44ada to normal return

last year i filed return u/s 44ada .this year i hv filed return as normal business income declaring profit more than 50%. since i hv changed from 44ada to normal should i audit.? return already submitted..pls reply ..thanks in advance
Replies (8)
Quick Summary
This discussion clarifies the audit requirements when switching from Section 44ADA (presumptive taxation for specified professions) to filing under normal business income. It confirms that there is no five-year restriction for opting out of and back into Section 44ADA, unlike Section 44AD. If you declare a profit margin of 50% or more when filing normally, an audit is generally not required.

For opting out of sec. 44ADA and again opting in, there is no restriction like that in sec. 44AD.

So, no audit applicable if 50% or more margin is declared under normal assessment.

But someone said that for 5 years we cant change from 44 ad??

Your original query is for section 44ADA........... and not for sec. 44AD...

Both sections are different.

The five year rule applies to sec. 44AD (6/8% margin) which is applicable for eligible businesses.

The same (5 years rule) is not applicable to sec. 44ADA (50% margin), which is applicable in case of specified professions.

Thank u so much

Most Welcome..                 

What r the 5 year rule applicable profession

For specified professions sec. 44ADA can be opted. Eligible for total receipts upto 50 lakhs.

There is no restriction of 5 years for such profession under sec. 44ADA.  They can opt in and out of the presumptive assessment without any restriction every next AY.
Only restriction is minimum 50% profit margin, otherwise audit u/s. 44AB(d) of IT act.

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