{"id":1611,"date":"2025-08-23","guid":{"rendered":"https:\/\/APNOKACA.com\/blog\/?p=105601"},"modified":"2025-08-23","slug":"the-1-50-000-mistake-why-filing-under-44ad-instead-of-44ada-could-wreck-your-finances","status":"publish","type":"post","link":"https:\/\/APNOKACA.com\/blog\/the-1-50-000-mistake-why-filing-under-44ad-instead-of-44ada-could-wreck-your-finances","title":{"rendered":"The 1,50,000 Mistake: Why Filing Under 44AD Instead of 44ADA Could Wreck Your Finances"},"content":{"rendered":"\n
<\/div>
<\/i> Income tax <\/a>

The 1,50,000 Mistake: Why Filing Under 44AD Instead of 44ADA Could Wreck Your Finances <\/h1> <\/div>

This blog post addresses a common but serious error made by professionals and freelancers who incorrectly file their income tax returns under Section 44AD (for businesses) instead of the appropriate Section 44ADA (for professionals). It explains the fundamental differences between the two sections, how the Income Tax Department's AI systems detect this discrepancy through TDS mismatches and unusually low-profit declarations, and the severe consequences that follow, including mandatory audits and multiple financial penalties. The article concludes by offering a clear, step-by-step guide on what to do if you receive a notice for this mistake, emphasizing the importance of consulting a professional and taking prompt corrective action. <\/p>

<\/figure> <\/div> <\/div> <\/section>
<\/div> Krishna Gopal Varshney <\/a>

An editor at Myitronline<\/p> <\/div>