Is Tax Audit Mandatory

Sushil Narang (15 Points)

30 December 2019  

Hello Everyone

I have a query as to 

Is tax audit Mandatory in the following case

My Client is doing business in electronic products

The Turnover over the last 5 years has been steadily growing from 40 lakhs in AY 2016-17 to 85 Lakhs in AY 19-20

He has been making profit of over 8% in AY 2016-17 , AY 2017-18, AY2018-19 

Books of account have been maintained for all years and the return has been filed with

P& L and balance sheet for AY 2016-17 , AY2017-18 and AY 2018-19

however his Net profit has dropped to about  6% in AY 2019-20

My question is weather he is liable for TAX audit under Section 44AB

OR

should  the return be filed under Section 44AD

OR 

The Return can be still be filed as before with P&L and Balance Sheet without Tax Audit Report

Thanks in Advance

Sushil