Every Limited Liability Partnership (LLP) registered in India must comply with certain audit requirements based on its turnover, income, or capital contribution. An Audit of LLP ensures that the firm’s financial statements are accurate and comply with legal standards under the LLP Act, 2008 and the Income Tax Act, 1961.
The Central Board of Direct Taxes (CBDT) has extended the due date for filing audit reports for AY 2025-26 from 30th September 2025 to 31st October 2025, giving LLPs an extra month to complete their compliance process.
At Ebizfiling, we assist LLPs in understanding audit applicability, preparing reports, and filing them on time to avoid penalties or non-compliance.
An Audit of LLP is an independent examination of the firm’s books of accounts to ensure that its financial statements present a true and fair picture. It confirms that the LLP complies with accounting standards, taxation rules, and disclosure requirements.
Audits are essential for both regulatory compliance and maintaining financial discipline within the business.
A Statutory Audit is mandatory when:
The LLP’s annual turnover exceeds ₹40 lakh, or
The capital contribution of partners exceeds ₹25 lakh.
Partners appoint a Chartered Accountant (CA) as auditor.
The CA reviews financial statements and supporting documents.
The auditor issues a report confirming accuracy and compliance.
The report is attached with Form 8 (Statement of Accounts and Solvency) filed with the Registrar of Companies (ROC) every year.
Form 8 must be filed on or before 30th October every year after completion of the statutory audit.
A Tax Audit is required under Section 44AB of the Income Tax Act when an LLP’s turnover or income exceeds prescribed limits.
|
Type of LLP |
Turnover / Receipts |
Tax Audit Applicability |
|
Business LLP |
Exceeds ₹1 crore |
Tax Audit mandatory |
|
Business LLP (95% or more digital transactions) |
Up to ₹10 crore |
Tax Audit not required |
|
Professional LLP |
Exceeds ₹50 lakh |
Tax Audit mandatory |
|
LLP opting presumptive scheme (Sec 44AD/44ADA) |
Profit declared below 6%/8% |
Tax Audit required |
Form 3CA – For LLPs already audited under another law.
Form 3CB – For LLPs not subject to any other audit.
Form 3CD – Detailed report of particulars attached to 3CA/3CB.
The CBDT has extended the due date for filing Tax Audit Reports for AY 2025-26 from 30th September 2025 to 31st October 2025.
|
Type of Audit |
Criteria |
Law Applicable |
|
Statutory Audit |
Turnover > ₹40 lakh or Contribution > ₹25 lakh |
LLP Act, 2008 |
|
Tax Audit |
Turnover > ₹1 crore (or ₹10 crore for digital) / Professional receipts > ₹50 lakh |
Income Tax Act, 1961 |
LLPs below these limits are exempt from audit but must still maintain proper books of accounts for inspection or future reference.
An audit report is the final certification provided by the auditor. It includes:
Review of financial statements and cash flow records.
Verification of expenses, income, and partner contributions.
Remarks or qualifications made by the auditor (if any).
Confirmation that all provisions under the LLP Act and Income Tax Act have been followed.
The report is signed by the auditor and submitted electronically through the income tax portal or ROC portal, depending on the audit type.
Legal Compliance: Helps LLPs meet all legal and taxation obligations.
Transparency: Builds credibility with partners, banks, and regulators.
Error Detection: Identifies financial errors and irregularities early.
Better Financial Planning: Ensures reliable data for decision-making.
Avoids Penalties: Timely audits prevent legal fines or disqualifications.
|
Type of Default |
Applicable Law |
Penalty |
|
Failure to conduct Statutory Audit |
LLP Act, 2008 |
₹25,000 to ₹5,00,000 |
|
Failure to conduct Tax Audit |
Income Tax Act, 1961 |
0.5% of turnover (max ₹1,50,000) |
|
Delay in Form 8 or Form 11 filing |
LLP Act |
₹100 per day until filed |
At Ebizfiling, we ensure that every LLP fulfills its audit and filing obligations correctly and on time. Our services include:
Assessing whether Statutory or Tax Audit applies.
Coordinating with Chartered Accountants for report preparation.
Filing Form 8, Form 11, and Tax Audit Reports before due dates.
Keeping LLPs compliant with both MCA and Income Tax requirements.
We make compliance simple so you can focus on growing your business.
Process to Change LLP Agreement
Importance of an LLP Certificate
An audit ensures that all financial statements of an LLP are accurate and legally compliant. It helps identify errors, fraud, or non-compliance with tax and accounting laws.
A Statutory Audit is required when an LLP’s annual turnover exceeds ₹40 lakh or its capital contribution is more than ₹25 lakh during the year.
Only a qualified Chartered Accountant appointed by the LLP’s partners can conduct the audit and issue a signed audit report.
If an LLP’s turnover exceeds ₹1 crore, a Tax Audit becomes mandatory. However, this limit extends to ₹10 crore if 95% of transactions are digital.
The Central Board of Direct Taxes (CBDT) has extended the deadline from 30th September 2025 to 31st October 2025.
No, dormant or inactive LLPs that have no financial activity or income are not required to undergo an audit.
An LLP that fails to complete its audit may face penalties between ₹25,000 and ₹5,00,000 under the LLP Act, or up to ₹1,50,000 under the Income Tax Act.
The report includes verified financial data, details of partner contributions, compliance checks, and the auditor’s observations or remarks.
Yes, both Statutory and Tax Audit reports must be filed electronically through the MCA or Income Tax portal using a digital signature.
Ebizfiling helps LLPs determine audit applicability, prepare required documents, coordinate with CAs, and ensure timely submission to avoid penalties.
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