Tax audit & Switching from Presumptive taxation
This query is : Resolved
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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
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
Dhirajlal Rambhia
(Expert)
29 October 2025
No. The five year fixed period applies to sec. 44AD IT act; but not for sec. 44ADA IT act.
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29 October 2025
Thank You for this clarity Rambhia Sir.....
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Dhirajlal Rambhia
(Expert)
29 October 2025
You are welcome.
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