I have partnership firm & my Gross receipt is 26 lakh but my net profit is below 6% so is it liable for tax audit.
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Quick Summary
This discussion clarifies whether a partnership firm with gross receipts of £26 lakh and a net profit below 6% is liable for a tax audit under Section 44AD of the Income Tax Act. The general rule is that a tax audit is applicable in such cases. However, exceptions exist if it's the firm's first year of operation or if presumptive assessment under Section 44AD was not chosen in previous years.