Help with 44ad eligibility

460 views 12 replies

if I did not opt for 44ad in ay 17 18 can i opt for 44ad in ay 18 19?

Replies (12)
Yes... You can opt if You & Your business is eligible under sec 44ad...

Yes, you can opt 44AD provided you continue to adopt the same for the next 5 AYs

Only for eligible Business and Assessee can opt sec 44AD...
Otherwise normal provisions should be applicable...
no you cannot opt for presumptive taxation.. 44ad(4) came in to effect from a.y. 2017-18
Can you explain Mr Rama Krishnan., Why not he can't opt sec 44AD..? How to you find the above said query atract 44ad (4)...?
section 44ad(4) comes into effect from a.y. 2017-18 and if he didn't opt for 44ad(1) for a.y. 2017-18 then 44ad(4) will apply.. if you have different opinion pls enlighten me Mr.raja
44AD (4) attracted only when the assessee opting 44AD in previous year has not opted the same for next 5 AYs. Here, it's the first time of adoption of 44AD, 44AD(4) doesn't come in to picture. I hope this is the reason. Clarify if it's not.
ass per section 44AD(4), if any assessee opts out of 44AD(1), then he will not be eligible to opt for 44AD for next 5 A.Ys immediately succeeding the A.Y. in which the A.Y. computed his total income according to the normal provisions of the income tax act and he is obliged to audit his books of account for those years.
this is what spelt in Section 44AD(4) and 44AD(5). now the point under dispute is, in act it is given as w.e.f. 01/04/2017... whether this 01/04/2017 denotes A.Y. or. F.Y
Originally posted by : rama krishnan
ass per section 44AD(4), if any assessee opts out of 44AD(1), then he will not be eligible to opt for 44AD for next 5 A.Ys immediately succeeding the A.Y. in which the A.Y. computed his total income according to the normal provisions of the income tax act and he is obliged to audit his books of account for those years. this is what spelt in Section 44AD(4) and 44AD(5). now the point under dispute is, in act it is given as w.e.f. 01/04/2017... whether this 01/04/2017 denotes A.Y. or. F.Y


" Pre condition " is the assesse " Should have Opted in " in previous year...so an assesse who was`nt assessed under 44AD in previous year (previous to the F.Y this ammended regarding this compulsory 5 year clause came into force ) is eligible to file under 44AD ...

attention Mr. Saifullah... in income tax act there's no concept of financial year. there are only assessment year and previous year. the section 44AD(4) comes into effect from 01/04/2017 that is too say from the A.Y. commences from 01/04/2017. the previous year for the A.Y. commences from 01/04/2017 is 01/04/2016 to 31/03/2017. hence according to my understanding, if the assessee did not opt for 44AD during the F.Y. 2017-18 then he is not eligible to available 44AD for next 5 A.Ys starting from A.Y. 2018-19. let mansi try to avail 44AD for this A.Y. 2018-19 then we'll come to know whether the system allows or not?
No it's wrong... If Asseessee opt sec 44AD in AY 17-18 and He will not opt ay 18-19 then only sec 44AD(4) will atract. Otherwise assesee can opt sec 44AD in ay 18-19 if he not opt ay 17-18...
Originally posted by : rama krishnan
attention Mr. Saifullah... in income tax act there's no concept of financial year. there are only assessment year and previous year. the section 44AD(4) comes into effect from 01/04/2017 that is too say from the A.Y. commences from 01/04/2017. the previous year for the A.Y. commences from 01/04/2017 is 01/04/2016 to 31/03/2017. hence according to my understanding, if the assessee did not opt for 44AD during the F.Y. 2017-18 then he is not eligible to available 44AD for next 5 A.Ys starting from A.Y. 2018-19. let mansi try to avail 44AD for this A.Y. 2018-19 then we'll come to know whether the system allows or not?


From general assesse angle it some times help to reference in F.Y terms as general public sometimes gets confused with A.Y...here I was talking about the relevant F.Y from which that clause/provision came into force.. .. as far as your question of applicability of 44AD(4) is concerned.. I would again repeat that the only "pre condition " for this is to HAVE OPTED IN the  44AD in previous F.Y (..oops ..A.Y)...any assesse not  opting/opted in 44AD for last/present or coming A.Y will still be eligible for 44AD ...but from now onwards once he opts in then he will HAVE to  KEEP opting in for next 5 years in a row otherwise 44AD(4) will come into play ...   


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register