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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CAclubindia
