MSME Certified Income Tax Live Batch to commence from 21st January 2022. Limited Seats. Register Now!!

taskopad

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Can a Proprietorship firm doing Software Development business opt 44AD

This query is : Resolved 

22 November 2021 Can a Proprietorship firm doing Software Development business with 20+ employees file returns under section 44AD?
Turnover is less than 2 Cr.
Will it be considered a profession under 44ADA? or can it be considered 44AD as a business?
If 44AD, and if books of accounts are NOT maintained, then how will one answer in case of any query from department?

22 November 2021 Whether the software is developed as per customer's requirement?

22 November 2021 Yes sir, it is developed as asked by Customer

22 November 2021 It means the customers must be deducting TDS u/s. 194Jb?

22 November 2021 Yes sir, TDS is deducted under 194Jb

22 November 2021 So no question of Sec. 44AD; and as per turnover you have crossed 50 lakhs, so sec. 44ADA is also out question.
File ITR 3 under regular assessment.

30 December 2021 Noted sir, But for this same case, what would be the limit for Tax audit? Propritorship, Software Development, All transactions are digital.

30 December 2021 For professional income the tax audit limit is Rs. 50 lakhs.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


Similar Resolved Queries


loading





expand_less