If an assessee filed his Income Tax Return opting Sec 44AD presumptive taxation scheme in 2017-18. In 2018-19 he has not filed his Income Tax Return because his income was below the taxable limit.
Now my question is whether he can opt sec 44AD presumptive taxation scheme in 2019-20.
Menu
Section 44AD
Replies (7)
Yes he can opt 44AD as it is to be maintained for 5 years
As I understand, 44AD can be availed since the income does not exceed basic exemption limit.
Moreover, there is no compulsion to avail 44AD for continuous 5 years. However, if 44AD is not availed for 5 continuous years, then the assessee will not be eligible to avail 44AD for 5 years from the year in which the assessee opts out of 44AD.
You must file IT return for continuity sake even if it's below taxable limit. You may exit anytime from 44AD but in that case you won't be able to take benefit of 44AD for next 5 years
Now whether he has to file ITR 3
You are absolutely right
But in Sec 44AD (4) it is not mention that he has to file Income Tax Return even if his Income is below taxable limit.
Absolutely, he can opt sec 44AD presumptive taxation scheme in 2019-20.
Recent Threads
- Help reqd in getting Professional Tax challan
- New form 139 as per Tax Act 2025
- In GST maintain invoices or bill in excel instead
- How to paid income tax in block return in itrb
- RCM Applicable for Man Power Supply (URD) to Regis
- Guidance Required for CA Final Group 2
- Income tax challan in block itrb
- CREDIT NOTE RECEIVED AGAINST REVERSAL OF ITC ON EA
- Computerization of Form 121 (Earlier 15G/H)
- New Traces 2.0 issues
Related Threads
CAclubindia
