Any proprietorship firm having turnover for Rs. 1.80 crore and profit is 2.20 lakh for the fy 2020-21. Is he ready to get his accounts audited or not?

Reply- Under section 44AB(a) of Income Tax Act, every person carrying on business shall, if his total sales, Turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year  get his accounts of such previous year  Audited by an accountant before the specified date and furnish by that date the report of such Audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. 

w.e.f. Assessment Year 2020-21, the threshold limit is increased from Rs. 1 Crore to Rs. 5 crore in case when cash receipt and payment made during the year does not exceed 5% of total receipt or payment, as the case may be. In other words, more than 95% of the business transactions should be done through banking channels

Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, Turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year.

As your Turnover is less than 2 cr you are not required to get your accounts Audited if you declare profit more than 8% as per 44AD