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Software business - 44ad or 44ada

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Querist : Anonymous

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Querist : Anonymous (Querist)
17 September 2018 Hi, I'm an individual software developer working for overseas clients. My annual receipts this financial year(2018-19) may be around 60 lakhs, but definitely above 50 lakhs. Thus I can't use 44ADA, which I have been using since last 2 years. My expenses related to profession are not more than 3-4 lakhs a year.

My question is, can I incorporate a small company, and use 44AD. The business is software development and I work independently(not under any company). I can hire an employee and deduct TDS if need be to strengthen the case for 44AD.

Is this possible? Can software work come under business rather than a profession.

Thanks.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 September 2018 Company can't claim 44AD.
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Querist : Anonymous

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Querist : Anonymous (Querist)
17 September 2018 Thank you Ca R Seetharaman. I'm not inclined towards incorporating a company. Can I use 44AD in any way? What are the requirements to be considered a business for tax purpose(as opposed to professional)?
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Aashok Kumar Sharma

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Aashok Kumar Sharma (Expert)
25 July 2025 https://docs.google.com/document/d/1T7ZuVH-R2Hvlb1kBcL769E8uxh19m9Y-o6xo77CrieA/edit?usp=sharing
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