Under section 63 of the Income-tax Act, 2025, a person carrying on business, who does not declare his…

Under section 63(1) (Table: Sl. No. 1(a)) of the Income-tax Act, 2025 (formerly s.44AB(a) of the Income-tax Act, 1961), a person carrying on business must get his accounts audited by an accountant before the specified date if his total sales, turnover or gross receipts in business exceed one crore rupees in the tax year. Under Sl. No. 1(b) the limit becomes ten crore rupees only where cash receipts and cash payments each do not exceed 5% of the total; here cash receipts exceed 5%, so the one crore rupees limit applies. Section 63(2) excludes cases where profits are declared on a presumptive basis under section 58(2) or 61(2).

Rs. 2 crores is the turnover limit for presumptive taxation of an eligible business under section 58, not the audit limit, and Rs. 40 lakhs and Rs. 60 lakhs are not limits under section 63.