Net sales = 65 Lakh
Profit = only 2.5% of net sales
Tax audit Required or Not ???
Replies (4)
Quick Summary
This discussion addresses whether a tax audit is mandatory for businesses with net sales below 1 crore and a profit margin less than 8%. While a profit below 8% generally necessitates an audit, there are exceptions. If your total income falls below the basic exemption limit, an audit may not be required. Additionally, if you've previously declared income under Section 44AD, specific rules apply regarding audit requirements after the Finance Act 2016.