What is the Tax Audit Limit for LLP?
Is Statutory Audit is applicable to llp?
4 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 17 April 2020
As per sec 44AB Tax audit limit Rs 1cr for business and Rs 50lakhs for professional...
Abhishek Selvam O
(374 Points)
Replied 17 April 2020
They said if capital exceeds 25 lacs or turnover exceeds 40 lacs audit.is mandatory for llp what audit is that?
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 17 April 2020
My reply based on Your 1st query...
(They said) here who is they...? If they said then Why not you asking query with details...? How I understand in Your 1st query including "They said"..?
Ask Your query with correct details and full query what you want...?
Better to clear
(They said) here who is they...? If they said then Why not you asking query with details...? How I understand in Your 1st query including "They said"..?
Ask Your query with correct details and full query what you want...?
Better to clear
Shivam RC
(Student)
(23683 Points)
Replied 18 April 2020
Q1). What is the Tax Audit Limit for LLP's ?
Answer : For FY 2019-20 :-
As per the Provision of Section 44AB of the Income Tax Act 1961, TAX AUDIT OF ACCOUNTS is mandatory when :
Incase of BUSINESS : When your Turnover in Business exceeds Rs. 1 crore.
Incase of PROFESSION : When your Gross Receipts in Profession exceeds Rs. 50 lakhs.
For FY 2020-21 :
Section 44AB of the Income Tax Act 1961 has now been amended vide the Finance Act 2020. The limit of Tax Audit has now been increased to "Rs. 5 CRORE" in case of Business from earlier Rs. 1 crore.
Q2). Is Statutory Audit applicable to LLP's ???
Answer : YES. As per the Provision of Section 34(4) of LLP Act 2008, Statutory Audit is applicable for LLP. The accounts of every LLP shall be audited in accordance with Rule 24 of LLP Rules, 2009.
As per Rule 24 of LLP Rules 2009, Every LLP is required to get its Accounts audited if it's Turnover in a Financial Year "EXCEEDS Rs. 40 lakhs" or Contribution Amount ( CAPITAL ) "EXCEEDS Rs. 25 lakhs".
NOTE : "Tax Audit" is done under Section 44AB of INCOME TAX Act 1961 whereas "Statutory Audit" of Limited Liability Partnership Firm is done under Section 34 of the LLP Act 2008.
Answer : For FY 2019-20 :-
As per the Provision of Section 44AB of the Income Tax Act 1961, TAX AUDIT OF ACCOUNTS is mandatory when :
Incase of BUSINESS : When your Turnover in Business exceeds Rs. 1 crore.
Incase of PROFESSION : When your Gross Receipts in Profession exceeds Rs. 50 lakhs.
For FY 2020-21 :
Section 44AB of the Income Tax Act 1961 has now been amended vide the Finance Act 2020. The limit of Tax Audit has now been increased to "Rs. 5 CRORE" in case of Business from earlier Rs. 1 crore.
Q2). Is Statutory Audit applicable to LLP's ???
Answer : YES. As per the Provision of Section 34(4) of LLP Act 2008, Statutory Audit is applicable for LLP. The accounts of every LLP shall be audited in accordance with Rule 24 of LLP Rules, 2009.
As per Rule 24 of LLP Rules 2009, Every LLP is required to get its Accounts audited if it's Turnover in a Financial Year "EXCEEDS Rs. 40 lakhs" or Contribution Amount ( CAPITAL ) "EXCEEDS Rs. 25 lakhs".
NOTE : "Tax Audit" is done under Section 44AB of INCOME TAX Act 1961 whereas "Statutory Audit" of Limited Liability Partnership Firm is done under Section 34 of the LLP Act 2008.
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