Hi, we are a partnership firm and we provide digital marketing services to our clients also we provide website development services. Are we eligible for 44AD or not? Also, we are a business or professional. Please clarify with reason. Thanks in advance.
Both the services provided by you would be considered under business in income tax and therefore you are eligible for 44AD.
You don't fall in the list of professional mentioned u/s 44AA.
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Hi,
Digital marketing services and website development services would be considered as business income and you will be eligible for 44AD.
Thanks for your reply. If yes, what are the codes to be used. My CA here is saying that it's not a business as per income tax rules. As per S. 2(13) of the Income Tax Act, 1961, unless the context otherwise requires, the term “business” includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. So, he is saying that a good and the services rendered related to that will be business nothing else. A lot of confusion... Don't know what is correct. Please help with details.
Sir 44AD not only covers business but also service because 44ADA covers only professional and 44AE plying business so other than that everything will be covered under 44AD.
Specified professionals are defined by section 44AA which are entitled for the benefit u/s 44ADA. Apart from that everything is business though it falls in the definition of profession. One can not say that only goods are business. To determine business there are several predominant factors i.e. frequency of activity, profit motive, volume of activities etc.
You will not get covered under section 44AD . But you can get covered under section 44ADA ( Technical Assistant)
Technical Assistant - because it is not everyone who can provide Digital marketing services, you need to have technical expertise for such business services.
Dear Sir,
Hope you are doing well !!
Yes, you are eligible for 44AD.
It will treated as business income.
Hello,
Yes, you are eligible for Sec. 44AD presumptive taxation.
IT will be considered as a business income.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
You should use code 14005.
Hi,
The description provided by you falls within the ambit of section 44ADA and not 44AD.
You are a professional.
Sorry for previous answer.
Your services are covered under the definition of profession.
You are eligible for section 44ada.