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Tax Audit and Presumptive

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Krishanu Majumder

Accountant

183 Points Posted on 15 September 2022

Dear experts,
My client got his accounts audited last year. This year he wants to go for presumptive sheme. Can he audit in next year? Or he has to compulsorily go for next 5 years?

Thanks in Advance

Replies (2)

Quick Summary

This discussion clarifies the rules surrounding presumptive taxation schemes, specifically under Section 44AD. If your client has undergone a tax audit, they can choose to opt out of the presumptive scheme in any given year. However, be aware that once you opt out, you become ineligible to use the presumptive scheme for the following five years.

Adv. Ravish Bhatt, ADIT, CIOT

Dual Qualified Lawyer/ Solicitor Intern

1110 Points Posted on 15 September 2022

Presuming that we are talking about presumptive taxation under 44AD, he can opt out of presumptive taxation in any year but once having opted out, he will not be eligible for succeeding five years to opt for presumptive taxation in terms of 44AD(4)