Tax Audit Applicability

This discussion addresses whether a tax audit is applicable to a first-year partnership firm that declared a loss with a turnover of 7 lakhs. While Section 44AD/ADA allows for non-audit if profits meet certain thresholds, a loss means the firm must file a return by the due date to carry forward losses. The consensus leans towards the audit being applicable in this specific loss scenario, despite the turnover being below the general threshold for mandatory audits.