Tax Audit Requirements in India: Clause 63 of the Income Tax Bill, 2025 vs. Section 44AB of Income Tax Act, 1961

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....63. This clause outlines the conditions under which tax audits are mandatory, aiming to streamline compliance and enhance transparency in financial reporting. This article provides a comprehensive analysis of Clause 63, comparing it with the existing Section 44AB of the Income Tax Act, 1961, to highlight the evolution of tax audit thresholds and requirements. Objective and Purpose Clause 63 of t....

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....banking or online modes, to undergo a tax audit. For those not meeting this condition, the threshold is Rs. 1 crore. Professionals with gross receipts exceeding Rs. 50 lakh are also subject to audit. * Sub-clause (2): Exempts individuals whose declared profits align with deemed profits u/ss (clauses) 58(2) or 61(2), unless specified otherwise. * Sub-clause (3): Stipulates the submission of the....

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.... Covers businesses with profits deemed u/ss 44AE, 44BB, or 44BBB, if declared income is lower than deemed profits. * Clause (d): Applies to professionals u/s 44ADA with income exceeding the non-taxable threshold. * Clause (e): Pertains to businesses u/s 44AD with income exceeding the non-taxable threshold. * Explanation: Defines "accountant" and "specified date" for compliance purposes. Pra....