Section 44AD applicability for partnership firm

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A partnership firm that hasn't previously used Section 44AD can opt for it in FY 2022-23 if its turnover is under £2 crore, even if it had a tax audit in FY 2021-22. This scheme offers relief to eligible small businesses, provided they meet certain conditions and are not involved in specific excluded business types like agency or commission work.

jyotiba

jyotiba (Querist)
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25 October 2023 A partnership firm, which has never opted for Section 44AD before, and had a tax audit for FY 2021-22, can opt for Section 44AD for FY 2022-23 if its turnover is below 2 Crore

RAJA P M

RAJA P M (Expert)
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25 October 2023 Yes, if eligible business...

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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15 January 2024 Section 44AD - It is designed to give relief to small taxpayers being resident individuals, resident HUF, and resident partnership firms (not LLP) engaged in any business who have not claimed deductions u/s 10A/10AA/10B/10BA or 80HH to 80RRB for the relevant year, but does not include the following businesses:

Business of plying, hiring, or leasing of goods carriages referred to in section 44AE;
A person who is carrying on any agency business;
A person who is earning income in the nature of commission or brokerage;
A person who is engaged in any profession as prescribed u/s 44AA (1).

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