Provide Digital Marketing Services to my clients in US, Should I opt for 44AD or 44ADA?

Since it is professional services, you can claim 44ADA not 44AD

Hello,

As a digital marketing expert offering services like managing Google Ads, Facebook Ads, and Social Media Marketing, you fall under the 'professional services' category, which is covered under Section 44AA of the Income Tax Act of India. Therefore, you should opt for Section 44ADA for presumptive taxation, not Section 44AD. Section 44ADA applies to professionals and allows for 50% of your total gross receipts or turnover to be considered as your income for taxation, provided your total turnover/gross receipts do not exceed ₹50 Lakhs.

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Thank you.

Shubham Goyal

You are eligible to opt for presumptive taxation scheme u/s 44AD subject to fulfillment of the conditions of the section 44AD. 44ADA is applicable to specified professions. IT services includes software development, software consultancy or any other IT services which needs special knowledge 

Also check GST liability. If turnover exceeds Rs. 20 lacs in a financial year then it is mandatory to obtain GST registration

For detailed discussion you may opt for phone consultation

Can you please clarify how is your service under IT service and where in 44AA(1) there is IT services covered?

I think there is just engineering service.

I think you would be eligible for 44AD.

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Thank you.

IT services are not defined. Profession implies professed attainments in special knowledge as distinguished from mere skill; special knowledge which is to be acquired only after patient study and application 

For determining whether to opt for Section 44AD or 44ADA under the Indian Income Tax Act, consider the following:

1. Since 'IT Services' is not explicitly defined in the Act, and digital marketing could potentially fall under this category, it's ambiguous whether your services align with the specific nature of 'IT Services' listed under Section 44AA.

2. Given your GST registration and fulfillment of other conditions for Section 44AD, you might lean towards this option. However, the professional nature of your services might be more aligned with Section 44ADA.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Dear sir,

In my opinion this is not IT services and for providing such professional service the person providing it should have a professional degree in same in my understanding.

Regards.