Option to file return u/s 44AD

Follow 2 Replies

Neethi V. Kannanth (.) 27 March 2021

The assesse had filed return for the F.Y 2018-19 by opting presumptive basis u/s 44AD. However, in the F.Y 2019-20, the assesse's turnover crossed Rs. 2 Crore and could not file return opting presumptive basis as he became ineligible. Can the assesse, again opt for filing return u/s 44AD if the turnover is less than Rs. 2 crore during the F.Y. 2020-21 as he did not voluntarily opt out of presumptive basis in the F.Y 2019-20?

Sourav (Student) 27 March 2021

No, he cannot opt for presumptive taxation as he has already crossed the threshold limit in FY 19-20 as under presumptive taxation if opted then it should be maintained for 5 years and if in between the turnover crosses the limit then it will be ineligible for again opting 44AD