Question on presumptive taxation (44ad and 44 ada)
Hello,
1. In FY 20-21, I provided technical consultancy to a couple of India based firms, gross receipts about 27L.
2. In addition, I conducted online classes to teach computer programming, gross receipt about 5 L.
3. I am thinking of availing the presumptive taxation under section 44ada for the technical consultancy business.
Questions:
1. Can I include the online classes also under the same 44ada?
2. Can I treat the classes as a separate business and pay tax according to 44ad? Which means I will have both 44ada and 44ad, is that allowed? (I see itr3 does not seem to restrict, but not getting a clear answer if it is ok from the rules perspective)
3. Can I view the online classes as IT enabled services? Or what code should I use?
4. If I cannot use both 44ada and 44ad simultaneously and I can also not add the classes to the list of professions allowed under 44ada, what other options do I have? Should I report the online classes as other income? In that case, do I get to subtract the expenses?
Whichever way I think, the absolute numbers we are talking here are not very large, but just trying to figure out what the right way of doing this is?
Thanks in advance
Vineet