Query regarding Business Codes for Presumptive Taxation 44ADA

Dear Experts.

I am a freelancer earning income from outside India.  All payments come to my Bank accounts through Paypal in Indian Currency. My work mainly involves  Emailing / Answering Customer related queries for a client who runs a furniture store online in US  and attending Customer sales/ complain queries through Skype calls.   My payment is given based on the number of hours I put in and also some commission if an Order goes through due to my effort of my calls.

I have been filing ITR3 all these years with usual balance sheets , books of accounts, expenses etc.  This year I plan to go file returns through presumptive income.  It does make life lot easier by not maintaining books of accounts and also saving tax.  My gross Income is about 14 - 16 lacs each year.

Can I file through Section 44ADA ?  If yes which business code should I apply under Computer and Related Services

Will it be 14003 (Data Processing)  OR  14005 (Other IT enabled Services)  OR  14010 (Other computation related services n.e.c)

Thank you all in advance.

Regards

Vikas

 

 

Replies (3)
Quick Summary
A freelancer earning income from abroad via PayPal is seeking advice on filing under presumptive taxation using Section 44ADA. Their work involves customer service and sales support for a US-based furniture store, with income based on hours worked and a commission for sales generated. They have previously filed using ITR3 but wish to simplify their tax filing. The core question is whether their activities qualify for 44ADA and which specific business code, such as Data Processing, Other IT enabled Services, or Other computation related services, would be most appropriate.

Commission income is not included u/s 44AD. For that you have to make books of accounts. 

 

Thank you.  Sorry I may have not used the right word.  Let me rephrase it as under:

My Income comprises in two parts.  One X income which is based on the hours I put daily,  Second  Y bonus income for triggering sales due to effort of my calls.  It is interconnected. 

In simpler terms, I get monthly income due to my freelancing work.of emailing, making phone calls, attending Customer queries/ complaints etc.

Thanks

Vikas

I don't think your activity falls under 44ADA.
Take benefit of 44AD.

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