02 August 2024
If you are in the process of closing an LLP (Limited Liability Partnership) through the LLP Settlement Scheme and have submitted the closure request to the Registrar of Companies (ROC), here’s how you should handle your Income Tax Return (ITR) and PAN surrender:
### Filing IT Returns Post-Closure Request
1. **Filing NIL Return for FY 2019-20:** - **Requirement to File:** Even if you have submitted the closure request to ROC, you are still required to file a NIL Income Tax Return for the Financial Year (FY) 2019-20 if the LLP was operational during part of that year or if there are any pending compliance requirements. - **Reason:** The filing of NIL returns is necessary to ensure that all statutory requirements are met and to avoid any future issues with the Income Tax Department. - **Due Date:** The due date for filing the ITR for FY 2019-20 (Assessment Year 2020-21) was July 31, 2020. If it is past this date, you would need to file a belated return.
2. **Steps to File NIL Return:** - **File NIL Return:** Prepare and file the NIL return for the FY 2019-20 to indicate that there were no income or expenses during the period. This helps to complete the tax compliance for the period in which the LLP was operational. - **Submit Online:** You can file the return online through the Income Tax e-filing portal. Ensure that you select the correct assessment year and indicate that it is a NIL return.
### Surrendering PAN of LLP
1. **Surrendering PAN:** - **Closure Acknowledgment:** You should not immediately surrender the PAN of the LLP based on the closure acknowledgment from ROC. The PAN can only be surrendered once all compliance requirements, including filing of all pending returns, are fulfilled. - **Procedure:** - **Complete IT Compliance:** Ensure that all Income Tax Returns have been filed, including the NIL return for FY 2019-20. - **Obtain No-Dues Certificate:** After filing all returns and clearing any outstanding tax dues, you should obtain a No-Dues Certificate from the Income Tax Department, if applicable. - **Surrender PAN:** Once you have completed all compliance requirements, you can apply for the surrender of PAN by submitting a request to the Income Tax Department. This can typically be done through the PAN service centers or online on the Income Tax e-filing portal.
2. **Important Considerations:** - **Legal Closure:** Ensure that the LLP has been legally dissolved and all compliance with ROC and IT departments are fully completed before surrendering the PAN. - **Check Requirements:** Verify with the Income Tax Department or a tax professional to ensure there are no additional requirements or formalities needed before surrendering the PAN.
### Summary - **File a NIL Return:** File a NIL Income Tax Return for FY 2019-20 to complete all tax compliance obligations. - **Surrender PAN:** Do not surrender the PAN immediately. Ensure all tax compliance and ROC closure formalities are completed first. Obtain a No-Dues Certificate if required before applying for PAN surrender.
For detailed assistance and to ensure compliance with all legal requirements, it is advisable to consult with a tax professional or legal advisor.
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