No audit of turnover up to rupees 2 crore applicable only on assessee opt presumptive taxation.

It is obligatory for every person carrying on business to get his account of any previous year audited if his total sales, turnover or gross receipts exceeds one crore rupees (under section 44AB of income tax act).

However if person opt for presumptive taxation scheme, then he shall not require to get his audited if turnover of the relevant previous  year does not exceed rupees 2 crore. (under section 44AD of income tax act).

This has been clarified by the CBDT in a press realised dated 20 June 2016.

Any assessee who engaged in eligible business (any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE) and having turnover not exceeding rupees 2 crores can opt for presumptive taxation and a sum equal 8% of the total turnover or gross receipts, or as the case may be, a sum higher than the aforesaid sum shall be deemed to be profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession.

If the assessee opt the scheme then no further deduction under section 30 to 38 shall be allowed. Further the eligible assessee can report the income lower than the deemed income of 8%, in such case assessee shall require to maintain books of accounts (Section 44AA) and get them audited and furnished a report of such audit as required (Section 44AB).

If the assessee opt the scheme of presumptive taxation, then he should remain with that scheme for 5 years.  If he not opt the scheme for consecutive five years , then he can’t take the benefit of presumptive taxation scheme for next 5 years consecutive assessment years.

For example an eligible assesse opt presumptive taxation under section 44AD for Assessment Year 2017-18. For Assessment Year 2018-19 and Assessment Year 2019-20 also he offers income in accordance with the provisions of section 44AD. However, for Assessment Year 2020-21, he not opt the scheme of presumptive taxation. In this case since he has not offered income in accordance with the provisions of section 44AD for five consecutive assessment years, after Assessment Year 2017-18, he will not be eligible to claim the benefit of section 44AD for next five assessment years i.e. from Assessment Year 2021-22 to 2025-26.