New business codes

ITR1

sir,  you mean, we can fill 96000/- in ifos in itr-1 without any 16a or 16. deduction.

Yes, at least in this case there is no other alternative.

thanks so much sir, u cleared everything.

Business code 21008 is cover under section 44AD or not?

Bluntly NO. Its generalized code; cannot specify exact nature of service/s.

Hello

While Filing returns till AY 17-18, we used the code "0505-Contractors-Others" But now since the codes have changed we want to know what is the new code for Contractors?

Our nature of business is we get contracts related to online activities (such as data entry) and we execute them

We also want to ascertain if the chosen code falls under 44AD as last year, we used 0505 and did not have any problem

Dhirajlal Rambhia  Sir

You are doing a great job in helping assesses. Pl help in my post above and below -- Both our assesses have filed last year with Section 44AD and need a new business code now.

Assesse 2: Deals with Computer and Server Maintenance Activity. Need to know Business Code and if the same falls under Section 44AD 

This is very common problem for all the professional services covered under sec. 44AA, whether carried over by professionals or any non technical persons as business, (specifically after introduction of section 44ADA).

ITD has categorized these codes based on professional services, leaving any chance for businessman. So, only way out for them is to file return under normal assessment. Though ICAI has raised some queries in this directions, but ITD has not yet acted upon it.  .......... So, till the issue is settled, none would be able to help you.

Selection of business code is not based on sec. 44AD or sec. 44ADA applicability, but based on activity carried by you. So, any wrong selection of code may drag you to misreporting!!

Sir,

The assesse is involved in the following functions

"Server Leasing and Monitoring and Providing to the same to 3rd parties for use" - He is not a professional but a business person who maintains multiple servers. 

Can he choose the business code 14008 to avail Section 44AD?

The reason I am asking this question is because of a communication 139(9) from CPC which mentions

"As seen from the return of income filed, the nature of business code mentioned is which falls in the categories mentioned above. Hence, the provisions of Sec.44AD are not applicable, in your case."

The code that was chose earlier was 14002 (as were unclear of the type of business) but now that there is clarity we want to reconfirm before refiling the ITR

This is the common defect massage received by all those who opted presumptive assessment u/s. 44AD, having professional service activity. Department has not categorized any codes for 44AD and 44ADA separately. Only customer care can help to clarify on the issue.

Thank you Sir 

So in your opinion if my client has a business involving Server Leasing, Server Maintenance then would you say, my client is a professional and cannot opt for 44AD?

Hello Sir, Can you please let me know the 'Business Code' to be used in case of 'Money Lending Business'? I am an individual doing money lending activities by taking money lending license. 

My gross receipt is around 4L, income from salary, income from sale of mutual fund... can I file ITR4?

Thanks in Advance, Sir :)

@ Dilip Jain ...

There are different codes like 13003,13004,13005,13006,13010 etc. for finance and leasing activities. You can choose most suitable to your parameters.