Is audit necessary

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One partnership firm having turnover about RS. 60 lacs, sustained a loss of RS. 2 lacs.
I want to know whether audit is necessary???
Replies (3)
In case of loss from carrying on of business and not opting for presumptive taxation scheme, threshold limit is 1 cr .
Is not opting for presumptive taxation scheme because the threshold limits of audit under the Act ₹ 1 crore.
Under regular business income taxation , no tax audit is required as turnover is 60 lakhs.

However if business income under presumptive taxation under 44AD then
Under 44AD(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. ''''
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Since income is not exceeding maximum amount which is not chargeable to tax and here it is LOSS of 2 lakhs, no tax audit under 44AD(5) read with 44AB is required

In the given query No audit is required under presumptive taxation also


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