Yes, you can do so. There is no bar on that.
Presumptive income 44ADA along with director's renumeration
I'm a self employed professional(Software developer), and also director in a private limited with 50% share holding. My private limited company also provides software services. I've received income of 50 lakhs in my personal account for software services(In self employed capacity), rest of the business I did through the private limited company. I'm planning to take some director's renumeration from the private limited(amount is flexible here, can do from 0 to 10 lakhs). Will I be able to use 44ADA for my professional income(Showing 25 lakhs as profit), while still being director in a company? Which ITR form I need to file? I was suggested by a CA that a director in a company can't use 44ADA for any other income. I'm trying to confirm how correct it is. I hope it isn't :)
Asked 4 years ago in Income Tax
Yes, you are eligible to use section 44ADA for your software development services. You cant use 44ADA for the director remuneration of 10 lacs.
There is no such rule that a director cannot use 44ADA. We have done these filings for our other clients.
Please feel free to reach out/ take a phone consultation if you nees any assistance in return filing.
Thanks. Which ITR form to file in this case?
Asked 4 years ago
You will have to file ITR 3
Definitely you can use 44ADA, However you have to file ITR 3
- Director remuneration will be treated as salary due to employee and employer relationship. TDS will be deducted by the pvt. ltd company on your remuneration part.
- For software services, you can avail benefit of section 44ADA. If the services are provided to Indian company then TDS u/s 194J should have been deducted.
- ITR-3 is applicable.
- GST is applicable in your case as the turnover is more than Rs.20 lacs.
ITR4
Yes you can show 50% as income under 44ADA.
You will have to file ITR 3.
You can use 44ADA but you have to file ITR 3.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
Yes you can take benefit of section 44ADA. But
On director remuneration it is not applicable
Hi
ITR 3
Hello,
Yes, you can use Sec. 44ADA for your professional income.
Director's remuneration would be declared under the salary head.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
ITR-3 would be filed.
According to me there is no such restriction. You can file return under Sec 44ADA ITR will be ITR 4.
Dear Sir,
Hope you are doing well !!
Yes, you can take the benefit of presumptive taxation scheme u/s 44ADA.
We may assist you for the same.
You will have to file ITR 3.
can opt 44ada for professional service as software developer & show director fee as income from other sources itr 4 can be filed
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