Compulsion of Tax Audit If Profit Less Than 8%

If you have opted for presumtive scheme and declare profit less than 8% then audit is compulsary.

Yes even if turnover is less than 1 cr. By the way the turnover limit (tax audit purpose) in case of 44AD is 2 Cr. not 1 Cr.

Tax audit not applicable if turnover< 2Cr even if  in loss , if we are not opting presumptive  just normal itr-3 .   Am i correct?

Yes. You are correct.

please friends, read the section properly. the audit will apply only if the income is above the exemption limit and profit is beloe 6% or 8% as the case may be.  Both conditions need to satisfy for audit to be applicable.

Ramesh, if your turnover is above 1 cr, then audit will apply regardless or profit or loss (in case you are not using 44AD presumptive taxation) 

i think audit  is not applicable for  profit less than 8%  even if income above exemption limit.  (for those not opting presumptive ) . new amendment i think.

Originally posted by : ramesh
	i think audit  is not applicable for  profit less than 8%  even if income above exemption limit.  (for those not opting presumptive ) . new amendment i think.

if you are referring to 44AD(5), there is no change in the provisions for application of audit.  If you are skipping 44AD completely, then the audit is triggered once the turnover is above Rs 1 cr regardless of profit and loss