Does 44ad presumptive tax scheme require a "registered" business?

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34 Points Joined February 2019

The 44AD regulations eligibility seem to mention that the person must be an individual or HUF etc. But the title says that 44AD is a tax scheme for "businesses". I'm confused. Is it necessary for the person to have a registered business? or is "business" used as a generic term to refer to any business in general?

I run a software business where I sell custom software to people. My annual total income is less than 20L. Can I claim 44AD? or do I need to be a registered business? or do I fall under 44ADA (professional - technical consultant)? 

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On 05 February 2019 at 16:57 Report
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SEO Sai Gr. Hosp.
210821 Points Joined July 2016

Customized software would fall u/s. 44ADA.

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On 05 February 2019 at 17:24
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34 Points Joined February 2019

1] And selling of web hosting, would that be considered as an ecommerce "business"? 

 

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On 05 February 2019 at 18:08
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SEO Sai Gr. Hosp.
210821 Points Joined July 2016

It requires professional skill !!

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On 05 February 2019 at 18:19
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34 Points Joined February 2019

That's exactly what I'm trying to understand. How is it that a tailor business can claim to be a business under 44AD, but a person providing web hosting and/or website design cannot claim "business" status? 

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On 05 February 2019 at 18:24
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SEO Sai Gr. Hosp.
210821 Points Joined July 2016

May be department distinguishes it on basis of requirement of some qualification...

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On 05 February 2019 at 18:33
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34 Points Joined February 2019

That's what I'm trying to get clarified here. If I am selling software, or web hosting, then I qualify as a business or not? 

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On 05 February 2019 at 18:35
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34 Points Joined February 2019

Okay, I just found this list of eligible businesses vs profession chart given by IT department. 

Apparently, software services are included as business. 

https://buyerscredit.in/2018/06/27/itr-return-fy-2017-18-ay-2018-19/

 

COMPUTER AND RELATED SERVICES Software development 14001 Service Sector [Software development agencies] 0711
Other software consultancy 14002 Service Sector [Others] 0714
Data processing 14003 Service Sector [Others] 0714
Database activities and distribution of electronic content 14004 Service Sector [Others] 0714
Other IT enabled services 14005 Service Sector [Others] 0714
BPO services 14006 Service Sector [Others] 0714
Cyber café 14007 Service Sector [Others] 0714
Maintenance and repair of office, accounting and computing machinery 14008 Service Sector [Others] 0714
Computer training and educational institutes 14009 Service Sector [Computer training/educational and coaching institutes] 0705
Other computation related services n.e.c. 14010 Service Sector [Others] 0714

 

Someone knowledgeable please confirm if "Service sector" = business? 

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On 05 February 2019 at 21:39
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owner
286 Points Joined January 2018

Mostly services requiring any qualification or intellectual skill fall under profession.

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On 06 February 2019 at 08:34
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34 Points Joined February 2019

Thank you @ Mukesh 

I've already gone with 44ADA last year. I'll continue with that. 

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On 06 February 2019 at 10:15
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6 Points Joined February 2017
So tcs and other IT companies file under profession or business
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On 07 April 2019 at 13:57
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Job/Blogger
693 Points Joined March 2010

No

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On 31 May 2019 at 11:16
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Job/Blogger
693 Points Joined March 2010

No

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On 31 May 2019 at 11:16

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