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About the client
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This year — PY 2025-26
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The past — PY 2020-21 to PY 2024-25
Awaiting figures
Fill in the three steps, then select Check applicability.
Provisions applied
- Presumptive limit, by year
- A flat ₹2 crore for PY 2020-21 to PY 2022-23 — no cash test existed then. From PY 2023-24, ₹3 crore where cash receipts stay within 5%, else ₹2 crore. Finance Act 2023, w.e.f. AY 2024-25.
- Audit limit on turnover
- ₹1 crore, lifted to ₹10 crore where cash receipts and cash payments each stay within 5%. Section 44AB(a) with its provisos.
- Minimum profit
- 8% of turnover, reduced to 6% on turnover received by account payee cheque or draft, ECS or prescribed electronic mode by the 139(1) due date. In force since AY 2017-18.
- First proviso to 44AB
- The section does not apply to a person declaring in accordance with 44AD(1) or 44ADA(1). Substituted by the Finance Act 2023 w.e.f. 1-4-2024, removing the ₹2 crore ceiling it used to carry.
- 44AB(e) with 44AD(4) and 44AD(5)
- The bar runs for five assessment years after the assessment year in which the client stopped declaring under 44AD(1). A break anywhere from PY 2020-21 onwards still covers AY 2026-27 — which is why no old figures are needed.
- Explanation to 44AD
- Eligible assessee is defined by status alone; the turnover ceiling sits in the definition of eligible business. That split is what makes the departure question unsettled.
- 271B and 273B
- Penalty of half a percent of turnover or ₹1,50,000, whichever is less, subject to reasonable cause.
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Important — please read
This tool is provided free, for general information only. It is not professional advice, an opinion, or a recommendation, and using it does not create a client relationship with RDT & Associates.
Its output depends entirely on the figures and answers entered, and it cannot assess the facts of any case. Neither the firm nor any partner or employee of the firm accepts any responsibility or liability for any loss arising from action taken, or not taken, on the basis of anything shown here.
Verify every result against the bare Act and the facts before you rely on it, and take formal professional advice where the amounts are material.