Form 25 applicable f.y.25-26 for doctors compulsory

[Sundaraiah kollipara]

Sir,

A Doctor fees income rs:20 lacs year 25-26

Question: Form 25 maintained compulsory or not for tax audit professionalls or small tax payers or both persons applicable f.y.25-26 as per new income tax act 2025

[YAGAY andSUN]

The expression "Form 25" is not a prescribed form under the Income-tax Act, 1961 or the notified rules for maintenance of books of account by professionals. The statutory requirement flows from Section 44AA read with Rule 6F of the Income-tax Rules, 1962.

In the case of a medical professional, maintenance of specified books is mandatory if the gross receipts exceed the prescribed threshold (Rs. 2,50,000 in any of the three preceding previous years). With receipts of Rs. 20,00,000 in FY 2025-26, the obligation to maintain books clearly applies. The prescribed records include cash book, ledger, journal (if mercantile), copies of bills, and a daily case register in Form 3C, along with inventory records of medicines.

Tax audit under Section 44AB becomes applicable to a professional where gross receipts exceed the prescribed limit (presently Rs. 50,00,000), unless the assessee opts out of presumptive taxation under Section 44ADA and declares income below the prescribed percentage, in which case audit may be triggered subject to conditions.

Section 44ADA permits eligible professionals with receipts up to Rs. 50,00,000 to declare 50% of receipts as income on presumptive basis, in which event maintenance of detailed books under Section 44AA is not mandatory.

Accordingly, for FY 2025-26:

• There is no statutory requirement of "Form 25."
• A doctor with Rs. 20 lakh receipts must maintain books if not opting for Section 44ADA.
• If Section 44ADA is opted, detailed books are not compulsory, and tax audit is not attracted.

[YAGAY andSUN]

“Form 25” is not a form prescribed under the Income-tax Act, 1961 or the Income-tax Rules, 1962 for maintenance of books, tax audit, or reporting by professionals.

In income-tax compliance, commonly used forms are specifically notified (e.g., audit reports, returns, statements), and there is no notified Form 25 relevant to professional income, Section 44ADA, Section 44AA, or Section 44AB.

In practice, the term “Form 25” is sometimes used informally or erroneously to refer to internal formats, client-specific working papers, or legacy references under other laws or repealed provisions. It has no statutory recognition for FY 2025-26.

Accordingly, there is no legal requirement to maintain or file “Form 25” for a doctor or any professional. Compliance must instead be ensured through:

• Books of account as per Section 44AA and Rule 6F, where applicable; or
• Presumptive scheme under Section 44ADA, if opted.

[Ryan Vaz]

• A doctor earning Rs. 20 lakh in FY 2025-26:
  • Tax audit NOT required (since below Rs. 50 lakh).
  • Books of account ARE required under Section 44AA + Rule 6F if opting for normal taxation.
  • However, if opting for Section 44ADA (presumptive)no need to maintain detailed books.
• There is no "Form 25" requirement under income tax; this is likely confusion-books are maintained as per Rule 6F, not a specific Form 25

AI Summary

Professional books of account and presumptive taxation govern doctor income compliance, not any separate Form 25 requirement. No statutory requirement exists for a doctor or other professional to maintain or file a so-called 'Form 25' under the Income-tax Act, 1961 or the Income-tax Rules, 1962. Compliance for professional income is governed instead by section 44AA and Rule 6F, which require specified books of account for medical professionals when the prescribed threshold is exceeded, including cash book, ledger, journal where applicable, supporting bills, case records, and inventory records of medicines. For a doctor with receipts of Rs. 20 lakh in FY 2025-26, the obligation to maintain books applies if normal taxation is followed.