Tax Consultant
1853 Points
Posted on 04 August 2026
Section 44AB is not abolished for AY 2026-27 , just renumbered under the new Act.
For the current filing season (FY 2025-26, AY 2026-27), everything is unchanged:
- Audit threshold: Rs 1 crore for business (Rs 10 crore if cash receipts + payments are each below 5% of totals)
- Professional gross receipts threshold: Rs 50 lakh
- Forms: 3CA, 3CB, and 3CD continue to apply
- Due date: September 30, 2026 for the audit report; October 31 for the ITR
What the Income Tax Act, 2025 actually does:
Section 63 of the new Act is the successor to Section 44AB, and a new Form 26 will replace 3CA/3CB/3CD. But this new form comes into force from Tax Year 2026-27 (financial year starting April 2026) , not AY 2026-27. So for the audits you are completing right now, the old sections and forms are still what the portal and the department expect.
One thing worth double-checking before you file 3CD: the threshold computation. The 95% digital receipts test for the Rs 10 crore exemption counts ALL cash inflows , including loans received, advances, and refunds , not just turnover. A few clients have found they breached the 5% cap when they computed only on sales.
For a breakdown of how the new Act restructures audit thresholds, the Tax Garden guide on [tax audit Section 44AB thresholds](https://taxgarden.in/pricing) has a clear comparison of old vs new numbering.