Section 44ADA OPTING OUT

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A professional earning Rs 16 lakhs gross fees wishes to opt out of Section 44ADA to declare a lower net income based on their accounts. While it's possible to file with a Profit & Loss account and Balance Sheet, eligibility for Section 44ADA means opting out and declaring less than 50% necessitates submitting an audit report under Section 44AB(d) of the IT Act.

Peter Pamatthai

Peter Pamatthai (Querist)

19 January 2022 DEAR SIR I AM A PROFESSIONAL HAVING GROSS FEES COLLECTON OF Rs 16 lakhs. IN THE PAST YEARS I USED TO FILE RETURNS U/S 44ADA OFFERING 50% OF FEES AS INCOME. BUT NOW I WANT TO KEEP ACCOUNTS AND SHOW LOWER INCOME. MY ACCOUNTS SHOW THAT MY NET INCOME FROM PROFESSION IS BELOW 50% OF GROSS FEES. CAN I OPT OUT OF 44ADA AND FILE RETURN WITH BALANCE SHEET /P&L ACCOUNTS - UNAUDITED - THANK YOU

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 January 2022 You can file return with P&L acc & BS, but as you are eligible for sec. 44ADA and declaring income less than 50%, you need to submit audit report u/s. 44AB(d) of IT act.

Peter Pamatthai

Peter Pamatthai (Querist)

19 January 2022 THANK YOU SIR - EXCUSE ME FOR ASKING SUCH A QUESTION WHICH I SHOULD HAVE AVOIDED - AGAIN SORRY

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 January 2022 No Sir, its ok. You can ask any query without hitch. It helps to clear doubt for everyone, even who comes across the post anytime in future.

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