44ab for Software consulting business

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This query is : Resolved

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This discussion addresses whether a software consultancy business with a turnover of Rs. 40 lakhs and a net profit of Rs. 11 lakhs (27% margin) for FY 19-20 should opt for Section 44AB or Section 44ADA. The consensus is that proceeding with 44AB is permissible, especially with genuine supporting accounts, and filing the ITR before the end of the month is advised.

Rahul

Rahul (Querist)
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06 June 2020 Dear all,

For a Individual business that falls under codes 14001 and 14002 related to software development and software consultancy, having turnover of Rs. 40 lakhs and net profit of around Rs. 11 lakhs,

Can we go ahead with 44ab with actual margin of around 27% and there are genuine books of accounts supporting it.

Or is it must to file under 44ada ?

This query is for Ay 19-20. Kindly advice