Changing section from 44AD to 44ADA
This query is : Resolved
15 December 2021
Dear Sir,
One of my client was filing return under Section 44ADA till FY 2019-20 but from FY 2020-21 she has boutique income which is eligible for section 44AD.
Can her return now be filed under Section 44AD or she needs to continue filing under 44ADA only since in 2020 return was filed as a professional.
Please suggest what can be done.
Regards,
Divyesh Jain
One of my client was filing return under Section 44ADA till FY 2019-20 but from FY 2020-21 she has boutique income which is eligible for section 44AD.
Can her return now be filed under Section 44AD or she needs to continue filing under 44ADA only since in 2020 return was filed as a professional.
Please suggest what can be done.
Regards,
Divyesh Jain
15 December 2021
Yes, can be changed to 44AD, in case of 44ADA not applicable.
15 December 2021
Thanks a lot for your reply
15 December 2021
For eligible business income, one can opt for s. 44AD and for professional income 44ADA. Both can be simultaneous. If there is non-eligible income u/s 44AD such as Commission etc. then one may opt for normal income for that not eligible business. If one has income eligible u/s 44E then it may also be there in a single return of income provided his turnover does not become liable o Tax Audit.
15 December 2021
Thanks Parasji for your reply
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