When does the ₹10 crore limit apply?

When cash receipts and cash payments are each within 5% of the total. A cheque or draft that is not account-payee counts as cash. Otherwise the business limit is ₹1 crore.

Does a professional on 44ADA with ₹60 lakh need an audit?

The widely held view is no, where cash receipts are within 5% and at least 50% is declared, because section 44ADA allows up to ₹75 lakh and clause (d) is the only audit trigger tied to it. The audit clause for professions still reads ₹50 lakh, so the checker flags this as a view.

What happens after leaving section 44AD?

Declaring less than the presumptive profit within five years of using 44AD closes the scheme for the next five years, and each of those years needs an audit if income exceeds the basic exemption limit, whatever the turnover.

Form 3CB with 3CD for most taxpayers, and 3CA with 3CD where accounts are already audited under another law, such as companies. From tax year 2026-27 the report is Form 26.

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Tax audit applicability calculator: section 44AB and section 63

Turnover, the 5% cash test, 44AD and 44ADA: a yes or no with the clause, the form, the due date and the reasoning.

YOU BRING: The year, who the taxpayer is, turnover or receipts, and the share paid in cash
YOU GET: Whether a tax audit is needed, with the clause, form, due date and reasoning
YOUR DATA: Worked out in your browser from what you enter. Nothing is uploaded.

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The taxpayer

YearWho

Turnover or gross receipts

Cash receipts, share of all receipts%Cash payments, share of all payments%

Resident in India Using the presumptive scheme (section 44AD) Used section 44AD before, then declared a lower profit this year or in the last five years Goods carriages (44AE) or oil exploration (44BB / 44BBB), declaring less than the deemed profit

Enter the turnover or gross receipts

or pick one of the examples above.

Section 44AB of the Income-tax Act 1961 for FY 2025-26; section 63 of the Income-tax Act 2025 from tax year 2026-27, with the same limits. Turnover and receipts should be counted as the law counts them; check the facts and the client's books before signing. The ₹50 to ₹75 lakh position for professions is a professional view, not a CBDT clarification.

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IN SHORT

What the Is tax audit required? 44AB checker does

This free checker answers whether a tax audit is required under section 44AB for FY 2025-26, or section 63 of the new Act from tax year 2026-27. It applies the ₹1 crore and ₹10 crore business limits with the 5% cash test, the ₹50 lakh limit for professions, and the 44AD and 44ADA presumptive rules, and names the clause, the form and the due date, with the reasoning.

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Updated 28 Sep 2026

Is tax audit applicable? The 44AB limits

These are the turnover and receipts limits the calculator applies. Audit is needed when turnover or gross receipts go above the limit. Each figure below was found by running the calculator itself.

Section 44AB limits and presumptive limits
CASE	NO AUDIT UP TO
Business, cash receipts or payments above 5%	₹1,00,00,000
Business, cash receipts and payments each within 5%	₹10,00,00,000
Profession, gross receipts	₹50,00,000
Section 44AD turnover, cash receipts above 5%	₹2,00,00,000
Section 44AD turnover, cash receipts within 5%	₹3,00,00,000
Section 44ADA receipts, cash receipts above 5%	₹50,00,000
Section 44ADA receipts, cash receipts within 5%	₹75,00,000

Leaving the presumptive scheme, or declaring less than the deemed profit, can call for an audit at any turnover. The calculator covers those cases.

Tax audit applicability: two worked cases

Both cases were run through the same logic as the calculator, for FY 2025-26.

Taxpayer: Individual, business
Turnover: ₹1,50,00,000
Cash receipts and payments: 20% and 20%
Presumptive scheme: Not used

Turnover ₹1.5 crore exceeds the ₹1 crore limit.
Form: Form 3CB with 3CD.

Tax audit required under section 44AB(a). Due: 21 October 2026, with the return by 21 November 2026: extended from 30 September and 31 October by the CBDT press release of 28 September 2026.

Taxpayer: Individual, business
Turnover: ₹3,00,00,000
Cash receipts and payments: 3% and 4%
Presumptive scheme: Not used

Turnover ₹3 crore is within the ₹10 crore limit that applies because cash receipts and payments are each within 5%.

No tax audit needed.

STEP BY STEP

How it works

Choose the year and who the taxpayer is: individual, HUF, firm, LLP or company.
Pick business or profession and enter the turnover or gross receipts, and the share of receipts and payments in cash.
Tick whether the presumptive scheme is used and whether the presumptive profit is declared, or whether 44AD was left in the last five years.
Read the answer with the clause, the audit form, the due date and each step of the reasoning.

GOOD TO KNOW

Common questions

When does the ₹10 crore limit apply?: When cash receipts and cash payments are each within 5% of the total. A cheque or draft that is not account-payee counts as cash. Otherwise the business limit is ₹1 crore.
Does a professional on 44ADA with ₹60 lakh need an audit?: The widely held view is no, where cash receipts are within 5% and at least 50% is declared, because section 44ADA allows up to ₹75 lakh and clause (d) is the only audit trigger tied to it. The audit clause for professions still reads ₹50 lakh, so the checker flags this as a view.
What happens after leaving section 44AD?: Declaring less than the presumptive profit within five years of using 44AD closes the scheme for the next five years, and each of those years needs an audit if income exceeds the basic exemption limit, whatever the turnover.
Which form is used?: Form 3CB with 3CD for most taxpayers, and 3CA with 3CD where accounts are already audited under another law, such as companies. From tax year 2026-27 the report is Form 26.