If I am not wrong, in 44AD when your profit becomes less than 6/8%, one needs to opt out from 44AD and move to 44AB for the next 5 years with the 5-year audit.
But is there any relaxation regarding the Audit rule if the person is a senior citizen and/or if someone is moving from the old regime to the new tax regime?
Hi @harsh-sharma,
Yes, your understanding is correct. If someone opts for the presumptive taxation scheme for their business under section 44AD, they need to continue with the scheme for 5 years. In case they opt out, they have to undergo a tax audit for 5 years including the year in which they opt out.
No, there’s no exception available to this rule even if one is a senior citizen. Moreover, the choice of regime does not affect the audit applicability as well.
Hope this helps!