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Applicability of Presumptive taxation

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Akshat Varaiya

229 Points Posted on 10 October 2022

I have been showing income u/s 44AD since 17-18, but i haven't shown income from business in AY21-22 & again started showing income u/s 44AD from AY22-23.

So, my query is whether I am liable to show income u/s 44AD until next 5 yrs, or is this the last year for 44AD?

Replies (6)

Quick Summary

This discussion clarifies the rules surrounding presumptive taxation under Section 44AD of the Income Tax Act. It addresses a user's query about continuing with 44AD after a break in filing, explaining that while a break doesn't prevent future use, filing for the current year is mandatory to avoid a tax audit. The conversation also touches upon how profits taxed under presumptive schemes in a partnership are tax-free when distributed to partners.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 10 October 2022

Hope you had no business income in FY 2020-21.

In that case, AY 2022-23 is 5th year in continuation...

Akshat Varaiya

229 Points Posted on 10 October 2022

I didn't had any business income in FY20-21

rama krishnan

12244 Points Posted on 11 October 2022

I think there's no bar in filing ITR under 44AD

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 11 October 2022

As said earlier, you are not required to continue it till next 5 years, but filing u/s. 44AD is mandatory for current year, otherwise tax audit will be applicable.