Section 44AB(d) applies to a professional who is eligible for section 44ADA, claims income lower than the deemed amount (50% of gross receipts), and has total income above the maximum amount not chargeable to tax. Both conditions have to hold.
Facts checked: 9 October 2026, for FY 2025-26 / AY 2026-27 under the Income-tax Act, 1961. For the receipts-based limit, see 44AB(b).
The two conditions
- The professional claims income from the profession lower than the deemed amount under 44ADA.
- Total income exceeds the maximum amount not chargeable to tax.
If total income is within the basic exemption limit, clause (d) does not apply, even though the declared profit is under 50%. The threshold used depends on the tax regime and the taxpayer's category, so confirm it for the year.
Worked example
A resident doctor has gross receipts of ₹30 lakh. The 44ADA deemed income is ₹15 lakh. The doctor's books show an actual profit of ₹9 lakh, and the doctor wants to report that.
| Test | Result |
|---|---|
| Claimed income (₹9 lakh) below deemed income (₹15 lakh) | Yes |
| Total income above the maximum amount not chargeable to tax | Yes |
| 44AB(d) applies | Yes, audit required |
Receipts of ₹30 lakh are under ₹50 lakh, so 44AB(b) does not apply. The audit comes from clause (d) alone. This is the case that surprises small practices.
What to document
- The 44ADA eligibility check: resident individual or firm other than an LLP, specified profession.
- The deemed-income computation and the actual profit.
- Total income and the threshold applied.
- Books of account kept under section 44AA, since the claim of lower profit needs to be supported.
Record the clause in Form 3CD Clause 8 and keep the comparison on file. For the broader choice, see which 44AB clause applies. The AY 2026-27 report date is 21 October 2026; see the due date note.
Frequently asked questions
Does a professional with receipts below ₹50 lakh ever need an audit?
Yes, if the professional claims income under the 44ADA amount and total income is above the basic limit. That is 44AB(d).
Is the deemed rate always 50%?
Yes for 44ADA under the current Act. Check the rate for the year in the statute.
Can a professional avoid an audit by reporting exactly 50%?
Reporting at least the deemed amount, with 44ADA eligibility, keeps the case outside 44AB(d).
Read the complete guide to section 44AB.
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