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Query on 44ADA & AD

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Rakesh Raki

27 Points Posted on 22 July 2021

i have filed a return on last year u/s 44ADA..
now can i file current year return under 44AD..
please suggest me...

if yes, is there any problem when i get bank loans..

Replies (6)

Quick Summary

This discussion explores whether an individual who previously filed under Section 44ADA (for professionals) can now file under Section 44AD (for businesses). The consensus suggests that a switch is possible if the nature of the profession has genuinely changed into an eligible business. However, if the same professional business is continued, opting for 44AD would not be permissible. There appears to be no issue with bank loans regardless of the presumptive taxation scheme chosen.

prasad Nilugal

2353 Points Posted on 22 July 2021

44ADA is for professional and 44AD for Business , please reply .

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 22 July 2021

If you're maintaining presumptive taxation you should maintain it for 5 years

CMA Poornima Madhava

CMA

9106 Points Posted on 22 July 2021

If you have changed your profession into some other eligible business, then you may be able to avail 44AD. As I understand, there is no problem w.r.t. bank loans whether you opt for 44AD or 44ADA.