Tax audit under which clause

This query is : Resolved

ANONYMOUS (Querist)
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12 July 2018 Turnover: 90 lakhs
Profit : 5% (less than 8%)
Assessee : Individual
FY 2017-18 AY 2018-19

Books of accounts Maintained
Not in presumptive category business
Net income More than basic exemption limit

So, do i have need to get my books audited as per IT act? if yes under which section??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 July 2018 Audit is not mandatory.

ANONYMOUS

ANONYMOUS (Querist)
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13 July 2018 Thank You sir. Kindly also clarify is it mandotry to do audit u/s 44AD as my profit is under 8%.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Let's clarify your situation step-by-step:

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### Your case details:

* **Turnover:** ₹90 lakhs (less than ₹1 crore)
* **Profit:** 5% (less than 8%)
* **Individual assessee**
* **Books of accounts maintained**
* **Not under presumptive taxation scheme (Section 44AD)**
* **Net income above basic exemption limit**

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### Tax Audit Applicability:

1. **Under Section 44AB** (Tax Audit):

* For business **other than presumptive taxation**, tax audit is mandatory if turnover **exceeds ₹1 crore** (₹10 crore if digital transactions > 95%).
* Since your turnover is ₹90 lakhs ( ₹1 crore, Non-presumptive business | Yes | Section 44AB |
| Under presumptive scheme (44AD) with profit < 8% | Yes | Section 44AB (read with 44AD) |

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### So, for your case:

* **Tax audit is NOT mandatory** under Income Tax Act as turnover is less than ₹1 crore and you are not under presumptive taxation.
* No audit required under any section.

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If you want, I can help you draft a simple summary note or explain the conditions to your client/assessor. Would you like that?

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