dear colleagues🙏 ek proprietorship firm hai uska turnover FY 20-21 me 22 lac(approx hai) or uska net profit hi 4% hai yani 88000/- toh usse audit ki need rhegi kya?
If you're opting for presumptive taxation u/s 44AD and turnover is less than 2 crores rupees and profit is 8% on turnover then Audit is not required.. Whether you have opted for presumptive taxation??
Turnover exceeds Rs. 2 crore in case the assessee has opted for presumptive taxation under 44AD OR
IF OPTED for 44AD, assessee has shown profit less then 8% or 6% as the case may be.
but if the turnover is less than one crore and not opted for 44AD then no audit is required. But in this case Full balance sheet and profit and loss account shall be prepared and ITR-3 should be filed.
This is my view. Other views are welcomed (if any).