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

akshay maloo

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

akshay maloo

akshay maloo (Querist)
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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)
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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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