Audit Limit Applicability

1. Tax audit is not required as turnover is less than 1 crores rupees.

2. In this case also tax audit is not applicable as payments and receipts are 98% in online mode and 2% in cash. Further also turnover is less than 5 crores rupees.

3. If payments and receipts are above 5% in cash then tax audit is applicable even if turnover is less than 5 crores rupees. And in case under presumptive taxation if profit is less than 8% of turnover or 6% of turnover then audit is also required u/s 44AD

 "As per section 44AB of the Income Tax Act,1961, any person carrying the business is required to get his books of accounts audited if the gross receipts/turnover exceeds ₹1 crore during the year (In case of presumptive taxation u/s 44AD, the threshold limit is ₹2 crores).

So in simple words, If your annual gross turnover/receipts from business exceed Rs. 1 Crore, you need to be audited u/s 44 AB. But you may avoid such audit u/s 44AD if your annual gross turnover/receipt is below 2 Crore.

Is there any provision that minimum profit should be 6/8% or income should be under basic exemption limit?

That is under presumptive taxation u/s 44ad