Under section 63 of the Income-tax Act, 2025, tax audit is compulsory for a person carrying on…

Under section 63(1) of the Income-tax Act, 2025, Table: Sl. No. 1(c) (formerly s.44AB(b) of the Income-tax Act, 1961), a person carrying on profession must get his accounts audited by an accountant before the specified date if his gross receipts in profession exceed Rs. 50 lakh. Rs. 1 crore is the limit for a business [Sl. No. 1(a)] (raised to Rs. 10 crore where cash receipts and cash payments each do not exceed 5%), and Rs. 40 lakh and Rs. 60 lakh are not tax audit limits under section 63. Under section 63(2), the section does not apply where profits are declared as per section 58(2), while Sl. No. 2 of the Table requires an audit where a person carrying on such a business or profession claims profits lower than the deemed profits.