Audit under Income Tax for LLP

Not mandatory under IT act.

The accounts of every LLP should be audited in accordance with Rule 24 of LLP, Rules 2009.

Hi sir... A LLP has been alloted  shares from the market via Pref Warrants. The LLP has been formed for this purpose. Want to know the capital gains/ Income tax  implications upon the sale of those shares over a period of time. Will it be considered Capital Gains only or will it be taxed as Income Tax. What are the tax brackets. 

No tax audit, but the LLP Act may require an audit:

• Income-tax: Sec 44AB applies only if turnover exceeds Rs 1 crore (or Rs 10 crore with 5% or less cash). Sec 44AD isn't available to LLPs, so a loss doesn't trigger audit. At Rs 60 lakh turnover, no tax audit.

• LLP Act: Rule 24(8) requires audit of LLP accounts unless turnover doesn't exceed Rs 40 lakh and contribution doesn't exceed Rs 25 lakh. With turnover of Rs 60 lakh, a statutory audit under the LLP Act is mandatory.

• Due dates: Form 8 by 30 October, Form 11 by 30 May. Because the accounts must be audited under the LLP Act ("any other law"), the ITR-5 due date is 31 October (Explanation 2 to Sec 139(1)).

• Carry-forward of the loss requires filing by the due date.