Tax audit for business

This discussion clarifies when a business tax audit is mandatory, particularly for clients not opting for presumptive taxation under Section 44AD. It confirms that even with turnover below £1 crore and declared profits under 8%, a tax audit may still be required. The conversation highlights the importance of Section 44AB read with Section 44AD, especially if a business opts out of presumptive taxation within five years and their Net Taxable Income (NTI) exceeds the basic exemption limit.