Letter to a client on the consequences of opting out of section 44AD
Who may declare income at a percentage instead of keeping books, what the option costs when it is given up, and the five-year lock-in that turns a small business into an audit case.
- 3 pages
- 28
- Word and PDF
- 13 September 2026
What it covers
- 1Letter to a client on the consequences of opting out of section 44ADon the firm's letterhead
Read the opening
The first part of the format, as it downloads. Blanks are highlighted.
On the firm's letterhead
Date: [Date of letter] Ref: [Letter reference number]
To,
[Name of the client]
[Client's address]
Subject: Assessment year [2026-27] — proposal to declare actual profit instead of the presumptive rate under section 44AD, and the consequences of doing so