Tax Audit For FY 2020-21

This discussion addresses whether a client with a turnover of 3.25 Crores in FY 2020-21, meeting cash transaction criteria, can declare a profit below 8%. It clarifies that declaring less than 8% profit is generally not permissible under Section 44AD without a tax audit. The system may reject ITRs filed without a tax audit in such cases, requiring a minimum profit declaration of 6% on 95% of turnover and 8% on the remaining 5%.