44AD & 44AB

If you have declared income less than 8%. Then Tax Audit is Applicable.

But as per the amendment by finance act 2016 tax audit is mandatory if subsection 4 to sec 44AD is applicable.
Section 44AD(4) says that if income is first declared u/s 44AD and subsequently income is declared under normal provisions in any of the consecutive assessment year then the asseesee cannpt opt for 44AD for further 5 years and tax audit becomes mandatory

In my case i have never opted for 44AD in the first place. So how is tax audit applicable??

Tax audit will become mandatory if you have filed your returns under sec. 44AD in previous years and during current year you are declaring the income at less than 8 percent. If you have never opted for 44 AD before no tax audit is necessary.
However, when your turnover exceeds 1 crore then tax audit provisions will apply.

Regards

@ K. Srividhya

Even i had the same view regarding this. But then i came across this CBDT FAQ on 44AD which again confused me.In this FAQ it simply said that tax audit is mandatory if income declared is less than 8%.
Can you please clarify?

What provisions will apply if a person who is eligible for the presumptive taxation scheme of section 44AD declares his income at a lower rate (i.e. less than 8%/6%)?|whether tax audit is mandatory if i m earning income below 6% of gross reciepts / 8% of of gross reciepts or total turnover?| Is their any mandatory force where my turnover say 60 lac and my NP comes below 8 or 6% as the case me to get audited?

​​​​​​​​A person can declare income at lower rate (i.e., less than 8%/6%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB