Audit 44AB(e)

This discussion clarifies the applicability of tax audit requirements under Section 44AB(e) of the Indian Income Tax Act. It addresses a scenario where a taxpayer with a turnover of Rs. 73 lacs in FY 2020-21, reporting only 4% profit, was required to undergo an audit. The query then asks whether for FY 2021-22, with a turnover of Rs. 56 lacs and 12% profit, the taxpayer can opt for presumptive taxation under Section 44AD or if an audit remains mandatory.