Query regarding 44AD and getting barred u/s 44AD(4)&(5)

Taxation
1

My income as stated in 26AS for 2025-26

  1. Salary - 15,00,000.00 (u/s 192)
  2. Other income - 2,00,000.00 (u/s 194C - as a part of tutoring in an online platform)

My queries:

  1. In the year 2025-26 i had income [u/s] 194C along with 192 in 26AS, so i filed ITR-4 with salary and 44AD (for 194C) under income from business, choosing business head 17006.

  2. Suppose the next year i.e. 2026-27, i have income [u/s]192 only and not 194C, so can i now file ITR-4 [u/s] 44AD with ₹0 as gross turnover and profit? Will it not bar me [u/s] 44AD(4) and penalise [u/s] 44AD(5) for opting out?

  3. If in the same year, i filed ITR-1 as i have income only as salary income, will it assume me opting out of presumptive income u/s 44AD? Also, the next year i.e. 2027-28, if i now have income [u/s] 194C again and 192, will i still be able to file ITR-4 [u/s] 44AD?

Please help.

2

@Quicko

3

Hello @harshwardhan_parihar

  1. No we would not be penalized under any section 44AD becuase it gets applicable only when if a person have a business income and he does not opt for presumptive scheme.
  2. No it will not be assumed as opting out of presumptive as the primary condition is to have a business income and if next year we have income under business / profession and TDS deducted under 194C we can opt for presumptive scheme.

Thanks

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