CORAA
লগ ইনফ্রি ট্রায়াল শুরু করুন

LLP Tax Audit Considerations Checklist — Partner Remuneration, AMT, Presumptive Exclusion

The LLP-specific points a tax audit engagement needs beyond the standard Form 3CD workflow — partner remuneration/interest limits under Section 40(b), presumptive taxation's exclusion of LLPs, and AMT applicability under Section 115JC.

Free · CORAA original — SA-aligned
Updated 28 Jul 2026
Key sections
40(b) remuneration/interest, 115JC AMT, 44AD/44ADA exclusion
Remuneration cap
Slab-based on book profit — verify current slabs
Interest cap
12% p.a., or the LLP agreement's authorised rate if lower
Feeds
Form 3CD (as applicable) + the LLP's own ITR-5 computation
Share this template
Your firm — letterhead
Appears at the top of the document as the audit firm letterhead.
Used as the letterhead block.
Engagement details
The client and period this document is for.
What’s inside

An excerpt from the template.

LLP TAX AUDIT CONSIDERATIONS CHECKLIST

LLP: ___ · PAN: ___ · Previous year ended: ___ · Assessment Year: ___

Purpose: an LLP's tax audit under Section 44AB otherwise follows the standard Form 3CD workflow, but these LLP-specific points need separate, explicit testing.

1. Partner remuneration and interest — Section 40(b)

↑ Excerpt only — the full template is what you download as Word
About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

Can an LLP deduct partner remuneration without limit if the LLP agreement allows it?
No — Section 40(b) caps the deductible amount on a book-profit-linked slab basis regardless of what the LLP agreement authorises; the agreement's authorisation is a necessary condition for deductibility (remuneration must be provided for in the agreement) but not a sufficient one — the statutory cap still applies on top.
Does Form 29C (AMT certificate) apply to every LLP?
No — an AMT certificate in Form 29C is required only where the LLP has claimed the specific deductions (Chapter VI-A Part C or Section 10AA) that trigger AMT applicability under Section 115JC, and even then only where adjusted total income exceeds the basic exemption threshold for AMT purposes (verify the current threshold). An LLP with no such claims has no AMT computation to certify.
Is interest paid to a partner on their capital account always fully deductible?
No — deductible interest is capped at 12% per annum by Section 40(b) itself, and further capped at whatever lower rate the LLP agreement actually authorises; interest paid or credited above either cap is disallowed in the LLP's hands (though remains taxable as income in the partner's hands per the actual amount received, creating an asymmetry worth flagging to the client).
Related templates

You might also need.

Form 29C Format — AMT Certificate
Free Form 29C AMT certificate template — Section 115JC adjusted total income computation for non-corporate ass
Presumptive Taxation Applicability Checklist — Section 44AD / 44ADA / 44AE
Free presumptive taxation applicability checklist — Section 44AD/44ADA/44AE eligibility test with automatic ca
Form 3CD — Tax Audit Report under Section 44AB
Free Form 3CD + Form 3CB tax audit report template under Section 44AB of the Income-tax Act 1961. CBDT prescri