Section 44ad

Technically you can again opt for 44AD as you had done audit because of turnover and not opting out. He might saying it to you because of his reasons.

We need to check your audit report that under which section audit was done.

If you need I can help you with filing ITR and other things.

You can either call me or mail me for further details.

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Thank you

Hi

Your CA is not correct. You can opt for 44AD this year.

5 year limit is applicable when an eligible assessee does not opt for 44 AD. In your case, you were not an eligible Assessee to claim 44AD.

Dear Sir,

Hope you are doing well !!

Your CA is not giving correct advice.

You can opt 44ad for current FY.

As per section- An assessee who was previously an “ineligible assessee” now becomes “an eligible assessee” or an assessee who has newly started an eligible business can also enter section 44AD presumptive basis without 5 year’s restriction.

Hi,

The understanding of your CA is not correct.

If you opt for presumptive continue for 5 years and if you want to opt out, you’ll be barred from resuming presumptive for a period of 5 years.

You can take the benefit of section 44ad this year.

Please find below the links for your reference:

https://incometaxindia.gov.in/Acts/Finance%20Acts/2016/[deleted].htm

https://cleartax.in/s/section-44ad-presumptive-scheme

Dear Sir,

https://taxguru.in/income-tax/analysis-5-year-restriction-section-44ad-income-tax-act-1961.html

See the point : ENTRY TO SECTION 44AD TO A COMPLETE OUTSIDER :-

Please find the relevant Clauses of section 44AD below:

(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).

 (a) "eligible assessee" means,—

 (i)  an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and

(ii)  who has not claimed deduction under any of the sections 10A, 10AA,10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year;

(b)  "eligible business" means,—

 (i)  any business except the business of plying, hiring or leasing goods carriages referred to insection 44AE; and

(ii)  whose total turnover or gross receipts in the previous year does not exceed an amount of two crore rupees.

https://www.incometaxindia.gov.in/_layouts/15/dit/mobile/faqs/faq-questions.aspx?key=FAQs+on+Tax+on+Presumptive+Taxation+Scheme&k=

In this FAQ it has been made clear that any assessee having turnover above 2 crore is not eligible for 44AD and if one is not eligible for 44AD then how can he opt out of section 44AD.

And since you have not opted out you can opt 44AD if your turnover is below 2 crore.

Hi,

- The opinion of your CA is incorrect.

- Section 44AD is applicable when turnover is less than Rs.2cr.

- If my turnover exceeds Rs.2 cr then I am not eligible for benefit of 44AD.

- In your case, you can avail benefit of 44AD.

- Please ask your CA to read 44AD(4).

Thanks

Hi

Yes you can opt for 44ad this year.

Hope it helps