245 512

Tax Saving Under LLP

Start Your Entrepreneurial Journey Now

Get Quote

Services Offered

Tax Saving Under LLP

Tax Saving under LLP Structure as compare with sole proprietorship (When the Annual Net Profit is upto Rs. 25 Lac) Rs. 1,28,000 Savings
Sole Proprietorship Firm Limited Liability Partnership (LLP)
Income
Slabs
Total Tax outlay from Proprietor Net Profit Slabs Taxation Slabs   Total Tax outlay from
the LLP & Partners
Upto-Rs. 2 Lac Nil Rs. 3 Lac 10% Taxed in the hands of LLP90% Distributed to Partners as Remuneration 31% on Rs. 30,000 =Rs. 2,70,000 is distributed among
the Partners
Rs. 9,300
Rs. 2 Lac to
5 Lac
Rs. 30,000
(10% on Rs. 3 lac)
  If equal distribution among partners:
Rs. 1.35 Lac each
 
Rs. 5 Lac to
10 Lac
Rs. 10 Lac to
25 Lac
Rs. 1,00,000
(20% on Rs. 5 lac)
Rs. 4,50,000
(30% on Rs. 15 lac)
Rs. 22 Lac 40% Taxed in the hands of LLP60% Distributed to Partners
as Remuneration
30% on Rs. 8,80,000Rs. 13,20,000 is distributed
among the Partners=
Rs. 6,60,000 each
Rs. 2,64,300
    Hence total remuneration paid
to each Partner is
Rs. 7,95,000(1.35 lac + 660K)
 
Each Partner to pay tax on
Rs. 7,95,000
-Upto Rs. 2 lac =Nil
-On 3 lac =Rs. 30,000
-On 2.95 lac =Rs. 59,000
Rs. 1,78,000
(Rs. 89,000 each)
dobble arrow single arrow single arrow single arrow
dobble arrow single arrow single arrow tripple arrow
Tax Saving under LLP Structure as compare with Private/Public Limited Company (When the Annual Net Profit is upto Rs. 25 Lac) Rs. 6,41,700 Savings
Private Limited Company Limited Liability Partnership (LLP)
Net Profit Total Tax outlay from Company Net Profit Slabs Taxation Slabs   Total Tax outlay from
the LLP & Partners
Income Tax = Rs. 8,25,000
(33% on Rs. 25 Lac)
(Net Profit available for distribution as Dividend = Rs. 16.75 Lac)
(25 Lac - 8.25 Lac)
Rs. 3 Lac 10% Taxed in the hands of LLP90% Distributed to Partners as Remuneration 31% on Rs. 30,000 =Rs. 2,70,000 is distributed among
the Partners
Rs. 9,300
  If equal distribution among partners: Rs. 1.35 Lac each  
Dividend
Distribution=
Tax
Rs. 2,68,000
(16% on Rs. 16.75 Lac)
Rs. 22 Lac 40% Taxed in the hands of LLP60% Distributed to Partners
as Remuneration
30% on Rs. 8,80,000Rs. 13,20,000 is distributed
among the Partners=
Rs. 6,60,000 each
Rs. 2,64,300
  Hence total remuneration paid
to each Partner is
Rs. 7,95,000(1.35 lac + 660K)
 
  Each Partner to pay tax on
Rs. 7,95,000
-Upto Rs. 2 lac =Nil
-On 3 lac =Rs. 30,000
-On 2.95 lac =Rs. 59,000
Rs. 1,78,000
(Rs. 89,000 each)
dobble arrow single arrow single arrow single arrow
dobble arrow single arrow single arrow tripple arrow
 
DMCA.com