Dear Sir,
Hope you are doing well !!
Yes, you should use income code 16005 Engineering and technical consultancy.
16019 income code
I m filing my itr4 under section 44ADA in professional income code16019 as textile consultant since from last three years successfully. But this time this code is not available in list of income codes under 44ADA , whilest it is now in list of 44AD section Should i use income code 16005 Engineering and technical consultancy ?
Asked 5 years ago in Income Tax
Dear sir, 44ADA for specified professionals. You are not specified professional.
So declare income u/s 44AD. On safer side declare +50% income of gross collection. Because you are under service sector.
Same way last year i had filed itr 4 of my friend who is an computer science profassional consulting in mobile app devolopments under same income head 16019 in section 44ADA successfully . This year should i use code 14002 OR 14002 OR 14005 ?
Asked 5 years ago
Dear sir earlier there used to be single code selection for 44AD and 44ADA and therefore you were able to file income under 44ADA.
Now you need to decide if you are actually providing technical consultancy then you can choose that code and file return under 44ADA or can choose earlier business code which is now under 44AD and show the profit above 50%.
Please tell your actual profession so that I can provide proper help.
No he should file return under technical consultancy as a professional.
If you need any help in filing ITR feel free to contact.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
14002 seems more relevant. Declare +50%income , since he is professional.
I m a textile engineer and providing technical services to many textile manufacturing units in plant establishment designs , suitable machinery confugeration , Erection and commisioning of ultra high speed Airjet shuttleless fabric weaving machines. Also doing maintenence / servicing overhauling of this machines. Prividing and executing retrofitting type upgradation to newer version of machines.
Asked 5 years ago
Sir, If you are constructing machines :
Construction and maintenance of industrial plants- 06007
Otherwise: (Purely service)
Engineering and technical consultancy- 16005
Sir, hope I cleared your doubt.
Yes sir you can file return as a technical consultant.
Hi,
Based on the description provided by you, the code 16005 seems to be fine.
Similarly, your friend can use 14001 if he is developing the app. However, if he is giving only consultancy relating to app then use 14002.
You can also use more than one code, if applicable.
Hi,
As per my understanding, he is providing software consultancy services so you can choose code 14002 for your friend's return filing.
Software development
14001
Other software consultancy
14002
Other IT enabled services
14005
Further, the description given by you about your nature of services, you should use income code 16005.
Hello,
According to the description given by you, you should use code 16005 Engineering & Technical Consultancy.
For your friend, you should use either code 14001, if he is into software/app development or code 14002 if he is into providing consultancy for the same.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Use income code 16005 u/s 44ADA.
Hello Sir,
Yes, you should use code 16005 for described services.
Sir,
Kindly note that definition of profession is defined under income tax act and it do not cover computer science professional or engineering professional hence in my opinion you can not claim benefit under section 44ADA, However you are eligible to claim benefit under Section 44AD since your income classified as business income allowed under section 44AD
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