LLP Turnover Limits and Tax Audit Requirements in India 

Introduction

Every Limited Liability Partnership (LLP) in India must maintain accurate books of accounts, file annual returns, and comply with tax reporting rules laid down by both the Ministry of Corporate Affairs (MCA) and the Income Tax Department. These filings ensure that the LLP’s financial activities remain transparent and within the legal framework.
Understanding LLP turnover limits and tax audit requirements is critical for every partner because the need for an audit depends on how much revenue the LLP generates and how much capital is invested. LLPs that cross specific financial thresholds must get their books audited by a Chartered Accountant under both the LLP Act, 2008 and the Income Tax Act, 1961.
In this guide, we explain the audit applicability criteria, turnover limits, extended due dates for AY 2025–26 as per the CBDT’s recent notification, and what happens if an LLP misses its audit obligations.

What Are the Audit Requirements for LLPs in India?  

All LLPs registered under the LLP Act, 2008, must prepare a Statement of Account and Solvency every year. Whether the accounts need to be audited depends on the LLP’s turnover and capital contribution.

As per the LLP Act, 2008  

An audit is mandatory if:

• The annual turnover exceeds ₹40 lakh, or

• The capital contribution exceeds ₹25 lakh.

If your LLP crosses either of these thresholds, you must get your accounts audited by a qualified Chartered Accountant and file the audit report along with Form 8.

What Are the Tax Audit Requirements for LLPs under the Income Tax Act?  

Under Section 44AB of the Income Tax Act, 1961, a tax audit becomes mandatory when an LLP’s income or turnover crosses the specified limits.

Example  

If an LLP engaged in consultancy services earns ₹60 lakh in a financial year, it must undergo a tax audit since its professional income crosses the ₹50 lakh limit.

Due Date for Filing Tax Audit Reports (AY 2025–26)  

The Central Board of Direct Taxes (CBDT) has extended the due date for filing tax audit reports for Assessment Year 2025-26 from 30th September 2025 to 31st October 2025.

This extension provides LLPs additional time to complete audits and file returns accurately.

What Happens If an LLP Fails to Conduct a Mandatory Audit?  

Failing to conduct or file an audit report on time can lead to:

• Penalty under Section 271B: ₹1,50,000 or 0.5% of total turnover, whichever is lower.

• Interest under Section 234A/B/C for delayed return filing.

• Disqualification or non-compliance status with MCA records.

How to File LLP Audit Reports and Returns Online  

1. Prepare financial statements – Profit & Loss Account, Balance Sheet.

2. Get audit done by a Chartered Accountant (if applicable).

3. File Form 8 and Form 11 with MCA.

4. Upload Form 3CA/3CB and 3CD on the Income Tax portal.

5. E-verify and submit the return online through a designated partner’s DSC.

All filings should be completed within the extended due date to avoid penalties.

Why Professional Assistance Matters  

Filing an LLP’s annual and tax audit reports requires technical accuracy and understanding of both MCA and Income Tax systems. A compliance expert or CA ensures that:

• Forms are correctly prepared and uploaded.

• Audit reports meet both MCA and ITR standards.

• Due dates and filing acknowledgments are properly tracked.

Conclusion  

Understanding LLP turnover limits and tax audit requirements helps every LLP stay compliant and avoid penalties. For AY 2025-26, the CBDT’s extended deadline till 31st October 2025 gives firms extra time to finalize their audits. However, timely preparation and expert filing remain the safest way to ensure compliance with both MCA and Income Tax authorities.

Suggested Read :

Form 11 of LLP

LLP Form 3

Form 8 LLP

Borrowing Clause of LLP agreement

 LLP agreement vs Partnership deed

FAQs