Dear All,
We want to convert a private limited company into LLP and one of the requirement if turnover should be less than 60lakhs in any of the three proceeding years.
Is the interest on FD / mutual funds to be included in turnover/gross receipts of Rs. 60 lakhs for this.
Thanks in Advance.
For the conversion of a private limited company into an LLP, the turnover or total gross receipts must not exceed ₹60 lakh in any of the preceding three financial years (according to Section 56 & Third Schedule of the LLP Act).
In this calculation, interest income from FD, mutual funds, or any other financial investments can’t be treated as “turnover”, because turnover refers only to revenue generated from the core business operations.
However, such interest may be considered part of “gross receipts” if the company’s principal business itself involves financial activities or investment operations. For a normal operating company, this interest is classified as “other income” and does not affect the ₹60-lakh turnover condition for conversion.
So, unless your company is engaged in finance/investment as its primary/main business operation, FD or mutual fund interest will not be counted toward the ₹60-lakh limit. Seeking professional help is advisable for detailed information on converting a private limited company into an LLP. Consult experts like Setindiabiz or others who provide best-in-class business registration services in India.
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