I am a Owner of Software consulting firm will i be able to use Section 44AD for Income tax?

No you can't as the service you are providing is specifically covered under section 44ADA.

Dear Sir,

Hope you are doing well !!

A partnership firm/company developing software is eligible for section 44AD  as the activity of " software development " is a manufacturing activity resulting in intangible goods and when a thing can falls under the category of GOODS then selling of such GOODS will definitely be an activity of business eligible for section 44AD.

As you are providing consultancy services which are eligible services covered u/s 44ADA, you can not opt 44ad.

Yes you can do that but then that should reflect in your bills and GST sac code etc.

But filing return under 44AD won't give you the license to show 8% income you will have to actually incurr the expenses to claim that income and if you say you are earning less than 50% being a professional you can always get your accounts audited.

No. Your services fall under the purview of 44ADA. You can't use section 44AD even if you form a company/firm.

Please note that application of section 44AD or ADA is dependent upon nature of your services and not on type of entity 

Hello Sir,

44ADA and 44AD are applicable basis the nature of business or profession you are carrying on. 

Mere conversion of sole proprietor to Partnership will not allow any benefit transfer from one section to another.

If you wanna claim the presumptive option under 44AD, then you must design and state the object in such a way that it covers your current work and falls suitable under business covered in 44AD.

Thanks

Damini

No Sir.

Your firm will have to involve in software development activity.

Mere conversion will not help you anymore.

- Presumptive taxation scheme is available on the basis of nature of business or profession and not on the basis of the constitution of the entity.

- If you are providing software consultancy services then your are eligible for Sec.44ADA only and liable to pay tax only on 50% of your gross receipts.

The Income-tax FAQ provides that “A person who is engaged in any profession as prescribed under section 44AA(1)​ cannot adopt the presumptive taxation scheme of section 44AD.​”

IF you convert your profession into busines then you can claim 44AD.  However, the tax authorities will do detailed enquiry into the changes in the business line to claim changes in tax provisions. 

Hi,

No, you are not eligible for section 44AD presumptive tax benefits.

Hi

No ,you are not eligible for 44ad PTS.

As PTS benefits are based on nature of work done by entity,mere conversion will not help.

Such step may invite departmental inquiry.

Hope it helps