Learn about LLP Income Tax Return Late Filing Penalties in India, consequences for non-compliance and the importance of filing ITR on time to avoid penalties and legal consequences.
Limited Liability Partnerships (LLPs) in India are required to file their income tax returns within a specified time frame. The late filing of LLP income tax returns can result in the imposition of penalties, which can be significant. In this article, we will explore the various income tax return for LLP late filing penalties in detail.
Section 234F Penalty for Late Filing of LLP Income Tax Return
As per Section 234F of the Income Tax Act, a penalty of ₹ 10,000 will be levied if the LLP income tax return is filed after the due date but before 31st December of the assessment year. In case the income tax return for LLP
is filed after 31st December of the assessment year, a penalty of ₹ 10,000 or ₹ 1,000 per day of delay (whichever is higher) will be levied.
Section 234F of the Income Tax Act, 1961 imposes a penalty for late filing of LLP (Limited Liability Partnership) income tax returns. The section was introduced as part of the Finance Act, 2017 and it applies to returns filed on or after 1st July, 2017.
The amount of penalty is calculated based on the number of days by which the return is filed late. If the return is filed within 1-30 days of the due date, a penalty of ₹ 5000 will be imposed. If the return is filed beyond 30 days but on or before 90 days, a penalty of ₹ 10,000 will be imposed. And if the return is filed after 90 days, a penalty of ₹ 10,000 plus ₹ 1000 for each day of delay beyond 90 days will be imposed.
However, if the total income of the LLP does not exceed ₹ 5 lakhs in the previous year, the maximum penalty will be limited to ₹ 1000. Also, if the return is filed after the due date but before the completion of assessment proceedings, a lower amount of penalty may be imposed, subject to the discretion of the assessing officer.
Penalty for Non-Filing of Income Tax Return for LLP
Penalty for Concealment of Income
In case the LLP conceals its income or furnishes inaccurate details, it will attract a penalty of 50% of the tax payable on the concealed income.
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Penalty for Late Payment of Taxes
In case the LLP fails to pay its taxes within the due date, it will attract a simple interest at the rate of 1% per month or part of the month.
Why is LLP Income Tax Return Late Filing Penalties considered?
LLP (Limited Liability Partnership) is a form of business structure that combines the features of a partnership and a corporation. In India, LLP companies are required to file their Income Tax Returns (ITR) every financial year. The due date for filing income tax return for LLP is usually 30th September of the following financial year. However, if the LLP company fails to file their ITR within the due date, they are subject to penalties.
The primary reason for levying late filing penalties on LLP companies is to encourage them to file their ITR on time. Late filing of ITR can result in a delay in the assessment of the company’s tax liability, which can result in revenue losses for the government. Moreover, late filing of ITR can also result in the accumulation of interest and other charges, which can make it difficult for the company to comply with its tax obligations.
Income Tax Return for LLP in India are required to be filed annually by a specific due date. If the returns are not filed on time, late filing penalties are imposed. The late filing penalties for income tax return for LLP in India vary depending on the amount of tax due and the number of days by which the returns are late. Generally, a penalty of ₹ 200 per day is levied, up to a maximum of the tax due. In case the income tax India filling is done after the due date but before December 31 of the assessment year, a late filing fee of ₹ 5,000 is applicable. If the income tax India filling is done after December 31, a late filing fee of ₹ 10,000 is applicable. Hence, it is crucial to keep track of the due date and file the LLP income tax return on time to avoid these penalties.
Conclusion
In conclusion, it is important for LLPs to file their income tax returns within the due date to avoid the imposition of penalties. In case of late filing of income tax return for LLP, the penalties can be significant and it is advisable for LLPs to take the necessary steps to avoid them. LLPs must also ensure that their tax returns are accurate and complete to avoid the imposition of penalties for concealment of income or furnishing of inaccurate details. Make sure to get in touch with vakilsearch for more updates and get experts advice at minimal costs.
