ITR filling under section 44AD

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This discussion clarifies whether an individual can resume filing their Income Tax Return (ITR) under Section 44AD for FY 2021-22, even if they previously discontinued it. The consensus is that if you filed under Section 44AD, then stopped, and then filed under ITR-3 for FY 2019-20 and FY 2020-21 (even if your income exceeded the basic exemption limit but turnover was below the audit threshold), you can opt for Section 44AD again for FY 2021-22. However, choosing this route means you must continue with it for the next five years.

akshay maloo

akshay maloo (Querist)

19 December 2022 Can we file ITR under section 44AD for the FY 2021-22 if we have discontinued filling ITR under section 44AD in FY 2019-20?
What are the consequences?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 December 2022 How had you file ITR for FY 2020-21?
Whether tax audit report submitted with ITR?

akshay maloo

akshay maloo (Querist)

19 December 2022 yes itr for fy 2020-21 has been filed (itr-3). Audit was not applicable in that period

akshay maloo

akshay maloo (Querist)

19 December 2022 Financial Year
2013-14 to 2016-17 -ITR filed 44AD

2017-18 - ITR NOt Filed

2018-19 - itr filed 44AD

2019-20 and 2020-21 - ITR 3 Filed (non audit case)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 December 2022 Whether the income for FY 2019-20 & FY 2020-21 were above basic exemption limit?

akshay maloo

akshay maloo (Querist)

19 December 2022 Yes, income for both the FY were above basic exemption limit but the turnover is below audit limit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 December 2022 As there were normal assessment in FY 2019-20 & also in FY 2020-21, you can opt for presumptive assessment u/s. 44AD of the act (provided eligible as per the act) freshly in FY 2021-22 ( i.e AY 2022-23), but you will need to continue it for next 5 years.

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