Tax audit applicability 1

Yes. It is required.

For which Assessment Year?

AY 2022-23

Not required to audit your case

Can u explain with relevant section ?

@ vikas maru pls go through section 44AB which is self explanatory. it prescribes the condition for audit.

As per 44AD IF you do not declare 8or 6% then tax audit is compulsory..

Tax audit is mandatory only if you fall under 44AD(4) , else not mandatory

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Declaring profit below 6% or 8% attracts tax audit provisions.

Unless the case falls under 44AB or 44AD(4), there's no requirement to audit the case. if anyone has difference of opinion, it is requested that the relevant provisions of the section may be quoted so that I may get enlightened

44AD(4) itself says that books are required to be get audited if 6% or 8% profit not declared

These are the provisions of sub-section (4) & (5) to section 44AD. please go through it and come to a conclusion

[4] Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section [1], he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section [1].

[5] Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section [4] are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section [2] of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

@ Rama Krishnan,

What is your final answer ?

@ Mr. eswar reddy , tax audit is mandatory only if the total sales exceeds rs 1 crore or the assessee covered under 44AD(4) . nowhere in the act it has been mentioned that tax audit is mandatory if the total income admitted is less than 8% or 6%