SECTION 44AD(4) AND ITS LINKAGE TO 44AB

This discussion explores the applicability of Section 44AD(4) for Assessment Year 2021-22, particularly concerning audit requirements under Section 44AB. It clarifies that Section 44AD(4) becomes applicable if a taxpayer opts out of Section 44AD in a previous year, mandating an audit for the next five years. For AY 2021-22, with a turnover of 80 lakhs and income of 2,52,000/-, an audit is indeed required under Section 44AD(4) as the net income falls below the prescribed threshold.