44ada to normal return
NICSON JOHN (514 Points)
21 December 2021NICSON JOHN (514 Points)
21 December 2021
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178169 Points)
Replied 21 December 2021
For opting out of sec. 44ADA and again opting in, there is no restriction like that in sec. 44AD.
So, no audit applicable if 50% or more margin is declared under normal assessment.
NICSON JOHN
(514 Points)
Replied 21 December 2021
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178169 Points)
Replied 21 December 2021
Your original query is for section 44ADA........... and not for sec. 44AD...
Both sections are different.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178169 Points)
Replied 21 December 2021
The five year rule applies to sec. 44AD (6/8% margin) which is applicable for eligible businesses.
The same (5 years rule) is not applicable to sec. 44ADA (50% margin), which is applicable in case of specified professions.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178169 Points)
Replied 22 December 2021
For specified professions sec. 44ADA can be opted. Eligible for total receipts upto 50 lakhs.
There is no restriction of 5 years for such profession under sec. 44ADA. They can opt in and out of the presumptive assessment without any restriction every next AY.
Only restriction is minimum 50% profit margin, otherwise audit u/s. 44AB(d) of IT act.