Partnership firm.

This discussion clarifies the tax audit requirements for partnership firms. Generally, a tax audit becomes mandatory if the firm's turnover exceeds certain thresholds, such as Rs. 1 crore or Rs. 2 crores, depending on the specific provisions and whether presumptive taxation is claimed. Partnership firms can opt for presumptive taxation under Section 44AD if their turnover is below Rs. 2 crores and they declare a profit of at least 8% of their turnover. If the declared profit is lower, or if the turnover exceeds the specified limits, a tax audit is typically required, and the firm cannot avail of presumptive taxation.