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Need help deciding if tax audit is required or not

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Chris orton

23 Points Posted on 10 October 2022

I'm not from finance background so finding it little difficult to comprehend the articles online

Here is the thing

Fy 2016-2017 - 44AD net profit 8% and 6% Fy 2017-2018 - 44AD net profit 8% and 6% Fy 2018-2019 - Regular filing ITR3 with tax audit net profit below 8/6%

As i understood I have opted out of 44AD and won't be able to continue the same for 5yrs and would have to file tax under regular scheme using ITR3

So starting from 2019-2020 FY am i required to do tax audit every year for next 5 years ? even if my turnover is below 1cr and net profit is above 8% ?

Everyone has different opinion online and as i said unable to comprehend most of the stuff + i did asked this to a CA he said audit not required if turnover below 1cr but still need to maintain books

Replies (2)

Quick Summary

This discussion addresses confusion surrounding tax audit requirements, particularly after opting out of Section 44AD. The original poster is seeking clarification on whether a tax audit is mandatory for the financial year 2019-2020 and subsequent years, even with a turnover below ₹1 crore and profits exceeding the 8% threshold. Conflicting advice online and from a CA has led to uncertainty about ongoing audit obligations.