F.y 20-21 audit limit

If you're a retail trader with a turnover of 90 lakh and declaring a profit of 5%, you generally need to get your accounts audited. While the general turnover limit for audits is 1 crore, Section 44AD of the Income Tax Act requires an audit if your declared profit is less than 6% (for banking transactions) or 8% (for cash transactions) of your turnover. To avoid an audit, you can declare a profit of at least 6% or 8% respectively, or file under ITR-4. If you haven't opted for Section 44AD in previous years and maintain proper books of accounts, you might be able to file under ITR-3 without an audit.