Revisiting applicability of 44ad in software development

Sec 44AA enlists professionals including engineers. What the logic says is even a software developer is similar as a software engineer. So you are a professional as per this. Now sec 44AD which allows 8% of sales as presumed profits specifically excludes professionals to offer income under this category. The law is clear a d strict. You cannot offer 8% of sales as income. You have to maintain books of accounts and also file return of income in ITR-4. However you can select "No accounts case " through which you need not submit entire detailed balancesheet and profit/loss account. You need to submit only 8 items. But you cannot escape maintaining books of accounts. E : rajcdoshi @ gmail.com

Section 44AD: Legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified*.

*Notified professions: 

Profession of authorised representative; and

Profession of film artist (actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen play writer, dialogue writer and dress designer)—Notification: No. SO 17(E), dated 12-1-1977/

Profession of Company Secretary—Notification: No. SO 2675, dated 25-9-1992/

Profession of Information Technology—Notification: No. SO 385(E), dated 4-5-2001.