Tax Audit Clause Selector – Section 44AB

01 Constitution / Entity Type

Required

Individual

HUF

Partnership Firm

LLP

Company

✓ Eligible for Presumptive Schemes u/s 44AD, 44ADA, 44AE. Basic Exemption applies.

02 Nature of Activity

Required

Business

Profession

Both

03 Turnover & Gross Receipts

Statutory Thresholds

Business Sales, Turnover or Gross Receipts *

₹

Normal limit: ₹1,00,00,000 (₹1 Cr) • Enhanced limit: ₹10,00,00,000 (₹10 Cr).

04 Dual 5% Cash Proviso Tests (For ₹10 Cr Limit)

Conditional Proviso

Since Business turnover is between ₹1 Cr and ₹10 Cr, the enhanced ₹10 Crore threshold is available only if BOTH cash receipts and cash payments are ≤ 5.0%. (Non-A/c payee cheques/DDs are treated as cash).

Part A: Aggregate Receipts & Cash Inflow Awaiting input

Total Aggregate Receipts *

₹

Cash Receipts + Non-A/c DDs *

₹

Part B: Aggregate Payments & Cash Outflow Awaiting input

Total Aggregate Payments *

₹

Cash Payments + Non-A/c DDs *

₹

05 5. Presumptive Schemes (Clauses c, d, e)

Lower Profit Exceptions

Does the business claim/compute income under any presumptive scheme? (Hover on any scheme for details)

None (Regular Books of Accounts Maintained)

Section 44AD

Section 44ADA

Section 44AE

Section 44BB

Section 44BBB

Section 44AD(4) 5-Year Lock-in Assessment

1. Was Return filed under Section 44AD in the preceding year (or any of past 5 years)?

YES

NO

Clause	Nature & Assessee	Statutory Condition / Limits	Tax Audit Trigger Test	Precedence & Form
44AB(a)	Business (All Entities)	Turnover > ₹1 Crore (or ₹10 Crore if Cash Receipts & Payments ≤ 5%)	Turnover exceeds applicable threshold and not exempted under Section 44AD.	General clause. Overridden by 44AB(e) if 44AD(4) is breached. Form 3CA/3CB
44AB(b)	Profession (Specified u/s 44AA)	Gross Receipts > ₹50 Lakh (or ₹75 Lakh if Cash Inflow ≤ 5% u/s 44ADA)	Gross receipts exceed statutory threshold. 5% cash relaxation of 44AB(a) does not apply.	Independent of Business limits. Form 3CA/3CB
44AB(c)	44AE / 44BB / 44BBB Assessees	Goods carriage (≤10 vehicles), Mineral oil exploration, Turnkey power projects.	Assessee declares profits lower than statutory deemed profit under Section 44AE, 44BB, or 44BBB.	Mandatory irrespective of basic exemption limit. Form 3CA/3CB
44AB(d)	44ADA Eligible Professionals	Resident Individuals & Firms (excl. LLPs) with receipts ≤ ₹50L / ₹75L.	Declares profit < 50% deemed income AND Total Income > Basic Exemption Limit (or Firm).	Specific professional presumptive exception. Form 3CB-3CD
44AB(e)	44AD Opt-out Assessees	Individuals, HUFs & Firms (excl. LLPs) in 5-year 44AD(4) penalty lock-in.	Opted out of 44AD in 5-year lock-in window AND Total Income > Basic Exemption Limit (or Firm).	Takes statutory precedence over 44AB(a). Form 3CB-3CD

Section 44AB Statutory Decision Flowchart & Reference

Statutory Configuration