Tax treatment of LLP is same as Partnership firm as per IT
The LLP is a new form of business structure that Indians got introduced to. LLP are treated same as Partnership firms in India for taxation matters.
The various provisions related to LLP taxation are:
- As per amendment made by Finance (No. 2) Act, 2009, a Limited Liability Partnership (LLP) is included in the definition of ‘Firm’, ‘Partnership’ and ‘Partner’.
- The provisions of Taxation applicable to a Partnership Firm constituted under Indian Partnership Act, 1932 will equally be applicable to a firm constituted under LLP Act, 2008
So LLP is taxed at 30% like Partnership firms only and share of Profit by partners is not taxed.