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Regarding Father Invested in My LLP

22 May 2020

My father invested 10 lacs. Me and my sister started a LLP.

where we show this 10 lacs in itr 5 , can we show this under partner funds??

in ITR 3 can I need to show balance sheet,P&L same as shown in firm ITR 5 ??

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6 Replies

jashwanth (CA-PRACTICE) (400 Points)
Replied 22 May 2020

You can shown those amount of 10 lakhs as gift form father , not liable to any tax. You can show 10 lakhs as capital in balancesheet of llp in Itr 5. You need to show ur individual balance sheet in Itr 3 not LLP balance sheet!

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Tamanna Fashion Store (23 Points)
Replied 22 May 2020

Thank you for the information.

one more thing in LLP agreement we mentioned partners investment 10000 total at the time of LLP formation , so are we need to change the agreement and add 10 lacs + 10000 as Partners investment in new LLP agreement ??

Asha Kanta Sharma (Manager - Finance & Accounts) (10529 Points)
Replied 23 May 2020

Where your father invested 10 Lacs ? in LLP ?

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Tamanna Fashion Store (23 Points)
Replied 23 May 2020

Yes in LLP, he transferred the amount directly to our LLP current a/c.

CA Arun Kumar Tiwari (CA in Practise) (445 Points)
Replied 26 May 2020

As your father is not the partner in LLP then this cannot be the partner fund. However, this can be treated as gift to you from your father and then this can be treated as capital fund. In ITR 5 this can be shown as capital contribution. ITR 3 is not applicable in case of LLP.
ITR 5 is for LLP balance sheet, p & l where as ITR 3 is for your personal individual balance sheet. So, balance sheet in both the forms can’t be the same.

1 Like