Essential Income Tax Provisions for Doctors: Who Should Maintain Form 25?

When it comes to Incomt Tax Return filing for medical professionals, it is important to maintain a case register, referred to as Form 25. It is an mandatory clause under the Income Tax (IT) Act, 2025. However, there is no need to furnish the information at the time of filing ITR.

What is Form 25?

Form 25 is a new requirement prescribed by the Income Tax Department for doctors. It maintains detailed, day-wise records of patients, services rendered, fees received, mode of payment, and date of receipt. Under Form 25, doctors must also report opening stock and closing stock of drugs, medicines, and consumables as of the first and last day of the financial year (Apr-Mar). These records can be maintained either physically or electronically, but the system needs to be in place.

Is It Mandatory For Every Doctor?

Form 25 is mandatory for doctors only if the total receipts of the medical practitioner exceed Rs 1.5 lakhs in any of the last three assessment years. "If you fall in this bracket, then maintaining day-wise details of your patients and receipts under Form 25 is mandatory. Practitioners of any system of medicine, including physicians, surgeons, dentists, pathologists, radiologists, hakims, and other medical professionals, must maintain Form No. 25," explains Nehal Mota, Co-Founder & CEO, Finnovate.

Key Points About Form 25

The mandate to keep Form 25 is only applicable from financial year 2026-27. Medical professionals can start keeping these records from now onwards; however, it is mandatory to maintain a 7-year patient and receipt records from now, stated Nehal Mohta.

"Another important thing to remember is Form 25 is independent of whether the Doctor is subject to tax audit or filing tax returns under Section 44ADA. If the threshold of ₹1.50 lakhs per year of gross receipts is exceeded in any of the last 3 assessment years, then Form 25 is mandatory for the doctors," Mohta added.

The main purpose to maintain the document is to reduce revenue leakage and improve the audit trial of doctors' income.

The contrast between registered doctors and declared high-income earners is central to the debate. India has more than 21 lakh registered allopathic and AYUSH practitioners combined, based on the estimates cited for early 2026. Against that base, around 2,500 doctors reporting taxable income above Rs 1 crore appears low, given the growth of private healthcare in urban and semi-urban markets.

However, the number also needs careful interpretation. Not every registered doctor is actively practising. Some may be in government service, academics, research, administration or retirement. Others may work in smaller towns where consultation fees are modest. AYUSH earnings also vary widely by region, practice type and patient base.