Tax audit applicability (44AB(a))

This discussion clarifies tax audit applicability under Section 44AB(a) for businesses with varying turnovers. If your business turnover was ₹1.5 crore in 2019-20 and dropped to ₹80 lacs in 2020-21, a tax audit is generally not applicable unless specific conditions under Section 44AD(4) are met. The interpretation of 'any previous year' refers to any financial year preceding the assessment year where the Act applies.