Return filed u/s 44ADA instead of 44AD

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An individual mistakenly filed their income tax return under section 44AD as an 'other contractor' for the 2018-19 financial year. They now wish to file under section 44ADA for architecture services for FY 2019-20, declaring a profit margin exceeding 50%. The query clarifies that it is indeed possible to file under 44ADA, and there's no time limit to exit 44AD. However, re-opting for 44AD after exiting requires a five-year commitment.

Keyur

Keyur (Querist)
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01 October 2020 One assessee filed I.Tax return under 44AD for the year 2018-19 who is an interior designer by mistake under other contractor business.
Now i want to file I.Tax return u/s-44ADA for the fy-2019-20 under Architecture Service and declared more than 50% profit of total turnover.
It is possible or not??

Need to file u/s 44AD instead of 44ADA bec.only 1 year return was filed u/s 44AD and as per income tax rules minimum 5 year to be filed u/s 44AD!!

Clarify on priority basis

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 October 2020 It's possible to file ITR under 44ADA.
No time limit applicable for comming out of 44AD, any time we may come out but for opting back 5 years time limit applicable in case of 5 years 44AD not continued.

Keyur

Keyur (Querist)
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01 October 2020 Warmly thanks sir for prompt reply...

As Architecture Service 44AD is not applicable as per provision of I.Tax Act.

Last year we are made mistake for selecting section.

agains thank you sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 October 2020 You are welcome.......

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