Section 44AB → Section 63

Tax audit of accounts for businesses and professions above turnover limits

Section 44AB of the old Income-tax Act, 1961 · new section 63 under the Income-tax Act, 2025

New reference Section 63

Income-tax Act, 1961Section 44AB

Business: audit if turnover exceeds ₹1 crore; ₹10 crore where cash receipts and cash payments are each within 5%
Profession: audit if gross receipts exceed ₹50 lakh
Audit also required where presumptive income (44AD/44ADA/44AE etc.) is claimed lower, subject to conditions
Report due one month before the return due date

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 63

Same limits in a table in section 63(1): ₹1 crore / ₹10 crore for business, ₹50 lakh for profession
Presumptive-income cases sit in Table Sl. No. 2 (sections 58(2) and 61(2))
'Specified date' is still one month before the return due date under section 263(1)
Audit under another law (e.g. Companies Act) still counts, with the tax audit report furnished by the specified date

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered and set out as a table. Thresholds and the specified-date rule are unchanged.

Practice notes

Tax audit reports for FY 2025-26 (AY 2026-27) are still under section 44AB with the 1961 forms.
Books of account (old 44AA) are now section 62; presumptive taxation (old 44AD/44ADA/44AE) is section 58.
Non-account-payee cheques and drafts continue to be treated as cash for the 5% test.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the tax audit limit under the new Income Tax Act 2025?

Under section 63: business turnover above ₹1 crore (₹10 crore if cash receipts and payments are each within 5%), and professional receipts above ₹50 lakh.

What is section 44AB called in the new Income-tax Act, 2025?

Section 44AB of the Income-tax Act, 1961 corresponds to Section 63 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 44AB under the new Income Tax Act?

Renumbered and set out as a table. Thresholds and the specified-date rule are unchanged.

Is section 44AB still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 44AB of the 1961 Act. Section 63 of the 2025 Act applies from tax year 2026-27.

Related sections

44AD→58Presumptive taxation for small businesses and professionals 139→263Return of income: original, belated, revised, updated and defective returns 234C→425Interest for deferment of advance tax instalments