What scenarios does this checker cover?

44AB(a) basic turnover thresholds, the ≥95% digital relaxation, 44AB(e) when 44AD(4) is triggered, 44AB(b) for professionals, the books-of-account threshold under 44AA, and the 8-year carry-forward dependency on filing before the due date.

What is the 44AD(4) trap?

If you ever opted into 44AD presumptive and then declared income lower than 6%/8% of turnover in any of the next 5 years, you fall under 44AB(e) audit, even if your turnover is well below ₹1 crore.

AY 2026-27 Section 44AB 44AD(4) trap

Do you need a tax audit on your F&O?

A 7-scenario decision tree — including the 44AD(4) lock-in trap that most blogs miss.

See the decision table Open turnover calculator

Decision table

7 fact patterns

Your fact pattern	Audit signal
Turnover exceeds Rs. 10 crore	Audit route should be reviewed under Section 44AB(a) / 2025 Act s.63.
Turnover exceeds Rs. 1 crore and both 5% cash tests are not satisfied	Audit route should be reviewed under the base business threshold.
Used 44AD earlier, opted out within the lock-in period, and total income exceeds the basic exemption limit	Audit route should be reviewed under Section 44AB(e) / 44AD(5).
F&O loss only, with no turnover trigger and no 44AD lockout	Loss alone is not the audit trigger.

What it asks

Walk through

What is your F&O turnover for this FY?
Are ≥95% of your trading receipts/payments digital? (For F&O, almost always yes.)
Have you ever opted into Section 44AD in the last 5 years?
If yes, did you declare income lower than 6%/8% of turnover in any of those years?
Do you have any other business or professional income?
Do you want to carry forward this year's F&O loss?
When will you file your return?

Step before this

Get the turnover number right first.

Audit logic depends on the correct ICAI GN 2025 turnover. Use the calculator before this checker.

Open calculator

After this

Pick the right ITR form.

Audit applicability changes the form-choice math too. Run the ITR-3 vs ITR-4 checker next.

Run ITR checker

Frequently asked questions

What scenarios does this checker cover?: 44AB(a) basic turnover thresholds, the ≥95% digital relaxation, 44AB(e) when 44AD(4) is triggered, 44AB(b) for professionals, the books-of-account threshold under 44AA, and the 8-year carry-forward dependency on filing before the due date.
What is the 44AD(4) trap?: If you ever opted into 44AD presumptive and then declared income lower than 6%/8% of turnover in any of the next 5 years, you fall under 44AB(e) audit, even if your turnover is well below ₹1 crore.