Query regarding Tax Audit of Partnership Firm

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The discussion clarifies that the increased tax audit turnover limit of 10 crores, applicable when cash transactions are below 5% of turnover, also applies to partnership firms. Therefore, a partnership firm with a turnover of 5 crores and cash transactions under 5% would not be liable for tax audit for AY 24-25.

CA Pooja P

CA Pooja P (Querist)
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21 June 2024 As per Sec 44AB, limit of 1 crore has increased to 10 crores if cash receipts/ payments do not exceed 5% of turnover. Does this apply to a Partnership Firm ?
Suppose a partnership firm is having a turnover of 5 crores and cash receipts/ payments are below 5% of turnover. Thus, this partnership firm will not be liable to Tax Audit for AY 24-25, correct ?