I am a software developer. I make and publish apps in the Google play store.
My main source of revenue is from the sales of my apps and revenue from Ads.
I have learned that Google Adsense income comes under Business and not a profession.
- So can I opt for 44AD instead of 44ADA?
- Or should I show both separately like 44AD for Advertising Income (Business code 16006 - Advertising) and 44ADA for sales of the app (Business code 14001 - Software development)?
Thank you.
| Originally posted by : sabyasachi mukherjee | ||
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Sec 44ADA AND SEC 44AD DEALS WITH THE FOLLOWING:1. The assesse is resident and engaged in a profession referred to in Sec 44AA(1)2. GROSS RECEIPTS OF THE ASSESSE DOES NOT EXCEED RS.50 LACS3. ALL DEDUCTIONS FROM SEC 30 TO 38 ARE APPLICABLE4. THE WRITTEN DOWN VALUE IS CALCULATED FROM SEC 30 TO SEC 38 INCLUDING DEPRECIATION SEC 44AD 8% OF THE TURNOVER. |  |
The first line of your copy-pasting job does not reconcile with the rest of it. Nor does it remotely address the query!
Now, to answer the actual query, this income from software development will almost certainly be considered as professional income and subject to 44ADA and a 50 lakh gross receipts.
As for the revenue from Google, your situation may be different, but typically this will be incidental to your primary income generating activity.
I have read / heard of people returning part of their income under one section and another part under another section to take the most advantage of tax rates, but it's not something I can comment on with any certainty.
| Originally posted by : JJJ | ||
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Originally posted by : sabyasachi mukherjee Sec 44ADA AND SEC 44AD DEALS WITH THE FOLLOWING:1. The assesse is resident and engaged in a profession referred to in Sec 44AA(1)2. GROSS RECEIPTS OF THE ASSESSE DOES NOT EXCEED RS.50 LACS3. ALL DEDUCTIONS FROM SEC 30 TO 38 ARE APPLICABLE4. THE WRITTEN DOWN VALUE IS CALCULATED FROM SEC 30 TO SEC 38 INCLUDING DEPRECIATION SEC 44AD 8% OF THE TURNOVER. The first line of your copy-pasting job does not reconcile with the rest of it. Nor does it remotely address the query! Now, to answer the actual query, this income from software development will almost certainly be considered as professional income and subject to 44ADA and a 50 lakh gross receipts. As for the revenue from Google, your situation may be different, but typically this will be incidental to your primary income generating activity. I have read / heard of people returning part of their income under one section and another part under another section to take the most advantage of tax rates, but it's not something I can comment on with any certainty. |
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So can I classify my Google Adsense income as 44AD?
My primary income generating activity is Ads by Google Adsence and other Providers like Google. so can I opt for 44AD?
| Originally posted by : Eswar Reddy S | ||
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To opt for Presumptive Taxation one must ascertain whether it is business or profession.After this , one has to findout whether it is eligible business or profession for 44AD/ 44ADA | |
That is the Issue here. My Income stream comes from both Business and Profession.
Software Development comes under Profession. Ad revenue from Google comes under Business Income. So my doubt is should I go with 44AD or 44ADA or Both?
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