Tax audit in case of commission income

Section 44AD is not applicable to commission income, therefore profit can be declared as less than 8%. Tax audit is applicable if the turnover exceeds Rs. 1 crore provided if the cash receipts is less than 5% of total receipts and cash payment is less than 5% of total cash payment, then tax audit will be applicable if turnover is more than Rs. 10 crore.

Can I file the tax return without tax audit if I'm earning only commission income

No audit just because profit is below 8%:

• Sec 44AD doesn't apply to commission income (44AD(6)), so the "declaring below presumptive rate" trigger in Sec 44AB(e) doesn't apply.

• Audit for a firm earning commission is required only if turnover (gross commission) exceeds Rs 1 crore, or Rs 10 crore where cash receipts and payments are each 5% or less (Sec 44AB(a)).

• A loss or low profit doesn't trigger audit. The firm must still maintain books (Sec 44AA) and file ITR-5 by the due date.

• A loss can be carried forward only if the return is filed by the due date (Sec 80).