Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Audit thresholds
₹40 lakh turnover or ₹25 lakh contribution — cross either and audit applies. Confirm current limits.
Below = no audit, but still file
You still file Form 8, Form 11 and the ITR even without an audit.
What 'contribution' means, and the tax-audit overlay
Two points often trip LLPs up. First, the ₹25 lakh test is on capital contribution, not turnover — the total the partners have committed and brought in — so an LLP with modest sales but a large capital base can still need an audit. Cross either ₹40 lakh turnover or ₹25 lakh contribution and the LLP Act audit applies for that year. Second, the LLP Act audit is separate from the income-tax audit under Section 44AB: an LLP whose turnover crosses the 44AB limit needs that tax audit regardless of the LLP Act thresholds, and an LLP can therefore face one, both, or neither in a given year depending on its figures. Below all the thresholds, no audit is required — but Form 8, Form 11 and the income-tax return are still mandatory, and Form 8 then rests on accounts the partners themselves certify. Working out, at year-end, which audits (if any) apply by checking turnover against both the ₹40 lakh LLP limit and the 44AB limit, and contribution against ₹25 lakh, avoids both an unnecessary audit and a missed one. Confirm the current limits, which can change.