Nature of business for web development freelancer under 44ada

ITR 8917 views 13 replies

Udit

Self Employed Freelancer

27 Points Joined June 2018

Hi,

I am a web developer, working as freelancer, and all my payments are digital transfeered to my account directly.

In previous FY 2016-17, I filled ITR-4 with presumptive taxation under 44ADA, by selecting Nature of Business as "0607-Professionals-Others", and delcaring 50% of my income.

But in new ITR for FY2017-18, I can't see the same code/nature of business to select in ITR-4, and I want to go with same 44ADA to avoid keeping accounts and audits.

Can someone guide me to select proper NOB which are eligible with 44ADA for the same?

Thanks in advance.

Replies (13)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208062 Points Joined July 2016

Other IT enabled services ............ 14005

Other software consultancy ....... 14002

Udit

Self Employed Freelancer

27 Points Joined June 2018

Hi Dhirajlal Ji,

Thanks a lot for your response.

I just want to reconfirm if the NOB you mentioned above are eligible under 44ADA to declare 50% of income? Because previous FY, initially I have selected the code "0709-I.T. enabled services" and I received defective notice 139(1) from IT and then I need to select "0607-Professionals-Others" and respond to that notice which worked then.

So I want to ensure this time before selecting NOB to opt for 44ADA

Thank you.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208062 Points Joined July 2016

This year IT based services have been totally seperated, and not clasified w.r.t. the profession u/s. 44ADA, (as were clasified last year). Base on your qualification, it should be accepted.

Udit

Self Employed Freelancer

27 Points Joined June 2018

Great, thanks a lot!

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208062 Points Joined July 2016

Welcome.........

Well, TDS u/s. 194J itself qualifies professional services...... and ......

In case of any such objection .......... following code can be changed, (which is not IT specific)

Other professional services n.e.c. ............ 16019

CA S Praveen Kumar Reddy

Chartered Accountant

2195 Points Joined December 2014

Rambia sir is correct

P Awasthi

6 Points Joined July 2018

Hi Udit, Finally which code you used? 14005 or 14002 or 16019 for freelance(web development) to declare 50% of income. I have also same concern.

Udit

Self Employed Freelancer

27 Points Joined June 2018

I will be using => Other professional services n.e.c. ............ 16019

ANKUSH SULTANIA

Management Accountant

27 Points Joined August 2011

hii udit..can you please give me ur contact number since im facing the same situation as i have received a notice from IT dept with respect to defective return..or else call me at 8240924933 whenever ur free..waiting 4 ur response..thank you

Kiran

Engineer

31 Points Joined March 2019

Hi Ankush and Udit,

It would be great help if you share us what worked for this this time AY 2018-19. I have selected 14005 and 14006 NOB under 44AD section and received the 139(9) notice with 86 error code.

Thanks