AUDIT U/S 44AB IS MANDATORY

This discussion clarifies whether an audit under Section 44AB of the Income Tax Act is mandatory for a mobile currency business with sales exceeding ₹1 crore 20 lakhs in FY 2020-21. As mobile currency is treated as a service and the turnover surpasses the ₹50 lakh threshold, Section 44ADA is not applicable. The conversation explores potential exemptions, particularly under Section 44AD, if the business conducts over 95% of transactions digitally, which could raise the turnover limit to ₹5 crores. However, for commission-based income, Section 44AD is generally not applicable, making an audit likely mandatory unless specific conditions are met.