ITR filing Under 44AD

This query is : Resolved 
Quick Summary
A client has been using the Section 44AD scheme for income tax filing since the 2017-18 financial year and wishes to opt out for the 2022-23 financial year. The discussion clarifies that the five-year consecutive rule for 44AD starts from the 2018-19 assessment year. Therefore, for the 2023-24 assessment year, the client can opt out of the scheme without penalty. It's also confirmed that continuing with Section 44AD in the 2023-24 assessment year is permissible without restrictions.

Profile Image

Guest

Profile Image

Guest (Querist)
27 July 2023 My client had been opting 44AD from 17-18 financial year for his income tax filing. Can he opt out from 44AD scheme for his 22-23 FY income tax filing? Does this five year rule of consecutive 44AD filing includes the first year of 44AD filing ie 17-18 FY? Or this five year consecutive 44AD filing range from 18-19 FY to 22-23 FY? Experts please advice.
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
27 July 2023 Five consecutive years starts from AY 18-19 and ends at AY 2022-23. So, for AY 2023-24 he can opt out without any consequences.
Profile Image

Guest

Profile Image

Guest (Querist)
27 July 2023 Can one continue 44AD in 23-24 AY?
Profile Image

Guest

Profile Image

Guest (Querist)
27 July 2023 Thank you sir for this sudden response
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
27 July 2023 Yes, you can continue with Sec. 44AD IT act, without any restriction.
Profile Image

Guest

Profile Image

Guest (Querist)
27 July 2023 Thanks again sir for this expedited response
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
27 July 2023 You are welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Narasimha MurthyNarasimha MurthyPro Member RATI MALURATI MALUPro Member atul kumar soniatul kumar soniPro Member Prakash J CPrakash J CPro Member Thanwar ChhatwaniThanwar Chhatwani
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category