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Opting for 44ad this year

NICSON JOHN (514 Points)

13 November 2021

I filed return last year as business income not opting for 44 ad.but this year l want to file in 44ad.can I file??

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 13 November 2021

What is your turnover??

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 13 November 2021

If you file return under 44AD this time then you need to file return for next 5 years under 44AD else need to get accounts audit for next 5 years. so choose wisely.

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 14 November 2021

Yes agree with abhay sir

NICSON JOHN (514 Points)
Replied 14 November 2021

L want to declare profit above 60% can l file return without opting for 44ad. last year l filed like that.l have turnover less than 1 cr

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 14 November 2021

If this is the first time you are opting for 44ad then you may opt for it and declare higher profits too. 44ad is not compulsory in nature.

But, within last 5 years, if you had opted for 44ad then you'll not be able to opt for it till you complete a cooling period of 5 years.

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Vishal Manakshe (299 Points)
Replied 15 November 2021

If your books are maintained properly, and profit is above prescribed limit as under sec 44AD/ADA, then it is preferred to not to opt 44AD.

If you choose to file under 44AD, then you have to continue filing in that sec only life long, but if you break in between any AY, then you can not opt before 5yrs beginning from that AY.

So, if your T/O and profits are according to the limits, I would say not to opt 44AD.