Can a partnership firm opt for presumptive taxation u/s 44ad if it never opted for it in prev 10 yrs

Can a Partnership Firm (With Turnover LESS THAN 20LAC since inception) OPT FOR PRESUMPTIVE TAXATION U/S 44AD IN AY 22-23
if It DID NOT OPT for PRESUMPTIVE TAXATION u/s 44AD in ANY of the previous 10 years (From 2011 to 2021)

NB: All these years the profit was shown between 6%-8% of Turnover after deducting all expenses (all digital transactions).


 

Replies (4)
Quick Summary
This discussion clarifies whether a partnership firm with turnover under £20 lakh can opt for presumptive taxation under Section 44AD for AY 22-23, even if it hasn't used this scheme in the past 10 years. The consensus is yes, a firm can opt in afresh. It also addresses the implications for filing ITR-4 versus ITR-3 for the firm and its individual partners, and whether books of accounts are required under Section 44AA when opting for 44AD.

Yes, Partnership firm can opt for sec. 44 AD of IT act afresh, without any restrictions of previous filing of ITR 5.

Thanks for the reply. 

In ITR 4 Sugam there is no provision to show individual Partner's Capital, Interest and remuneration. Or are these not required in ITR 4. 
Can I still use ITR 3 for both partners like previous years.

 

Yes, that is not required in ITR4, for firm.

For individual partners ITR3 need to be filed.

Thanks Sir. 

In Presumptive Taxation u/s 44AD there is no need to maintain books of accounts u/s 44AA. 
Will it apply to the partners as well. Do they need to maintain books of accounts u/s 44AA  or it is not required since the firm is not required to do so. 

 

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