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44ad urgent [software dev agency 0711]

vikram singh (Student MBA) (34 Points)

28 July 2013

Plz suggest if section 44 AD is applicable for me. In financial year 2012-2013, 1) My salary income is 10L, as I worked in software company from Apr, 2012 till Oct, 2012 2) From Sep, 2012 I started a software development services with a US based company (contract between Myself and US based Company) and hired 6 people to run the business. I also started a private limited company but there is no existing business operations happening for that pvt company. 3) Total incoming revenue from US based company is under 1 crore which has been credited to my savings account every month by the US based company. Does 44AD applies for me ?? 4) Plz confirm that this does not come under profession of 44AA(1) and so I can file under 44AD?

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3 Replies

CA Dhruva Kalamanji (Chartered Accountant ) (1996 Points)
Replied 29 July 2013

Section 44AD is applicable to "eligible assessee" carring the "elegible business" and whose turnover is less than 100 lacs

here you are disqualified because:

1). PVT ltd company will not come under the elegible business

2). Your Turnover is not less than 100 lacs

So you can not file return under ITR4S (Presumptive Income) i.e.., Section 44AD

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vikram singh (Student MBA) (34 Points)
Replied 29 July 2013

Originally posted by : DHRUVA K S
	Section 44AD is applicable to "eligible assessee" carring the "elegible business" and whose turnover is less than 100 lacs here you are disqualified because: 1). PVT ltd company will not come under the elegible business 2). Your Turnover is not less than 100 lacs So you can not file return under ITR4S (Presumptive Income) i.e.., Section 44AD

There is no Pvt Ltd company as I am directly dealign with US based client and client is paying directly into my savings accounts. I have hired 7 employees and paying them from my savings account. My turnover is also 50Lakhs ( which is less than 100 lakhs) so I should be able to file ITR-4s under 44AD.

My main doubt was if my business is OK and it does not come under profession (in that case 44AD is not applicable ). Plz confirm,

CA Dhruva Kalamanji (Chartered Accountant ) (1996 Points)
Replied 29 July 2013

Now also you are disqualified because your work is a engineering porffesion so

44AD - It covers manufactures, job workers, processing industry and wholesalers. But do not applicable on Professions like legal, medical, engineering, or architectural or accountancy profession or technical consultancy or interior decoration or any other profession notified by the board.

Therefore you can not file your return under section 44AD that is ITR4S (presumptive income)