Tax audit of partnership firm

This discussion clarifies the mandatory tax audit requirements for partnership firms under Section 44AB of the Income Tax Act. It explains that an audit is generally required if gross receipts exceed ₹1 crore for businesses or ₹25 lakhs for professions, regardless of profit or loss. The discussion also touches upon situations where an audit might be necessary even with lower turnover, such as when reporting profits below 8% in presumptive taxation cases or for carrying forward losses.