Do I need a tax audit if my receipts cross ₹75 lakh?
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Short answer
For a professional, usually yes. Above ₹75 lakh the presumptive scheme in section 58(2) row 3 is no longer available, and section 63 of the Income-tax Act, 2025 requires an audit when gross receipts from a profession exceed ₹50 lakh in the tax year.12 If your activity is a business rather than a profession, the audit threshold is ₹1 crore of turnover, or ₹10 crore where cash receipts and cash payments are each within 5%.2 For tax year 2026-27 the audit report is due by 30 September 2027 and the return by 31 October 2027.23
A freelance developer whose foreign billing jumps from ₹60 lakh to ₹85 lakh, or an architect taking on a large Gulf project, will reach a point where presumptive tax stops working and a tax audit starts. A tax audit is an examination of your accounts by a chartered accountant (CA), who signs a report in the prescribed form.2
Why does ₹75 lakh matter?
₹75 lakh is the ceiling of the presumptive scheme for professionals. Row 3 of the Table in section 58(2) applies where gross receipts do not exceed ₹50 lakh, or ₹75 lakh where cash receipts do not exceed 5% of gross receipts.1 Foreign client payments by bank transfer are not cash, so most exporters get the higher ceiling.1
While you are on row 3, section 63(2) keeps you out of the audit regime.2 Once receipts exceed ₹75 lakh, row 3 is closed, and section 63(1) applies on its own terms.
What are the section 63 thresholds?
Section 63(1) requires an audit before the specified date where any of these applies in the tax year:2
| Person | Audit needed if |
|---|---|
| Carrying on a profession | Gross receipts in the profession exceed ₹50 lakh |
| Carrying on a business | Turnover or gross receipts exceed ₹1 crore |
| Business with cash receipts and cash payments each within 5% | Turnover or gross receipts exceed ₹10 crore |
| Separately, section 58(3) requires books and an audit from anyone in the section 58(2) Table who claims profit lower than the deemed profit and whose total income exceeds the basic exemption limit.1 |
So a consultant at ₹80 lakh needs an audit as a professional, while a marketing agency run as a business, with almost no cash, may not need one until ₹10 crore.2 Whether your work is a "profession" or a "business" is a judgement; see 44AD vs 44ADA.
What are the dates for tax year 2026-27?
The specified date for the audit report is one month before the return due date in section 263(1).2 An assessee whose accounts must be audited files the return by 31 October, so the dates are:3
| Step | Date |
|---|---|
| Tax audit report | By 30 September 2027 |
| Return of income | By 31 October 2027 |
What should I prepare?
Keep books from the start of the year: invoices matched to bank credits or Foreign Inward Remittance Advices (FIRAs), expense bills and the rupee value of each receipt. The tax audit guide and bookkeeping for foreign income cover the checklist. If you expect to cross ₹75 lakh, speak to a CA before 31 March so the books are ready.1
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
Frequently asked questions
My receipts are ₹70 lakh, all by bank transfer, and I declare 50%. Do I need an audit?+
No. Row 3 allows receipts up to ₹75 lakh where cash receipts are within 5%, and section 63(2) says the audit section does not apply where profits are declared as per section 58(2).12
Can I declare 50% on ₹80 lakh to avoid the audit?+
No. Row 3 only applies where gross receipts are within ₹50 lakh, or ₹75 lakh with cash within 5%. Above that the scheme is not available.1
Are foreign client payments counted as cash for the 5% test?+
No. Only cash, and cheques or bank drafts that are not account payee, count as cash receipts under section 58(9) and section 63(5)(b).12
Does an audit change my return due date?+
Yes. A person whose accounts must be audited files by 31 October after the tax year instead of 31 August.3
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
When does an Indian freelancer need a tax audit?
When an Indian freelancer or agency needs a tax audit under section 63 of the Income-tax Act, 2025: the ₹50 lakh, ₹1 crore and ₹10 crore limits, presumptive cases, dates.
TaxCan Indian freelancers use section 44ADA (now section 58) to pay tax on 50% of their income?
How presumptive tax for professionals works for Indian freelancers paid in foreign currency: old 44ADA, new section 58, limits, 50% income, advance tax.
TaxWhat is the difference between 44AD and 44ADA for Indian freelancers?
44AD vs 44ADA, now rows 1 and 3 of section 58 of the Income-tax Act, 2025: who qualifies, 6% vs 50%, limits, lock-in and which suits freelancers and agencies.
TaxHow should an Indian freelancer keep books for foreign income?
What books an Indian freelancer with foreign clients must keep under section 62 and rule 46, for how long, and how to record each foreign receipt for tax and FEMA.