Tax audit under which clause

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This query is : Resolved

ANONYMOUS (Querist)

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)

12 July 2018 Audit is not mandatory.

ANONYMOUS

ANONYMOUS (Querist)

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)

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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