Unable to find the right path, need help || ITR filing

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Student
23 Points Posted on 15 June 2021

Hello,

Me and my friend have run a partnership firm (LLP) and own a registered GST number for the LLP.

Both of us are directors.

The firm is 1.5 year old and has not done any business more than 5 Lacs per annum.

We file our GST regularly. 

My queries are:

1. If one of us start to work in an MNC as a salaried employee, do we need to shut down the business? If we continue the LLP firm, does it amount to any fraud or criminal offence?

2. Can the same pan card be used in ITR filing as a salaried employee and director of an LLP firm?

3. What are the different ITR forms, which needs to be filed for such an arrangement?

Thanks... Joshiji  

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On 15 June 2021 at 12:39 Report
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Quick Summary
This discussion addresses concerns about filing Income Tax Returns (ITR) for individuals involved in a Limited Liability Partnership (LLP) while also earning a salary. It clarifies that an individual can work as a salaried employee and remain a director in an LLP without it being a criminal offence. The key takeaway is that while the LLP files ITR-5, the individual director must file ITR-3 to report both their salary income and their directorship in the LLP, negating the need for a separate ITR-1.

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28 Points Posted on 15 June 2021
These are my opinions/ answers to your queries:

1) It doesn't amount to fraud or criminal offence.

2) Your individual PAN has to be used to file your individual income tax return even if you are a director..

3) For LLP ITR-5 has to be filed and where as for ITR-3 has to be filed in your individual capacity since you are a director in a LLP.
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On 15 June 2021 at 13:11
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Learner
2398 Points Posted on 15 June 2021

Agreed with V V G Sarma Ji

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On 15 June 2021 at 17:39
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Student
23 Points Posted on 17 June 2021

Thank you for the quick response Sarma Ji...

Just one last question....it has arisen out of your reply.

So, this means, salary income can be shown in personal ITR1 and taxes can be paid. In addition to it, one has to be submit ITR-5 for LLP firm tax liability & ITR-3, for being the director of the LLP.  Is my understanding correct in this case??

 

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On 17 June 2021 at 00:15
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28 Points Posted on 17 June 2021
You have to file ITR-3 since you are a director/ partner in a firm in that form you can report your salary income also.Hence in your individual capacity you have to file ITR-3 and for LLP as earlier mentioned ITR- 5 has to be filled.

There is no REQUIREMENT of filling ITR 1 separately.
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On 17 June 2021 at 09:33

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