LLP Annual Filing 2019 - 2020 (Form 11, Form 8 & ITR Filings)

LLP Annual Filing 2019 - 2020

Every LLP registered on or before 30th September 2019 has to file Annual Return (Form 11), Statement of Accounts (Form 8) and Income Tax Returns for the year ended 31st March 2020. Every LLP registered between 1st October 2019 to 31st March 2020 has to file Income Tax Returns for the year ended 31st March 2020. Also, all the designated partners of every LLP registered on or before 31st March 2020 has to file DIN KYC or the year 2019-2020.

LLP Annual Filing 2019 - 2020 

It is mandatory for every LLP to file Annual Return (Form 11) and Balance Sheet (Form 8) under LLP Act and Income Tax Return (ITR) with Income Tax Department every year whether the LLP do business or not. 

LLP Annual Compliance requirements are based on the date of registration of LLP.

A. LLP registered on or before 30th September 2019

Every LLP registered before 30th September 2019 has to file Annual Return (Form 11), Statement of Accounts (Form 8) and Income Tax Returns for the  year ended 31st March 2020.

B. LLP registered between 1st October 2019 to 31st March 2020

Every LLP registered between 1st October 2019 to 31st March 2020 has to file Income Tax Return for the year ended 31st March 2020.

Also, the designated partners of every LLP registered on or before 31st March 2020 has to file DIN KYC or the year 2019-2020.

LLP Annual Filing Calendar 2020

1. Registrar of Companies

 2. Income Tax Department

LLP Returns - Explained

A. Annual Return (Form 11)

 Every LLP shall file an annual return in Form 11 within 60 days of closure of a financial year. The Annual Return contains details of LLP Registered office address, details of partners, details of designated partners, LLP contribution profit sharing ratio etc. So, the filing of Annual Return has to be done on or before 30th May of every year.

Penalty: Delay of filing Form 11 will attract a fine of is Rs.100 per day after the due date till the date of Filing.

B. Balance Sheet (Form 8)

Every LLP has to maintain books of accounts as per double entry system of accounting and has to prepare a Statement of Accounts and Solvency (Accounts) every year ending on 31st March and shall file the same in Form 8 with the Registrar, within 30 days from the end of six months of the financial year.

Penalty: 

Delay of filing Form 8 will attract a fine of is Rs.100 per day after the due date till the date of Filing.

C. DIN KYC Filing (Form DIR3-eKYC)

Every Designated Partner of an LLP will have Directors Identification Number (DIN) allotted by the Ministry of Corporate Affairs (MCA). A person, who holds a DIN allotted on or before 31.03.2020 (LLP registered on or before 31.03.2020) has to file DIN KYC for the year 2019-2020 on before 30th September 2020.

Penalty: 

Delay in filing the DIR3-KYC will attract a fine of Rs.5000. Also, if the KYC is not filed before 30th September 2020, the DIN will be marked as as 'deactivated' with reason as 'non-filing of DIR-3 KYC'. 

D. Income Tax Return (ITR)

As per Income Tax Act, an LLP has to close its financial year as on 31st March every year and has to file the returns with Income Tax Department before the due date for filing Income Tax Return. If the annual turnover of an LLP is more than one hundred lakhs rupees, the accounts have to be audited by a Chartered Accountant as required under Income Tax Act.

Penalty:

• Penalty in the range of ₹1000 to₹10000 depends on turnover and date of filing.
• Loss of the LLP for the respective financial year cannot be carried forwarded to the next year for setoff against Profits of future year.
• Penal interest will be charged for payment of taxes.

LLP Settlement Scheme 2020 for overdue LLP Returns

In case the LLP has defaulted in filing returns for the year 2018-19 or earlier years, the same will attract huge penalty as per the schedule of additional fee.

LLP Settlement Scheme - 2020 is a onetime relaxation scheme for waiver of additional fees to the defaulting LLPs to make good their default by filing pending documents with payment of additional fee of Rs.10/- per day not exceed Rs. 5,000/ - per document.

This scheme is available up to 13th June, 2020 and is applicable to delay in filing the following forms:

• LLP Form 3:  LLP Agreement and changes therein
• LLP Form 8: Statement of Account & Solvency (Annual or Interim)
• LLP Form 11: Annual Return of LLP.