Sec 44ad or 44ada - software development fixed price projects only

Tax queries 724 views 1 replies

Akash Gupta

Accounting

69 Points Joined November 2017

One of my clients is running a software development partnership firm.

There are no hourly or professional services offered by the company. All work is done by employees on Fixed Price projects only. Will section 44AD or section 44ADA be applicable for tax computation purpose ?

Replies (1)

MUHAMMED MOINUDDIN

100 Points Joined January 2019

u/s 44ada if annual Gross receipt from client does not exceed 50 lacks inr then the assesee can opt for presumptive scheme declared income should be 50% of gross reciept
in your case uh can opt but see to it Gross reciept not exceed 50 lacks inr