Legal ways to take out profit from an LLP ?

Tax queries 178 views 3 replies

Hello, I need some help regarding the payout of an LLP firm,

Me and one friend we have a 50-50 partnership share in a LLP firm and we just want to know how can we take out profits from an LLP firm .

I know about taking out profits in year end after paying LLP taxes, from what i have learned, profits after paying taxes in LLP, are distributed to partners account are non taxable ( correct me if i am wrong)

so i have a couple of questions ..

  1. Apart from partner salary etc which are calculated as expenses in company and taxed in individual person's annual return. Are the other profits are non taxable ?

  2. if we want to take out monthly or quarterly share of profits too , is that possible ?

Replies (3)
Limited liability partneship profit is taxable
Hi, you can take out profits as drawings, which will not impact the profit and loss account.

If you want to discuss this further, then please reach out below
ca.ajaakarshjain16 @ gmail.com
Please reach out on raj @ rcdco.in to discuss your query. Will guide you on various avenues for drawing profit from LLP while optimising personal taxation


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