Tax Audit Applicability for Professionals for FY 24–25
If you’re a doctor, CA, architect, or any other professional, knowing whether you fall under tax audit applicability for professionals in FY 2024–25 is critical. The rules differ for businesses and professions, especially with presumptive schemes like Section 44ADA in play.
Who is a “Professional” under Income Tax?
As per Section 44AA(1) and Rule 6F, the term “profession” includes:
- Legal
- Medical
- Engineering
- Architectural
- Accountancy
- Technical consultancy
- Interior decoration
- Film artists (cinematographers, actors, editors, etc.)
- Other notified professions
Tax Audit Limit for Professionals (FY 2024–25)
| Condition | Audit Required? |
|---|---|
| Gross receipts exceed ₹50 lakhs | ✅ Yes, under Section 44AB(b) |
| Opting for presumptive scheme under 44ADA | ❌ No audit required |
| Opted out of 44ADA and income < ₹50 lakhs | ❌ No audit |
| Opted out of 44ADA and income > ₹50 lakhs | ✅ Audit mandatory |
Important: Professionals don’t get the ₹10 crore turnover threshold applicable to businesses with digital transactions.
Understanding Section 44ADA
Section 44ADA allows small professionals to declare 50% of gross receipts as income and pay tax accordingly.
Who can opt?
- Only resident individuals and partnership firms
- Gross receipts ≤ ₹50 lakhs
Not allowed for:
- LLPs and companies
- Those declaring income <50% of receipts (then audit applies)
Due Date for Tax Audit FY 24–25
- 30th September 2025 – For those required to get accounts audited under Section 44AB
- 31st October 2025 – Due date to file ITR (if audit done)
Legal Reference: Section 44AB(b)
- Applicable if total gross receipts from profession exceed ₹50 lakh
- Must maintain books of accounts as per Section 44AA and Rule 6F
- Audit report to be filed in Form 3CB + Form 3CD
Expert Tip
Many professionals miss out on Section 44ADA benefits due to lack of awareness. If you’re eligible, opting in saves time and avoids audit hassle.
Pro tip: Once opted out of 44ADA, you cannot opt back for 5 years — plan your choice wisely.
Comparison: Professionals vs Businesses
| Feature | Professionals | Businesses |
|---|---|---|
| Presumptive Scheme | 44ADA | 44AD |
| Audit Threshold | ₹50 lakh | ₹1 crore (or ₹10 crore with digital mode) |
| Minimum Income Declared | 50% of receipts | 6%/8% of turnover |
| Books Mandatory? | If income > ₹2.5L and not under 44ADA | If not under 44AD and turnover > limits |
Frequently Asked Questions (FAQ)
Q1. Can LLPs claim presumptive tax under 44ADA?
No. Only individual and partnership firms (excluding LLPs) can opt 44ADA.
Q2. Is Form 3CB-CD mandatory for tax audit?
Yes, for professionals not covered under 44ADA and exceeding ₹50 lakh receipts.
Q3. Can I declare less than 50% income under 44ADA?
You’ll need to maintain books and get audited if income is <50% and exceeds basic exemption.
Final Words
For professionals, tax audit applicability for FY 24–25 depends on turnover and your choice to opt for Section 44ADA. Choosing wisely can mean less compliance burden and faster return filing.
Need help with tax audit or 44ADA filing?
Talk to our experts at Efiletax.in and simplify your tax compliance today.
Summary
Tax audit for professionals in FY 2024–25 applies if gross receipts exceed ₹50L unless opting for 44ADA. Section 44AB, audit forms, and deadlines explained.