Is Audit compulsory if proft is below 8%?????

ADNAN HUSSAIN (Student CA IPC / IPCC) (157 Points)

18 April 2020  

Hello,

There is a Partnership Firm.... for financial year 2017-18 we have filed income tax return in ITR form 5.

I have filed under No Accounts books case as turnover was 16 lakhs only where i have entered 

Gross Receipts, Gross Profit, Expenses and Net profit.

And the profit shown was less than 1%. The ITR has been processed.

So my query is:-

1. Will it cause any issue, however the return has been processed.

2. Now for Financial year 2018-19 when im filing return and entering all P&L, Balance sheet details and proft is 2% and the turnover is approx 30 lakhs, will i be liable for tax audit? or can i file normally with P&L, balance sheet.

 

Thanks