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Income tax query

265 views 8 replies

DEEPAK KUMAR

63 Points Joined July 2017

my client filed income tax return for a.y 2019-20 declaring income u/s 44ad and a.y 2020-21 declaring income as normal business due to commission income and trading income .kindly suggest 44ad(4) applicable or not in this case

Replies (8)

VIPINKUMAR K TIWARI

Financial Professional

196 Points Joined January 2011

Once you opt for U/s 44ad you can not change for five years. Commission & Trading income in not any issue in that. Only your turnover exceed above 2cr then you are allowed to change to normal filling.

DEEPAK KUMAR

63 Points Joined July 2017

No vipin ji pls read section carefully because section 44ad(4) applicable when assessee not comply with provision of sec 44ad(1) in any succeeding five year and in this case 44ad(1) not applicable due to eligible business

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

You can't opt for 44AD for AY-2019-20 since there is commission income.

This leads to loss of benefit of 44AD for next 5 years .

If you opt 44AD , you have to continue for 5 years but if unable to continue then there will be 5 years bar to opt again for 44AD

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

@ Mr Deepak KUMAR.,

Yes, Your doubt is exactly correct.
If You are opt out from 44ad (as Your commission income) then Your account will be fall u/s 44ad(4) and its under Tax Audit...