Company law and LLP · LLP and partnership firms
When does an LLP need to get its accounts audited?
Short answer
An LLP must get its accounts audited if its turnover exceeds ₹40 lakh, or its partners' contribution exceeds ₹25 lakh, in any financial year. Below these limits an audit is optional, but the designated partners must still certify the accounts in Form 8. A tax audit is separate: it applies when turnover exceeds ₹1 crore (₹10 crore with little cash), or under the presumptive scheme rules.
The LLP Act test
| Test (any year) | Audit |
|---|---|
| Turnover above ₹40 lakh, or contribution above ₹25 lakh | Compulsory |
| Both within the limits | Optional; designated partners certify the accounts |
The audit is done by a Chartered Accountant in practice. The designated partners appoint the auditor, and the audited accounts are attached to Form 8.
The income-tax test
A tax audit applies separately if:
- turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and cash payments are each within 5%;
- for a profession, gross receipts exceed ₹50 lakh; or
- the LLP declares income below the presumptive rate where that scheme applies. (LLPs cannot use section 58 for business income, formerly section 44AD.)
See tax audit limits.
Even without an audit
- Keep books of account on a double-entry basis, at the registered office, for 8 years.
- File Form 8 and Form 11 each year.
- Banks, investors and government tenders often ask for audited accounts anyway, so many LLPs have them audited voluntarily.
Legal basis
- Section 34, Limited Liability Partnership Act, 2008; rule 24(8), LLP Rules, 2009
- Section 63, Income-tax Act, 2025 (formerly section 44AB, tax audit)
Official sources
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