An LLP is taxed at a flat 30% plus surcharge and cess, with no slab benefit. There is no dividend distribution tax, partners' profit share is exempt in their hands, and partner remuneration and interest are deductible within limits.

How is an LLP taxed?

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CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerAn LLP is taxed at a flat 30% (plus surcharge and cess) on its profits, with no slab benefit. There’s no dividend distribution tax, the profit share paid to partners is exempt in their hands, and partners’ remuneration and interest are deductible within limits.

30% flat

Profits are taxed at 30% + surcharge + cess, regardless of amount. Confirm current rate.

Partner share exempt, remuneration deductible

Profit share is tax-free for partners; remuneration/interest within Section 40(b) limits is deductible to the LLP.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.