Section 44AB → Section 51
Audit of accounts of certain persons carrying on business or profession
Quick Answer
Section 44AB of the Income Tax Act, 1961 (Audit of accounts of certain persons carrying on business or profession) corresponds to Section 51 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 44AB
Provision Summary
Requires businesses exceeding Rs. 1 Crore (or Rs. 10 Cr if 95% digital) and professionals exceeding Rs. 50 Lakhs to get accounts audited by a CA.
Sec 51
Provision Summary
Tax Audit limit structurally increased to Rs. 10 Crores for businesses conducting almost entirely digital transactions to promote less-cash economy.
Key Changes & Highlights
- Tax audit forms (3CB-3CD) highly digitized with automatic cross-referencing to GST data.
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Frequently Asked Questions
What does Section 44AB of the Income Tax Act 1961 deal with?
Section 44AB (Audit of accounts of certain persons carrying on business or profession) Requires businesses exceeding Rs. 1 Crore (or Rs. 10 Cr if 95% digital) and professionals exceeding Rs. 50 Lakhs to get accounts audited by a CA.
What is the new section number for Section 44AB under the Direct Tax Code 2025?
Section 44AB of the ITA 1961 maps to Section 51 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 44AB under the new tax code?
Section 44AB is marked as "Retained" with status "Modified". Impact: Critical - The bread and butter compliance for Chartered Accountants.
What are the key changes to Section 44AB under DTC 2025?
Tax audit forms (3CB-3CD) highly digitized with automatic cross-referencing to GST data.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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