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)
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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)
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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)
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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)
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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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