• Nature of business codes under 44ADA

Can you please provide the list of "Nature of business codes which come under 44ad" for filing the income tax return.
Does "14001 - Software Development" come under Section 44AD?
Also, nature of business codes which come under 44ada.

Thanks
Asked 6 years ago in Taxation

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12 Answers

Under 44ADA is for professional presumptive income.The professionals it covers are 

  • Legal
  • Medical
  • Engineering
  • Architectural
  • Interior decoration
  • Accountancy
  • Technical consultancy
  • Film artists(anyone engaged as a professional in the film industry.
  • a) Authorized representatives

    b) Film Artists

    c) Certain sports related persons

    d) Company Secretaries and

    e) Information technology

The software development business is not under the list if there is technical professional then it would be under that.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Sir any business except the 

a. Life insurance agents

b. Commission of any kind

c. Running the business of plying, hiring or leasing goods carriages

Can opt for the presumptive taxation scheme under 44AD and can file returns for same if the annual turnover is less then 2 crore. So if you have filed returns under business and opted for presumptive scheme for business then the code shall be covered.

The ist of codes is for filing returns in any category and the list is as mentioned below 

https://www.google.com/amp/s/taxguru.in/income-tax/business-codes-itr-forms-ay-201819.html/%3famp

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Under Section 44ADincome would be presumed to be 8% of the total turnover of the assessee, only if the total turnover of the assessee is less than Rs. 2 Crore. In case the total turnover, of the assessee is more than Rs. 2 Crore, income would be computed as per the normal provisions of the Income Tax Act.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

It applies to software development.


It should be Mde clear that presumptive taxation is not applicable on LLPs and  private limited companies but only on firms.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

44ADA Covers 

 

Legal profession 16001

Accounting, book-keeping and auditing profession 16002

Tax consultancy 16003 

Architectural profession 16004

Engineering and technical consultancy 16005

Interior decoration 16008

Medical profession [deleted]


Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

Software development does not come under section 44ADA 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

Section 44AD applies to all businesses except the business of plying, hiring or leasing goods. Section 44AD won’t apply in case of plying, hiring or leasing of goods as these have already been covered under section 44AE.Section 44AD wont apply in case of Agency Business as well as in case of a business earning income from Commission or Brokerage.As Section 44AD specifically mentions the word business, therefore section cannot be applied in case of professionals.Section 44AD only applies in case of Individuals, Partnership & HUF provided they are Resident in India. This section does not apply in case of Limited Liability Partnerships as they have been specifically excluded from this section.

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Please find the same at the following link: 

 

https://taxguru.in/income-tax/business-codes-itr-forms-ay-201819.html

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

I hope your query is resolved 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Other IT enabled services ............ 14005 Or Other software consultancy     ....... 14002

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

44ADA Covers 

Legal profession 16001 Accounting, book-keeping and auditing profession

16002 Tax consultancy 16003 

Architectural profession 16004

Engineering and technical consultancy

16005 Interior decoration 16008

Medical profession [deleted]


 You may refer from above whether your category falls under the above.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

The list of businesses have been given in the previous post, you may refer to that

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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