As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying on any agency business.As seen from the return of income filed, the nature of business code mentioned is 00711 Software development agencies, which falls in the categories mentioned above. Hence, the provisions of Sec.44AD are not applicable, in your case.
I can not audit profit and loss because my turnover below 10 lakh. Actually I'm freelancer and work online and get some money. Let me know how to respond income tax notice. or need to change nature of business selected? I hope to get some advice here...
26 October 2017
Thank you Raja Sir!! I have another queries about this.
Which ITR form used ? I means ITR 4 or 3. My annual turnover are not more than 10 lakh and I have sole proprietor. Its need to audit profit and loss. ?
26 October 2017
No need Audit... You ll be file Regular return the you can use ITR 3... In case you ll be going Presumptive Scheme you can use ITR 4 (u/s 44ADA - 50%)
CAclubindia
