LLP Settlement Scheme 2020

LLP settlement scheme 2020 would allow for a one-time condonation of the delay in filing with the Registrar statutory records. LLP Settlement Scheme, 2020 will come into effect on March 16, 2020, and remain in force until June 13, 2020.

It was found that due to the applicability of additional late filing fee, which could in effect become a financial burden in case of inordinate delay, a large number of Limited Liability Partnerships (LLPs) have remained non-compliant, primarily because of their inability to pay late fees for the accumulated delay period.

As part of the ongoing efforts by the government to encourage ease of doing business, it was agreed to grant the default LLPs a one-time relaxation in addition to an additional fee by filing pending documents and serve as a compliant LLP in the future.

Accordingly, the Central Government has decided to implement a scheme called “LLP Settlement Scheme, 2020” by providing for a one-time condonation of delay in the filing with the Registrar of statutory documents.

LLPs, who wish to take advantage of the scheme, may file pending documents/forms and rectify defaults in order to gain immunity from prosecution for such defaults.

limited liability partnership

The scheme shall come into force on March 16, 2020, and will remain in effect until June 13, 2020. It would apply to the default LLP in respect of the filing of late documents due for filing until 31 October 2019 for payment of a nominal additional fee of Rs 10/-per day for the period of delay, in addition to any fee payable for the filing of such document or return, subject to a maximum amount of Rs. 5,000/-as an additional fee per document.

The Scheme shall apply to the filing of the following documents:

  1. Form-3-Information on the limited liability partnership agreement and changes, if any, made therein;
  2. Form-4- Notice of appointment, termination, change of name/address/appointment of a designated partner or partner and consent to become a partner / appointed partner;
  3. Form-8-Statement of Account & Solvency (Annual or Interim)
  4. Form-11- Annual Return of Limited Liability Partnership (LLP).

This scheme shall not apply to LLPs which have made an application to the Registrar in Form 24 for the deletion of their name from the Register as per provision to Rule 37(1) of the LLP Rules of 2009.

Latest Updates

  • Find the Suitable Income Tax Return Form for Filing Your Returns Here
    Find the Suitable Income Tax Return Form for Filing Your Returns Here Income Tax Department Enables All Return Filing Forms and Releases ITR-6 Excel Utility for AY 2024-25 The Income Tax Department has activated all return filing forms, including ITR-1, ITR-2, ITR-4, and ITR-6, on the e-filing portal for the purpose of filing […]
  • Income tax compliance calendar for May 2024
    Income tax compliance calendar for May 2024 May 7 The deadline for paying April 2024’s TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) liabilities May 15 1. Date by which TDS certificates must be issued for taxes deducted in March 2024 under sections 194-IA, 194-IB, 194M, and 194S. 2. The […]
  • Save TDS on interest income: Form 15G & Form 15H
    Save TDS on interest income: Form 15G & Form 15H Form 15G and Form 15H are self-declaration forms used by individual taxpayers to request tax deductors, such as banks and financial institutions, not to deduct TDS if their estimated tax liability for the relevant financial year is Nil. Under Section 194A […]
  • Advance Tax vs Self-Assessment Tax
    Difference Between Advance Tax and Self-Assessment Tax Advance Tax The term “advance tax” in India describes the tax that people, corporations, and businesses pay up front rather than waiting until the end of the fiscal year. Salaried workers typically use TDS, which is run by their employers, to fulfill their advance […]
  • Deductions under Indian Income Tax Act for Individuals and HUFs (FY 2023-2024)
    Deductions under Indian Income Tax Act for Individuals and HUFs. Individuals and Hindu Undivided Families (HUFs) have the opportunity to lower their tax burdens by leveraging various deductions offered under the Indian Income Tax Act. These deductions aim to promote savings, investments, and specified expenditures. Mastering and applying these deductions can […]

Lower TDS certificate

Application for the NIL / Lower TDS Deduction Certificate for FY 2020-21 may be made from 28 February 2020.

Under the provisions of the Income Tax Act, deduction of tax deducted at Sources (TDS) is mandatory while making payments. The taxpayer making the payment must deduct the TDS and deposit it to the Department of Income Tax before the assigned due date for depositing the TDS.

At times, the TDS is deducted from the total income of the taxpayer, i.e. the recipient, whereas the total tax liability of the taxpayer is calculated on the profit of that financial year. It is in accordance with the prevailing income tax rates/rules which may be less than the total amount of the TDS deducted.

In those cases, TDS will be deducted first, and the taxpayer can claim the refund of the excess amount of TDS deducted while filing the return on income tax (ITR). But the whole process turns out to be a hassle for many taxpayers because firstly TDS is deducted and later on the taxpayer asks for its refunds by filing ITR.

To make it easy, 

Section 197 has been issued by the government which allows taxpayers to use the Nil / Lower  Deduction of the TDS Certificate. But often the process of obtaining the Nil / Lower Deduction TDS Certificate takes a lot more time than expected.

To address this issue, the Government is allowing taxpayers to apply for the Nil / Lower TDS Deduction Certificate for the financial year 2020-21 from 28 February 2020.

Latest Updates

  • Find the Suitable Income Tax Return Form for Filing Your Returns Here
    Find the Suitable Income Tax Return Form for Filing Your Returns Here Income Tax Department Enables All Return Filing Forms and Releases ITR-6 Excel Utility for AY 2024-25 The Income Tax Department has activated all return filing forms, including ITR-1, ITR-2, ITR-4, and ITR-6, on the e-filing portal for the purpose of filing […]
  • Income tax compliance calendar for May 2024
    Income tax compliance calendar for May 2024 May 7 The deadline for paying April 2024’s TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) liabilities May 15 1. Date by which TDS certificates must be issued for taxes deducted in March 2024 under sections 194-IA, 194-IB, 194M, and 194S. 2. The […]
  • Save TDS on interest income: Form 15G & Form 15H
    Save TDS on interest income: Form 15G & Form 15H Form 15G and Form 15H are self-declaration forms used by individual taxpayers to request tax deductors, such as banks and financial institutions, not to deduct TDS if their estimated tax liability for the relevant financial year is Nil. Under Section 194A […]
  • Advance Tax vs Self-Assessment Tax
    Difference Between Advance Tax and Self-Assessment Tax Advance Tax The term “advance tax” in India describes the tax that people, corporations, and businesses pay up front rather than waiting until the end of the fiscal year. Salaried workers typically use TDS, which is run by their employers, to fulfill their advance […]
  • Deductions under Indian Income Tax Act for Individuals and HUFs (FY 2023-2024)
    Deductions under Indian Income Tax Act for Individuals and HUFs. Individuals and Hindu Undivided Families (HUFs) have the opportunity to lower their tax burdens by leveraging various deductions offered under the Indian Income Tax Act. These deductions aim to promote savings, investments, and specified expenditures. Mastering and applying these deductions can […]

Will the New Optional Tax Regime, affect Tax Savings in Larger India??

Budget 2020 – Optional Tax Regime and Side Effects.

Its argued that with an option to choose Tax model as per Budget 2020, Individuals may have lower incentives to save which can impact long term savings in India. It augurs well for the Govt, considering we are in relative slowdown times and look to boost consumption.

As against the Wishlist of a few for a New TAX Savings bond, the new option does not incentivize the bonds and all the more, assesses’ are induced towards reduced taxes for no deduction overall.

Much discussed but perhaps not so acknowledged issue of low demand metrics seems to be addressed by the new tax method as it enables citizens to choose rather than forced save for taxes.

Changing Habits:-
Saving habits are already changing with lifestyle changes and digital ways of living.
As per a recent study, there is a marked reduction in Indian savings from erstwhile 36% in 2012 to just about 30% currently.
However, the big question among all is that, whether the tax incidence on lower and lower middle class reduces overall in absolute terms? During these times of slowdown where Govt is constantly looking for more revenue sources, perhaps the idea is to move towards deductions free regime with simplified tax model which can engulf more Indians in the tax net with a specific eye on the largely let off businesses so far & the unorganized sector.

Latest Updates

  • Find the Suitable Income Tax Return Form for Filing Your Returns Here
    Find the Suitable Income Tax Return Form for Filing Your Returns Here Income Tax Department Enables All Return Filing Forms and Releases ITR-6 Excel Utility for AY 2024-25 The Income Tax Department has activated all return filing forms, including ITR-1, ITR-2, ITR-4, and ITR-6, on the e-filing portal for the purpose of filing […]
  • Income tax compliance calendar for May 2024
    Income tax compliance calendar for May 2024 May 7 The deadline for paying April 2024’s TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) liabilities May 15 1. Date by which TDS certificates must be issued for taxes deducted in March 2024 under sections 194-IA, 194-IB, 194M, and 194S. 2. The […]
  • Save TDS on interest income: Form 15G & Form 15H
    Save TDS on interest income: Form 15G & Form 15H Form 15G and Form 15H are self-declaration forms used by individual taxpayers to request tax deductors, such as banks and financial institutions, not to deduct TDS if their estimated tax liability for the relevant financial year is Nil. Under Section 194A […]
  • Advance Tax vs Self-Assessment Tax
    Difference Between Advance Tax and Self-Assessment Tax Advance Tax The term “advance tax” in India describes the tax that people, corporations, and businesses pay up front rather than waiting until the end of the fiscal year. Salaried workers typically use TDS, which is run by their employers, to fulfill their advance […]
  • Deductions under Indian Income Tax Act for Individuals and HUFs (FY 2023-2024)
    Deductions under Indian Income Tax Act for Individuals and HUFs. Individuals and Hindu Undivided Families (HUFs) have the opportunity to lower their tax burdens by leveraging various deductions offered under the Indian Income Tax Act. These deductions aim to promote savings, investments, and specified expenditures. Mastering and applying these deductions can […]