Switching from Sec 44AD to Sec 44ADA

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If you've previously filed under Section 44AD for a business but have now transitioned to freelancing as a consultant, you can switch to Section 44ADA. This change is generally permissible as long as your new activity falls under the specified professions eligible for 44ADA. Switching the business code and section shouldn't typically trigger income tax notices, especially if your new professional services are distinct from your previous business.

rajesh parai

rajesh parai (Querist)

12 November 2025 i have been filing my returns under Sec 44AD for different Business but then i discontinued business for FY 2025 - 26 and started earning as freelancer for consulting so can switching from Sec 44Ad to Sec 44Ada can trigger income tax notices or can we switch and

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 November 2025 As your business details will change with change in code, the chances of any query will be minimal.

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Expert)

13 November 2025 It depends on your nature of business. If you are doing eligible business as per Section 44AD in the previous years and now you are providing professional services as per Section 44ADA for specified profession then then there is no issue in switching business code and section from 44AD to 44ADA.

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