Quick answer: Section 44AB of the old Income Tax Act, 1961 is now Section 63 of the new Income Tax Act, 2025. The tax audit rules themselves have not changed — only the section number is different. If your turnover or receipts cross the audit limit, you still need a tax audit. You will just cite Section 63 instead of Section 44AB in your paperwork from assessment year 2026-27 onwards.
What Section 44AB Was About
Section 44AB of the Income Tax Act, 1961 dealt with tax audit. It said that certain people must get their accounts audited by a chartered accountant and submit the audit report before the due date.
The rule applied to:
- Businesses: Total turnover or gross receipts above Rs. 1 crore in a year (Rs. 10 crore if cash transactions are less than 5% of total).
- Professionals: Gross receipts above Rs. 50 lakh in a year (Rs. 75 lakh if cash receipts are less than 5% of total).
- Presumptive scheme opt-outs: People who declared income under Section 44AD or 44ADA earlier and then opted out, with income above the basic exemption limit.
The audit report had to be filed in Form 3CA/3CB along with Form 3CD. The due date was 30th September of the assessment year (extended to 31st October if transfer pricing applied).
What Changed in the New Act
In the Income Tax Act, 2025, this provision has moved to Section 63. The content is largely the same, but the new Act has cleaned up the language and reorganised the sections.
The turnover and receipt limits remain the same:
| Category | Audit limit |
|---|---|
| Business (normal) | Rs. 1 crore |
| Business (95%+ digital transactions) | Rs. 10 crore |
| Profession (normal) | Rs. 50 lakh |
| Profession (95%+ digital receipts) | Rs. 75 lakh |
The due dates, forms, and penalties for missing the audit are also unchanged in substance. The new Act keeps the same structure — it just renumbers and simplifies the wording.
What Stays the Same
- The audit thresholds (Rs. 1 crore / Rs. 50 lakh) are identical.
- The higher limits for digital transactions (Rs. 10 crore / Rs. 75 lakh) continue.
- The audit must still be done by a chartered accountant.
- The due date for filing the audit report is still 30th September (31st October for transfer pricing cases).
- Penalty for not getting the audit done remains 0.5% of turnover or Rs. 1,50,000, whichever is lower.
Common Mistakes to Avoid
Tax audit season brings the same errors every year. Here are the ones to watch out for:
- Mixing up the limits: The Rs. 1 crore business limit and Rs. 50 lakh profession limit are different. Freelancers and consultants often apply the wrong one. Know which category you fall into.
- Forgetting the cash condition: The higher limits (Rs. 10 crore / Rs. 75 lakh) apply only if cash receipts and payments are 5% or less of the total. Even a small excess of cash can push you back to the lower limit.
- Missing the due date: 30th September comes fast. Start talking to your CA by July, not September. Late audit reports attract penalties and can delay your ITR filing too.
- Ignoring the presumptive scheme trap: If you opted for 44AD or 44ADA earlier and then opted out, audit may become mandatory even below the turnover limit. Check this with your CA before assuming you are exempt.
Key Dates to Remember
| Event | Due date |
|---|---|
| Tax audit report filing | 30th September |
| Tax audit (transfer pricing cases) | 31st October |
| ITR filing (audit cases) | 31st October |
These dates have carried over unchanged into the new Act. The section number changed, but the calendar did not.
Practical Impact for You
If you are a business owner or professional who gets a tax audit done every year, here is what changes in practice:
1. Paperwork references: Your CA will now mention Section 63 instead of Section 44AB in the audit report and related documents. The forms may also get new numbers, but the process is the same.
2. ITR filing: When you file your return for FY 2025-26 (assessment year 2026-27), the return forms will refer to the new section numbers. Make sure you and your CA use Section 63.
3. No change in compliance burden: You do not need to do anything extra. The audit process, documents required, and timelines are the same as before.
4. Old references: If you see “Section 44AB” in older articles, books, or software, just know it means Section 63 now. Many resources will take time to update.
Frequently Asked Questions
Is Section 44AB still valid?
Section 44AB was part of the old Income Tax Act, 1961. From 1st April 2026, the new Income Tax Act, 2025 applies, and the tax audit provision is now Section 63. For all practical purposes, Section 63 replaces Section 44AB.
Has the tax audit limit changed?
No. The limits are exactly the same — Rs. 1 crore for business and Rs. 50 lakh for profession, with higher limits of Rs. 10 crore and Rs. 75 lakh for mostly-digital transactions.
Do I need to file a different form for tax audit now?
The audit report forms (earlier 3CA/3CB and 3CD) may get renumbered under the new Act. Your CA will use the updated forms when they are notified. The information asked in the forms stays largely the same.
What happens if I miss the tax audit deadline?
The penalty provisions continue under the new Act. You may face a penalty of 0.5% of total sales or turnover, up to a maximum of Rs. 1,50,000. File on time to avoid this.
Official Sources
- Income Tax Department — official source for verification
- India Code — official source for verification
Reviewed by Asuthod Rathod, CA. Last updated: 10 October 2026. Tax provisions are based on the Income Tax Act, 2025 as notified. Rules and forms may be updated by the CBDT — check the official Income Tax Department website for the latest notifications.
Rohan has been writing about Indian income tax for over 5 years. He breaks down complex tax rules into simple language that anyone can understand. His guides focus on practical filing tips, deduction strategies, and keeping up with the new Income Tax Act 2025.