Audit required or not???

This discussion explores whether a proprietorship firm with a turnover of approximately ₹22 lakh in FY 20-21 and a net profit of 4% (₹88,000) requires a statutory audit. Participants clarify that under Section 44AD, an audit is generally not required if turnover is below ₹2 crore and profit is declared at 8% (or 6% for specific professions). However, if presumptive taxation isn't opted for, or if profit falls below the prescribed percentage, an audit might be necessary, even with lower turnover, and ITR-3 filing would be mandatory.