Applicability of income tax audit for 55 lakh turnover?

This discussion explores whether an income tax audit is applicable for a business with a turnover of £5.5 million and a net profit margin of 4%. The core question revolves around the 6% profit margin threshold often associated with tax audit applicability under Section 44AD of the Income Tax Act. Participants debate whether a lower profit margin necessitates an audit, even for businesses with significant turnover, and compare this to scenarios with larger turnovers where tax audit might not be required.