For how long ITR filling under section 44AD is mandatory ?

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If you've been filing your Income Tax Return (ITR) under Section 44AD, you might be wondering if it's mandatory for five consecutive years. The good news is that you can choose to stop filing under 44AD at any time. However, once you opt out, you won't be able to use Section 44AD again for the next four years. The restriction is on returning to 44AD, not on opting out.

Deepak Rawat

Deepak Rawat (Querist)

04 April 2021 Dear Sir/Mam,
I am filling ITR under section 44AD since FY 2017-18. And Now, I don't want to opt for 44AD. Can I do so ? I have heard that if once ITR under Section 44AD is filled then it is mandatory to file the same for consecutive 5 Years.
Please guide.

Nikhil Kaushik

Nikhil Kaushik (Expert)

05 April 2021 actually you are reading it wrong. You can choose not to file return under 44AD anytime you wish to. However, once you do so, you cannot come back to file the return under 44AD for another four years.

So the restriction is not on opting out of 44AD but on returning to it.

Deepak Rawat

Deepak Rawat (Querist)

05 April 2021 Thank U Sir for making it clear...

Nikhil Kaushik

Nikhil Kaushik (Expert)

05 April 2021 you are welcome Deepak.

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