Hi everyone!
Let me accept beforehand I have been very lazy in tax issues.
My return in financial year 20-21 was filed by my CA after audit recently. It’s very stupid from my side to admit that I didn’t check the final details before filing, and now I feel a lot needs to be rectified and want my CA to file a revised return.
Can I take help of section 44ADA for presumptive income from business for revised return (fulfilling other criteria) now, considering my original return was an audited one?
Can I also use section 44AD to declare income from trading (simultaneously with section 44ADA)? In my original audited return trading income was clubbed with business and profession.
Just for clarity, I will also be showing income from salary.
Yes, you can file the revise return under presumptive taxation scheme - Section 44ADA. IT department will consider the latest return filed.
However, you MAY get a notice under Section 142(1) enquiring the same. At time point of time - you need to respond to it.
Yes, you can file a revised ITR with presumptive taxation even if the original return was an audited one as the revised ITR will substitute the original return once it is filed.
Further, 44ADA defines some Professionals who can opt for the presumptive scheme and 44AD is for business with turnover up to INR 2 Crore. Therefore you can use 44AD and 44ADA simultaneously together in one ITR.
One more query.
If some one using section 44AD, opts out of it and goes for audit, he/she cannot use 44AD again for next five years.
Does this apply for 44ADA as well? I couldn’t find such a clause with 44ADA, but it is very well present for 44AD.
Thanks