Answer

ITR

Tax audit and presumptive rules from tax year 2026-27

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    From tax year 2026-27, tax audit is under Sec 63 of the Income-tax Act 2025 (old Sec 44AB) and presumptive income under Sec 58 (old Sec 44AD, 44ADA and 44AE). The audit report is Form 26 (old Forms 3CA, 3CB and 3CD).

  2. Provisions and law

    • Sec 63, Income-tax Act 2025 (old Sec 44AB)Tax audit requirement for tax year 2026-27 onwards
    • Sec 58, Income-tax Act 2025 (old Sec 44ADA)Presumptive income for professionals, tax year 2026-27 onwards
    • Sec 202, Income-tax Act 2025 (old Sec 115BAC)New tax regime is the default for tax year 2026-27 onwards

  3. Analysis

    The thresholds were carried over, but read the notified rules before planning. Example: a trader planning for tax year 2026-27 should keep turnover workings and books from 1 April 2026 in line with Sec 63 and Rules 2026. Returns for AY 2026-27 filed now still use the 1961 sections.

  4. Conclusion

    1. Know which year you are working on
    2. Use 1961 Act sections for AY 2026-27
    3. Use 2025 Act sections for tax year 2026-27
    4. Set up books from 1 April 2026 accordingly

A Savvy can do this for you

Business or professional income return, ITR-3 (including F&O and intraday)

₹4,999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask