44ADA (software) and 44AD (app sales on store) which business/profession codes should use?

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I am sole proprietor i am filing under presumptive income tax act.

If I file under 44ADA for client software development and under 44AD for App Store app sales (with 194O TDS), which business/profession codes should I use for each respectively?

For client software development under 44ADA, I understand 14001 – Software Development is appropriate.

For app store income under 44AD (with 194O TDS), which code should I use:

• 14004 – Database activities and distribution of electronic content, or
• 09028 – Retail sale of other products n.e.c.?

Or should I use a single code for both?

Please advise.

Replies (1)

No. It is better to list them separately. If you use only 14001, you would be forced to pay tax on 50% of your App Store income, which is tax-inefficient. If you use only 44AD, you risk a notice from the department because software development for clients is legally mandated to be under 44ADA if your gross receipts are below the threshold.


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