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.
7 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 27 March 2021
Yes he can opt 44AD as it is to be maintained for 5 years
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 27 March 2021
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.
Kapadia Pravin
(17264 Points)
Replied 27 March 2021
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
Amit Jain
(Proprietor )
(538 Points)
Replied 27 March 2021
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.
anil jain
(Partner)
(1072 Points)
Replied 28 March 2021
Absolutely, he can opt sec 44AD presumptive taxation scheme in 2019-20.
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