My business income from profession till FY2021-22 was less than 50 lakh and I was availing the provision of presumptive income. During Fy 2022-23 it will be 53 lakh hence I am required to submit audited books of account. Now from the FY 2023-24, this limit for the presumptive income is raised from 50 l to 75 lakh. My business income during 23-24 is likely to be in the range of 54 lakh. I want to know whether I can shift to presumptive income in 23-24, even when I had submitted audited books of account during 22.23.

Ans: Dear Mahesh,

Thank you for reaching out with your query. I understand that you were previously availing the provision of presumptive income under section 44ADA, and your business income increased to ₹53 lakh in FY 2022-23, requiring you to submit audited books of account. Now, as the limit for presumptive income has been raised to ₹75 lakh in FY 2023-24, you are wondering whether you can shift back to the presumptive income scheme.

Based on the amendment in the Finance Bill 2023, which raises the limit for presumptive income under section 44ADA from ₹50 lakh to ₹75 lakh, you will be eligible to opt for the presumptive income scheme in FY 2023-24, provided your income stays within the new limit and you meet the other conditions mentioned in the amendment.

As your projected income for FY 2023-24 is ₹54 lakh, you should be able to shift back to the presumptive income scheme, even if you had submitted audited books of account for FY 2022-23. Please note that you must also ensure that the cash receipts do not exceed 5% of the total gross receipts for the year, as stated in the amendment.

I hope this helps clarify your query.

Best regards,