Opting our of sec 44AD
This query is : Open
23 April 2026
Dear Sir,
Mr A is having professional income from the profession as specified u/s 44ADA. He also does F&O trading.
Since AY 2019-20, he has been showing F&O transactions u/s 44AD, declaring 6% of turnover as profit from F&O even though he is actually incurring losses. He earns Rs. 8 lakhs from professional activities.
Now, after 7 assessment years, from AY 2026-27, he wants to show actual losses from F&O activities. Can he opt out of Section 44AD without the applicability of audit?
Kindly guide.
Regards,
Suraj
Mr A is having professional income from the profession as specified u/s 44ADA. He also does F&O trading.
Since AY 2019-20, he has been showing F&O transactions u/s 44AD, declaring 6% of turnover as profit from F&O even though he is actually incurring losses. He earns Rs. 8 lakhs from professional activities.
Now, after 7 assessment years, from AY 2026-27, he wants to show actual losses from F&O activities. Can he opt out of Section 44AD without the applicability of audit?
Kindly guide.
Regards,
Suraj
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