Tax Audit under the Income-tax Act, 2025: Form 26 and Section 63
From tax year 2026-27 the tax audit report is Form 26 under Section 63. Here is who needs one and when.
From tax year 2026-27, a tax audit is governed by Section 63 of the Income-tax Act, 2025, read with Rule 47 of the Income-tax Rules, 2026. The audit report and particulars are now filed in a single Form 26, which replaces the old Forms 3CA, 3CB and 3CD.
Who needs a tax audit
| Taxpayer | Audit applies if |
|---|---|
| Business | Turnover, sales or gross receipts exceed Rs 1 crore |
| Business with low cash dealings | Limit is Rs 10 crore if cash receipts and cash payments are each 5% or less of the total |
| Professional | Gross receipts exceed Rs 50 lakh |
| Presumptive taxpayer | Income declared is below the deemed income under Section 58(2) or 61(2) |
A taxpayer who opts out of a presumptive scheme during its five-year lock-in, and whose income is above the basic exemption limit, may also need an audit. Read our guide on presumptive taxation before choosing.
Due date
The report is due one month before the return due date. For example, if the return is due on 31 October, the audit report is due by 30 September. Check which return date applies to you.
What to prepare
- Complete books, bank statements and ledgers for the year.
- Cash receipts and payments totals to test the Rs 10 crore condition.
- TDS and GST reconciliations, since the report asks for compliance details.
Choose your tax regime early, because it affects the figures in the return.
Frequently asked questions
What replaces Form 3CD?
Form 26 replaces Forms 3CA, 3CB and 3CD from tax year 2026-27.
What is the audit limit for a business?
Rs 1 crore, or Rs 10 crore if cash transactions are 5% or less of receipts and payments.
What is the limit for professionals?
Gross receipts above Rs 50 lakh.
When is the report due?
One month before the due date of the income tax return.
This article is for general information only and is not tax, legal or financial advice. Rules, rates and criteria change and vary by lender, so confirm the latest position with the official source or your lender before acting.
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