Software application sold

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 A person who is having proprietorship of information technology has made an application and sold it out in Rs. 20,000,00/-
so, my question is, in which head this income will be shown?

AVTAR SINGH

AVTAR SINGH (Expert)
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24 February 2014 Show it under the head 'Income from Business/profession'

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 REASON & REFERENCE !!!

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AVTAR SINGH

AVTAR SINGH (Expert)
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24 February 2014 When he is engaged in the business of IT and has made an application during the course of his business, the revenue generated are to be taxed as business income.

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2014 How will you determine the cost for tax purpose?

AVTAR SINGH

AVTAR SINGH (Expert)
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26 February 2014 The expenses incurred to develop the Application, like salary paid, office rent, or all other expenses which were incurred for development of such application are deductible from the amount received on sale of Application.