Section 44AB(b) requires a tax audit when a person carrying on a profession has gross receipts above ₹50 lakh in the previous year. The ₹75 lakh figure is a different test: it is the 44ADA presumptive eligibility ceiling, and it applies only when the prescribed cash condition is met.
Facts checked: 9 October 2026, for FY 2025-26 / AY 2026-27 under the Income-tax Act, 1961. For businesses, see 44AB(a).
Who is a "professional" here
The profession must be one notified or specified, such as legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, film artist, company secretary and the like. Authorised representatives and information technology professionals have also been brought in by notification. Confirm the activity against the list rather than assuming.
The two numbers
| Number | What it is |
|---|---|
| ₹50 lakh | Gross receipts above this trigger a tax audit under 44AB(b) |
| ₹75 lakh | The 44ADA ceiling for a resident individual, partner in a firm (other than an LLP), where cash receipts are within 5% of total receipts |
An eligible professional who declares income under section 44ADA(1) at 50% of gross receipts (or more) can stay outside the audit. The 44ADA route is not available to everyone: eligibility depends on residence, entity type and specified profession.
Worked example
A resident individual advocate has gross receipts of ₹62 lakh, of which 3% came in cash, and declares income under 44ADA. Receipts are above ₹50 lakh but below ₹75 lakh with the cash condition met. The presumptive route is available, so no audit under 44AB(b). If the advocate instead claims a lower income, the case moves to 44AB(d).
A professional LLP with ₹62 lakh of receipts cannot use 44ADA, so 44AB(b) applies on the ₹50 lakh limit.
What to record
- Nature of the profession, with the basis for treating it as specified.
- Gross receipts, reconciled to books and, where relevant, the GST turnover.
- The 44ADA conclusion, including the cash-receipt share and the entity-type check.
- The final clause selected in Form 3CD Clause 8.
The AY 2026-27 report date is 21 October 2026; see the due date note. Use the applicability checker once inputs are final.
Frequently asked questions
Does a professional with ₹60 lakh of receipts always need an audit?
No. If 44ADA is available and the declaration is made in line with it, the 44AB(b) requirement does not apply.
Is ₹75 lakh the new audit limit for professionals?
No. It is the ceiling for 44ADA eligibility where the cash condition is met. The audit trigger remains ₹50 lakh for those outside that route.
What if the professional also runs a business?
Test each activity on its own, and check whether combined figures bring another clause into play.
See the full guide to section 44AB.
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