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Business-compliance utility

Tax Audit Applicability Checker — Section 44AB / Section 63

Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026

Check business, profession and presumptive-tax audit triggers and the applicable audit form.

Check tax-audit applicability

Audit result

Common triggers only.
Audit indication—
Threshold/test—
Audit form—
General due date—

How This Is Calculated

Tax audit under Section 44AB is triggered for a business once turnover crosses ₹1 crore — extended to ₹10 crore if cash receipts and cash payments are each 5% or less of the total (the "low-cash" relaxation). For professionals, the threshold is gross receipts above ₹50 lakh. Presumptive-scheme taxpayers who declare income below the deemed rate, with total income above the exemption limit, also trigger audit requirements.

Frequently Asked Questions

What is the tax audit turnover threshold for a business? ▼
The base threshold is ₹1 crore turnover. This is extended to ₹10 crore if both cash receipts and cash payments during the year are each 5% or less of total receipts/payments — a relaxation designed to reward businesses operating mostly through digital/banking channels.
What is the tax audit threshold for professionals? ▼
For professionals, tax audit under Section 44AB applies once gross receipts exceed ₹50 lakh in a financial year — a separate, lower threshold than the business turnover limits.
Does opting for presumptive taxation avoid tax audit? ▼
Generally yes, if you declare income at or above the deemed presumptive rate. But if you declare income below the presumptive rate and your total income exceeds the basic exemption limit, tax audit becomes mandatory despite being in the presumptive scheme.

Related guidance: Internal Audit Applicability Checker — Section 138 | Finin2min · Secretarial Audit Applicability Checker — Section 204 | Finin2min

Tax-audit threshold control

For AY 2026-27 under section 44AB, the business threshold is ₹1 crore, extended to ₹10 crore where cash receipts and cash payments each do not exceed 5% of the respective totals. Profession uses ₹50 lakh. Presumptive-taxation exit/below-deemed-income cases need separate testing.

For Tax Year 2026-27 the new Act uses section 63 and Form 26 under the Income-tax Rules, 2026, while FY 2025-26/AY 2026-27 continues with Forms 3CA/3CB/3CD.

Input integrity

  • Use source documents rather than approximate memory.
  • Confirm period, units, tax regime/category and sign conventions.
  • Test zero, threshold and just-above-threshold cases where relevant.

Output interpretation

  • Separate arithmetic output from legal eligibility/classification.
  • Preserve assumptions and the official-source date.
  • Use the linked detailed guide for exceptions and evidence.

Primary-source starting points

Reviewed 22 August 2026. Always test later amendments, corrigenda and portal implementation before a live filing or transaction.

Methodology, assumptions and sources

Scope: Checks tax audit applicability under Section 63 of the Income-tax Act, 2025 (the renumbered successor to the erstwhile Section 44AB), based on turnover/gross receipts and presumptive-taxation election status.

Calculation logic

  1. For business: tax audit mandatory if total sales/turnover/gross receipts exceed the currently prescribed threshold (₹1 crore), with a higher threshold (₹10 crore) available where cash receipts and cash payments each do not exceed 5% of the respective total.
  2. For profession: tax audit mandatory if gross receipts exceed the currently prescribed threshold (₹50 lakh, a separate and lower threshold than the business threshold, reflecting the different nature of professional income).
  3. For a taxpayer opting for presumptive taxation under 44AD/44ADA-equivalent provisions but declaring income below the prescribed presumptive percentage/amount, tax audit becomes mandatory if total income exceeds the basic exemption limit — the checker applies this specific presumptive-taxation-linked trigger, distinct from the general turnover-based triggers.

Inputs and assumptions

  • Thresholds follow the current Income-tax Act, 2025 provisions for the assessment year selected — the enhanced ₹10 crore business threshold for predominantly digital-transaction taxpayers was introduced by amendment and applies only where the user confirms the cash-transaction percentage qualifies.
  • The 44AD-lock-out consequence (5-year bar from re-opting into presumptive taxation after voluntarily exiting) interacts with the tax-audit trigger for a below-presumptive-income declaration — the checker flags this interaction where relevant.

Exclusions and edge cases

  • Tax audit report must be filed in the prescribed form (Form 3CA/3CB with Form 3CD) by a practising Chartered Accountant, generally before the ITR filing due date for audit cases — this checker addresses applicability only, not the audit engagement/report preparation itself.
  • Does not itself compute turnover for complex cases like F&O/intraday trading — see the Stock, Intraday and F&O Trading Turnover Calculator for that specific computation, then apply the resulting turnover figure here for the audit-threshold check.

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 9 July 2026.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.

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