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manas paul   13 June 2021

Presumptive income 44AD(4)

SECTION 44AD(4) SAYS ONCE YOU DECLARE INCOME u/s 44AD(1) ( i.e 8% on Turnover or higher income ) ASSESSEE HAS TO DECLARE HIS INCOME u/s 44AD(1) FOR NEXT FIVE A.Y.......NOW THE QUESTION IS ASSESSEE WILL HAVE TO DECLARE INCOME u/s 44AD(1) MEANS,  HE HAS TO CONTINUE PRESUMPTIVE INCOME SCHEME AND SHOW INCOME AT 8% OR MORE....[ IN ITR 4  OR ITR 3( u/s 44AD coloumn)  ] OR HE CAN SHOW 8% OR MORE INCOME ANYWAYS i.e UNDER REGULAR SCHEME ALSO ( IN ITR 3 GENERAL P/L, BALANCE SHEET )????



 1 Replies

A Kar

A Kar (Nil)     13 June 2021

As far as I know it is not mandatory to file presumptive under 44AD for the next 5 years. However if you do go out of presumptive income declaration for any year to carry forward losses or adjust expenses or whatever reasons, you cannot come back for the next five years to file presumptive income tax return. Correct me if I am wrong.

There is no provision to file 8% return in general ITR 3. You have to file actuals. 

Now my follow up question to experts is that after filing presumptive for a year, if I do not have a business for 2 years and again start one, then can I use presumptive even within 5 years? The reason being I had no business and so did not file business income in presumptive or non presumptive for 2 years.

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