A assessee having turnover in FY 19-20 say Rs. 90 Lakh and adopted Tax audit u/s 44AB (e) - when provision of Section 44AD(4) are applicable. In next year FY20-21 Turnover expected Rs. 40 Lakh. Now Compulsory to go for Tax audit under that section OR can file Regular Balance sheet and Profit and Loss account in ITR 3?

Reply: If he has adopted tax audit u/s 44AB in financial year 20191-20, it is not mandatory to adopt the same in the financial year 2020-21. If the turnover is below Rs 1 crore, he can maintain proper books and can file the return without audit u/s 44AB.