Eligibility for section 44AD?

Income Tax
1

Hi. In FY 2021-22, I filed ITR under section 44AD and declared income as 8% of turnover.

In FY 2022-23 my total taxable income was below basic exemption limit and I didn’t use section 44AD. Even if I had used section 44AD, my taxable income(8% of turnover) would be below basic exemption limit of 2.5 lacs.

Does this make me ineligible to use section 44AD for FY 2023-24 ? If so, can i use ITR-U to revise my filed return for FY 2022-23 and use section 44AD?

2

Hey @redauz,

Once you opt for the presumptive taxation scheme, you must continue to opt for 5 subsequent years. As you had opted out before 5 years, you are ineligible to opt for the presumptive scheme for the next 5 years.

Moreover, for filing ITR-U there are are certain conditions that are required to be met. Here’s a detailed read on ITR-U that might help!