• Presumptive taxation: 44AD or 44ADA

I provide equity research / industry research services. I believe I can use presumptive taxation for my income. I want to know whether this comes under 44AA(1) or not in order to determine whether I can use 44AD (more beneficial as the income is 6% of turnover) or file under 44ADA. What would be right business head for my income - 
16012 (Market research and public opinion polling), 
16019 (Other professional services n.e.c.) or 
14010 (Other computation related services n.e.c.) or something else?

Is there a possibility that it gets classified under 16005 (Engineering and technical consultancy) in which case 44ADA will be applicable.

Thanks
Asked 3 months ago in Income Tax

It should be 44ADA and under 16012

Vidya Jain
CA, Kolkata
941 Answers
41 Consultations

4.8 on 5.0

Do you have a vocational degree for providing such service.

Based on the above details do you issue bill as consultation charges or you charge fees as commission?

If you have any vocational training this could fall under technical consultancy and if you don't charge commission.

You can use 16019 code.

 

Hope you find the information helpfull if you do please rate it 5 and in case of any further discussion you can book consultation.

Thank you

Naman Maloo
CA, Jaipur
3791 Answers
45 Consultations

5.0 on 5.0

- Yes you can avail the benefit of presumptive taxation scheme if you are resident and gross receipts is within the limits of the section. You can avail the benefit u/s 44AD.

Vivek Kumar Arora
CA, Delhi
4063 Answers
338 Consultations

5.0 on 5.0

Hello,

 

You can declare it under Sec. 44AD presumptive taxation scheme.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2555 Answers
9 Consultations

5.0 on 5.0

In my opinion, you will not be eligible for section 44ad. However you can opt for section 44ada. 

 

The selection of business head is a subjective exercise and based on the information provided by you, I feel code 16012 seems more appropriate.

 

No, it cant be classified as engineering or technical services

Lakshita Bhandari
CA, Mumbai
5460 Answers
539 Consultations

5.0 on 5.0

You will be covered under 44ADA. You can classify under 16019.

Ruchi Goel Anchal
CA, Gurgaon
443 Answers
5 Consultations

5.0 on 5.0

you can select business code 16012. primary question is whether you can avail section 44AD or 44ADA?. business code is secondary. 

Vivek Kumar Arora
CA, Delhi
4063 Answers
338 Consultations

5.0 on 5.0

No not as such

Vidya Jain
CA, Kolkata
941 Answers
41 Consultations

4.8 on 5.0

According to me 16012 relates more to market survey of some product or something like that.

 

There is no such list and one needs to go with its interpretation and understanding.

 

 

Naman Maloo
CA, Jaipur
3791 Answers
45 Consultations

5.0 on 5.0

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