Itr3 : business code 14001- software development for claiming presumptive income from profession

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Iam filling ITR3 for first time primarily for getting benefit of presumptive income tax under section 44ADA . I have pension income .5 Lac , Interest income 5  Lacs,  STCG 1 Lac, Income from website run by me as  2.84 Lacs (from google adsense).  In the Tab "P&L at  item 62, pertaining to computation of presumptive income from profession under 44ADA, I I have filled "Type of business- self owned website" and under "Business code, selected 14001- software development" so that 50% income is considered for Taxation. Is this choice (business code) OK  to claim presumptive income tax benefits  under section 44ADA. Further I have indicated Nil in sundry debtors and sundry creditors and shown cash of Rs. 15000.  I understand that since “Business code, 14001- software development" is one of the choices in the drop down box, it should be permissible for the purpose indicated above. Any opinion on this please and anything else which I need to take care.


Attached File : 1092239 20190824220214 itr3 region.pdf downloaded: 100 times
Replies (3)

Everything OK.

Advisable to choose code... 14002...

Why not choose ITR 44 AD instead of 44ADA

"Income from the website using Adsense. In this you are not selling any services"

Thanks for bringing tyhis possibility to my knowledge. 

Iam putting some recipes on the website after capturing the complete process and then presenting this to viewers in a easy to implement format with pictures. It is this that draws users to the site. Additionally I run a investment related site which involves good deal of research before writing the content. when users visit these sites for specific info, they sometimes click some links which results in adsense revenue. Last time I added the amount recvd. in my income as it was first year and paid tax on total income of 2 Lacs. Not very clear which section will be more advantageous to me as I have rather high tax liability from interest income & Mutual funds (debt-short term). As I understand 44AD is for small business, while 44 ADA is for small professionals & noth permit presumptive tax. Though I incur epenses, I donot maintain accounts. Please suggest If  I show tghe income from websites under section 44AD , what portion of income will get taxed. I also read 5 years no changeover issue but that is not much problem. Incase I show under 44AD which business code should I use and how much income at the minimum will get taxed and antyhing more that I have to fill than what I filled for 44ADA in ITR3.  As I have capital gains ITR4 is not for me. Regards.

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