TAX AUDIT us 44AB TO 44AD

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An assessee who previously had their accounts audited under Section 44AB for several years is now considering filing their Income Tax Return (ITR) under Section 44AD for AY 2020-21. This is due to the business closing and turnover falling below the limits for 44AB. The advice given is that filing under 44AD is permissible if the business qualifies and the assessee meets the criteria for an eligible assessee, with the 5-year lock-in period not being a concern when closing the business.

tabrez khan

tabrez khan (Querist)
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02 October 2020 The Assessee is getting his Books of Accounts Audited u/s 44AB from AY 2014-15 TO AY 2019-20.
In Ay 2020-21 the Firm business is Closed and Firm's Turnover is quite less than limits mentioned u/s 44AB.
Can he file his ITR U/s 44AD?

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)
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03 October 2020 Yes, you can file return u/s 44AD if your business is eligible business for section 44AD.
As the assessee is closing business, 5 years lockin period issue in 44AD is also not applicable.

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