Question ID :
40729
Opting of Presumptive Taxation
Mr. X who is doing trading business has filed IT returns for FY 15-16 & 16-17 under presumptive taxation. In FY 17-18, his turnover exceeded 2 crores, so he is subject to tax audit. He got books audited and filed ITR 3. Now in FY 18-19, his turnover is less than 1 crore and wants to opt for presumptive taxation. Can he file IT Return under presumptive taxation for 18-19 , as he opted out of presumptive for FY 2017-18 only because his T/O exceeded 2 crores.
Please do reply
Posted by
Gogisetti Sivaji Ganesh
on
Jul 22, 2020
Filed Under
DIRECT TAXES
No, Once Profit is declared not in accordance this Section 44 AD (1), then you can choose section 44 AD as per provision of section 44 AD (4).
Posted by
SHUBHAM SONI on
Jul 23, 2020
Answer ID :
80635
He can opt presumptive taxation in 2018-19 because he has not opted out from 44AD(1) in 2017-18.
Inference :- Tax audit was done in 2017-18 not because he has opted out from presumptive taxation but by virtue of law meaning thereby his business became a non 'eligible business' for 44AD (1) since turnover crossed two crores.
Posted by
B.CHACKRAPANI WARRIER on
Jul 23, 2020