I think as per the new rules tax audit is not required EVEN IF your profit is less than 8% of turnover as long as the turnover does not exceed 2 crores, even if your income is in taxable region. The only way in which audit would be required in such a case would be if you opted for section 44AD in a previous year. Please read the sections again where you can verify the same. There are also a lot of articles online discussing this.
I am a Individual Assessee. My Business Turnover FY 17-18 Gross Receipts : 1,01,58,094/- Net Profit : 20,61,716/-. I Filed Normal Return FY 17-18. But now Notice Received U/s 44AB Audit Report to be Filed & Books of Accounts to be Audited. Now What can i do Guide to me?
I think you filed return as per your Profit & loss A/c. Since your turnover is above 1 crore rupees you have to opt for 44AD presumptive taxation or you have to get your accounts audited.
In your current situation i suggest you to file return u/s 139(9) by choosing 44AD presumptive profit and declare your Actual profit (20,61,716/-).
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