When is a tax audit under section 44AB mandatory?

What does a tax audit test?

A tax audit is a chartered accountant's report that the books exist, that they can be reconciled to the return, and that the particulars the form asks for have been stated. It is not a Companies Act statutory audit and it is not a GST audit.

For FY 2025-26 the duty still sits in section 44AB of the 1961 Act. From tax year 2026-27 the same duty sits in section 63 of the Income-tax Act, 2025. The official forms FAQ says the rupee thresholds did not move.

What is the section 44AB turnover limit?

Business turnover above ₹1 crore, or above ₹10 crore where cash receipts and cash payments each stay within 5 per cent, and professional gross receipts above ₹50 lakh. Section 44AB, and now section 63, turn on turnover or receipts, then on how much of that moved in cash.

Both legs of the cash test have to hold. Receipts in cash under 5 per cent with payments in cash above 5 per cent puts you back on the ₹1 crore line. Count the year you are reporting, not a trailing twelve months you invented for a board note.

The audit-report due date is a separate question. This page is only about whether the report is required.

Does leaving presumptive taxation force an audit?

Yes, in the case the official FAQ names: opting out of presumptive taxation and then declaring income below the presumptive figure puts you inside the tax audit even if turnover never reaches ₹1 crore.

The official FAQ lists a third class: people who opt out of presumptive taxation and declare income below the prescribed presumptive figure. That is the 44AD / 44ADA lock-in most firms already brief in March. The rupee test above is not the only door into a tax audit.

If you used the presumptive scheme last year and you are leaving it this year, read the lock-in in the Act for the year you are reporting. Do not take the answer from a 2023 working paper.

Which tax audit form applies this year?

Form 3CA or 3CB with Form 3CD for FY 2025-26 / AY 2026-27, and Form 26 from tax year 2026-27. The e-Filing forms FAQ is the cleanest official split we have:

Form 26 is a single structured report. The official FAQ says clauses were aligned with the ITR, disallowable expenditure sits in one consolidated disclosure, and the auditor's membership number, firm registration number and UDIN are mandatory. That is next year's problem. Do not file Form 26 for AY 2026-27.

Transfer-pricing cases still run on their own later date. If that is you, the due-date guide is the page to open next.

What is in Form 26 that was not in Form 3CD?

Form 26 merges 3CA, 3CB and 3CD into one structured report. The official FAQ says clauses were aligned with the ITR, disallowable expenditure sits in one consolidated disclosure, and the auditor's membership number, firm registration number and UDIN are mandatory fields rather than attachments.

How do I confirm the 44AB limits?

1. Read the tax-audit answers on the official Income Tax Forms FAQ. That is where Form 26 and the 30 September dates are written down.
2. For AY 2026-27, confirm section 44AB on the department's section page.
3. For tax year 2026-27, read section 63 on Complied AI.

If a CBDT notification moves the September date, treat the notification as the date. The calendar page is not a promise.

Where are tax audit form changes notified?

The limits are in the Act. What still moves is the notified form, a utility change, or an extension of 30 September. CBDT updates on Complied AIkeep those documents next to the section so you do not file last year's pack on this year's due date.