Requirement of tax audit

As per section 44AB, an Assessee is liable to get his Tax Audit done by a Chartered Accountant mandatorily, if he in the previous year, is carrying on business and his Total Sales/Turnover exceeds Rs. 2 crore.
So, it doesn't matter whether the firm has earned profit or incurred loss in previous year, he is liable for tax audit if sales/turnover/receipts criteria given above is exceeded

in the above case if the turnover is less than 1 crore, profit is less than 8 percent i. e. loss. then is tax audit is applicable?

Mr. Harshal is right, Tax audit is required even when there is loss. Refer:

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