Software business - 44ad

I have my own software development business. The business is Sole proprietership. I develop off the shelf products and also do some projects for companies .

Suppose this fictional situation

I have a few employees. My business scope is multi state. 

My gross turnover is 20 lakhs. Deducting all salaries,overheads and other expenses my income is 10 lakhs

1) Can I file my income tax under presumptive tax 44AD?

2) Since I am not a Consultant. I develop and sell products. So do I come under the "Professionals" Bracket?

3) If I can file under 44AD my deemed income is calculating 8 % of 20 lakhs it comes out 1,.60,000. I don't need to maintain books.So can I file tax return considering my Income to be 1,60,000. Is this Ok. 

Please specify the problems that may occur.

I am just starting my Business and this is a situation I foresee in the future. So I need the information.

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Replies (2)

Hi, Yes , you are eligible assesee and carrying on the eligible bussiness under the provisions of section 44AD and thus you can file the income tax return under the provisions of above foregoing section and also one thing which I would like to clarify is that above section is not applicable for professionals .

Coming to your second point Regarding Maintenance of books of account , you also need not to maintain books of account in the above case , provided conditions specified above are same and it may require certain variation with the change in condition .

Thanks Shashank, 

I think with present rules I can go with this system.. till my total annual turnover doesnot cross 60 lakhs.Is it So?

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