WHAT IS YEAR & DATE OF CONVERGENCE IN EFILLING FORM 29B

Hi Shamnhu! Here’s a clear explanation regarding the Year and Date of Convergence in e-filing Form 29B:

What is Form 29B?

• Form 29B is filed for opt-in or opt-out of the presumptive taxation scheme under Section 44AD/44ADA/44AE of the Income Tax Act for a particular financial year.

• It’s required when a taxpayer wants to declare their intention to opt for or discontinue the presumptive scheme for a specific year.

Year of Convergence in Part B or C of Form 29B

• The Year of Convergence refers to the financial year from which you want to opt-in or opt-out of the presumptive taxation scheme.

• This is the year in which the change in taxation method is effective.

• Example: If you want to start presumptive taxation from FY 2024-25, then the Year of Convergence is 2024-25.

Date of Convergence

• The Date of Convergence is the specific date on which the taxpayer's choice to opt-in or opt-out becomes effective.

• Usually, this corresponds to the first day of the financial year for which you are opting in or out.

• For FY 2024-25, the Date of Convergence would be 1st April 2024.

How to Fill in Form 29B

• In Part B or C, you specify whether you are opting in or opting out.

• Enter the Year of Convergence (e.g., 2024-25).

• Enter the Date of Convergence (e.g., 01/04/2024).

Summary