Dear Sir
Yes u r eligible for presumptive taxation scheme u/s 44AD
Yes sir u can cover it under computer & related services
Presumptive Taxation scheme under Section 44AD
I'm a sole proprietor and just a full-time freelancer web developer working on upwork.com. My total turnover is less than 50 lacks. 1. Am i eligible for presumptive taxation scheme under section 44 AD and So can I take the benefit of declaring the profit as 8% of the turnover? 2. If so then under which business code? Not sure if it covers under COMPUTER AND RELATED SERVICES-Other computation related services n.e.c.(14010). Please give a detailed clarification. Thanks.
Asked 5 years ago in Income Tax
Is it above 20 lakh?
Have you registered with GST?
If you are going for 44AD then 50 lakh won't be applicable 2 crore will be the limit.
Yes you can go for that but the actual law says 8% or actual profit whichever is higher.
Yes you can use that code.
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Thank you
Hi
Being a professional, you are eligible to claim presumptive taxation under section 44ADA. You may declare 50% of the gross receipts as income.
Section 44AD is not applicable to you.
Dear Sir,
Hope you are doing well !!
1. Yes, you can take the benefit of section 44ad.
2. Yes.
However, it is advisable to go for section 44ada (Especially for eligible professionals) to avoid future litigations.
We may assist you in entire procedure.
It is advisable to take a phone consultation for detailed discussion.
HI,
Please refer to replies inline below:
1. Yes you are eligible for presumptive taxation but under section 44ADA and you would need to declare 50% as your income as you are falling under professional category and not under business category.
2. Service Category : Software development/ Information Technology
Thanks
You will be covered under sec 44ADA. You have to consider income as 50% of gross receipts. 8% criteria is applicable for business. You will be covered under professional services. under Other Software Consultancy(14002).
Hello,
1. No. You are not eligible for Sec. 44AD. You would be eligible for Sec. 44ADA presumptive taxation @50% of the gross receipts.
2. 14001 or 14002
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hi
1. Yes You can opt for 44AD.
2. Yes.
1 Web development services falls under the section 44ADA. In such case, minimum income would be 50% of total receipts.
2. Also you are liable to obtain GST registration if turnover limit crosses Rs. 20 lacs.
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