Audit under 44AB

There is no such provision. Only thing is that you have to maintain books of account

Then no need for audit is it? Even if i declare less than 8 percent?

Turnover from business should not exceed 1cr

mr.ganesh look, if u r filing ITR u/s 44AD and showing profit less than 8% than audit is compulsory
and if u r filing ITR under normal provisions than you ll have to prepare books of accounts and have to fill profit and loss acc as well as balance sheet than you can show below 8% profit also...also provisions of 1cr and 2 cr needs to be lookout..

If shown less than 8% than compulsory audit for next 5 years also benefit of 44AD, unless income is below limit

Benefit of 44AD not available for next 5 years

if your total income is exceeding the taxable limit and if it's less than 8% of total turnover then audit u/s. 44AB is compulsory as per subsection (5) of section 44AD
correct me if iam wrong

Agreed with Mr Rama Krishnan. 44AB(e) is the section applies. One minor addition, audit applies only if total income (all income heads) exceeds max exempt from tax.

44AD new amended sub section 5 says audit is applicable for those subsection 4 applies but in sub section 4 it doesn't talk about declaring less than 8%. Hence i feel Audit not required if i won't opt for 44AD and declare less than 8%.

Dear Mr Dowlath, I think the limit part is mentioned indirectly. Subsection 4 mentions the accordance to sub-section(1) and subsection(1) talks about the limit of 8%/6% depending upon nature of payment.

44AD (4)

"Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1) ..."

as per subsection 5 of 44AD, Those assessees who fall under subsection 4 of 44AD, they are required to maintain books as per 44AA and get audited as per 44AB

which is nothing but the assessee who does not fall under 44AD section

@ RamaKrishnan Wrong interpretation

43[[4] Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section [1], he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section [1].

[5] Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section [4] are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section [2] of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.]

assessees fall under only 2 categories. one who declares 8% of turn over under 44AD and the other under 44ad(4) which needs to be audited. it's my view. let's wait for experts advice