engaged at the right threshold. Below threshold: designated partners self-certify via DSC.

Schedule IF + Pt-AC Reconciliation

ITR-5 Schedule IF firm-level disclosure reconciled to Schedule Pt-AC partner allocation table. Partner-level individual ITR PGBP head reflects remuneration / interest received from firm/LLP. Section 143(1) intimation triggered by mismatch averted.

Section 43B Statutory Dues Timing

GST, PF, ESI, gratuity, leave encashment deductible only on actual payment before Section 139(1) due date. Accrual-based booking flagged. Section 270A under-reporting penalty (50 percent / 200 percent of tax sought to be evaded) averted.

Trust and Track Record

10,000+ Businesses Served | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years Experience | 1,200+ LLPs and 2,400+ Partnership Firms

"We are a 3-partner IT services LLP in Bengaluru. Our previous CA filed FY 2024-25 ITR-5 without arranging LLP statutory audit - claimed our turnover was below the Section 44AB Rs 1 crore tax audit threshold. Patron flagged that LLP Act 2008 has a SEPARATE Section 34(4) statutory audit at Rs 40 lakh turnover OR Rs 25 lakh contribution - we cross BOTH. Patron arranged the audit retroactively, refiled Form 8 with audited financials, and prevented potential MCA scrutiny."

TechVantage IT Services LLP - Bengaluru (FY 2025-26 turnover Rs 55 lakh, contribution Rs 32 lakh)

"Our family CA used OLD Section 40(b) slabs for partner remuneration. Patron flagged Finance Act 2025 amendment - new slabs are Rs 3 lakh / 90 percent / 60 percent. Recomputed: total Rs 22.8 lakh deductible remuneration. They also audited our partnership deed - flagged the profit-sharing ratio was specified as just 'equal' without per-partner fractions which could fail Section 184 in scrutiny. Drafted deed amendment with explicit ratios. Prevented potential Section 185 AOP reclassification at MMR which would have cost approximately Rs 5 lakh extra tax."

Singh Trading Co (Partnership Firm) - Delhi (4-partner family firm, FY 2025-26 book profit Rs 35 lakh)

Outcome Proof: Rs 22 lakh saved across three LLP / Partnership Firm engagements in FY 2024-25: (a) Bengaluru LLP statutory audit retroactive arrangement saving Rs 4 lakh future MCA penalty plus Form 8 validity; (b) Delhi family partnership Section 40(b) Finance Act 2025 recomputation saving Rs 28,000 annually plus Section 184 deed amendment preventing potential Rs 5 lakh AOP reclassification; (c) Mumbai 12-partner law firm Section 184 first-AY certified copy filing saving Rs 12 lakh prospective AOP exposure across 3 years.

Four-Office City Signal: With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves LLPs and Partnership Firms across India - manufacturing partnerships in Pimpri-Chinchwad, IT services LLPs in Hinjewadi, BFSI partnership firms, jewellery firms in Zaveri Bazar, garment partnerships in Crawford Market and Bhuleshwar, real estate LLPs, distribution partnerships, retail trading LLPs, consulting LLPs, and sub-Rs 75 lakh professional partnership firms.

LLP Statutory Audit versus Section 44AB Tax Audit Compared

Aspect	LLP Statutory Audit (Section 34(4) LLP Act 2008)	Section 44AB Tax Audit (Income Tax Act 1961)
Governing Law	LLP Act 2008 read with LLP Rules 2009 Rule 24(8)	Income Tax Act 1961 Section 44AB
Trigger Threshold	Turnover above Rs 40 lakh OR contribution above Rs 25 lakh	Business turnover above Rs 1 crore (Rs 10 crore if 95%+ digital both halves); profession receipts above Rs 50 lakh
Applicable To	LLPs ONLY (under LLP Act 2008)	All non-corporate businesses (sole prop, firm, LLP, HUF, AOP/BOI) AND companies
Auditor	Practising Chartered Accountant	Practising Chartered Accountant
Audit Report Form	LLP audit report attached to Form 8	Form 3CA (when also audited under another law) or Form 3CB; with Form 3CD 44 clauses
Filed With	Ministry of Corporate Affairs (MCA V3 portal) via Form 8	Income Tax Department (incometax.gov.in) under Section 44AB
Due Date	30 October 2026 (along with Form 8)	30 September 2026 (Form 3CD)
Penalty for Non-Compliance	Rs 100/day per form for Form 8 delay; LLP Act 2008 penalties	Section 271B - 0.5% of turnover or Rs 1.5 lakh (whichever lower)
Concurrent Application?	Both can apply if LLP crosses both thresholds (turnover above Rs 1 crore covers both)	Both apply concurrently
Form Filing Sequence	Audit completed BEFORE Form 8 filed	Form 3CD filed BEFORE ITR-5 (audit case)
Audit Coverage	Statement of Account and Solvency, financial statements per LLP Act	Income tax computation, depreciation Section 32, Section 40 disallowances, Section 43B, GST reconciliation, related party
UDIN Required	YES (audit signing)	YES (Form 3CD signing)
Common Pitfall	CA confusing LLP audit with Section 44AB - missing LLP audit when below Rs 1 crore but above Rs 40 lakh	CA missing Section 44AB when LLP audit done - thinking the LLP audit covers Section 44AB requirement

Related Patron Services

LLP and Partnership Firm filers frequently need adjacent compliance, audit, and conversion services. We bundle these:

Income Tax Return (general overview) - end-to-end ITR filing across all heads of income
ITR for Business (Hub) - all six non-corporate entity types broadly (sole prop, firm, LLP, HUF, AOP, BOI)
ITR for Companies - Pvt Ltd / OPC / Public Ltd via ITR-6 with concessional rates
Tax Audit - Form 3CA-3CD or 3CB-3CD audit support under Section 44AB
LLP Incorporation - LLPIN, DPIN, LLP Agreement filing via MCA V3 portal
Partnership Firm Registration - Registrar of Firms registration with deed drafting
TDS Return Filing - Form 26Q quarterly TDS return filing

Legal and Compliance Framework

Governing Acts and Rules:

Income Tax Act 1961: Sections 28-44 (PGBP charging and computation); 40(b) (partner remuneration); 44AB (audit); 44AD/44ADA (presumptive); 184 (firm constitution); 185 (AOP reclassification); 234A/B/C (interest); 234F (late fee); 270A (penalty); 271B (audit failure penalty); 92E (transfer pricing)
Indian Partnership Act 1932 - partnership firm constitution and registration; maximum 20 partners; voluntary Registrar of Firms registration
Limited Liability Partnership Act 2008: Section 34 (Statement of Accounts and Solvency); Section 35 (Annual Return); Section 75 (striking off); LLPIN registration; minimum 2 partners with 2 designated partners
LLP Rules 2009: Rule 24(8) (audit applicability at Rs 40 lakh / Rs 25 lakh); Rule 12A(1) (DIR-3 KYC for designated partners)
LLP Amendment Act 2021 - Small LLP definition (contribution up to Rs 25 lakh, turnover up to Rs 40 lakh); reduced compliance and lower penalties
Finance Act 2025 - Section 40(b) amendment effective AY 2025-26 (Rs 3 lakh / 90 percent / 60 percent on book profit slabs)
MCA V3 Portal Notifications - Form 11, Form 8, DIR-3 KYC, Form 3 filings electronic
Income Tax Rules 1962 - Rule 6F (books of accounts requirement)

Penalty Provisions:

Section 234F late filing fee: Rs 5,000 (Rs 1,000 if total income up to Rs 5 lakh)
Section 234A / 234B / 234C interest: 1 percent per month on tax shortfall and advance tax default
Section 270A: 50 percent under-reporting; 200 percent misreporting penalty
Section 271B tax audit default: 0.5 percent of turnover or Rs 1,50,000 (whichever lower)
Section 271A: Rs 25,000 for failure to maintain books under Section 44AA
Section 271DA: penalty equal to receipt for cash receipts above Rs 2 lakh per transaction (Section 269ST)
Form 11 / Form 8 LLP penalty: Rs 100 per day per form with NO upper cap; two consecutive years of non-filing triggers ROC striking off
DIR-3 KYC non-filing: DPIN deactivation; reactivation requires Rs 5,000 fee

Provision	What It Says	LLP / Partnership Impact
Section 28-44 ITA 1961	PGBP charging and computation	Firm-level business income computation in ITR-5 Schedule BP
Section 40(b) ITA 1961	Partner remuneration limits	Finance Act 2025 amended: Rs 3 lakh / 90% / 60% on book profit slabs; partner interest 12% per annum on capital; only if Section 184 compliant
Section 44AB ITA 1961	Tax audit	Business Rs 1 crore / Rs 10 crore digital; profession Rs 50 lakh; Form 3CD 44 clauses; 30 September 2026
Section 44AD ITA 1961	Presumptive business	PARTNERSHIP FIRM eligible (Rs 3 crore digital threshold); LLP NOT eligible
Section 44ADA ITA 1961	Presumptive professional	PARTNERSHIP FIRM eligible (Rs 75 lakh threshold); LLP NOT eligible
Section 184 ITA 1961	Firm constitution	Written deed/agreement, profit-sharing ratios, all partner signatures, certified copy filed with first AY ITR
Section 185 ITA 1961	Non-compliant firm = AOP	Section 184 conditions failed = AOP at MMR; NO Section 40(b) deduction
Section 234F ITA 1961	Late filing fee	Rs 5,000 (Rs 1,000 if income up to Rs 5 lakh)
Section 271B ITA 1961	Audit failure penalty	0.5% of turnover or Rs 1.5 lakh (whichever lower) for failure to get Section 44AB audit
Section 92E ITA 1961	Transfer pricing report	Form 3CEB by accountant for international and specified domestic related party transactions; ITR due 30 November
Section 139(8A) ITA 1961	Updated return	24-month window with 25-50% additional tax + interest
Section 139(9) ITA 1961	Defective return	15-day cure window; common LLP trigger - LLP filing ITR-4 instead of ITR-5
Section 269ST ITA 1961	Cash receipt limit	No cash receipt above Rs 2 lakh per transaction; Section 271DA penalty equal to receipt
Indian Partnership Act 1932	Partnership constitution	Maximum 20 partners (10 for banking); Registrar of Firms registration voluntary; partner unlimited liability
Limited Liability Partnership Act 2008	LLP constitution	Minimum 2 partners with at least 2 designated partners (one Indian resident); LLPIN required; partner liability limited
Section 34 LLP Act 2008	LLP Statement of Accounts	Form 8 filing by 30 October; statutory audit Section 34(4) at Rs 40L turnover OR Rs 25L contribution
Section 35 LLP Act 2008	LLP Annual Return	Form 11 filing by 30 May
LLP Rules 2009 Rule 24(8)	Audit applicability	Auditor appointed at least 30 days before FY end; CA in practice
LLP Rules 2009 Rule 12A(1)	DIR-3 KYC	Annual KYC for designated partners by 30 June
LLP Amendment Act 2021	Small LLP	Contribution up to Rs 25 lakh / turnover up to Rs 40 lakh - reduced compliance and lower penalties
Finance Act 2025	Section 40(b) amendment	Rs 3 lakh / 90% / 60% on book profit slabs (raised from Rs 1.5 lakh / 90% / 60%) effective AY 2025-26

External references: Income Tax e-Filing Portal - incometax.gov.in (CBDT - ITR-5 utility, Section 40(b) FAQ, Section 44AB audit); MCA V3 Portal - mca.gov.in (Form 11, Form 8, DIR-3 KYC, Form 3 LLP Agreement); Income Tax Department - incometaxindia.gov.in (Finance Act 2025 Section 40(b) amendment).

Frequently Asked Questions

Common questions on LLP statutory audit Rs 40 lakh / Rs 25 lakh threshold under Section 34(4) of LLP Act 2008, the difference between LLP audit and Section 44AB tax audit, ITR-5 due dates for AY 2026-27, Section 40(b) Finance Act 2025 amended slabs, LLP exclusion from Section 44AD presumptive, Form 11 / Form 8 penalty regime, DIR-3 KYC requirement, and partnership-to-LLP tax-neutral conversion under Section 47(xiiib).

Quick Answers

Quick Answers

Q: LLP audit threshold?
A: Rs 40 lakh turnover OR Rs 25 lakh contribution under Section 34(4) LLP Act 2008. Either trigger.

Q: Section 44AB tax audit?
A: Rs 1 crore business (Rs 10 crore digital both halves); Rs 50 lakh profession.

Q: ITR form for LLP / Partnership?
A: Both use ITR-5.

Q: LLP / Firm tax rate?
A: 30 percent flat + 12 percent surcharge above Rs 1 Cr + 4 percent cess. Effective 31.2 percent / 34.944 percent.

Q: Section 40(b) Finance Act 2025?
A: Rs 3 lakh / 90 percent / 60 percent on book profit slabs. Partner interest 12 percent per annum.

Q: LLP presumptive eligible?
A: NO - explicitly excluded from Section 44AD AND Section 44ADA.

Q: Form 11 / Form 8 due dates?
A: Form 11 by 30 May; Form 8 by 30 October. Penalty Rs 100/day no cap.

Q: DIR-3 KYC due?
A: 30 June for designated partners. Non-filing = DPIN deactivation.

Nine LLP and Partnership Firm Deadlines for AY 2026-27

LLP and Partnership Firm filers face NINE firm dates for AY 2026-27 (FY 2025-26): (1) 30 May 2026 - Form 11 LLP Annual Return (LLP only); (2) 30 June 2026 - DIR-3 KYC for designated partners (LLP only); (3) 31 July 2026 - non-audit ITR-5 under Section 139(1); (4) 30 September 2026 - Tax Audit Report Form 3CD under Section 44AB; (5) 30 October 2026 - Form 8 LLP Statement of Account and Solvency (LLP only); (6) 31 October 2026 - audit-case ITR-5 under Section 139(1); (7) 30 November 2026 - ITR-5 for Section 92E transfer pricing cases; (8) 31 December 2026 - belated / revised return Section 139(4)/(5) with Section 234F fee; (9) Quarterly advance tax 15 June, 15 September, 15 December, 15 March - 15 percent, 45 percent, 75 percent, 100 percent cumulative. Form 11 / Form 8 penalty Rs 100 per day per form with NO upper cap; two years consecutive non-filing triggers MCA striking off under Section 75 of LLP Act 2008. DIR-3 KYC non-filing deactivates DPIN blocking ALL LLP filings.

File Your LLP / Partnership Firm ITR-5 Right - Talk to a Section 40(b) and Audit-Savvy CA Today

LLP and Partnership Firm ITR-5 filing is the area where TWO concurrent audit perimeters (LLP statutory audit at Rs 40 lakh / Rs 25 lakh under Section 34(4) of LLP Act 2008 PLUS Section 44AB tax audit at Rs 1 crore / Rs 10 crore digital under Income Tax Act 1961) and FOUR mandatory MCA filings for LLPs (Form 11, Form 8, DIR-3 KYC, ITR-5) create compliance complexity that DIY platforms systematically miss.

An LLP with Rs 50 lakh turnover and Rs 30 lakh contribution needs LLP statutory audit even though Section 44AB tax audit does not apply at that turnover. A partnership firm using OLD Section 40(b) slabs of Rs 1.5 lakh / 90 percent / 60 percent forfeits Rs 50,000 to Rs 2 lakh deductible partner remuneration under Finance Act 2025 amended slabs. A partnership deed silent on individual profit ratios risks Section 185 AOP reclassification at MMR with NO Section 40(b) deduction. An LLP missing Form 11 by 30 May 2026 starts accruing Rs 100 per day per form penalty with NO upper cap.

Patron Accounting has filed ITR-5 for over 1,200 LLPs and 2,400 partnership firms since 2019 - whether your structure is a 2-partner consulting LLP, a 12-partner family distribution firm, a Small LLP under the 2021 Amendment, or a Foreign LLP with India operations, the correct answer always begins with the entity-type confirmation, deed audit, and dual-audit perimeter mapping.

Free 15-minute Section 40(b) optimization and dual-audit perimeter assessment. Call +91 945 945 6700, WhatsApp, or email info@patronaccounting.com - we tell you the optimal Section 40(b) computation under Finance Act 2025, LLP statutory audit applicability under Section 34(4), Section 44AB tax audit applicability, and MCA Form 11 / Form 8 / DIR-3 KYC compliance status BEFORE you pay anything.

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LLP / Partnership Firm ITR-5 Filing Across India

LLP and Partnership Firm ITR-5 served from our four offices in Pune, Mumbai, Delhi, and Gurugram - covering manufacturing partnerships, IT services LLPs, BFSI firms, jewellery firms, garment partnerships, real estate LLPs, distribution firms, retail trading LLPs, consulting LLPs, and professional partnership firms across India.

LLP / Partnership Firm ITR Filing By City

Local CA support for LLPs, partnership firms, family firms, and professional partnerships

Related Tax and Compliance Services

End-to-end tax, audit, and MCA compliance for LLPs and partnership firms

Content Created: 8 May 2026 | Last Updated: 8 May 2026 | Next Review: 8 August 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

Reviewed quarterly during ITR season (April to October) and after every Union Budget; immediately after MCA notification on LLP rules or Form 11 / Form 8 / DIR-3 KYC changes, Section 40(b) slab revision, Section 44AD or Section 44ADA limit revision, LLP Act amendment, or Income Tax Act 2025 commencement updates. Citation Sources: Income Tax Act 1961 (Sections 28-44, 40(b), 44AB, 44AD, 44ADA, 184, 185, 234F, 270A, 271B, 92E); Indian Partnership Act 1932; Limited Liability Partnership Act 2008 (Section 34, Section 35, Section 75); LLP Rules 2009 (Rule 24(8), Rule 12A(1)); LLP Amendment Act 2021 (Small LLP definition); Finance Act 2025 (Section 40(b) amendment); MCA V3 Portal Notifications on Form 11 / Form 8 / DIR-3 KYC.

ITR-5 Filing for LLP and Partnership Firm in India

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LLP and Partnership Firm ITR-5 - Section 40(b) Finance Act 2025, LLP Audit Rs 40L/Rs 25L, and Form 11/Form 8 MCA Coordination

What Is ITR-5 Filing for LLP and Partnership Firm

Key Terms in LLP and Partnership Firm ITR

LLP versus Partnership Firm - Compliance Matrix

Patron Accounting Services for LLP and Partnership Firm ITR-5

Entity Type Confirmation and Compliance Calendar Setup

Books of Accounts and Reconciliation

Audit Engagement (LLP Statutory + Section 44AB Tax Audit)

Section 40(b) Partner Remuneration Computation

ITR-5 Schedule Population

Tax Computation and Advance Tax

ITR-5 E-Filing and MCA Coordination

Document Checklist for LLP / Partnership Firm ITR-5

A. Entity and Identity

B. Books of Accounts and Financial Statements

C. Section 40(b) Partner Remuneration / Interest

D. GST and Indirect Tax Reconciliation

E. Section 40 Disallowances Documentation

F. Audit Documentation (Where Applicable)

G. MCA Filings Documentation (LLP only)

Common LLP / Partnership Firm Challenges and Patron Solutions

LLP / Partnership Firm ITR-5 Filing Fees

Engagement Timeline and Statutory Deadlines

Benefits of CA-Led LLP / Partnership Firm ITR-5 Filing

Dual-Audit Perimeter Mapping

Section 40(b) Finance Act 2025 New Slabs

Section 184 Firm Constitution Audit

LLP 4-Filing Compliance Calendar

LLP Presumptive Block

CS Certification Coordination

Schedule IF + Pt-AC Reconciliation

Section 43B Statutory Dues Timing

Trust and Track Record

LLP Statutory Audit versus Section 44AB Tax Audit Compared

Related Patron Services

Legal and Compliance Framework

Frequently Asked Questions

When is LLP audit mandatory under LLP Act 2008?

What is the difference between LLP audit and tax audit?

What are the ITR-5 due dates for AY 2026-27?

How is Section 40(b) partner remuneration calculated under Finance Act 2025?

Are LLPs eligible for Section 44AD presumptive scheme?

What is the penalty for late filing of Form 11 and Form 8?

Is DIR-3 KYC mandatory for designated partners?

Can a partnership firm convert to LLP without tax implications?

Quick Answers

Nine LLP and Partnership Firm Deadlines for AY 2026-27

File Your LLP / Partnership Firm ITR-5 Right - Talk to a Section 40(b) and Audit-Savvy CA Today

LLP / Partnership Firm ITR-5 Filing Across India

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