Tax audit & Switching from Presumptive taxation

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A professional previously using presumptive taxation under Section 44ADA is now an NRI and needs to switch to normal tax filing. This involves preparing Income and Balance Sheet statements. The user is seeking clarification on whether this change in tax scheme will necessitate a tax audit, as Section 44ADA is not applicable to NRIs. The response clarifies that the five-year limit mentioned applies to Section 44AD, not 44ADA.

Suraj

Suraj (Querist)
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29 October 2025 Dear Sir / Madam,

A professional person was filing his return u/s 44ADA, i.e. presumptive taxation till last year. Now he will be an NRI from the current year. He already filed the return u/s 44ADA for 4 years.

Since section 44ADA is not available to an NRI, he needs to prepare IE & BS and file the return under normal taxation.

Will this switching from section 44ADA to the normal scheme of ITR filing attract the Tax audit provision??

Please guide.

Regards,
Suraj