Demand cut from ₹10,050 to ₹1,310
TaxSavvy for close llp
LLP not in use? Close it with Form 24.
We bring filings up to date and file Form 24 to close the LLP.
If you wait: Open LLPs keep owing Form 8 and 11 additional fees (LLP Rules 2009, as amended 2022)
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Consent of all partners. Nil statement of accounts
Discussion
When did revenue-generating business stop, or did it never start?. Are all partners reachable and willing to sign?
Forms
Eligibility check: one year of no business, nil assets and liabilities, no pending forms or open charge. File pending Form 8 and Form 11 up to the year business stopped
Deliverables
Form 24 SRN and filed pack. Strike-off order and Gazette notice
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹30,700 leaking every month
Sample Books from your bank statement
13 bank lines, books balanced
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Pvt Ltd vs LLP vs OPC: which to choose and why
- Facts
- Pvt Ltd: Best for VC-fundable startups. Can issue equity (CCPS, CCD, options). Corporate tax 22% (Sec 200, Income-tax Act 2025, old Sec 115BAA) or 15% for new manufacturing (Sec 201, old Sec 115BAB). Compliance-heavy: ROC filings, board meetings, statutory audit mandatory.
- Provisions and law
- Companies Act 2013 | LLP Act 2008 | IT Act 1961, Sec 115BAB (now 201)
- Analysis
- LLP: Best for service businesses, CA firms, consulting. No dividend distribution tax. Partners pay tax at slab rate on their profit share. Cannot issue shares, VCs cannot invest. No statutory audit below ₹40L turnover / ₹25L capital. OPC (One Person Company): Solo founder, no intention to raise VC. Same compliance as Pvt Ltd but only one shareholder. Converts to Pvt Ltd when turnover exceeds ₹2Cr or paid-up capital exceeds ₹50L.
- Conclusion
- You plan to raise external equity (angels, VCs, ESOP pool)
- You want Sec 140 (old Sec 80-IAC) tax holiday (Pvt Ltd and LLP both qualify)
- You have multiple co-founders with different equity stakes
- You are building to sell, M&A exit requires Pvt Ltd structure
Founder Capital Injection: Compliance and Tax Treatment
- Facts
- The most common way businesses are initially funded, the founder puts in their own money. Looks simple, but the legal treatment differs dramatically based on business structure. Pvt Ltd: treated as share capital. Proprietorship: just your own funds. Partnership: partner's capital. Getting this wrong creates loan vs capital issues, interest deduction problems, and gift tax concerns.
- Provisions and law
- Sec 68; Companies Act 2013; LLP Act 2008; Director Loan
- Analysis
- Right structure by entity type: Proprietorship: Just deposit in business current account. No separate documentation needed, it's your money in your business. File ITR: capital introduced shows in balance sheet. Partnership: as per partnership deed capital clause. Entry in capital account. No separate documentation if within deed provisions. LLP: supplementary agreement if beyond agreed contribution + update capital account. Pvt Ltd: share allotment is the ONLY clean route. Alternatives (director loan) have compliance burden. Pvt Ltd share allotment, the correct process: (1) Board Resolution approving allotment of X shares at ₹Y per share to Director Z. (2) Form PAS-3 filed with ROC within 30 days. (3) Share certificates issued. (4) Share register updated. (5) Form MGT-14 if special resolution. This entire process takes 1-2 days with a CA and costs ₹2,000-5,000 in professional fees.
- Conclusion
- Identify structure: proprietorship / partnership / LLP / Pvt Ltd, each has different compliance
- Pvt Ltd: Board Resolution for share allotment → PAS-3 filing with ROC → Share certificates
- LLP: Check LLP agreement, if within agreed contribution, no separate filing. Else supplementary agreement.
- Proprietorship / Partnership: deposit in current account, update capital account in books
Which ITR Form to File
- Facts
- Selecting the correct ITR form is the most common source of defective return notices. Wrong form = return treated as invalid.
- Provisions and law
- Sec 263(1) (old 139(1)); Rule 164 (old Rule 12); Sec 263(7) (old 139(9)); CBDT Notif
- Analysis
- ITR-1 (Sahaj): Salary from one employer + FD interest + one house property. Income below ₹50L. Cannot have capital gains, business income, or foreign assets. ITR-2: Salary from multiple employers, capital gains (MF/shares/property), foreign income, more than one house property, director in company, unlisted shares. ITR-3: Business or profession income + any other income. Partnership firms also use ITR-3 equivalent. F&O traders must use ITR-3. ITR-4 (Sugam): Presumptive income under Sec 58, Income-tax Act 2025 (old Sec 44AD; business, ₹3Cr limit), Sec 58 (old Sec 44ADA; professionals, ₹75L limit), Sec 58 (old Sec 44AE; transport). Cannot have capital gains or foreign assets. ITR-5: Partnership firms, LLPs, AOPs, BOIs, not for individuals. ITR-6: Companies (not claiming 11/12 exemption). ITR-7: Trusts, political parties, research associations.
- Conclusion
- Identify ALL income sources for the year, salary, FD interest, MF redemptions, property sale, freelance
- Download AIS, check if any income shown that you did not know about
- Check if you are director in any company or hold unlisted shares (ITR-2 mandatory if yes)
- Check if F&O trading happened during year (ITR-3 mandatory)
CIT(A) appeal: Form 35 (now Form 99), grounds, and stay of demand
- Facts
- Filing CIT(A): Form 35 (now Form 99) online on IT e-filing portal. Statement of facts + grounds of appeal + supporting documents. Appeal fee: ₹250 (assessed income ≤₹1L), ₹500 (₹1L-₹2L), ₹1,000 (above ₹2L).
- Provisions and law
- IT Act, Sec 246A (now 357), 249, 250 | Form 35 (now Form 99) | CBDT Instruction 1914
- Analysis
- Grounds of appeal are the most critical document. Each ground = one legal argument for why the addition is wrong. Grounds not raised at CIT(A) cannot be raised at ITAT. Be comprehensive, include all possible defences even if some are weak. Stay of demand: Pay 20% of disputed demand as pre-deposit condition for automatic stay under CBDT Instruction 1914. If you can't pay 20%, apply for lesser-stay explaining financial hardship, CIT(A) has discretion.
- Conclusion
- File within 30 days of assessment order (condonation of delay available but harder)
- Pay 20% of disputed demand or apply for stay separately
- Prepare detailed grounds of appeal, be comprehensive
- Attach: assessment order, demand notice, ITR, all correspondence
LLP not in use? Close it with Form 24.
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