Is tax audit required? 44AB checker
Turnover, the 5% cash test, 44AD and 44ADA: a yes or no with the clause, the form, the due date and the reasoning.
The taxpayer
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.
IN SHORT
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.
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.