Freelancers, SMEs Warned as ICAI Representation to CBDT Highlights Section 44AB

The Institute of Chartered Accountants of India (ICAI) has raised serious concerns with the Central Board of Direct Taxes (CBDT) about Section 44AB of the Income Tax Act. This section makes a tax audit compulsory once income or turnover crosses a set limit. Many freelancers, small businesses, and startups are now reaching that point because of the rise of digital work and online trade. We see more content creators, IT consultants, and e-commerce sellers earning at levels once linked only to large firms. While this growth is positive, it also brings new tax duties. ICAI believes the rules need clarity and relief so that genuine taxpayers are not overburdened.