Corporate & LLP Income Tax Rates

The Budget 2009-10 has introduced the provisions regarding taxation aspect of the newly introduced form of business Limited Liability Partnership.


As per the Budget 2009-10, LLP will be treated as Partnership firms for the purpose of Income Tax and will be taxed like a partnership firm.


Change in Definition of Firm, Partner & Partnership


The Budget 2009-10 has amended the definition of Firm and Partners in the following manner:


1. Firms shall have the meaning assigned to it in the India Partnership Act 1932 and shall include a limited liability Partnership as defined in the Limited Liability Partnership Act 2008.

2. Partner shall have the meaning assigned to it in the Indian Partnership Act 1932 and shall include:
a. Any person, being a minor, has been admitted to the benefits of partnership
b.A partner of a limited liability partnership as defined in the Limited Liability Partnership Act 2008.

3. Partnership shall have the meaning assigned to it in the India Partnership Act 1932 and shall include a limited liability partnership as defined in the Limited Liability Partnership Act 2008.


Tax rate:


  • 30% flat tax rate + 3% education cess
  • No Minimum Alternate Tax & Dividend Distribution Tax