44 AB applicability

This discussion addresses whether Section 44AB of the Income Tax Act applies to an assessee with a turnover of 1.18 crore and a net profit of 2.45 lakhs. Given the profit is below the presumptive taxation thresholds of Section 44AD, an audit under Section 44AB is likely compulsory. The assessee has the option to either undergo a full audit and declare actual profits or continue with Section 44AD, though an audit may still be required in either case due to the low declared profit.