Tax audit of partnership firm in case profit is zero

This discussion clarifies whether a partnership firm needs a tax audit if its net profit is zero and turnover is below 1 crore. Generally, if turnover is less than 1 crore and profit is zero, a tax audit isn't mandatory. However, if the firm opts to file under Section 44AD and shows a profit of 8% or more, it can avoid an audit. Failure to meet these conditions may necessitate a tax audit.