What are the annual compliances for an LLP with ₹55 lakh turnover, and is an audit now compulsory?

LLP audit: compulsory once turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh in a financial year. At ₹55 lakh you need a chartered accountant to audit the accounts for FY 2025-26 before the statement of accounts is filed.

ROC: Form 11 (annual return) by 30 May every year, and Form 8 (statement of account and solvency) by 30 October, now with the audit report. The designated partners file DIR-3 KYC by 30 September. Late filing attracts an additional fee that accrues per day with no closing date, and the LLP cannot be closed or converted until every pending form is in.

Income tax: the LLP files ITR-5. Without audit the due date is 31 July; with the LLP audit it moves to 31 October, with the tax-audit report under section 44AB due by 30 September if that section also applies (it does not at ₹55 lakh unless cash exceeds 5%). Interest to partners and remuneration are deductible within the section 40(b) limits.

New this year: section 194T. From 1 April 2025 the LLP must deduct TDS at 10% on salary, remuneration, commission, bonus and interest paid or credited to partners once the total for a partner exceeds ₹20,000 in the year. That needs a TAN and quarterly Form 26Q, which many LLPs have never had to file before.