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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 (2)
Quick Summary
Report separately: use 14001 (software development) for 44ADA and 14004 (digital content/app distribution) for 44AD. Avoid a single code to ensure correct taxation and reduce risk of scrutiny.

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.

Thank you for your reply,

 

For 44Ad,

Which code i should use

14004 - Database Activities and Distribition of electronic content?

Or

09028 - Retail sale of other products n.e.c?

 


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