Change of business u/s 44ADA to sec 44AD

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An individual is seeking to reclassify their business income from Section 44ADA to Section 44AD. While the MSME certificate currently lists the business as an interior decorator, qualifying for 44ADA, the actual work involves house painting on a daily or contract basis. It is possible to change the classification to 44AD, but it's advisable to update the business activity in the MSME certificate accordingly. Remember, the ITR selection of business activity is independent of the MSME certificate.

Tax Consultants

Tax Consultants (Querist)

24 July 2022 A individual is showing his income u/s 44ADA but his nature of business is to paints the houses on daily basis or sometimes on contract .But Due to showing nature of business as interior decorator in his MSME certificate because of this his business is shown u/s 44ADA but now can we change his income to u/s 44AD under other services code.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 July 2022 Yes, you can but include such services in MSME registration also.

CA PARTH SHAH

CA PARTH SHAH (Expert)

07 August 2022 His business falls under section 44AD and not section 44ADA. So It is advisable to modify the business activity in the MSME certificate. Selection of business activity in the ITR does not depend on the MSME certificate.

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