Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
₹50 lakh receipts
Cross ₹50 lakh of professional receipts and a tax audit is required. Confirm current limits.
44ADA interaction
Opting for presumptive 44ADA and declaring 50%+ keeps you out of audit; declaring lower brings it back.
Which professionals this covers
The ₹50 lakh receipts test and the 44ADA option apply to the notified professions — legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and a few others such as film artists and authorised representatives. Receipts means money actually received in the year, not billings outstanding. If you run both a profession and a separate business, the two are tested under their own limits — ₹50 lakh for the profession and the business turnover limit for the business — not added together. Keeping a clean record of receipts, ideally through a single professional bank account, makes the year-end position easy to confirm. Reimbursements billed to clients and out-of-pocket costs need care, since whether they count as receipts depends on how they’re invoiced. If your receipts are near the limit, confirm the figure before the year closes so an audit can be arranged in time.