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44AD/ADA are mandatory?

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Upon a plain reading of 44AD & 44ADA, especially sub sections 1 of both, it does not seem as if these schemes are optional. They seem to be merely "deeming" a certain amount of income on "eligible assesses".

Furthermore, both provisions are classified as "Special provisions" in law, which as per many legal rulings found online, supercede "general provisions" of law.

Are these schemes optional for "eligible assesses"?

Is there any legal document avaliable that clearly says these are optional even for "eligible assesses"?

Thank you.
Replies (4)

Correct. Even though being optional, deeming provision applied over eligible assessee having eligible business or professions !!!

If it wasn't optional then the word "eligible" would not be there.
For Mr. Rambhia,

Sir,

Thank you very much for confirming my suspicion.

This would mean opting in/out of these schemes is a suggestion that is meaningless. The schemes apply, under all circumstances.

Now my next question is, is the following way of filing an ITR3 return correct? What alterations would you suggest and why? Would very much appreciate it if you would also cite a legally valid document in case you suggest any alteration.

This is only for ITR3, professional income greater than 50% of gross receipts & gross receipts greater than the exemption limit of 44AA.

1. Switch 44AA - Set to Yes.

2. Switch 44AB set to No.

3. Detailed BS filled.

4. Detailed PL filled.

5. Depreciation schedule filled**

6. Full PGBP income, which is auto-imported from the final field of the detailed PL, specified u/s 44ADA in Sch BP.

**Depreciation schedule is necessary as you would know for the detailed PL calculation which entails deduction of depreciation to arrive at the final PL figure that is autoimported into Sch BP. Since this depreciation deduction is prior to classification of income as 44ADA in Sch BP, it would not conflict with 44ADA(2).

Thanks.

"This would mean opting in/out of these schemes is a suggestion that is meaningless. "

Not restricted for Sec. 44ADA

"The schemes apply, under all circumstances."

Correct.

No suggestion....... Everything seems Correct... 


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