Patnership Firm Audit Mandatory.

This discussion clarifies whether a partnership firm with sales of £60 Lakhs and a net profit of £20,000 requires a tax audit. It explains that an audit is only mandatory if the firm opted out of Section 44AD in any of the preceding five years. The correct ITR form depends on whether Section 44AD is being used; otherwise, ITR 5 is applicable. The advice also covers how to handle filings when a business transitions from proprietorship to a partnership mid-year, emphasising that only partnership data should be used for the firm's ITR.