Find
A professional who does not use Sec 44ADA files ITR-3 with income computed from books. A tax audit applies if gross receipts exceed ₹50 lakh under Sec 44AB (now Sec 63).
ITR
Doctors, CAs and other professionals keeping books
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Provisions
Sec 44AA, Income-tax Act 1961 (now Sec 62, Income-tax Act 2025); Sec 44AB, Income-tax Act 1961 (now Sec 63, Income-tax Act 2025); Sec 37, Income-tax Act 1961 (now Sec 34, Income-tax Act 2025)
Analysis
Books let you claim actual expenses such as clinic rent, staff salary and equipment depreciation. Example: receipts ₹45 lakh with actual expenses of ₹28 lakh gives income of ₹17 lakh, lower than ₹22.5 lakh under the 50% presumptive rate. With receipts above ₹50 lakh, an audit is needed before filing.
Close
- Maintain the prescribed books
- Compute income from books
- Check the ₹50 lakh audit limit
- Get the audit done if needed
- File ITR-3
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