IS AUDIT APPLICABLE ??

This discussion clarifies whether an income tax audit is compulsory for AY 2021-22. It explains that if an assessee opts for presumptive taxation (Section 44AD) and their turnover exceeds the threshold, or if their profit falls below the minimum prescribed percentage, a tax audit becomes mandatory. If not opting for 44AD and meeting specific turnover and cash transaction criteria, an audit may not be required, but once opted out of presumptive taxation, it generally cannot be used for five years without a compulsory audit.